AMD returns to profitability with $1.46 billion Q3 revenue - PC Retail

AMD returns to profitability with $1.46 billion Q3 revenue

Company increased sequential revenue by 26 per cent
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AMD has announced that it has returned to profitability, following its implementation of a “product diversification strategy”.

The company’s revenue for Q3 2013 was $1.46 billion (£0.9 billion), a 26 per cent increase sequentially and 15 per cent higher year-over-year.

Operating income for the hardware firm was $95 million (£58.8 million), with a net income of $48 million (£29.7 million). The income translates to six cents (4p) per share.

Non-GAAP operating income was $78 million (£48.3 million) and non-GAAP net income was $31 million (£19.2 million), or four cents (2p) per share.

Gross margin for Q3 2013 was 36 per cent.

The value of AMD’s cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion (£0.74 billion) at the end of Q3, slightly higher than the $1.1 billion (£0.68 billion) “optimal level” predicted by the company.

"AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago," said Rory Read, president and CEO of AMD, in a press release.

"We achieved 26 per cent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 per cent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets."

For Q4 2013, AMD expects revenue to increase 5 per cent, plus or minus 3 per cent, sequentially.

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