AMD Revenue Slips, Search for CEO Continues

Paul Lilly

AMD's revenue for the second fiscal quarter of 2011 dipped 5 percent compared to the second quarter in 2010 as the hunt for a permanent CEO continues, the company announced on Thursday. It's been over six months since former chief Dirk Meyer resigned in January after butting heads with the company's board of directors over AMD's mobile strategy. CFO Thomas Seifert has been serving as Interim CEO ever since.

Revenue for the quarter dipped to $1.57 billion, down from $1.61 billion in the first quarter of 2011 and $1.65 billion in the second quarter of 2010. Operating income was $142 million, compared with $100 million in Q1 11 and $128 million Q2 10, and net profit dropped to $70 million, down from $83 million one year ago.

AMD shipped 7 million Fusion APUs in the second quarter and 12 million so far this year. Going forward, AMD expects revenue to grow by 8 to 12 percent in the third quarter on the strength of its Fusion sales.

"In the first half of 2011, AMD brought to market the most competitive client offerings in our history, reinforcing our position as a design and innovation powerhouse," said Thomas Seifert , CFO and Interim CEO. "Today’s computing experience is increasingly being defined by the ability to deliver brilliant multimedia and video content with all day battery life. Fusion APUs are ideal to meet this need, positioning AMD to gain unit market share in the mobile computing space."

While AMD's processor sales are strong, the company's graphics segment revenue decreased 11 percent sequentially and 17 percent year-over-year. AMD blamed the decrease on lower discrete mobile unit shipments and seasonal fluctuations in the discrete add-in board market. Still, AMD isn't fretting over its GPU business, noting that it "extended its position as the graphics provider of choice for the game console market, where more than 140 million current-generation games consoles are powered by AMD graphics technology." AMD will also provide graphics for Nintendo's upcoming Wii U console.

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