Published April 17, 2014
Chip maker Advanced Micro Devices (AMD) beat the Street on Thursday by posting a surprise adjusted profit thanks to a 28% jump in revenue.
Shares of the technology company rallied 3% in after-hours action on the stronger-than-expected results.
AMD said it lost $20 million, or 3 cents a share, last quarter, compared with a loss of $146 million, or 19 cents a share, a year earlier.
Excluding one-time items, it earned 2 cents a share last quarter, topping estimates from analysts for flat earnings.
Revenue jumped 28% year-over-year to $1.4 billion, exceeding the Street’s view of $1.34 billion. Gross margins were flat sequentially at 35%.
“AMD continued our momentum by building on the solid foundation we set in the second half of 2013, further transforming the company," AMD CEO Rory Read said in a statement.
AMD reported a 12% decrease in computing solutions revenue amid lower client unit shipments. The division narrowed its operating loss to $3 million from $39 million the year before thanks to lower expenses.
The company’s graphics and visual solutions segment enjoyed a 118% surge in revenue thanks to strong demand for the AMD Radeon R7 and R9 family of products. Operating profits soared to $91 million from $16 million.
Shares of Sunnyvale, Calif.-based AMD rose 3.25% to $3.81 in extended trading Thursday evening, putting them on track to trim their 2014 loss of 4.7%.