AMD Optimistic About Growth Prospects In H2 - Quick Facts

(RTTNews) - AMD (AMD) said it has licensed high-performance processor and SoC technology to a newly-created JV it has formed with THATIC (Tianjin Haiguang Advanced Technology Investment Co., Ltd.) to develop SoCs tailored to the Chinese server market that will complement AMD's own offerings. The company said the $293 million licensing agreement is a meaningful step in AMD's IP monetization strategy. Payments are contingent upon the JV achieving certain milestones. AMD also expects to receive royalty payments from the JV's future product sales.

The company said its Assembly, Test, Mark and Pack (ATMP) JV transaction received approval from Nantong Fujitsu Microelectronics Co., Ltd. shareholders and the transaction remains on track to close in second quarter, 2016.

Lisa Su, AMD CEO, said: "We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins."

The company reported first-quarter revenue of $832 million; down 19 percent year-over-year. The company said the year-over-year decline was primarily due to lower sales of semi-custom SoCs and client notebook processors. Computing and Graphics segment revenue was $460 million, decreased 14 percent from last year.

For second-quarter 2016, AMD expects revenue to increase 15 percent, plus or minus 3 percent, sequentially.