AMD's Q1 reports look promising, hopes to be profitable in 2014

Advanced Micro Devices chief executive Rory Read said the chip maker expects to be profitable in 2014 as the company expands its non-PC microprocessor businesses. Speaking in a conference call with analysts, Read said that the first quarter saw better-than-expected demand for semi-custom game chips and PC graphics products during the first quarter. Those categories are expected to be strong during the year thanks to the strength of PC gaming and game consoles. 

AMD reported first quarter earnings after the bell on Thursday. The semiconductor maker reported a net loss of $20 million, or three cents per share (statement). Non-GAAP earnings were two cents per share on a revenue of $1.40 billion, down 12 percent sequentially but up 28 percent year-over-year. Wall Street was expecting AMD’s earnings to flatten out at zero cents a pop on a revenue of $1.34 billion. AMD has been making strides to cut down on costs, investing now in a datacenter consolidation with the objectives to be more nimble, effective, and dish out products faster. During a tour of its Atlanta facility last month, AMD CIO Jake Dominguez described to ZDNet‘s Zack Whittaker how the Austin to Atlanta datacenter consolidation — a major effort to reinvent AMD’s internal IT strategy — helped the company save $8.5 million 2013 alone.

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