AMD has been doing a strong job financially for a long time, but due to the current market conditions, the company could not avoid seeing a decrease in its revenues and profitability. While revenues did not drop significantly this quarter, AMD experienced profitability problems in nearly every business line. These declines are not surprising. The current market and economic conditions cause serious decreases in the incomes of all companies.Income down, loss
According to the first quarter results of 2023, AMD’s revenues decreased by 9 percent and were reflected in the tables as 5.4 billion dollars. The firm’s operating revenues totaled a loss of $145 million, down 115 percent from revenue of $950 million in the same period of the previous year. The firm’s net revenues were similarly down 118 percent, from revenue of $786 million to a net loss of $139 million.
Revenues of AMD’s Client Segment, which includes Ryzen products, fell 65 percent year-on-year from $2 billion to $700 million. This segment alone reported operating losses of $172 million. On the other hand, the division of labor with AMD’s embedded processors performed exactly the opposite. This division increased its revenues by 163 percent to $1.6 billion. The money put into the safe by this division was 798 million dollars.Lisa Su: A very good quarter
“We performed very well in the first quarter as we delivered better-than-expected revenue and earnings in a mixed-demand environment,” said Lisa Su, CEO of AMD, in a statement. we recorded. “Over the longer term, we see significant growth opportunities as we successfully deliver our roadmaps, implement our strategic data center and established priorities, and accelerate the adoption of our AI portfolio.”
On the other hand, AMD’s gaming side performed stronger than expected. AMD’s gaming revenue includes consoles and graphics cards. Revenues in this division fell slightly, but Radeon sales, particularly the RX 7900 XTX, were up from the previous quarter, according to AMD. In light of all this, game revenues fell 6 percent to $1.8 billion in revenue and $314 million in operating income.Lisa Su also confirmed that new RDNA 3 GPUs are coming this quarter. In the second quarter we are in, AMD will launch the mainstream Radeon RX 7000 series, namely the RX 7700 and RX 7600 series. It looks like these cards will be announced later this month.
