"AMD continues to evolve our operating model and diversify our product portfolio with the changing PC environment", stated Rory Read, AMD president and CEO. "Innovation is the core of our long-term growth. The investments we are making in technology today are focused on leveraging our distinctive IP to drive growth in ultra low power client devices, semi-custom SoCs and dense servers. We expect to deliver differentiated and groundbreaking APUs to our customers in 2013 and remain focused on transforming our operating model to the business realities of today."
Gross margin was 15 percent. Non-GAAP gross margin was 39 percent, a sequential increase of 8 percent. Q3 2012 gross margin of 31 percent was adversely impacted by an inventory write-down of approximately $100 million. Fourth quarter gross margin was positively impacted by the sales of higher priced desktop microprocessors.
Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion at the end of the quarter.
AMD announced restructuring actions and operational efficiencies in Q4 2012, resulting in a net restructuring charge of $90 million in the quarter, which includes costs related to actions taken in Q4 2012 as well as an estimate of the expected costs related to Q1 2013 workforce reductions.
Computing Solutions segment revenue decreased 11 percent sequentially and 37 percent year-over-year. The sequential and year-over-year decreases were primarily driven by lower microprocessor unit volume shipments:
Graphics segment revenue decreased 5 percent sequentially and 15 percent year-over-year. Graphics processor unit (GPU) revenue decreased sequentially and year-over-year due to lower unit volume shipments:
AMD executive Devinder Kumar was named Chief Financial Officer. Devinder Kumar has been with AMD more than 28 years, serving as corporate controller of the company since 2001 and as senior vice president since 2006.
AMD successfully amended its Wafer Supply Agreement (WSA) with GF, solidifying the company's new operating model and better aligning with PC market dynamics.
AMD announced a collaboration with ARM that builds on the company's rich IP portfolio, including deep 64-bit processor knowledge and industry-leading AMD SeaMicro Freedom Supercomputing Fabric, to offer the most flexible and complete processing solutions for the modern data centre. AMD will design 64-bit ARM technology-based processors in addition to its x86 processors for multiple markets, starting with Cloud and data centre servers.
At the International Consumer Electronics Show (CES), AMD highlighted its 2013 client product offerings and customer adoption momentum including:
AMD launched several new AMD Opteron processors based on the "Piledriver" core architecture during the quarter. The new AMD Opteron 6300 Series processors strike a balance between performance, scalability and cost effectiveness to help lower total cost of ownership (TCO). The new AMD Opteron 4300 Series and 3300 Series also launched.
AMD announced the AMD Open 3.0 platform, a radical rethinking of the server motherboard designed to create simplified, energy efficient servers that better meet the demands of the modern data centre. AMD's new platform is compliant with the standards developed by the Open Compute Project and is designed to reduce data centre power consumption and cost while increase performance and flexibility.
AMD introduced new members of the Guinness World Record-setting AMD FX family of central processing units (CPUs) based on the "Piledriver" core, expanding its offerings that deliver fully unlocked and customizable experiences for performance desktop PC users. The AMD FX 8350 delivers performance increases of 15 percent at mainstream price points and has been overclocked at to 8.67 GHz to-date.
AMD introduced the AMD Radeon HD 8000M Series of low-power mobile GPUs, the first mainstream notebook GPUs to be offered with the award-winning AMD Graphics Core Next (GCN) Architecture. Notebooks are already available featuring the new graphics solution, including several ultrathin notebooks.
Nintendo launched the next-generation Wii U console, powered by custom AMD Radeon HD graphics technology.
AMD introduced the "Never Settle" Bundle which packaged the holiday season's biggest PC gaming titles, including "Far Cry 3" along with "Hitman: Absolution" and "Sleeping Dogs", with the purchase of select AMD Radeon HD 7000 Series graphics cards. AMD also released the "Never Settle" version of its AMD Catalyst Driver, providing owners of AMD Radeon graphics cards with massive performance improvements in many of their favourite games.
AMD launched the AMD FirePro S10000, the industry's most powerful server graphics card, designed for high-performance computing (HPC) workloads and graphics intensive applications. The AMD FirePro S10000 is the first professional-grade card to exceed one teraFLOPS (TFLOPS) of double-precision floating-point performance, helping to ensure optimal efficiency for HPC calculations.
AMD expects revenue to decrease 9 percent, plus or minus three percent, sequentially for the first quarter of 2013.