AMD Shifts Testing Externally, Falls to $1 Billion Revenue

By Published October 16, 2015 at 9:59 am

Microprocessor manufacturer AMD posted its third-quarter financials yesterday, reporting a ~40% revenue fall to $1.06 billion from $1.43 billion in 3Q14. AMD posted a $158 million operating loss for the quarter.

The company continues its endless restructure, the Radeon Technologies Group (RTG) now largely independent, with new shifts including a separation of the ATMP group.

ATMP, or “assembly, test, mark, and pack,” will soon be 85% owned by NFME, who aim to pay AMD $371 million for its stake in the soon-joint operation. AMD will keep the remaining 15% of ownership. ATMP is a 1700-person operation based in Asia (China and Malaysia) and will continue operating, reportedly, at full force under new majority owner NFME. AMD hopes that this shift, along with its years-ago-begun shift toward fabless production, will reduce the resource drain exhibited by stagnant product.

GAAP Financials 3Q15 2Q15 3Q14
Operating income -$158M -$137M $63M
Net income -$197M -$181M $17M
Earnings per share -$0.25 -$0.23 -$0.02

AMD wrote-off $65 million this quarter for unsold APUs, a developing trend for the company. For comparison, AMD wrote-off $58 million of APU-related inventory in 4Q14.

The “Computing and Graphics” segment, which obfuscates visibility to independent performance of GPUs, APUs, and CPUs, took a 46% year-over-year hit to revenue in 3Q15. This is following a 26% fall in quarterly GPU sales in 2Q15.

AMD looks toward the horizon for better days, promising drastic CPU improvements with its impending “Zen” architecture (rumored for 2H16).

- Steve “Lelldorianx” Burke.

Last modified on October 16, 2015 at 9:59 am
Steve Burke

Steve started GamersNexus back when it was just a cool name, and now it's grown into an expansive website with an overwhelming amount of features. He recalls his first difficult decision with GN's direction: "I didn't know whether or not I wanted 'Gamers' to have a possessive apostrophe -- I mean, grammatically it should, but I didn't like it in the name. It was ugly. I also had people who were typing apostrophes into the address bar - sigh. It made sense to just leave it as 'Gamers.'"

First world problems, Steve. First world problems.

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