AMD President and CEO Dr. Lisa Su delivers a keynote address at CES 2023 at The Venetian Las Vegas on January 4, 2023 in Las Vegas, Nevada.
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AMD reported first-quarter results on Tuesday that showed revenue falling 9% year-over-year. While earnings and sales beat Wall Street expectations, AMD’s guidance for the current quarter was muted and shares fell more than 3% in extended trading.
Here’s how the company performed against Refinitiv consensus estimates for the quarter ending in December:
- EPS: $0.60 per share, adjusted, versus the expected $0.56 per share
- he won: $5.35 billion, versus the expected $5.3 billion
AMD said it expects sales of about $5.3 billion in the current quarter, versus expectations of $5.48 billion. However, in a statement, AMD CEO Lisa Su noted that the company sees “growth in the second half of the year as it strengthens the PC and server markets.”
The company’s net loss was $139 million, or a loss of nine cents per share, compared to a net profit of $786 million, or $0.56 per share, during the same quarter last year. AMD excludes certain losses on investments and acquisition-related costs from its earnings.
The biggest decline came in AMD’s customer group, which includes sales from PC processors. AMD reported $739 million in sales in this category, down 65% from $2.1 billion in sales during the same period last year.
AMD’s report comes as the PC industry is in a deep recession, with shipments down 30% in the first quarter, according to IDC.
“We believe the first quarter was the lowest for our customer processor business,” Su said.
AMD’s data center segment grew slightly during the year, to $1.295 billion from $1.293 billion last year. AMD management also said that the category is likely to grow in the current quarter.
“I would say from the overall market point of view, I think the enterprise will continue to be mixed, with the idea that we expect some improvement. It depends a bit on the overall situation,” Su said.
The embedded segment of less powerful networking chips grew from $595 million last year to $1.56 billion, due in part to additional revenue from the company’s purchase of Xilinx.
AMD’s gaming segment, which includes graphics processors for PCs as well as chips for consoles like the Sony Playstation 5, posted sales of $1.76 billion, down slightly from last year’s mark of $1.88 billion.
While the results showed a lack of growth, they came at a difficult time for chipmakers. Last week, Intel, AMD’s main competitor in the computer and server chip markets, reported that its overall sales fell 36%.