PCs Stick it to AMD Again in Q2 But SoCs Glimmer
AMD (AMD) blamed PCs for a 35 percent year-over-year revenue downturn to $942 million for Q2 2015, reflecting an operating loss of $137 million, and a net loss of $181 million, or $0.23 per share.
The revenue shortfall was well below analysts’ forecast of $999.5 million, slipping AMD’s quarterly revenue below the $1 billion mark for the first time in some 10 years.
“Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs,” said Lisa Su, AMD president and chief executive.
While pointing the finger at weaker PC OEM sales for the bleak quarter, Su continued to say AMD’s way out of the woods is its graphics business.
“We continue to execute our long-term strategy while we navigate the current market environment,” she said. “Our focus is on developing leadership computing and graphics products capable of driving profitable share growth across our target markets.”
AMD’s client computing sales woes mirror how researchers Gartner and IDC also viewed PCs for Q2. According to Gartner’s figures, worldwide PC shipments totaled 68.4 million units in Q2, a 9.5 percent decline from the same time last year. The quarterly dip was the steepest since Q3 2013, Gartner said. For the full year, the researcher expects PC shipments to fall some 4.4 percent.
Researcher IDC pegged the worldwide PC shipment tumble for Q2 at 11.8 percent among 66.1 million units, or 1 percent below projections for the period.
As AMD’s Computing and Graphics segment revenue decreased 54 percent from Q2 2014 and 29 percent from last quarter, the chip maker’s Enterprise, Embedded and Semi-Custom segment revenue rose 13 percent sequentially driven by sales of semi-custom SoCs.
For Q3 2015, AMD expects revenue to increase 6 percent, plus or minus 3 percent, sequentially.