SUNNYVALE, CA--(Marketwired - Apr 18, 2013) - AMD (NYSE: AMD)

Q1 2013 Results

AMD revenue $1.09 billion, decreased 6 percent sequentially and 31 percent year-over-year
Gross margin 41 percent
Operating loss of $98 million, net loss of $146 million, loss per share of $0.19
Non-GAAP(1) operating loss of $46 million, net loss of $94 million, loss per share of $0.13

AMD (NYSE: AMD) today announced revenue for the first quarter of 2013 of $1.09 billion, an operating loss of $98 million and a net loss of $146 million, or $0.19 per share. The company reported a non-GAAP operating loss of $46 million and a non-GAAP net loss of $94 million, or $0.13 per share.

"Our first quarter results reflect our disciplined operational execution in a difficult market environment," said Rory Read, AMD president and CEO. "We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns."

GAAP Financial Results

Q1-13 Q4-12 Q1-12
Revenue $1.09B $1.16B $1.59B
Operating loss $(98)M $(422)M $(580)M
Net loss / Loss per share $(146)M/$(0.19) $(473)M/$(0.63) $(590)M/$(0.80)


Non-GAAP Financial Results(1)

Q1-13 Q4-12 Q1-12
Revenue $1.09B $1.16B $1.59B
Operating income (loss) $(46)M $(55)M $138M
Net income (loss) / Earnings (loss) per share $(94)M/$(0.13) $(102)M/$(0.14) $92M/$0.12


Quarterly Financial Summary

Gross margin was 41 percent.
Gross margin increased sequentially due to a $20 million benefit from sales of inventory that had been previously reserved which positively impacted gross margin by 2 percentage points.
Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion at the end of the quarter.
First quarter cash was bolstered by the closing of a sale and leaseback transaction of the "Lone Star Campus" in Austin, Texas generating cash proceeds of approximately $164 million, net of certain fees.
Computing Solutions segment revenue decreased 9 percent sequentially and 38 percent year-over-year. The sequential decrease was primarily due to lower desktop, notebook and chipset unit shipments. The year-over-year decline was driven primarily by lower unit shipments.
Operating loss was $39 million, compared with an operating loss of $323 million in Q4 2012 and operating income of $124 million in Q1 2012. The Q4 2012 operating loss included the impact of a GLOBALFOUNDRIES-related "lower of cost or market" (LCM) charge of $273 million.
Microprocessor Average Selling Price (ASP) increased sequentially and decreased year-over-year.
Graphics segment revenue increased 3 percent sequentially and decreased 12 percent year-over-year. Graphics processor unit (GPU) revenue was flat sequentially and down year-over-year.
Operating income was $16 million, compared with $22 million in Q4 2012 and $34 million in Q1 2012.
GPU ASP increased sequentially and year-over-year.

“I think the best you can say is that at least they do not appear to be collapsing yet,” Stacy Rasgon, an analyst with Sanford Bernstein, told Ars.

AMD is through the worst of it. They need to release the Jaguar cores ASAP. If Jaguar is a flop then they are done IMO. They will have to do something drastic; perhaps they could survive if they only made GPUs.

How can you say that AMD is already through the "worst" of it? AMD is not only still tethered to GlobalFoundries, they are contractually obligated to move much of their GPU production away from TSMC to GloFo.

AMD has stemmed the massive hemorrhaging but are still bleeding badly. They sold off their campus for a couple hundred of million dollars (which shows up as "profit" this quarter, but now they have to lease it back for the rest of their company's life).

Rory Read's turnaround plan requires money and their operating capital keeps on dropping as they throw money at their immediate problems (including advertising to capture "mindshare" as with their expensive Never Settle game bundles). Their staff is much smaller as they farmed out their PR to Edelman and their R&D budget is steadily shrinking. They still owe big money to creditors and they have to make more payments to Global Foundries.

The worst appears to be yet to come.

Advanced Micro Devices will soon announce it has hired a former Apple graphics chip designer to bolster its engineering leadership bench as it turns itself around, CNET has learned.

Raja Koduri, who most recently served as director of graphics architecture for Apple, will be rejoining AMD four years after leaving that company, people familiar with the hire told CNET. He will be taking on a role in AMD's graphics business, though it wasn't immediately clear to CNET what his title would be. AMD is expected to make the announcement next week.

The move is the latest in a series of behind-the-scenes shuffles among some heavy hitters in the chip market. Last August, AMD named Jim Keller to be its corporate vice president and chief microprocessor architect, reporting to former Apple hardware chief Mark Papermaster. The month before it was AMD chip designer John Bruno, who joined Apple.
...
The hire is likely to be a big boost to morale at AMD. The company is in the midst of a turnaround led by CEO Rory Read, but the going hasn't been easy. Rival Intel has been dominating the PC and server markets, while graphics competitor Nvidia has gained strong traction with its latest GPU. It doesn't help, either, that the overall computer market has been slumping badly. In one bright spot, though, AMD's graphics will be used in the upcoming Sony Playstation 4.

AMD on Thursday reported a narrower first-quarter loss, but its revenue dropped 31 percent from the previous year. To combat the weak environment, AMD has laid off a significant portion of its staff, as first reported by CNET, and has restructured its relationship with Globalfoundries, its manufacturing partner.