updated 06:24 pm EDT, Thu April 17, 2014
$200 million payment to Global Foundries blocked quarterly profit
Beating analysts projections, AMD today announced revenue for the first quarter of 2014 of $1.40 billion, operating income of $49 million and net loss of $20 million, or $0.03 per share. Had the company not made its last $200 million cash payment to Global Foundries, it would have greatly exceeded its projections for the quarter. For the second quarter of 2014, the graphics and chip maker expects revenue to increase three percent, plus or minus three percent, sequentially.
Computing Solutions segment revenue decreased eight percent sequentially and 12 percent year-over-year. The sequential and year-over-year declines were due to decreased client unit shipments. Operating loss was $3 million, an improvement from an operating loss of $7 million in Q4 2013 and $39 million in Q1 2013, driven by lower operating expenses.
Graphics and Visual Solutions segment revenue decreased 15 percent sequentially, but increased 118 percent year-over-year driven largely by semi-custom SoCs. GPU revenue increased sequentially and year-over-year due to strong demand for the AMD Radeon R7 and R9 family of products.