Chip manufacturer AMD continues to loses money. In its latest round of quarterly results, the company announced revenue for the fourth quarter of 2015 at $958 million, with an operating loss of $49 million and net loss of $102 million, or $0.13 per share. The company’s reported revenue of $958 million is down 10 percent sequentially, primarily driven by seasonally lower sales of semi-custom system on a chip sets (SoC) and down 23 percent year-over-year, because of weak PC sales industry-wide.
The fourth quarter had a gross margin of 30 percent, up seven percentage points sequentially. The previous quarter’s gross margin was negatively impacted by an inventory write-down of $65 million, or six percentage points. Excluding the inventory write-down, gross margin improved one percentage point sequentially, primarily due to improved product mix in the Computing and Graphics segment.
AMD posted Computing and Graphics segment revenue of $470 million, an increase of 11 percent sequentially and a decrease of 29 percent from the fourth quarter of 2014. The operating loss for Computing and Graphics was $99 million, compared to an operating loss of $181 million in the third quarter of 2015 and an operating loss of $56 million in the fourth quarter of 2014
Enterprise, Embedded and Semi-Custom segment revenue came in at $488 million, a decrease of 23 percent sequentially forced by seasonally lower sales of semi-custom SoCs. Revenue in the segment decreased 15 percent from Q4 2014 primarily driven by lower game console royalties, and server and embedded revenue.
AMD is not expecting recovery in the next quarter. AMD expects revenue to decrease 14 percent, plus or minus three percent, with no decrease in operating costs.
