TweakTown
Tech content trusted by users in North America and around the world
6,159 Reviews & Articles | 39,584 News Posts
TRENDING NOW: Star Citizen creator: "I don't care about consoles"

AMD does better than expectations but still loses money

AMD beats expectations but still loses $590 million.

| Business, Financial & Legal News | Posted: Apr 19, 2012 11:27 pm

AMD reported its first quarter financial results today and it's not quite as bad as was expected. AMD beat expectations, but they still posted a loss of $590 million. AMD has a strong product line-up in both the CPU and GPU markets, but it's pretty hard to compete against the chip giant that is Intel.

 

TweakTown image news/2/3/23667_76_amd_does_better_than_expectations_but_still_loses_money.jpg

 

The loss, however, is not due to operations but rather an accounting charge. Revenue for the quarter was $1.59 billion which was higher than the expected $1.56 billion Including the accounting charge, the loss of $590 million amount to 80 cents a share. If we take out the accounting charge, AMD had a good quarter, with a non-GAAP profit of 12 cents a share, or $92 million. Analysts predicted only 9 cents a share with the accounting charge taken out.

 

"AMD delivered solid results in the first quarter as we remain focused on improving our execution, delivering innovative products, and building a company around a strategy to deliver strong cash flow and earnings growth," said Rory Read, AMD president and CEO. "A complete top-to-bottom introduction of new APU offerings, combined with ample product supply resulting from continued progress with our manufacturing partners, positions us to win and grow."

 

AMD has some upcoming products that target the fast-growing tablet market as well as the laptop market. Even though AMD is in debt, it is generating $500 million in free cash flow which can be used to pay down that debt. AMD is in a much better financial state than they have been in the past. It will be interesting to see the financial report one year from now.

NEWS SOURCES:Venturebeat.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Got an opinion on this news? Post a comment below!

Latest Tech News Posts

View More News Posts

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases