In addition to the $5.35 billion revenue, which is a 9 percent drop compared to the same quarter last year, AMD has reported a gross profit of $2.35 billion, and gross margin of 44 percent, a drop of 16 percent and 4 points, compared to the same quarter last year.
Operating income, or rather a loss, was at $145 million, down by 115 percent, with an operating margin (loss) of 3 percent, down by 19 points. The company reported a net loss of $139 million and an earnings loss per share of $0.09, a drop of 118 percent and 116 percent, respectively.
"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 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."
AMD is sticking to its roadmaps and, more importantly, delivering on its promises all across the board, which is probably why it did not take a bigger hit. It has just recently expanded its embedded processor lineup with Ryzen Embedded 5000 Series and EPYC Embedded 9004 Series processors.
The company has recently introduced the new AMD Alveo MA35D media accelerator, announced the new Radeon PRO W7000 Series graphics, as well as announced the new AMD Ryzen Z1 and Z1 Extreme processors, that will debut in Asus ROG Ally handheld console. It is gearing up to launch the rest of its Ryzen 7040 series processors and signed a new multi-year agreement extension with Samsung for ultra-low-power AMD Radeon graphics solutions.
For Q2 2023, AMD expects revenue of $5.3 billion (+/- $300 million) and gross margin to remain flat.