AMD released its First Quarter 2023 financial results revealing an operating loss of $145 million and a net loss of $139 million. Revenues are down by 9% relative to last year’s Q1 financial results. More importantly, AMD reports an increase in operating expenses by 29% relative to last year.
Press Release
AMD today announced revenue for the first quarter of 2023 of $5.4 billion, gross margin of 44%, operating loss of $145 million, net loss of $139 million and diluted loss per share of $0.09. On a non-GAAP(*) basis, gross margin was 50%, operating income was $1.1 billion, net income was $970 million and diluted earnings per share was $0.60.
“We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment,” said AMD Chair and CEO Dr. Lisa Su. “We launched multiple leadership products and made significant progress accelerating our AI roadmap and customer engagements in the quarter. Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data center and embedded priorities and accelerate the adoption of our AI portfolio.”
“Our strategically important Data Center and Embedded segments contributed more than 50 percent of revenue in the first quarter," said AMD EVP, CFO and Treasurer Jean Hu. "For the second quarter we expect sequential growth in our Data Center and Client segments offset by modest declines in our Gaming and Embedded segments. We remain confident in our growth in the second half of the year as the PC and server markets strengthen and our new products ramp.”
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under the cautionary statement”.
For the second quarter of 2023, AMD expects revenue to be approximately $5.3 billion, plus or minus $300 million. AMD expects non-GAAP gross margin to be approximately 50%.
“We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment,” said AMD Chair and CEO Dr. Lisa Su. “We launched multiple leadership products and made significant progress accelerating our AI roadmap and customer engagements in the quarter. Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data center and embedded priorities and accelerate the adoption of our AI portfolio.”
“Our strategically important Data Center and Embedded segments contributed more than 50 percent of revenue in the first quarter," said AMD EVP, CFO and Treasurer Jean Hu. "For the second quarter we expect sequential growth in our Data Center and Client segments offset by modest declines in our Gaming and Embedded segments. We remain confident in our growth in the second half of the year as the PC and server markets strengthen and our new products ramp.”
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under the cautionary statement”.
For the second quarter of 2023, AMD expects revenue to be approximately $5.3 billion, plus or minus $300 million. AMD expects non-GAAP gross margin to be approximately 50%.
Read the full press release and cautionary statement at AMD.com.
