Advanced Micro Devices, Inc (AMD) Is Profitable Again
Advanced Micro Devices, Inc (NYSE:AMD) is profitable again thanks to the game console market. AMD reported net income of $48 million on revenues of $1.46 billion, compared to a loss of $131 million in the same period last year on revenues of $1.27 billion.
Analysts were expecting AMD to hit a profit with a consensus forecast of 2 cents per share. Analysts were expecting AMD to hit sales of $1.42 billion.
“Looking ahead, we will continue to deliver a strong value proposition to our established customers and also reach new customers as we diversify our business,” stated AMD CEO Rory Read in July.
AMD’s Computing Solutions division declined 15% year-over-year to $790 million and revenues of their Graphics and Visual Solutions almost doubled to $671 million. The Graphics and Visual Solutions division grew because of the semi-custom silicon designed for the three major game console companies: Microsoft, Sony, and Nintendo.
“AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago,” said Read in a statement about these financial results. “We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets.”