AMD Suffers Lowering PC Demand: Sales of CPUs Drop

From X-bit Labs: Advanced Micro Devices on Thursday announced revenue for the first quarter of 2013 of $1.09 billion, an operating loss of $98 million and a net loss of $146 million, or $0.19 per share. The company’s sales results are lower than those in Q1 2009 (the worst quarter for the industry during the recent economic downturn) and those in Q1 2004, but still somewhat better than AMD’s sales in Q1 2003. Still, the situation may be not that bad as the company has competitive products in the pipeline.

"Our first quarter results reflect our disciplined operational execution in a difficult market environment. We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013," said Rory Read, AMD president and CEO.

AMD’s Computing Solutions segment revenue was $751 million, down 9% sequentially due to lower desktop, notebook and chipset unit shipments primarily driven by a weak consumer buying environment. Computing Solutions operating loss was $39 million, an improvement from an operating loss of $323 million in the previous quarter, which included the impact of a GlobalFoundries related “lower of cost or market” (LCM) charge of $273 million.

- Client product revenue declined 9% sequentially primarily due to lower unit shipments in the quarter for desktop and notebook microprocessors. Client microprocessor ASP increased sequentially primarily due to a richer product mix at original equipment manufacturers (OEMs) and in the channel.

- Server microprocessor revenue increased sequentially due to higher ASP. Server unit shipments were flat quarter-over-quarter.

- Chipset revenue declined sequentially primarily due to lower unit shipments.

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