AMD has released its financial results for the first quarter of 2016. The company posted an operating loss of $68 million on $832 million in revenue, and it posted a net loss of $109 million. Revenue was down 19% from the year-ago quarter, but the company narrowed its operating and net losses compared to a year ago. Here's a tabular summary of the results:
|Q1 2016||Q4 2015||Q1 2015||Change from Q1 2015|
|Revenue||$832 million||$958 million||$1.03 billion||down 19%|
|Operating income||-$68 million||-$49 million||-$137 million||—|
|Net income||-$109 million||-$102 million||-$180 million||—|
AMD reports that it's forming a joint venture with Tianjin Haiguang Advanced Technology Investment Company, Limited (THATIC) to develop system-on-chip products for the Chinese server market. The underlying IP licensing agreement for "high-performance processor and SoC technology" is worth $293 million. AMD says this move helps it to "better monetize its valuable assets." Revenue payments from the agreement will be tied to certain performance milestones. AMD says it'll also receive royalty payments from the joint venture's product sales when they begin.
The Computing and Graphics division took in $460 million in revenue, down 14% from a year ago. The company says decreased sales of its client notebook processors are mostly to blame for the drop. Operating loss for the division shrunk to $70 million, down from $75 million a year ago.
AMD says client processor average selling prices (ASPs) fell compared to a year ago thanks to lower notebook processor ASPs. GPU ASPs increased year-over-year, though, thanks to ASP increases in its channel partner and professional graphics businesses.
The Enterprise, Embedded, and Semi-Custom division took in $372 million, down 25% year-over-year. The company blames shrinking sales of semi-custom SoCs for those results. Operating income for the division contracted to $16 million, compared to $45 million a year ago. The company says the lower profits were caused by lower sales and increased R&D expenses from new product investments. The division also took in $7 million in IP licensing revenue.
Operating losses from all other parts of AMD's business fell to $14 million, compared to $107 million a year ago. The company says a lack of restructuring and other special charges caused the change.
For the second quarter of 2016, AMD projects a revenue increase of 15%, plus or minus 3%, sequentially.