AMD Upbeat Despite $330M Loss

by Jessica Lipsky - EETimes

SAN FRANCISCO, Jan. 20, 2015 – 

Advanced Micro Devices reported large operating losses in its latest quarterly financial update, but AMD officials remained hopeful about the company's trajectory for 2015.

AMD reported fourth quarter 2014 revenue at $1.24 billion with an operating loss of $330 million and net loss $0.47 per share. Year-over-year revenue grew for the first time since 2011, rising 4% to $5.51 billion, while operating losses in 2014 totaled $155 million. The company saw double digit declines in several segments, but CEO Lisa Su expects income to stabilize in 2015.

"We have right-sized our investments and taken actions to reduce downstream inventory in the fourth quarter," Su said. "I am optimistic about our long term opportunities but realistic about the short term challenges."

AMD faces the challenge of improving its computing and graphics business, which decreased 15% from the third quarter and 16% from 2013. AMD officials attributed the decrease to lower desktop processor, chipset, and GPU sales, which resulted in a $56 million operating loss in 2014. Interim CFO Devinder Kumar said the year-over-year losses were due to "lower channel sales partially offset by lower operating expenses."

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