AMD's Revenue Tumbled 32 Percent in Fourth Quarter, Time to Face "Business Realities"

Paul Lilly

AMD's total revenue for 2012 came to $5.42 billion, down 17 percent year-over-year.

Maybe no other company than Advanced Micro Devices (AMD) is more happy to leave 2012 behind. By the numbers, it was a forgettable year for AMD , which raked in $5.42 billion in revenue for the entire year, or $47.88 billion less than Intel did. That's not a fair comparison, though there's no sugarcoating the declining numbers AMD posted. The Sunnyvale chip maker made $1.16 billion during the fourth quarter of 2012, a decrease of 9 percent compared to the previous quarter, and down 32 percent year-over-year.

It also had an operating loss of $422 million for the quarter, and a net loss of $473 million, or $0.63 per share. For the entire year, AMD had an operating loss of $1.06 billion and a net loss of $1.18 billion, or $1.60 per share.

"AMD continues to evolve our operating model and diversify our product portfolio with the changing PC environment," said Rory Read, AMD president and CEO. "Innovation is the core of our long-term growth. The investments we are making in technology today are focused on leveraging our distinctive IP to drive growth in ultra low power client devices, semi-custom SoCs and dense servers. We expect to deliver differentiated and groundbreaking APUs to our customers in 2013 and remain focused on transforming our operating model to the business realities of today."

Like Intel , AMD faces a changing landscape. If there's a silver lining, it's that AMD's fourth quarter gross margin was positively impacted by the sales of higher priced desktop processors. Still, AMD's Computing Solutions segment saw its revenue decline 11 percent sequentially and 37 percent year-over-year. These were mostly driven by lower processor unit volume shipments, AMD said.

AMD's graphics segment was also down, with revenue dropping 5 percent sequentially and 15 percent year-over-year.

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