SAN FRANCISCO—PC processor vendor Advanced Micro Devices Inc. Thursday (April 18) reported first quarter sales that exceeded analysts' expectations despite difficult market conditions.
"Our first quarter results reflect our disciplined operational execution in a difficult market environment," said Rory Read, AMD president and CEO, in a statement.
Read said AMD has largely completed restructuring measures resulting in thousands of job cuts and is focused on delivering new products 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," Read said.
Christopher Danely, an analyst with JP Morgan, said AMD delivered solid results and second quarter guidance. "However, the company continues to have a large net debt level while remaining unprofitable," Danely wrote in a report circulated early Friday. JP Morgan maintains a "neutral" rating on AMD's stock.
"While AMD’s recent woes remain fresh in mind, the business looks as though it has stabilized for now," said Christopher Rolland, an analyst with FBR Capital Markets, in a report circulated Friday. "Excluding another macro downturn, we think cash levels seem sufficient for the near future, particularly if management can execute on its path toward free cash flow breakeven in 2H13."
AMD (Sunnyvale, Calif.) reported first quarter sales of $1.09 billion, down 6 percent from the previous quarter and down 31 percent from the previous quarter. The company reported an operating loss of $98 million, narrowed compared with losses of $442 million in the previous quarter and $580 million in the year-ago quarter.
AMD's first quarter sales beat consensus analysts' expectations of about $1.05 billion, according to Yahoo Finance.
For the current quarter, which closes in June, AMD said it expects sales to be between $1.06 billion and $1.11 billion, a range of down 3 percent to up 2 percent sequentially. The company's guidance was within analysts' expectations, according to Yahoo Finance.