AMD Reveals 1Q Beat as Revenue Leaps 28%

By EarningsFOXBusiness

Chip maker Advanced Micro Devices (NYSE:AMD) beat the Street on Thursday by posting a surprise adjusted profit thanks to a 28% jump in revenue.

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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%.

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