Advanced Micro Devices Posts In-Line Q2 Loss

Advanced Micro Devices, Inc. AMD reported in-line loss for the second quarter on Thursday. The Sunnyvale, California-based company reported a quarterly net loss of $181 million, or $0.23 per share, versus a year-ago loss of $36 million, or $0.05 per share. Excluding items, the company lost $0.17 per share, versus a year-ago profit of $0.05 per share. Its revenue dropped to $942 million from $1.44 billion. However, analysts were expecting a loss of $0.17 per share on revenue of $950.5 million. The average estimate among 45 Estimize users was for a loss of $0.14 per share and revenue of $1.00 billion. Revenue in AMD's computer and graphics segment declined 54 percent year-over-year, while revenue in enterprise, embedded and semi-custom segment fell 8 percent year-over-year. At the end of the quarter, AMD had $829 million in cash, cash equivalents, and marketable securities, and $2.27 billion in total debt. "Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs," said Dr. Lisa Su, AMD president and CEO. "We continue to execute our long-term strategy while we navigate the current market environment. Our focus is on developing leadership computing and graphics products capable of driving profitable share growth across our target markets." For the current quarter, the company expects revenue growth of 3 percent to 9 percent versus the second quarter. AMD shares gained 2.67 percent to $1.92 in the after-hours trading session.