Source: AMD.
Shares of Advanced Micro Devices (AMD +0.56%) fell more than 15% in after-hours trading, following the release of disappointing second-quarter results.
The microprocessor designer's sales jumped 24% higher year over year, matching analyst estimates at $1.44 billion. On the bottom line, AMD turned the year-ago period's $0.09 adjusted loss per share into a $0.02 net profit per diluted share, but still fell $0.01 short of earnings estimates.
Processor sales fell 20% year over year. However, AMD turned operating losses into a modest profit in this division, as low-margin desktop processor sales gave way to more profitable notebook products.
In the graphics and visual solutions segment, sales increased 5% from the first quarter and jumped 141% year over year. This division benefits from shipping the custom system-on-a-chip products that power the latest generation of video game consoles.
This was AMD's last report under the old reporting structure, dividing results into computing solutions and graphics products. Moving forward, AMD will report results in two new segments. The computing and graphics division combines standard desktop and notebook processors with traditional graphics products. The enterprise, embedded, and semi-custom segment combines server products with embedded and semi-custom chips, such as game console products.
Looking ahead, AMD expects to deliver sales of $1.47 billion in the third quarter, give or take 3%. The current analyst consensus is pointing to $1.57 billion.
"Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth," said AMD CEO Rory Read in a prepared statement. "We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets."
