Yesterday evening AMD released its Q2 2013 financial statement. Revenue raised during the quarter was $1.16 billion but operating expenses, R&D costs, marketing budgets and so on resulted in the firm making a net loss of $74 million. However things are looking up - with its business diversification reaping rewards, the company expects a return to being profitable in Q3. Market analysts speaking to Bloomberg News say orders for games-console processors will kick-in to have a major effect on the next quarterly results.
"Our focus on restructuring and transforming AMD resulted in improved financial results," said Rory Read, AMD president and CEO. "Our performance in the second quarter was driven by opportunities in our new high-growth and traditional PC businesses. Looking ahead, we will continue to deliver a strong value proposition to our established customers and also reach new customers as we diversify our business. We expect significant revenue growth and a return to profitability in the third quarter."
Looking in more depth at the third, current quarter, revenue is expected to be up by about 22 per cent in this period compared with the latest Q2 results (above). The expected $1.38 billion to $1.45 billion revenue in Q3 beats analyst estimates of only $1.23 billion from Bloomberg. This is because, while the PC market has just experienced its fifth consecutive quarterly contraction, Microsoft and Sony are about to launch what could be very hotly selling 'next gen' games consoles.
Bloomberg notes that AMD has restructured to save money; firing workers and selling off non-key assets while overhauling its product line to target new markets. AMD has reorganised into two company segments which will, from now, be known as the Computing Solutions segment and the Graphics and Visual Solutions segment, this "provides greater clarity on the product lines that comprise the segment and reflects the growing importance of gaming and semi-custom offerings to AMD" we are told.
