HiGame

AMD reported its second-quarter results today and they came in extremely well, relative to the general state of the PC market. Revenue was $1.027 billion, up 23% from Q1 and 9% compared to the same period in 2015. The company’s non-GAAP (Generally Accepted Accounting Principles) operating income was $3 million, while it recorded an $8 million loss by GAAP standards. Net income was $69 million this quarter.

The company’s overall financial position improved thanks to a number of factors. First, it recognized pre-tax gain of $150 million related to the sales of its test and packaging facilities to its new Chinese joint venture (JV). The total value of that deal was $351 million; AMD has recognized the revenue over multiple quarters.



This chart shows AMD’s segment information and overall breakdown. APU sales slipped slightly from Q1, falling to $435 million from $460 million, but were still up significantly from last year’s low of $379 million. Meanwhile, sales in AMD’s other segment — that’s basically the PS4 and Xbox One at the moment — grew 60% compared to Q1 and 5% compared to last year. Q1 tends to be the weakest quarter for console sales, but both Microsoft and Sony are going to be gearing up for the launch of the Xbox One S and (possibly) the PlayStation Neo. Equally importantly, AMD’s operating income was a much higher percentage of its revenue this quarter than a year ago — $84 million on $592 million in sales is a much better position than $27 million on $562 million in sales.

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