Ahead Of Advanced Micro Devices' Q2 Results

(RTTNews) - Advanced Micro Devices Inc. (AMD) is likely to release its second-quarter numbers after the bell on Thursday, July 21, with analysts polled by Thomson Reuters estimating a loss of $0.08 per share on revenue of $951.61 million. Analysts' estimate typically exclude certain special items.

The company expects second-quarter revenue to increase 15%, plus or minus 3%, sequentially.

AMD sees strong demand for its Semi-Custom and Graphics products, which is believed to lead to stronger than seasonal sequential revenue growth. For the full year, the company is confident that its product portfolio and business execution can further strengthen its financial results and enable it to grow annual revenue and return to non-GAAP operating profitability in the second half of the year.

Longer term, Advanced Micro Devices expects a strong customer interest in its datacenter offerings will result in new design wins that can deliver profitable revenue growth in 2017 and beyond.

For the full-year 2016, the company continues to expect revenue to grow year over year, to be non-GAAP operating profitable in the second half of 2016, and to generate positive free cash flow from operations for 2016.

Last quarter, the company reported net loss of $109 million or $0.14 per share compared to a loss of $180 million or $0.23 per share in the prior year period.

On a non-GAAP basis, net loss widened to $96 million or $0.12 per share from the previous year's loss of $73 million or $0.09 per share.

Revenue declined to $832 million from $1.03 billion generated a year ago. The year-over-year decline was primarily due to lower sales of semi-custom SoCs and client notebook processors.

"Our strategy to build a strong business foundation and improve financial performance through delivering great products is beginning to show benefits," said Lisa Su, AMD president and CEO. "We continued to strengthen the performance of our Computing and Graphics business as our customers and partners show a growing preference for AMD. We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins."