While posting a loss of $592 million in Q1, the company did enjoy higher than expected revenue due to increased operating income.
“AMD delivered solid results in the first quarter,” said CEO Rory Read, who was installed into his position this past August.
Analysts had expected revenues of $1.56 billion for this past quarter, but AMD managed to beat expectations by posting $1.59 billion in revenue.
“We remain focused on improving our execution, delivering innovative products, and building a company around a strategy to deliver strong cash flow and earnings growth,” said Rory Read, AMD president and CEO, in a statement. “A complete top-to-bottom introduction of new APU offerings, combined with ample product supply resulting from continued progress with our manufacturing partners, positions us to win and grow.”
According to financial statements $1.7 billion in cash on hand. This past quarter, in early March, it used $281 million to purchase cloud micro-server maker Sea Micro – a company once eyed by rival Intel.
The bulk of AMD’s loss came from divesting in manufacturing partner GlobalFoundries. AMD and GlobalFoundries have had a notably turbulent relationship, as AMD was forced to lower their revenue projections in the Q3 2011 because of manufacturing yield problems at GlobalFoundries Dresden based fabrication facility.
The one-time divestment charges of $703 million helped create AMD’s loss this quarter.
AMD shares closed Thursday at $7.97.
AMD’s stock price is up 48% so far this year, lifted by fewer manufacturing issues and new management.