Swiftly following Intel’s lead AMD has posted its latest financial results, and while the results are considerably less impressive than its competitor, AMD is just about keeping its head above water. Contrary to Intel’s record revenue gains for the last quarter, AMD brought in just $17 million net income from a total of $1.43 billion in revenue, struggling in particular when it came to its Computing and Graphics departments.
$17 million isn’t exactly something to be sniffed at, and it’s definitely an improvement on the $36 million loss from the previous quarter, but it’s still some way short of the $48 million achieved in this same period last year. AMD has faced tough competition in recent years from the likes of Nvidia and the aforementioned Intel, and this is beginning to take its toll despite the chip maker winning contracts to support all three current-gen consoles.
"Our Enterprise, Embedded and Semi-Custom segment results were strong; however, performance in our Computing and Graphics segment was mixed based on challenging market conditions that require us to take further steps to evolve and strengthen the financial performance of this business,” said Lisa Su, AMD’s new president and CEO following the departure of Rory Read earlier this month. “Our top priority is to deliver leadership technologies and products as we continue to transform AMD."
AMD unfortunately now has plans in place to lay off 7 per cent of its workforce, around 700 staff, in a bid to achieve higher profits and better growth for the future. It was undoubtedly the Computing and Graphics departments that underperformed, dropping 16% year on year and running at a loss of $17 million.
It’s difficult to argue that Nvidia has knocked it out the park so far this year, first delivering the affordable and efficient GeForce GTX 750 Ti, and recently unleashing the GeForce GTX 980 and the GeForce GTX 970, offering unparalleled price to performance and leaving AMD playing catch up. All this means that we expect AMD to pull out the big guns soon, no doubt with the arrival of the Radeon R9 300 series graphics cards and its eventual Zen processor range.
What do you think AMD needs to do to get back on track? Do you think it can deliver with the Radeon R300 Range? Let us know!