The third fiscal quarter is barely over on the calendar of many companies, but that doesn't stop them from summing up the preliminary results of this reporting period.
AMD did not wait for full statistics to be published, and this week was forced to admit that revenue fell short of its own expectations by an average of $1 billion, and in the client area, mainly represented by Ryzen processors, and even fell by 40% year on year.Image source: AMD Management said that in the third quarter the company generated no more than $5.6 billion, while its own forecast earlier mentioned a range of $6.5 to $6.9 billion.
Profit margin instead of the expected 54% was barely close to 50%.
Such statements caused the decline in the company's share price after the end of the trading session by 4.5%.Speaking about the results of the quarter in more detail, CEO Lisa Su (Lisa Su) said that \"the PC market in the past quarter significantly sagged.
Even AMD's competitive range of desktop and mobile processors could not overcome the negative macroeconomic trend and customers maintaining substantial inventory of products yet to be sold.Specifically on the customer side, AMD reduced revenue by 53% sequentially and 40% year over year, to $1 billion.In the data center segment (server processors and gas pedals) revenue increased by 8% sequentially and 45% year over year, to $1.8 billion.
The Gaming segment (graphics and console chips) was another \"ray of light in a dark realm,\" with core revenues flat quarter over quarter, up 14 percent year over year to $1.6 billion.
Finally, the Embedded Solutions business increased revenues by 4 percent sequentially to $1.3 billion, primarily as a result of the Xilinx acquisition completed this year.
AMD incidentally had to write down $160 million due to product price adjustments and unrealized product inventory.
It is noteworthy that operating expenses in the third quarter even decreased from $1.6 to $1.5 billion against expectations.By the way, overall AMD revenue decreased by 15% only in sequential comparison, in annual terms it increased by a solid 29%, although against the background of the achievements of previous quarters such dynamics and does not seem expressive.
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