AMD ends Q4 2012 with net loss of $473 million

Jan 22, 2013

AMD has delivered its financial results for Q4 2012, and things aren't looking too hot for the company as we head into 2013. While AMD reported revenues of $1.16 billion for the fourth quarter, that figure is down 9% sequentially and a significant 32% year-over-year. Not making things any better, AMD reported a net lost of $473 million for the quarter, with loss-per-share coming in at $0.63.

Things get somewhat better when looking at the non-GAAP figures for the quarter, but in that case, AMD still finds itself with an operating loss of $55 million, a net loss of of $114 million, and a loss-per-share amount that settles at $0.14. GAAP gross margin came in at 15% for the quarter, while non-GAAP gross margin was 39%. Computing Solutions was down 37% year-over, posting an operating loss of $323 million, while the company's Graphics segment had an operating income of $22 million - seemingly one of the only bright spots in AMD's report, but still down 15% year-over-year nonetheless. The declines for both were blamed on decreases in product shipments.

Unfortunately, this poor Q4 was indicative of a rough year in general for AMD. The company had a revenue of $5.42 billion for 2012 as a whole, which sounds excellent but is actually down 17% year-over-year. Similarly, the company suffered an operating loss of $1.06 billion for the year, with net loss hitting $1.18 billion and loss-per-share treading somewhat close to $2.00 at $1.60. It's worth remembering that AMD began implementing the restructuring it announced after posting Q3's poor results, so that took something of a toll on the company's pocketbook at the end of the year.

Those restructuring efforts forced a lot of workers out of their jobs, but the hope is that AMD will post better financials for 2013 as a result. In the immediate future, however, AMD isn't expecting things to improve at all. In Q1 2013, it expects revenues to fall another 9% sequentially (with a possible 3% swing either way), which would be even worse news for the already struggling company. Stay tuned.

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