AMD Reports Q1 2023 Earnings: Slipping Back into the Red as Client Sales Crumble

Continuing our earnings season coverage for Q1’2023, today we have the yin to Intel’s yang, AMD. The number-two x86 chip and discrete GPU maker has been enjoying a growing diet of Intel’s lunch for much of the past two years, but like the rest of the tech industry, AMD is now seeing a significant drop-off in sales as businesses and consumers alike curtail tech spending. So, like numerous other companies in this field, AMD has been bracing themselves for a rough first half of the year, after managing to beat the pack in Q4’2022 by posting a small profit.

For the first quarter of 2023, AMD reported $5.4B in revenue, continuing the year-over-year slide they’ve been experiencing throughout the past few quarters. All told, AMD’s top-line revenue dropped by 9% versus Q1’22, which is a much smaller drop than some of its rivals, but it’s a situation that has also been artificially buoyed by the Xilinx acquisition. That acquisition, which closed late into Q1’22, has boosted AMD’s revenue significantly on a year-over-year basis for the past few quarters – suffice it to say, it was not a small acquisition – though that is coming to an end now that AMD has owned Xilinx for over a full year.

The additional revenue and sales that Xilinx has brought to the table has shifted AMD in some important ways, but it hasn’t helped to halt the fundamental drop in sales that the tech industry is facing. As a result, the hit to AMD’s income has been significant; operating incomes dropped by 115% to negative $145M, and net income saw a similar dive into the red with a 118% drop, for a final tally of a $139M loss.

from AnandTech https://ift.tt/0gELKiw