AMD Ends Q4 2012 With Net Loss Of $473 Million
AMD has delivered its financial results for Q4 2012, and things aren't looking too hot for the company as we head into 2013. While AMD reported revenues of $1.16 billion for the fourth quarter, that figure is down 9% sequentially and a significant 32% year-over-year. Not making things any better, AMD reported a net lost of $473 million for the quarter, with loss-per-share coming in at $0.63.
Things get somewhat better when looking at the non-GAAP figures for the quarter, but in that case, AMD still finds itself with an operating loss of $55 million, a net loss of of $114 million, and a loss-per-share amount that settles at $0.14. GAAP gross margin came in at 15% for the quarter, while non-GAAP gross margin was 39%. Computing Solutions was down 37% year-over, posting an operating loss of $323 million, while the company's Graphics segment had an operating income of $22 million – seemingly one of the only bright spots in AMD's report, but still down 15% year-over-year nonetheless. The declines for both were blamed on decreases in product shipments.
Unfortunately, this poor Q4 was indicative of a rough year in general for AMD. The company had a revenue of $5.42 billion for 2012 as a whole, which sounds excellent but is actually down 17% year-over-year. Similarly, the company suffered an operating loss of $1.06 billion for the year, with net loss hitting $1.18 billion and loss-per-share treading somewhat close to $2.00 at $1.60. It's worth remembering that AMD began implementing the restructuring it announced after posting Q3's poor results, so that took something of a toll on the company's pocketbook at the end of the year.
Those restructuring efforts forced a lot of workers out of their jobs, but the hope is that AMD will post better financials for 2013 as a result. In the immediate future, however, AMD isn't expecting things to improve at all. In Q1 2013, it expects revenues to fall another 9% sequentially (with a possible 3% swing either way), which would be even worse news for the already struggling company. Stay tuned.