The company is reporting revenue of $1.31 billion, up from $1.03 billion the previous quarter, with an operating loss of $293 million and net loss of $406 million. Meanwhile, Non-GAAP revenue remains the same with an operating loss of $70 million and a net loss of $27 million.
Source: AMD Investor Relations
The company says the operating loss this quarter, compared to an $8 million operating loss in Q2, was due to a $340 million Wafer Supply Agreement (WSA) with GlobalFoundries. The agreement, amended in August, lasts five years and allows AMD to source its 7nm process node from GlobalFoundries, along with a warrant for common stock.
The computing and graphics segment increased 9 percent from last quarter and 11 percent from Q3 2015, mostly from increased GPU sales and offset by a decrease in desktop CPUs and chipsets. Meanwhile, the enterprise, embedded and semi-custom segment revenue of $835 million increased 41 percent sequentially and 31 percent year-over-year.
The company’s highlights for the quarter include a first look at its Zen-based Naples, a 32-core server CPU, a technical overview of its upcoming Zen architecture, the launch of Radeon RX 470, RX 460, and the Radeon Pro WX series, and an introduction of its upcoming Radeon Pro SSG (Solid State Graphics) cards.
Other announcements this quarter include the AMD AM4 socket for 7th-generation A-Series APUs and the company’s involvement in developing custom-SoCs for Sony’s revised PS4 Slim and PlayStation 4 Pro.
"Our third quarter financial results highlight the progress we are making across our business," said Lisa Su, AMD president and CEO. "We now expect to deliver higher 2016 annual revenue based on stronger demand for AMD semi-custom solutions and Polaris GPUs. This positions us well to accelerate our growth in 2017 as we introduce new high-performance computing and graphics products."