AMD reports losses, Q2 revenues could be flat

SAN FRANCISCO, USA: Advanced Micro Devices (AMD) has reported a decline in its first quarter sales, both on a sequential and annual basis and it estimates that its second quarter revenue could be flat to little higher.

The company reported first quarter sales of $1.59 billion, down 6 per cent from the previous quarter and down 2 per cent compared to the first quarter of 2011, reports Sylvie Barak of EETimes.

According to generally accepted accounting principles (GAAP), the firm reported a net loss of $590 million compared to a GAAP net loss of $177 million in the previous quarter. AMD reported a net income of $92 million on a non-GAAP basis, down from $138 million in the previous quarter. AMD had also paid out $281 million in cash for the purchase of microserver maker SeaMicro, leaving $1.71 billion cash in the bank at the end of the first quarter.

Gross margins remained flat sequentially but despite the losses, Rory Read, AMD president and CEO, said that Q1 is a "solid quarter" for AMD and the firm remained singularly focused on improving execution.