While Intel managed to generate a record amount of revenue in Q3 2014, it appears that things over at AMD aren't going as well. Over the past quarter, the company generated a total of $1.43 billion in revenue, which might sound like a lot, but the relevant number is net income, which was $17 million, or two cents per share. This is up from the previous quarter, when AMD suffered a net loss of $36 million, but still notably less than the $48 million net income that the company generated over Q3 last year.
"AMD's third quarter financial performance reflects progress in diversifying our business," said Dr. Lisa Su, AMD president and CEO. "Our Enterprise, Embedded and Semi-Custom segment results were strong; however, performance in our Computing and Graphics segment was mixed based on challenging market conditions that require us to take further steps to evolve and strengthen the financial performance of this business. Our top priority is to deliver leadership technologies and products as we continue to transform AMD." Lisa Su is the company's first female CEO, who took over at the beginning of this month, following the departure Rory Read.
Over the next quarter, AMD will be restructuring in order to achieve higher future profits and enable better long-term growth. In doing so, the company will lay off 7 percent of its workforce.
AMD's Enterprise, Embedded and Semi-Custom segment reeled in 6 percent more revenue compared to the previous quarter, generating an operating income of $108 million, up from $97 million in Q2 2014 and $92 million in Q3 2013. This rise is likely thanks to AMD's role in the Xbox One and PlayStation 4.
Unfortunately, the Computing and Graphics segment didn't do so well, as its revenue decreased by 6 percent over the past quarter and 16 percent compared to Q3 2013, running at an operating loss of $17 million. Considering how aggressively Nvidia has priced the GTX 970, we also don't expect this to change anytime soon.
For Q4 2014, AMD expects revenue to fall by 13 percent, give or take 3 percent.