AMD revenues, profits down, but still in the black

Well, AMD has some good news and some bad news in its freshly released quarterly results announcement. The good news: AMD didn't lose any money in the second quarter. And the bad news: the company's revenue, profits, and gross margin were all down compared to the same quarter a year ago. See for yourself:

  Q2 2011 Q1 2012 Q2 2012
Revenue $1.57 billion $1.59 billion $1.41 billion
Net income $61 million -$590 million $37 million
Gross margin 46% 2% 45%

This shouldn't come as a surprise if you've kept up with AMD news, of course—the chipmaker announced last week that Q2 revenue would fall short of expectations. True to the revised guidance, revenue ended up dropped about 11% sequentially, despite previous predictions of a 0-3% increase.

AMD CEO Rory Read blames the poor results on "overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe." He adds:

We are taking definitive steps to improve our performance and correct the issues within our control as we expect headwinds will continue in the third quarter as the industry sets a new baseline. We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs). Our recently launched Trinity APU continues to gain traction with customers. We are committed to driving profitable growth.

It looks like AMD's graphics products fared better than its processors. The chipmaker says its Computing Solutions business saw a 13% revenue decrease from $1.20 billion to $1.05 billion, while its GPU sales were flat compared to last year, staying put at $367 million. GPU average selling prices (ASPs) increased year-over-year, too, while microprocessor ASPs fell.

Looking ahead to the ongoing quarter, AMD forecasts a revenue decrease of "1 percent, plus or minus 3 percent."

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