AMD stock fell by 15% as they reported a net loss of $36 million even after an increased quarterly revenue. The results were way less than expected, according to the company. They were able to make $144 billion for Q2, almost 25% more than what they made in 2013. The company’s revenue in Q2 has been a story of hits and misses.
The company’s gross margin has seen a fall and its revenue target for Q3 is below expectations. AMD reports loss per share of $0.05 and non-GAAP(1) net income of $17 million, earnings per share of $0.02.
Rory Read, AMD’s president and CEO said in a statement:
“Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”
However, these words haven’t managed to impress the investors. After the announcement of the report, AMD’s stock price fell by 18 percent.
There was also a drop in the revenue made by their computer solutions group by 20% coming down to $669 million. The loss per share was recorded 0.05%. The company points out the reduced shipment of microprocessor units as the major cause of this. The overall company revenue still looks good due to its diversity in range of products. Gross margin is 35% now, compared to 40% calculated last year. $63 million is the operating income. Also this year, the quota of other expenses rose to $49 million, adversely affecting the output.
By 2016, the company targets to make almost half its revenue through non PC items like low power servers, gaming consoles, notebook processors, chipsets and embedded systems.
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