AMD narrows its losses in the fourth quarter of 2015

AMD has turned in its financial results for the fourth quarter of 2015. The company posted an operating loss of $49 million and a net loss of $102 million on $958 million in revenue. Those losses are smaller than those in both the last quarter and the year-ago quarter, even as revenue shrank.

  Q4 2015 Q4 2014 Change
Revenue $958 million $1.24 billion down 22.7%
Operating income -$49 million -$330 million --
Net income -$102 million -$364 million --
Gross margin 27% 33% down 6%

$470 million of that revenue came from the company's Computing and Graphics segment, down 29% from Q4 2014. The company says that decrease is mostly because of lower client processor sales. The Computing and Graphics segment did report sequential and year-over-year increases in the average selling price of its graphics cards, though. Overall, the division posted a $99 million operating loss in the fourth quarter.

The Enterprise, Embedded, and Semi-Custom segment took in $488 million, a 15% drop from the year-ago quarter. The company says that's because of a decrease in game console royalties, along with lower revenue from its server and embedded products. The division still took in $59 million in operating income. 

Those results close out a rough year for the company. For 2015, AMD took in $3.99 billion, down 28% from 2014. It lost $481 million over the course of the year, compared to a $155 million loss the year before.

We're expecting big moves from AMD in 2016. The company will be releasing graphics cards built on its Polaris architecture around the middle of the year, and we also expect to see Zen CPUs sometime this year. Both of those products will be built with next-generation FinFET silicon. If the company's claims regarding Zen and Polaris hold, those products might help turn the tide.

For now, though, AMD projects a 14% sequential decrease in revenue, plus or minus 3%, in the 13-week first quarter of this year.

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