AMD has officially published its third-quarter earnings, but boosted revenue has failed to make up for the massive hit caused by its refreshed wafer supply agreement with former subsidiary GlobalFoundries.
In its report for the third quarter 2016, AMD boasted of boosted revenue: the company took in $1.307 billion for the quarter, up a whopping 27 percent month-on-month and 23 percent year-on-year. AMD credits this to record sales from it semi-custom system-on-chip (SoC) division, responsible for the processors powering the PlayStation 4 and Xbox One family of consoles, as well as increased graphics processor and mobile accelerated processing unit (APU) sales, while admitting that the figure was dragged down by poorer-than-expected sales from its desktop processor and chipset division.
That increased revenue could have spelled a fantastic quarter for AMD, if it weren't for one little thing: its latest wafer supply contract with GlobalFoundries
, the now-independent company spun out from AMD's manufacturing division following the company's decision to go fabless. Without taking that into account, AMD has claimed a $27 million net income for the quarter; taking the charge into account, though, and AMD is hit by a $406 million operating loss - a blow considering the $69 million net income it managed to eke out in the previous quarter, a figure reached by a one-off sale of 85 percent of AMD's assembly, test, mark, and pack (ATMP) facilities to Fujitsu for $150 million pre-tax, and up even on the $197 million loss for the same quarter last year.
It's not all bad news, though. AMD's cash reserves are, somehow, up $301 million quarter-on-quarter and stand at $1.258 billion while its debt is down $606 million to $1.632 billion, both largely thanks to capital markets transactions which raised $1.4 billion in cash. The company also confirmed that it is still on-track to launch Zen, its next-generation processor microarchitecture, in the first quarter of 2017 for desktops and the second quarter for servers, the latter to include the Naples 32-core, 64-thread chip family.
AMD's share price took a nosedive immediately following its earnings call, rallying slightly to a loss of 4.45 percent in pre-market trading.