The stock price of Advanced Micro Devices, Inc. (NYSE:AMD) declined 19% to $3.70 per share during the extended hours trading after the company reported quarterly earnings that fell short of the expectations of Wall Street analysts.
Second-quarter financial results
Advanced Micro Devices, Inc. (NYSE:AMD) posted earnings of $0.02 per share and $1.44 billion in revenue for the second quarter. During the same period a year ago, the company recorded losses of $0.09 per share and $1.2 billion in revenues.
Analysts expected the company to deliver earnings of $0.03 on $1.4 billion in revenue for the second quarter based on data compiled by Bloomberg.
According to Advanced Micro Devices, Inc. (NASDAQ:AMD), it’s the revenue of its computing solutions segment dropped 20$ while its graphics and visual solutions segment increased 141% year-over-year.
Advanced Micro Devices, Inc. (NYSE:AMD) said its gross margin was sequentially flat at 35%.
The company ended the quarter with $948 million in cash, cash equivalents and marketable securities, which is significantly higher than its $600 million minimum target and close to its $1 billion optimal zone. Its total debt increased to $2.21 billion.
AMD CEO says transformation on track
In a statement, Rory Read, president and CEO of Advanced Micro Devices, Inc. (NYSE:AMD) said, “The second quarter capped off a solid first half of the year for AMD with strong revenue growth and improved financial performance.”
Read emphasized that the “transformation strategy of the company is on track.” He added, “We expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”
Advanced Micro Devices, Inc. (NYSE:AMD) recently appointed Dr. Lisa Su as chief operating officer. She will be responsible in overseeing the previously separated global operations, operating segments and sales organization of the company to drive growth in both traditional PC and adjacent markets.
The company also realigned its organization’s structure to provide unmatched customer value, and created two new reportable segments—Computing and Graphics segment and Enterprise, Embedded and Semi-Custom segment.