AMD Has Returned To Profitability
AMD turned in its latest financial earnings report yesterday, and the chip designer is officially back in the black.
Along with $1.46 billion in revenue (a bump of 26 percent over the previous quarter), AMD confirmed that its operating income was $95 million for the quarter. The profit is a marked improvement over first and second quarters of 2013, which saw losses of $29 million and $131 million, respectively.
The earnings bump is tied to AMD’s overwhelming success in the console space. The PS4 uses an AMD APU (a CPU and graphics core combo), as does the Xbox One. Nintendo’s WiiU pairs a PowerPC CPU with an AMD graphics part. Intel and Nvidia are nowhere to be found in the next-gen consoles, and AMD’s dominance, paired with a successful desktop graphics division, is officially paying out dividends for the company.
From AMD CEO Rory Read:
“AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago. We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets.”
The Tech Report has a solid breakdown of the numbers, including a handy chart that shows just how much the graphics division has grown. Comparatively, the Computing Solutions division is on the decline, and AMD is now near a 50-50 revenue split between the two divisions.
With APUs in two of the three next-gen systems, a strong desktop GPU lineup in the works, and an APU division that still has the best integrated graphics available, things are looking up for AMD, without a doubt.