Advanced Micro Devices Inc. (AMD) Tuesday (Jan. 20) reported its fourth quarter earnings highlighted by an increased demand in the microprocessor vendor’s enterprise, embedded and semi-custom business.
AMD report revenue of $1.24 billion in the fourth quarter, up 22 percent year-over-year but down 13 percent sequentially. AMD reported an operating loss of $330 million and a net loss of $364 million. For the entire 2014 year, AMD reported revenues of $5.51 billion, up 4 percent over 2013. Gross margin for the year was 33 percent, down 4 percentage points from 2013 and an operating loss of $155 million compared to a $103 loss in operating income in 2013.
Dr. Lisa Su, AMD president and CEO, said in a statement the company made progress in diversifying its business by ramping design wins and improving balance sheets compared to 2013. Su said the enterprise, embedded and semi-custom business segment revenue “increased over 50 percent as customer demand for products powered by our high-performance compute and rich visualization solutions was strong.”
Su noted that AMD continues to tackle the declines happening in the computing and graphics segment and “are taking steps to return it to a healthy trajectory beginning in the second quarter of 2015.”
For the first quarter of 2015, AMD said it expects revenue to decrease 15 percent, plus or minus 3 percent, sequentially. AMD declined to state why they are expecting a decline other than annual seasonality.
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