AMD reported third-quarter 2022 results showing net income falling 93 percent to $66 million and a year-over-year operating loss of $64 million.
The company said it would take cost-cutting measures, including controlling headcount growth.
AMD’s executive vice president, chief financial officer and treasurer Devinder Kumar said: “We will prioritise the key investments for product roadmaps and long-term growth while taking several near-term cost management actions, including prudently controlling operating expenses and headcount growth, while actively managing inventory in line with our revenue expectations.”
The chipmaker’s client segment revenue was $1 billion, down 40 percent year over year due to “reduced processor shipments resulting from a weak PC market and a significant inventory correction across the PC supply chain, according to its earnings release.
AMD Chair and CEO Lisa Su said the results are due to worldwide economic headwinds including inflationary pressure, weak China business, and a struggling PC market.
“Third quarter results came in below our expectations due to the softening PC market and substantial inventory reduction actions across the PC supply chain.”
The company’s data centre, gaming and embedded segments showed 29 percent year-over-year revenue growth. Despite missing forecasts, revenue was up 29 percent year over year to $5.5 billion for the quarter. The data centre segment generated $1.6 billion revenue, up 45 percent year-over-year – driven by sales of the company’s EPYC processors.
AMD also delivered its tenth straight quarter of record server processor sales, Su said.
“We are confident that our leadership product portfolio, strong balance sheet, and ongoing growth opportunities in our data center and embedded businesses position us well to navigate the current market dynamics.”
Last month, the company slashed its revenue guidance, warning of an expected 53 percent drop in sales in its important client device segment.
