AMD beats expectations, despite huge revenue slide
AMD seeks alternatives to PC processors, as revenue slides by half a billion dollars
AMD forecast current quarter revenue above Wall Street's expectations as it rushes to find new markets to offset its declining core business of PC chips.
Like larger rival Intel, AMD is trying to refocus its business as sales of laptops languish and consumers increasingly depend on smartphones and tablets.
In a world of low expectations this is a decent report
AMD reported revenue of $1.09 billion, down from $1.59 billion in the year-ago quarter. It posted a net loss of $146 million in the first quarter, compared with a loss of $590 million in the same quarter last year. AMD's shares fell almost 6% after the earnings report.
"In a world of low expectations this is a decent report - a solid beat off of low expectations," said Sanford Bernstein analyst Stacy Rasgon.
When Intel posted its quarterly earnings on Tuesday, it also gave a revenue forecast above expectations, betting on a recovery in PC sales in the second half of the year.
While Intel has deep pockets to fund research on new processors to catch up in tablets and smartphones, AMD faces declining cash flows and a more modest balance sheet.
It is reducing operating expenses and refocusing its chip technology on new markets such as communications, microservers, game consoles, digital signs and stripped-down "thin client" computers.