CHIP DESIGNER AMD saw its first quarter 2013 revenue fall to $1.1bn with losses narrowing to $98m as it comes out of a painful restructuring program.
AMD suffered what can only be described as a painful 2012 as it announced billion dollar losses and slashed its workforce in a restructuring programme. The firm announced that revenues fell by 31 percent from last year to $1.1bn with a loss of $98m, compared to a loss of $580m in the first quarter of 2012.
Although AMD announced that it won Sony's business for the upcoming Playstation 4, revenue from that business is still a quarter or two away from having a material effect on the firm's balance sheet. In the meantime, the firm said its gross margin figures increased by two percentage points to 41 percent, which is certainly respectable given that Intel reported an eight percent decline in its gross margin earlier this week.
AMD also revealed that it has cash reserves of $1.2bn, a measure that many industry watchers say is vital for the firm to successfully restructure its business. AMD has said that by the end of the year it intends to generate 20 percent of its revenue from embedded and custom design products, such as the chip it designed with Sony for the Playstation 4.
AMD CEO Rory Read said the firm has almost finished its restructuring process and is working on getting new products to market. He said, "We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns."
The firm's first quarter 2013 financials show that AMD's fortunes are starting to turn the corner, but the ill effects of years of mismanagement are still hurting its bottom line. µ