AMD Blames “Game-console Seasonality” in China for 10% Loss in Q4 2015 Earnings
AMD has officially posted their financials for Q4 2015 and the annual results, which highlight the company’s ever increasing struggles against Intel and Nvidia in the declining PC market.
The Sunnyvale, California-based chipmaker reported a 10% decline in quarterly revenue, now standing at $958 million compared to $1.06 billion in the last quarter. Overall, AMD suffered a 28% decline in revenue for the full year, with a revenue of $3.99 billion in 2015, down from $5.50 billion in 2014.
Moreover, AMD said in a statement Tuesday that first-quarter sales will be down 14% sequentially, from the preceding period, indicating revenue of $795.1 million to $852.6 million, compared with an average analyst estimate for $897.7 million.
Looking at the performance of their separate businesses, AMD’s computing and graphics segment saw an 11% increase in Q4 with a reported revenue of $470 million as thanks to increased shipments of their Carrizo based APUs and FX processors.
On contrary, for the Enterprise, Embedded and Semi-Custom side of business, the company reported a revenue of $488 million which is a 23% decline compared to the quarter.
Devinder Kumar, AMD’s chief financial officer, said in a statement that the weaker outlook was “driven by game-console seasonality and a cautious macro environment in China.” AMD is the supplier of the main component in Microsoft’s Xbox One and Sony’s PlayStation 4.
AMD shares slumped as much as 11 percent in extending trading following the announcement. The stock declined 3.9 percent to $1.95 at the close in New York.