AMD Rides Next Generation Console Launches, Posts 28 Percent Bump in Revenues

Paul Lilly

PlayStation 4 and Xbox One sales contributed to a 118 percent jump in semi-custom SoC revenue

Propped up by next-generation console launches by Microsoft (Xbox One) and Sony (PlayStation 4), AMD today announced first quarter revenue $1.4 billion , which is a decrease of 12 percent sequentially but up a whopping 28 percent compared to the same quarter a year ago. Unfortunately for AMD, the jump in revenue still amounted to a $20 million loss, or $0.03 per share, though the Sunnyvale chip designer feels good about where it's at.

"AMD continued our momentum by building on the solid foundation we set in the second half of 2013, further transforming the company," said Rory Read , AMD president and CEO. "Backed by our powerful x86 processor cores and hands-down best graphics experiences, we achieved 28 percent revenue growth from the year-ago quarter. We are well positioned to continue to grow profitably as we diversify our business and enable our customers to drive change and win."

It's been a rough run all around for traditional PC sales, which resonated with AMD. Its Computing Solutions segment saw an 8 percent sequential decrease in revenue and a 12 percent decline year-over-year, both of which AMD attributed to decreased client unit shipments.

Revenue from AMD's Graphics and Visual Solutions segment decreased 15 percent sequentially, but ballooned 118 percent year-over-year. This growth was driven in large part by AMD's semi-custom SoCs, which are primarily used to power game consoles. AMD also notes strong demand for its Radeon R7 and R9 family of products.

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