Intel Corporation has announced their Q4 and full year 2014 earnings, profits are good we can say a record in terms of revenue. Old rival AMD today announced 2014 earnings, but the results are not so optimistic. AMD in Q4 quarter has faced the net loss of $364 million, while in 2013 over the same period they received a profit of $89 million. 2014 full-year loss of $403 million, in compared to the 2013 it is even worse, when net loss was about $83 million, or $0.11 per share.
AMD announced 2014 earnings
AMD Q4 2014 quarter revenue of $1.24 billion, $1.59 billion less than the previous quarter and $ 1.43 billion last year, $330 million operating loss last quarter operating profit as well as $ 63 million a year earlier and up to $ 135 million. Q4 entire quarter, AMD net loss of $ 364 million, and diluted earnings per share of $ -0.47 (AMD shares currently $ 2.24), Q3 quarter net profit of $ 17 million, net profit of $ 89 million last year.
2014 AMD $5.51 billion annual revenue, an increase of 4%, the gross margin 33% (Intel’s gross margin remained at about 60-65% annually), an operating loss of $ 155 million, a net loss of $ 403 million, while the 2013 full annual loss of $ 83 million, a loss situation has deteriorated AMD.
Earnings data above is calculated based on US GAAP rules, if a non-GAAP rules, AMD profit last year as well as $51 million, a loss of good-looking than $ 83 million in 2013.
Let’s look at the performance of AMD departments. Computing and graphics (CPU, APU and GPU businesses are considered in this department) segment revenues were down 15%, down 16%, AMD said the reasons for the decline was lower than the previous desktop processors and GPU sales, also in this year the desktop Processor and chipset sales also gone into decline. (It seems like AMD AMD did not think about long a competitive product)
The segment operating loss of $ 56 million, $ 17 million relative to the previous quarter’s loss of $ 15 million loss last year significantly expanded, but the client (CPU, APU) because the average price of ASP notebook products has improved, GPU’s ASP prices were rising, down (AMD’s R9 290X from 2013 in $549 to to the current price of $399).
This year for AMD contributed most of the profits from the business, the performance of embedded and semi-custom business sector has also been sluggish because of semi-custom chip sales decline, the segment revenues were down 11%, but still bigger than the same period in 2013 rose by 51%.
The segment operating profit of $ 109 million, $ 108 million for the quarter, compared to $ 129 million.
Other parts of the $ 383 million operating loss last quarter was a loss of $ 28 million, $ 21 million profit a year earlier, mainly due to the good will amortization expense of $ 233 million, restructuring charges of $ 71 million, and $ 58 million of inventory reduction value.
AMD also listed some of the highlights of the rate of the 2014 performance, such as the use of their APUs in a new generation of console their APU sales increased to 30 million, Sony also started selling the Chinese PS4 host. AMD will launch this year Carrizo, Carrizo-L two low-power APU, listed on the first half of 2015. AMD embedded processor NAS vendors also received recognition, QNAP recently launched AMD processor-based NAS products and so on.