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Thursday, October 17, 2013
Consoles Drive AMD's Profitability

Advanced Micro Devices (AMD) posted third-quarter profit as the chipmaker turns to new game consoles to offset slow demand in the PC industry.

Advanced Micro Devices reported a third-quarter net profit of $48 million, compared to a net loss of $157 million in the year-ago quarter as the chipmaker turns to upcoming game consoles to offset slow demand for personal computers.

The company said its non-GAAP earnings per share were 4 cents, beating expectations of 2 cents a share.

AMD said on Thursday its third-quarter revenue was $1.46 billion, compared to $1.27 billion in the same quarter last year.

"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," said Rory Read, AMD president and CEO. "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."

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