AMD reported its third-quarter financial results today. The company posted an operating loss of $158 million on revenues of $1.06 billion. Revenues fell 26% year-over-year, while sequential revenue grew 13%. Those results include a $65 million write-down of "older-generation" APU inventory.
|Q3 2015||Q3 2014||Change|
|Revenue||$1.06 billion||$1.43 billion||down 26%|
|Operating income||-$158 million||$63 million||—|
|Net income||-$197 million||$17 million||—|
|Gross margin||23%||35%||down 12%|
|Earnings per share||-$0.25||$0.02||—|
AMD says a seasonal increase in semi-custom sales, along with strong desktop processor and GPU sales, accounted for the 13% sequential increase. However, decreased sales in the Computing and Graphics segment of the company's business caused the 26% year-over-year decline.
The Computing and Graphics segment took in 46% less revenue compared ot this time a year ago, which AMD blames on lower client processor sales. The Enterprise, Embedded, and Semi-Custom business reported a 2% year-on-year revenue decline, due to lower embedded chip and server processor volumes.
Gross margin fell to 23%, down 12% from a year ago, due in part to the $65 million APU inventory write-down. AMD made this write-down due to lower anticipated demand for the affected products.
AMD also announced a joint venture with Nantong Fujitsu Microelectronics that will bring in $371 million. For Q4 2015, the company expects revenue to decrease 10% sequentially, plus or minus 3%.