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AMD Revenues Continue to Slide in Q4 2015

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AMD revenues drop by -23% Y-o-Y to $958 million in Q4 2015, even as the company manage to narrow net losses from $330m in Q4 2014 to $102m, the result of seasonally lower semi-custom SoC sales.

AMD logoAlso to blame is (perhaps obviously) client processor sale decline-- the ailing PC industry brought about a -29% decline in AMD computing business revenues reaching $470m with $99m operating loss. Further hitting the company are declining game console royalties and lower server and embedded revenues.

The quarter did see AMD gross margin increase to 30%, a figure affected by a 2015 inventory write-down worth $65m (the result of selling older-gen APUs at a loss).

CEO Lisa Su still insists on optimism, saying “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 earnings call did see AMD announce the anticipated Zen processor architecture (codenamed Summit Ridge) will see first release in high-end desktop PCs by end 2016, before server versions launch in early 2017.

The company is also collaborating with Dell and Oculus in Oculus-ready PCs armed with AMD Radeon GPUs, while new products include the re-architected Radeon Software Crimson Edition graphics software suite, the Radeon R9 380X GPU, the workstation-optimised FirePro W300 graphics card and the embedded R-series SoC processors for digital signage and electronic gaming use.

Go AMD Reports Q4 2015 and Annual Results