AMD Revenue of $1.03 billion, down 17 percent sequentially and 26 percent year-over-year.
AMD have announced revenue for Q1 2015 of $1.03 billion, operating loss of $137 million and net loss of $180 million, or $0.23 per share.
Dr. Lisa Su, AMD president and CEO said “Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance, under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products.”
Gross margin of 32 percent, up 3 percentage points sequentially, primarily due to a lower of cost or market inventory adjustment in Q4 2014. Non-GAAP(1) gross margin of 32 percent, decreased 2 percentage points sequentially due to product mix and lower game console royalties in the first quarter.
Operating loss of $137 million, compared to an operating loss of $330 million for the prior quarter, which included a goodwill impairment and a lower of cost or market inventory adjustment in Q4 2014. Non-GAAP(1) operating loss of $30 million, compared to non-GAAP(1) operating income of $52 million in Q4 2014, primarily due to lower revenue and gross margin.
Net loss of $180 million, loss per share of $0.23, and non-GAAP(1) net loss of $73 million, non-GAAP(1) loss per share of $0.09, compared to a net loss of $364 million, loss per share of $0.47 and non-GAAP(1) net income of $18 million, non-GAAP(1) earnings per share of $0.02 in Q4 2014.
Total debt at the end of the quarter was $2.27 billion, up $56 million from the prior quarter.
As a part of the strategy to simplify and sharpen the company’s investment focus, AMD is exiting the dense server systems business, formerly SeaMicro, effective immediately.
AMD recorded $75 million of special charges in Q1 2015 primarily related to impairment of previously acquired intangible assets.
AMD entered into a fifth amendment to the Wafer Supply Agreement with GLOBALFOUNDRIES. AMD expects to purchase approximately $1 billion in wafers in 2015, in line with the company’s current market expectations. resellers
