The third fiscal quarter of the calendar of many companies was barely over, but it did not prevent them from taking a preliminary look at this reporting period. AMD did not wait for the publication of complete statistics, and this week it was forced to admit that the company's revenues did not meet its own expectations by an average of $1 billion, and on the client side, they fell by 40 per cent per year.
AMD stated that in the third quarter the company had made no more than $5.6 billion, while its own forecast had previously mentioned a range of $6.5 billion to $6.9 billion. The profit rate, instead of the expected 54%, was barely close to 50%.
In more detail about the quarter results, Director General Lisa Soo reported that even if AMD had a competitive range of products, it had not been possible to overcome the negative macroeconomic trend and to retain significant stocks of products from clients that had yet to be sold.
On a client-specific basis, AMD reduced revenue by 53 per cent consecutively and by 40 per cent in annual comparison, to $1 billion. In the data processing centre segment, revenue increased consistently by 8 per cent and by 45 per cent in annual comparison, to $1.8 billion. The game segment became another "dark Kingdom light source", although it remained at the level of the previous quarter, it rose by 14 per cent annually to $1.6 billion. Finally, the decision-making sector increased revenue consistently by $4 per cent to $1.3 billion, mainly as a result of the absorption of the Hilinx, which was completed this year. AMD then had to write off $160 million because of the adjustment in product prices and the availability of unrealized stocks. It is noteworthy that transaction costs in the third quarter even decreased from $1.6 billion to $1.5 billion relative to expectations.
By the way, in total, AMD's revenue declined by 15% in a consistent comparison only, but it grew by 29% annually, although against the background of the previous quarter's achievements, it does not seem to reflect this trend.