NEW YORK -- AMD on Tuesday announced the fourth quarter earnings for 2013 exceeding its own goal. The increased sales of new game consoles by Sony and Microsoft allowed AMD’s semi-custom SoCs and graphics products to make up for the decline in their chipsets sold for notebooks.
The chipmaker brought in $1.59 billion in revenue, an increase of 9% sequentially and 28% year-over-year. AMD’s gross margin was 35%, its operating income was 135 million, and non-GAAP operating income was $91 million. The company posted quarterly net income of $89 million, earnings per share of $0.12 and non-GAAP net income of $45 million, earnings per share of $0.06.
The sequential increase in AMD’s income surpassed management’s initial expectations of 5%. The increase was driven by strong performance in the graphics and visual solutions segment, as well as higher revenues from semi-custom SoCs and ramp up new R7 and R9 series GPU chipsets.
On an annual basis, AMD’s revenue was down 2% year-over-year to $5.3 billion. Its gross margin was 37% and its operating income was $103 million. The company registered a net loss of $83 million and loss per share of $0.11.
"Strong execution of our strategic transformation plan drove significant revenue growth and improved profitability in the fourth quarter," said Rory Read, AMD president and CEO. "The continued ramp of our semi-custom SoCs and leadership graphics products resulted in a 38 percent revenue increase from the year ago quarter. Our focus in 2014 is to deliver revenue growth and profitability for the full year by leveraging our differentiated IP to drive success in our targeted new markets and core businesses."
Computing made up 45% of AMD’s sales in the last quarter, which was down 8.6% sequentially and 12.9% year-over-year. AMD said it experienced this decrease as a result of a decline in notebook and chipset unit shipments.
AMD’s Graphics and Visual Solutions business was responsible for the remaining 55% of sales, up 28.9% sequentially and 165.3% year-over-year. Growth in these areas largely came from shipments of game consoles, semi-custom SoCs, and R7 and R9 GPUs.
“We made good progress in our three step plan to restructure, accelerate and ultimately transform AMD,” Reed said. He added that Sony and Microsoft reported selling seven million units of their new game consoles with AMD inside in less than two months, more than double prior generation consoles sold. Reed said he expects this momentum to continue. He also discussed AMD’s embedded business’s sequential growth and touted the company’s ability to leverage both X86 and ARM-based solutions in 2014.
Reed said AMD would ship one of the first 64-bit ARM solutions in 2014. He said a combination of x86 and ARM technology alongside the experience AMD has producing semiconductors at a high standard gives the company the advantage heading into this year.
— Zewde Yeraswork, Associate Editor, EE Times