AMD reports $181 million loss for Q2

AMD has posted its Q2 2015 financial results. The company reported revenue of $942 million and an operating loss of $137 million. Gross margins dropped 10% year-on-year, and the company lost 23 cents per share. Here are the company's GAAP results, in tabular form:

  Q2 2015 Q2 2014 Change
Revenue $942 million $1.44 billion down $449 million
Operating income -$137 million $63 million down $200 million
Net income -$181 million -$36 million down $145 million
Earnings per share -$0.23 -$0.05 down $0.18
Gross margin 25% 35% down 10 points

AMD pointed to weaker-than-expected consumer PC demand as one of the primary reasons for the revenue drop, which impacted APU sales to OEMs, and attributed the year-on-year change to decreased sales overall. The company also took a $33 million charge from transitioning some products targeted at the 20 nm process to FinFET, which negatively affected gross margin.

Computing and Graphics revenue was down 54% from this time last year, again due to lower-than-expected sales. The division posted an operating loss of $147 million, compared to a $6 million loss in the same quarter last year. However, AMD reports that the graphics segment's average selling price has been steadily increasing.

The Enterprise, Embedded, and Semi-Custom business didn't fare much better. Despite a sequential revenue increase of 13%, it still suffered an 8% year-on-year decline due to lower server sales and lower non-recurring engineering revenue. Operating income was $27 million, compared to $97 million in Q2 2014, with the drop attributed both to lower sales and to the $33 million process transition charge.

In its report, AMD highlighted its plan for a multi-year strategic drive to profitability, the upcoming Zen architecture, HBM-enabled GPUs, and the launch of its Carrizo APUs as bright spots. For Q3 2015, the company expects a six-percent sequential increase in revenue, plus or minus three percent.

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