Boston, MA 01/30/2014 (wallstreetpr) – Advanced Micro Devices. Inc. (NYSE:AMD) share price dropped by a high of 12% despite posting descent Q4 results for F2013. This was as a result of the company offering disappointing guidance moving forward. The descent Q4 results were epitomized by an increase in sales of 38% on a year over year basis to clock at $1.59 billion. This was a slight increase compared to analysts’ estimates of $1.54 billion. The drop in the share price can also be attributed to a low net income of $45 million or 0.06 per share that the company posted in the fourth quarter. The company gross margin fell by one percent from 36 to 35%despite its low margin gaming console business continuing to forge ahead.
Advanced Micro Devices. Inc. (NYSE:AMD) reported that it expects its Q1 F2014 revenue to drop by 16% compared to analysts’ estimates of 11%, the company also expects its gross margin to remain depressed at the 35% mark. The company’s graphic business was the best in its portfolio recording increase in revenue totaling 165% on the year over year basis. This was primarily due to the increase in sales in the semi-custom chips. This was enough to generate an operating profit totaling $121 million, enough to offset lagging computing solutions.
Advanced Micro Devices. Inc. (NYSE:AMD) revenue decreased by a high of 13% despite the substantial increase in the selling prices of microprocessors. The company net loss of $7 million was instigated by its conflict with Intel’s commentary; this was a considerable decline considering the company posted net profits totaling $22 million in the third quarter. This result leaves a lot to be desired considering its fierce competitors Microsoft and Sony are expected to launch next generation platforms. The company is currently being faced with low cash balance something that is not good in the capital intensive industry
