October 20, 2016 / 8:32 PM / 2 years ago

AMD revenue beats on demand for chips used in gaming consoles

(Reuters) - Chipmaker Advanced Micro Devices Inc reported a better-than-expected 23.2 percent increase in quarterly revenue, helped by higher demand for graphics chips used in gaming consoles.

AMD forecast revenue for the fourth quarter to decrease 18 percent from the third quarter, plus or minus 3 percent, which translates into a range of $1.03 billion-$1.11 billion.

Analysts on average were expecting revenue of $1.06 billion, according to Thomson Reuters I/B/E/S.

The company’s shares were down nearly 4 percent at $6.70 in after-hours trading.

AMD processors are being used in Microsoft Corp’s Xbox One S, launched on Aug. 2, and Sony Corp’s PS4 Pro gaming consoles, expected to be launched on Nov. 10.

Net loss widened to $406 million, or 50 cents per share, in the third quarter ended Sept. 24 from $197 million, or 25 cents per share, a year earlier.

The company’s revenue rose to $1.31 billion from $1.06 billion, above the average analyst estimate of $1.21 billion.

Excluding items, the company earned 3 cents per share, while analysts had expected break-even per share.

Reporting by Laharee Chatterjee and Nayyar Rasheed in Bengaluru; Editing by Maju Samuel

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