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<p align="center"></p><p><p>
AMD hosted their quarterly earnings conference call this afternoon to announce their financial results for the quarter ending March 2014. While they still reported a GAAP loss of $20 Million ($0.03 per share), year over year results showed a strong revenue gain of 28% and a substantial 86% increase in net income (though still a small loss).</p>
<table align="center" border="0" cellpadding="0" cellspacing="1" width="455">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">
AMD Q1 2014 Financial Results (GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">
&nbsp;</td>
<td align="center" valign="middle" width="85">
Q1'2014</td>
<td align="center" valign="middle" width="85">
Q4'2013</td>
<td align="center" valign="middle" width="85">
Q1'2013</td>
</tr>
<tr>
<td class="tlgrey">
Revenue</td>
<td align="center" valign="middle">
$1.40B</td>
<td align="center" valign="middle">
$1.59B</td>
<td align="center" valign="middle">
$1.09B</td>
</tr>
<tr>
<td class="tlgrey">
Net Income</td>
<td align="center" valign="middle">
-$20M</td>
<td align="center" valign="middle">
$89M</td>
<td align="center" valign="middle">
-$146M</td>
</tr>
</tbody>
</table>
<p>
Gross margins were 35% for the quarter which was flat compared to Q4 2013. These margins are in-line with AMD&rsquo;s stated goals, and while they&rsquo;d no doubt appreciate greater margins right now, the long term plan is to be profitable with these margins.</p>
<p>
Non-GAAP numbers were slightly higher, with a small profit of $12M, or $0.02 per share.</p>
<table align="center" border="0" cellpadding="0" cellspacing="1" width="455">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">
AMD Q1 2014 Financial Results (Non-GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">
&nbsp;</td>
<td align="center" valign="middle" width="85">
Q1'2014</td>
<td align="center" valign="middle" width="85">
Q4'2013</td>
<td align="center" valign="middle" width="85">
Q1'2013</td>
</tr>
<tr>
<td class="tlgrey">
Revenue</td>
<td align="center" valign="middle">
$1.40B</td>
<td align="center" valign="middle">
$1.59B</td>
<td align="center" valign="middle">
$1.09B</td>
</tr>
<tr>
<td class="tlgrey">
Net Income</td>
<td align="center" valign="middle">
$12M</td>
<td align="center" valign="middle">
$45M</td>
<td align="center" valign="middle">
-$94M</td>
</tr>
</tbody>
</table>
<p>
The biggest decrease was in the Computing Solutions (CPUs & APUs) segment, where there was a decrease of 12% year-over-year, however the Graphics and Visual Solutions (GPUs & custom SoCs) segment had a huge year-over-year increase of 118% mostly due to semi-custom SoC production. This isn&rsquo;t surprising with the very high sales of the Xbox One, and more so the PS4, both which have AMD silicon at the heart of their platform.</p>
<table align="center" border="0" cellpadding="0" cellspacing="1" width="455">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">
AMD Q1 2014 Computing Solutions Division Financial Results</td>
</tr>
<tr class="tlblue">
<td width="120">
&nbsp;</td>
<td align="center" valign="middle" width="85">
Q1'2014</td>
<td align="center" valign="middle" width="85">
Q4'2013</td>
<td align="center" valign="middle" width="85">
Q1'2013</td>
</tr>
<tr>
<td class="tlgrey">
Operating Income</td>
<td align="center" valign="middle">
-$3M</td>
<td align="center" valign="middle">
-$7M</td>
<td align="center" valign="middle">
-$39M</td>
</tr>
</tbody>
</table>
<p>
GPU operating income also increased year-over-year up $75M with the release of the popular Radeon R7 and R9 products and strong Average Selling Prices of those devices. Sequentially, GPU operating income fell $30M due to a decrease in semi-custom SoC sales. This isn&rsquo;t surprising, since the PS4 and Xbox One both arrived in Q4 2013 &ndash; complete with the major production ramp-up and stockpiling that a console launch entails &ndash; and were a large boost to AMD&rsquo;s sales numbers for that quarter.</p>
<table align="center" border="0" cellpadding="0" cellspacing="1" width="455">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">
AMD Q1 2014 Graphics and Visual Solutions Financial Results</td>
</tr>
<tr class="tlblue">
<td width="120">
&nbsp;</td>
<td align="center" valign="middle" width="85">
Q1'2014</td>
<td align="center" valign="middle" width="85">
Q4'2013</td>
<td align="center" valign="middle" width="85">
Q1'2013</td>
</tr>
<tr>
<td class="tlgrey">
Operating Income</td>
<td align="center" valign="middle">
$91M</td>
<td align="center" valign="middle">
$121M</td>
<td align="center" valign="middle">
$16M</td>
</tr>
</tbody>
</table>
<p>
Total debt combining long term and short term was up slightly at $2.14B, however Cash, cash equivalents, and marketable securities were hovering around the $1B mark which is where AMD wants to keep its cash reserves. This is in addition to making the final payment to GlobalFoundries of $200M for its previous wafer commitments for 2012, as well as fixing prices for their 2014 wafer purchases.</p>
<p>
AMD is expecting a 3% revenue increase (plus or minus&nbsp;3%)&nbsp;for the 2^nd quarter this year.</p>
<p>
Overall this is a decent quarter for AMD. Consensus earnings for Q1 was $0.00 per share non-GAAP, which AMD beat at $0.02 per share. AMD shares are up 5.96% in after-hours trading at this time.</p>
<p>
Going forward, AMD is expected to bring its ARM 64 bit server architecture out this year, and is hoping to make inroads in the profitable server market.</p>
<p>
Rory Read &ndash; AMD&rsquo;s president and CEO &ndash; must be pretty happy with the new fiscal outlook. There was a time in 2012 where people weren&rsquo;t sure if AMD was going to be able to pull through but strong GPU and SoC sales, coupled with cost savings in the CPU division have brought AMD back.</p>
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Source: AnandTech
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