Advanced Micro Devices on Tuesday reported a net loss of $660 million on revenue of $3.99 billion for 2015, compared with a net loss of $403 million on revenue of $5.51 billion in 2014.

In the fourth quarter, the fabless semiconductor company posted a net loss of $102 million on revenue of $958 million. A year ago, AMD had a net loss of $364 million on revenue of $1.24 billion.

“AMD closed 2015 with solid execution fueled by the second straight quarter of double-digit percentage revenue growth in our Computing and Graphics segment and record annual semi-custom unit shipments,” AMD President and Chief Executive Officer Lisa Su said in a statement. She added, “While 2015 was challenging from a financial perspective, key R&D investments and a sharpened focus on innovation position us well to deliver great products, improved financial results and share gains in 2016.”

The IC design company’s Computing and Graphics segment had Q4 revenue of $470 million, down 29 percent from a year earlier while growing 11 percent from the third quarter, largely due to higher sales of notebook processors. AMD’s Enterprise, Embedded and Semi-Custom segment posted revenue of $488 million in Q4, down 15 percent from a year ago due to lower game-console royalties and decreased sales in embedded and server chips. Q4 revenue in that segment fell 23 percent from Q3 owing to seasonally lower sales of semi-custom system-on-a-chip devices.

AMD forecast revenue in the first quarter of this year will be down 14 percent from Q4, to about $824 million.

Matthew Ramsay, an analyst for Canaccord Genuity, said of AMD’s financial results, “Overall, we believe AMD’s diversification strategy continues to show gradual progress and a refreshed roadmap could position the company for more defensible long-term sales beginning 2H/16 as the roadmap moves to FinFET, crossing a significant competitive hurdle for the company. While Q4/15 results marked the second consecutive quarter of sequential growth for the C&S business where the roadmap is now more competitive, Q1/16 guidance was disappointing and management’s commentary regarding the macro environment was less than encouraging given a recent decline in channel and OEM forecasts in China. Looking forward to 2016, we anticipate stronger GPU sales as Polaris GPUs launch midyear, solid unit growth of console sales largely offset by ASP declines, and new semi-custom wins to contribute to 2H/16 growth, leaving GPU or semi-custom sales catalyzed by virtual reality as upside to our estimates. We are starting to see the righting of the ship at AMD, but remain on the sidelines for now given the decidedly uncertain macro environment.”

By: DocMemory
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