Tomahawk, WI 01/24/2014 (BasicsMedia) – Advanced Micro Devices, Inc. (NYSE:AMD) has managed to do everything to satisfy its investors. It has put in a very good performance in 2013 and the last quarter has been particularly good. But, are the investors satisfied?

The Weak Guidance:

The weak guidance seems to have spooked off the investors. Advanced Micro Devices, Inc. (NYSE:AMD) expects a fall of 16% sequentially in the first quarter revenues, analysts are expecting it to be 11%. Even the gross margins are depressing; they are around 35% only. With the focus on low margin chipsets, the gross margins may remain depressed for some time.

But if we discount these factors, AMD has managed a good performance. Particularly at a time when consumer PC sales are down and the company is losing market share in this segment. In spite of this, the company managed revenues of $1.59 billion in the fourth quarter, beating analysts’ expectations of $1.54 billion. The net adjusted income of $45 million was in line with analysts’ expectations of $0.06 per share. A growth of 38% in revenues on y-on-y basis is a good performance by any standards. Also consider that the company recorded a loss of $102 in the same quarter last year. But while it is chipping away in sales, the debt of $2 billion is worrisome.

Some Factors:

If we look at others in the same space, the results are average. Even Microsoft Corporation (NASDAQ:MSFT) managed to beat Wall Street expectations. The figures from Microsoft also reveal that it sold almost 7.4 million gaming consoles in the last quarter; 3.9 million out of these were the new version launched in November 2013 only. Reports also indicate that Sony Corporation (ADR) (NYSE:SNE) may have managed to surpass Microsoft in this critical segment. The new line up of GPUs is also in the market and they are also expected to perform well.

All things considered, is Advanced Micro Devices, Inc. (NYSE:AMD) a good buy right now? Questions still remain.

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