Advanced Micro Devices's quarterly revenue fell this quarter, and the chipmaker announced a $293 million licensing agreement with a Chinese investment group to develop server chips. AMD said it signed an agreement licensing its processor technology to a joint venture it has formed with Tianjin Haiguang Advanced Technology Investment Co Ltd (THATIC), an investment unit of Chinese Academy of Sciences.

The venture will develop processors tailored for the Chinese server market, AMD said.

"“Our strategy to build a strong business foundation and improve financial performance through delivering great products is beginning to show benefits," said Lisa Su, AMD president and CEO. "We continued to strengthen the performance of our Computing and Graphics business as our customers and partners show a growing preference for AMD. 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."

AMD's revenue for the first quarter of 2016 of $832 million, operating loss of $68 million, and net loss of $109 million, or $0.14 per share. Non-GAAP operating loss was $55 million and non-GAAP(1) net loss was $96 million, or $0.12 per share.

AMD's first-quarter revenue fell 13 percent sequentially and down 19 percent year-over-year to $832 million. The sequential decrease was primarily due to lower sales of semi-custom SoCs. The year-over-year decline was primarily due to lower sales of semi-custom SoCs and client notebook processors.

Net loss narrowed to $109 million, or 14 cents per share, in the first quarter ended March 26, from $180 million, or 23 cents per share, a year earlier.