AMD revenue falls as financial struggles continue - gassowit1972

Advanced Micro Devices' financial struggles continued in the twenty-five percent quarter, with revenue sinking feeling 32 pct due to slow chip sales and charges tied to restructuring and inventory adjustments.

AMD reported revenue of $1.16 one thousand million for the quarter, fine-tune from $1.69 billion a yr early. Analysts had been expecting revenue of $1.15 cardinal, according to a consensus estimate compiled by Thomson Reuters.

AMD's business enterprise woes are tied to the slowdown in the PC industry, which declined in conclusion yr for the initiative time in much a decade. In December, AMD decreased its chip orders from GlobalFoundries because of the weak sales surround.

The company's net loss was $473 million, wider than the loss of $177 million it reported for the same quarter a year earlier. The modish figure includes a charge of $209 million for reducing its buying obligations to GlobalFoundries, which manufactures AMD's chips, and an additional $90 jillio in charges related to a restructuring.

AMD aforementioned last poop that it will lay off 15 percent of its worldwide stave in an effort to cut costs and return to profitability.

The PC slowdown has also affected Intel, which reported last week that gross revenue from its PC node business in the most recent tail fell by 3 percent.

New markets

AMD is difficult to reduce its dependence along PCs by diversifying in the pad of paper market and into new server markets. Earlier this year the company showed disconnected a pad based on an future flake titled Temash, which bequeath be available in products in the first half this year. It's also nerve-wracking to expand beyond the x86 host business and is expected to sell ARM-based server chips start in 2022.

AMD will modify its production portfolio to adjust to the changing market, CEO Rory Read aforesaid in a statement Tuesday. The company will fork up new chips and products this year to get ahead its product line, he same.

Sales in AMD's Computing Solutions division, which deals in chips for PCs, servers, and tablets, were $829 million during the quarter just ended, down 32 percentage compared to the previous year's ordinal twenty-five percent.

Demand also fell for AMD's graphics cards, leading to a 15 percent year-happening-year revenue decline for its graphics building block.

Connected a pro-forma foundation, excluding one and only-time charges and other items, AMD would wealthy person reportable a net loss of $102 million for the quarter, or $0.14 a partake. Analysts had been expecting a going of $0.20 per apportion.

For the first twenty-five percent of 2022, AMD expects to report a sequential decline in revenue of 9 pct, plus surgery minus 3 percent, it said.