AMD expects to make a profit next quarter

AMD expects to make a profit next quarter

AMD expects to make a profit next quarter, for the first time since the second quarter of 2012.

AMD’s bullish attitude is despite the PC market’s continuing slide and
rival Intel revealing earlier this week that its quarterly revenues slid
5% on year.

Indeed, AMD posted a net loss of $29 million this quarter, cutting its losses from $146 million in the first quarter.

“Our performance in the second quarter was driven by opportunities in
our new high-growth and traditional PC businesses,” said Rory Read, AMD
president and CEO.

“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,” he added. “We expect significant revenue growth
and a return to profitability in the third quarter.”

The Graphics division posted zero profit, while the Computing arm
squeaked by with $2 million – down from $82 million in the same quarter
last year, but an improvement from last quarter’s $39 million loss.

Overall, sales slid from $1.4 billion from the same quarter last year to $1.2 billion this quarter.

While AMD’s focus on the ailing computer market may make Read’s
optimism seem out of place, there is one area that AMD dominates:
consoles. As the company noted: “AMD technology is inside all three of
the next generation gaming consoles: Nintendo Wii U, Sony PS4, and Xbox
One.”

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