Chip maker AMD has released their financial results for the first quarter of 2013, showing disappointing figures in light of a "difficult market environment".
The company posted a gross revenue of $1.09 billion, representing a year-on-year decrease of 31% and a gross margin of 41%. This vastly lowered income gave rise to an operating loss of $98 million - upped to $146 million when operating costs are taken into account. Shares also slumped $0.19 to their current trading value of around $2.50.
Rory Read, AMD's president and CEO, said in an interview:
Our first quarter results reflect our disciplined operational execution in a difficult market environment.
Read went on to add:
We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. 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 boss' words may seem comforting and positive, however the company's move to drastically cut chip orders back in December both explain poor financial results and may suggest darker days are yet to come.
Results such as these from a company whose main market is PC manufacturers are understandable given a slumping market in favour of more portable devices. Tablet sales continue to increase and are expected to meet PC shipments in the very near future. Notably, in Read's statement he mentions AMD's future investment into the "ultra low-power client" market, likely offering processors for mobile devices that are refreshingly conservative with power usage.
AMD remains optimistic, however, expecting revenue to offer a better outlook in Q2:
For the second quarter of 2013, AMD expects revenue to increase 2 percent, plus or minus 3 percent, sequentially.
Source: AMD | Image: Techspot