AMD Misses Q1 Expectations, Shares Tumble

Shares of Advanced Micro Devices, Inc. AMD dipped 8 percent in after-hours trading after the company reported downbeat results for the first quarter. The Sunnyvale, California-based company posted a quarterly net loss of $180 million, or $0.23 per share, versus a year-ago loss of $20 million, or $0.03 per share. Excluding one-time items, the company lost $0.09 per share. Its revenue slipped 26 percent year-over-year to $1.03 billion. However, analysts were expecting a loss of $0.05 per share on revenue of $1.05 billion. Computing and Graphics segment revenue fell 38 percent year-over-year in the first quarter, while Enterprise, Embedded and Semi-Custom segment revenue slipped 7 percent. The company posted an operating loss of $137 million in the first quarter. Gross margin rose 3 percentage points sequentially to 32 percent, while non-GAAP gross margin slipped 2 percentage points sequentially to 32 percent in the latest quarter. At the end of the quarter, cash, cash equivalents and marketable securities were $906 million, down $134 million versus the end of the previous quarter. The average estimate among 36 Estimize users was for a loss of $0.05 per share and revenue of $1.07 billion. "Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance," said Dr. Lisa Su, AMD president and CEO. "Under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products." For the current quarter, AMD projects sales to drop 3%, plus or minus 3 percent, sequentially. AMD shares fell 8.01 percent to $2.64 in the after-hours trading session.