Revenues down 35 percent as laptop and PC sales hit, but games console arm provides some reward
Chipmaker AMD’s latest results have revealed a major decline in fortunes as the company aims to deal with a struggling PC market.
AMD lost $181 million (£115m) in the quarter ending June 30 as revenue fell 35 percent from a year ago.
The company’s Computing and Graphics department, which makes chips for laptop and PCs, was particularly badly hit, falling by 54 percent as sales hit $379 million (£242m).
Overall, AMD recorded $942 million (£602m) in revenues this quarter, lower than analyst estimations, and well down on a year ago, when it recorded revenues of $1.44 billion (£920m).
The majority of this came via sales from its Enterprise, Embedded and Semi-Custom (EESC) business unit, which makes chips for video game consoles including the Nintendo Wii U, Microsoft’s Xbox One, and Sony’s PlayStation 4, and grew sequentially from $498 million (£318m) last year to $563 million (£359m).
The results mark a second successive poor quarter for AMD since Lisa Su (pictured) took over as CEO last October, following April’s first quarter results which saw a $180 million (£115m) net loss.
“Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs,” Su said.
“We continue to execute our long-term strategy while we navigate the current market environment. Our focus is on developing leadership computing and graphics products capable of driving profitable share growth across our target markets.”
The results will reinforce doubts that AMD is set for a major shake-up anytime soon. Last month, the company was forced to deny reports it was considering a split in order to revive its fortunes, following significant job cuts after Su took over.
Reports back in March also suggested that Samsung could be interested in acquiring AMD as it looks to strengthen its chipmaking business.
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