The third fiscal quarter on many companies’ calendars is barely over, but that doesn’t stop them from summarizing the preliminary results of this reporting period. AMD didn’t wait for full stats to be released, and earlier this week it had to admit that the company’s revenue fell short of its expectations by an average of $1 billion and towards customers was down as much as 40% year-on-year.
AMD guide explainedthat the company did not earn more than $5.6 billion in the third quarter, while its own forecast previously spoke of a range of $6.5 billion to $6.9 billion. The yield reached 54 instead of the expected % barely 50%. Such statements caused the company’s share price to fall 4.5% after the close.
CEO Lisa Su said more about the quarterly results “PC market has slumped significantly in the last quarter”. Even AMD’s competitive product portfolio could not overcome the negative macroeconomic trend and customer retention of significant inventory levels of unsold products.
Specifically, in the consumer business, AMD saw revenue decline 53% sequentially and 40% year-on-year to $1 billion. In the data center segment, revenue increased 8% sequentially and 45% year-on-year to $1.8 billion another “bright spot in the Dark Realm,” although core sales were level with the prior quarter, grew 14% year over year to $1.6 billion. Finally, embedded solutions grew sales 4% sequentially to $1.3 billion -$ billion, mainly due to the acquisition of Xilinx completed this year. AMD had to write down $160 million due to product price adjustments and unsold inventory. It is worth noting that operating expenses in the third quarter rose as much as 1.6 compared to expectations billion US dollars have fallen to 1.5 billion US dollars.
Incidentally, AMD’s revenue in general is down only 15% sequentially, growing a solid 29% year over year, although against the backdrop of the achievements of previous quarters, such dynamics don’t seem meaningful.