AMD Q3 Loss Widens On Charges, Revenue Up 23% YoY; Expects Higher Annual Revenue

(RTTNews) - Advanced Micro Devices, Inc. (AMD) reported a third-quarter net loss of $406 million, or $0.50 per share, compared to a loss of $197 million or $0.25 per share, a year ago. The company noted that its third-quarter loss was driven by a $340 million WSA charge and a $61 million loss on debt redemption. Non-GAAP net income was $27 million or $0.03 per share, for the quarter. Non-GAAP gross margin was 31 percent, for the quarter.

Third-quarter revenue was $1.31 billion, up 23 percent year-over-year primarily due to record semi-custom SoC and higher GPU and mobile APU sales, partially offset by client desktop processor and chipset sales. Analysts polled by Thomson Reuters expected revenue of $1.21 billion, for the quarter. Computing and Graphics segment revenue was $472 million, up 11 percent from last year.

For 14-week fourth-quarter, AMD expects revenue to decrease 18 percent sequentially, plus or minus 3 percent. The midpoint of guidance would result in fourth-quarter revenue increasing approximately 12 percent year-over-year. The company now expects full year 2016 revenue to be up approximately 6% from 2015 based on the midpoint of fourth-quarter revenue guidance. AMD expects 2016 total wafer purchases from GLOBALFOUNDRIES to be approximately $650 million.

Lisa Su, AMD president and CEO. "We now expect to deliver higher 2016 annual revenue based on stronger demand for AMD semi-custom solutions and Polaris GPUs. This positions us well to accelerate our growth in 2017 as we introduce new high-performance computing and graphics products."