(By Balaseshan S) Advanced Micro Devices Inc. (NYSE:AMD) reported a loss in the first quarter, due to a $703 million charge for a limited waiver of exclusivity of certain 28-nanometer APU products from GlobalFoundries Inc. However, adjusted earnings and revenue exceeded Street's expectations, sending its shares up 1.88% in aftermarket.
Loss for the first quarter was $590 million or $0.80 per share, compared to a profit of $510 million or $0.68 per share last year. Adjusted earnings increased to $92 million or $0.12 per share from $56 million or $0.08 per share.
Revenue declined to $1.585 billion from $1.613 billion. Analysts had expected a profit of $0.09 per share on revenue of $1.56 billion.
Computing solutions revenue rose marginally to $1.203 billion from $1.200 billion, while Graphics revenue declined to $382 million from $413 million.
Due to the previously disclosed charge of $703 million for a limited waiver of exclusivity of certain 28nm APU products from GlobalFoundries, gross margin fell to 2% from 43%. Adjusted gross margin rose to 46% from 45%.
Looking ahead into the second quarter, the company expects revenue to increase 3% sequentially, up or down 3%. Operating expenses are expected to be about $605 million.
AMD closed Thursday's regular session at $7.97. The stock has been trading between $4.31 and $9.17 for the past 52 weeks.