SAN FRANCISCO—Advanced Micro Devices Inc. (AMD) Thursday (July 21) reported second quarter sales that fell short of analysts' expectations despite record microprocessor shipments in the quarter. Amid speculation that the company would also appoint a new CEO Thursday, AMD said the search for a new top executive remains ongoing.
AMD (Sunnyvale, Calif.) reported revenue for the second quarter of $1.57 billion, down 2 percent from the previous quarter and down 5 percent from the second quarter of 2010.
The company posted a net income in accordance with generally accepted accounting principles (GAAP) for the quarter of $61 million, or 8 cents per share, compared to a net income of $510 million in the previous quarter and a net loss of $43 million in the year ago quarter.
AMD's sales for the quarter fell short of consensus analysts' expectations, which called for revenue for the period of $1.58 billion, according to Yahoo Finance. The company's non-GAAP net income of 9 cents per share exceeded consensus analysts' estimates of 8 cents per share, according to Yahoo Finance.
Harry Wolin, AMD senior vice president and general counsel, said the search for a new CEO remains a top priority and that AMD's board is pleased with the quality of the candidates it has interviewed. But Wolin said meeting a timeline is not the driving force for the CEO search—finding the right person is. "The board is pleased that the senior management team has executed well throughout this timeframe," Wolin said.
Shipments of Fusion accelerated processing units (APUs) drove record microprocessor unit shipments and record mobile microprocessor unit shipments for AMD in the second quarter, the company said. AMD's gross margin for the quarter was 46 percent, the company said.
AMD said computing solutions segment revenue was flat sequentially and year-over-year. Sequentially, higher mobile microprocessor revenues were offset by lower desktop and server revenue, the company said. The year-over-year decrease was primarily driven by lower server revenue, the company said.
Graphics segment revenue decreased 11 percent sequentially and 17 percent year-over-year, AMD said. The sequential decrease was driven primarily by lower discrete mobile unit shipments and seasonality in the desktop discrete graphics add-in board market, the company said, while the annual decrease was primarily driven by lower unit shipments.
"Today's computing experience is increasingly being defined by the ability to deliver brilliant multimedia and video content with all day battery life," said Thomas Seifert, AMD's chief financial officer and interim CEO, in a statement. "Fusion APUs are ideal to meet this need, positioning AMD to gain unit market share in the mobile computing space."
For the current quarter, AMD said it expects revenue to increase sequentially by 8 to 12, percent, reaching between $1.7 billion and $1.76 billion. Seifert said AMD expects gross margins to increase by 1 percent to 47 percent in the current quarter.
From my observation around and into AMD’s Engineering, there are doing great. They made a strategic direction from a management group, and start a new development by merging and re-writing an old code to work with a new Fusion and behind.
In an other side, a public won’t notice this story as AMD won’t broadcast their initiation. Public want to have someone in charge, sort of symbol, who can be blamed or cheered. From my view, AMD might do well for sometime without having C.E.O. in its place. They might do not needed at all, I hope, as engineering does engineering.
It's a great question. There was a report a while back that AMD had offered the job to three or four people, including Pal Gelsinger, Tim Cook and Mark Hurd. According to the report--which I believe was done by Bloomberg--all turned AMD down. At the time, AMD declined to comment on what it termed a rumor. AMD refuses to put a timeline on it, and obviously they are holding their own without a permanent CEO, but one of the analysts on the conference call after the report pointed out that AMD's stock is down and said it was probably because of the CEO search still going on.
Still, as their general counsel said, it's obviously way more important for AMD to find the right person than it is to rush it.
CEOs are greatly over rated. He should set the strategic direction, but the day to day tactical decisions are made without him. Most of them just take money and give back little to nothing. There are exceptions, like Jobs.
I wonder what the real reason for the CEO search taking so long? If they have seen good candidates why haven't they hired them? It seems that either they really have not found the right person or are waiting for someone to either become available or for negotiations to complete. Just wondering...
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