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AMD posts another loss but beats Wall Street forecast

jh30uk

jh30uk

jh30uk

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http://techreport.com/news/26338/amd-posts-another-loss-but-beats-wall-street-forecast
 
shankly1985 said:
Do people really care about this? lol
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Of course they do. Things are looking up though, as in Q1 of 2013, AMD lost 146,000,000 but in the same quarter of 2014, they only lost 20,000,000, so still running at a loss but looking better.

We need both AMD and nVidia strong though, as competition is good for all of us.
 
Gregster said:
Of course they do. Things are looking up though, as in Q1 of 2013, AMD lost 146,000,000 but in the same quarter of 2014, they only lost 20,000,000, so still running at a loss but looking better.

We need both AMD and nVidia strong though, as competition is good for all of us.
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Guess I just alone then. Its not something I ever think about.
 
"made the final $200 million cash payment to GLOBALFOUNDRIES related to the reduction of the 'take or pay' wafer obligation commitments for 2012."

Thats what pushed them into the Red, they would have made a $180m Profit without that, still, at least that debt is now completely paid off.

The Market was expecting that huge payment to put a much bigger dent into AMD's financials, they did well to only lose $20m from it.
 
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Surprisingly sensible posts in here.... am disappointed :p

Compared to Q1 last year it's very good. PC market is down, custom chips(consoles) are up. Profits every quarter is nice but not entirely required, there will often be one time costs or increased R&D at particular times. The general trend of making a profit over a year and every year is what matters and looks likely to happen. Consoles are helping monumentally and they expect better sales in the second half of 2014. Though MS is looking a tad iffy with their numbers overall it shouldn't matter. if MS sales drop off more then the PS4 will likely just sell more.

Figures would be better with better tablet/Kabini sales, but Intel is hitting them HARD there. Intel lost 1billion, over 2/3rd's of AMD's revenue, subsidising mobiles and tablet chips with the majority seemingly going to tablets that no one would build or sell without the subsidies. Effectively giving out free chips in an attempt to generate future sales. You can't really blame say an Asus for saying I want a Kabini in this tablet but that will cost me $20-40 a chip and Intel will actually pay me to put one of their chips in.

Any time AMD make a good product Intel can usually just find a way to pay people not to use it :(
 
drunkenmaster said:
Surprisingly sensible posts in here.... am disappointed :p

Compared to Q1 last year it's very good. PC market is down, custom chips(consoles) are up. Profits every quarter is nice but not entirely required, there will often be one time costs or increased R&D at particular times. The general trend of making a profit over a year and every year is what matters and looks likely to happen. Consoles are helping monumentally and they expect better sales in the second half of 2014. Though MS is looking a tad iffy with their numbers overall it shouldn't matter. if MS sales drop off more then the PS4 will likely just sell more.

Figures would be better with better tablet/Kabini sales, but Intel is hitting them HARD there. Intel lost 1billion, over 2/3rd's of AMD's revenue, subsidising mobiles and tablet chips with the majority seemingly going to tablets that no one would build or sell without the subsidies. Effectively giving out free chips in an attempt to generate future sales. You can't really blame say an Asus for saying I want a Kabini in this tablet but that will cost me $20-40 a chip and Intel will actually pay me to put one of their chips in.

Any time AMD make a good product Intel can usually just find a way to pay people not to use it :(
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best saying ive seen in a long time
 
The Graphics division is what this forum is all about and if you read the article then Amd done very well with shipments up from this time last year. The mining boom along with r7 and r9 products are part of the reason and also consoles. The cpu and apu section is where amd are failing or not doing so well.
 
RavenXXX2 said:
AMD need a killer GPU, something that will topple the 780ti but costs £200.
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It's not the graphics division thats causing the losses though infact if you read they are actually profitable. What amd really need is a good cpu architecture and to be on par with Intel when it comes to process technology. This is happening with Samsung 14nm which is gonna make the cpu side a whole lot more interesting if AMD play there cards right.

That 28% revenue growth was driven largely by strong sales of GPUs and "semi-custom SoCs" (i.e. chips for the Xbox One and PlayStation 4), which were up 118% year-over-year. Average selling prices for GPUs were also up.
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The market reaction is pretty positive.

AMD's Turnaround Is Real

Summary

  • Following AMD's earnings report, the stock popped by 5% after hours.
  • The report made clear that AMD's console sales were not a fluke and can help sustain AMD in 2014.
  • PC sales remain a weak spot as Intel continues to successfully exploit its process advantage.
  • I expect that process advantage to be negated once Global Foundries and other ARM foundries put their own 14 nm FinFET processes into production.
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AMD (AMD) rewarded investors' patience with an after-hours pop of about 5% following its calendar 2014 Q1 earnings release. AMD posted strong revenue growth of 28% y/y to $1.4 billion, beating analysts' consensus of $1.34 billion. AMD also posted an operating profit of $49 million but a GAAP net loss of $20 million due mostly to severance packages and debt refinancing. Non-GAAP net income was $12 million, also exceeding analysts' expectations of breakeven.

Patience Rewarded
AMD investors have come to expect negative market reactions to its earnings reports, so we were pleasantly surprised by the afterhours uptick. This reflects a growing awareness that AMD's recent return to profitability (net GAAP income of $0.12 in 2013 Q4) was not merely a short lived fluke. Although I've always acknowledged that AMD was a risky investment, I felt it had long-term potential as a turnaround story.
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Advanced Micro Devices Set To Grow

Summary

  • The financial position of the company is good, which should support the turnaround efforts over the next few months.
  • The focus on high-growth areas will support future revenue growth for the company.
  • A change in the revenue mix with the focus on high-margin areas will result in improved margins over the next few quarters.
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Advanced micro Devices (AMD) has seen a lot of ups and downs over the last few months. However, the overall trend in the stock price has been positive during the period - the stock is up over 50% during the last twelve months. The company is going through a turnaround and it is finally coming back to profitability. Since last year, the company has shown interesting product launches representing research and development costs well spent. The financial position of the company is getting better and the revenue growth is impressive as the company announced first quarter results.

A Look at the Financials
The company announced its first quarter results yesterday - revenue for the first quarter was down 12%, sequentially. However, the year-over-year growth in revenues was impressive at 28%. The revenues in the fourth quarter of the last year were higher due to the launch of gaming consoles by Microsoft (MSFT) and Sony (SNE). Sony reported that it sold 7 million PS4 consoles in the first four months, which is twice as much as PS3 sold in the same time. More importantly, the company's operating profit margin improved significantly. In the same period last year, the company had a $98 million operating loss on $1.09 billion of revenue. In the first quarter, the company produced $49 million of operating profits on $1.4 billion of revenue. This was mainly possible because of the company's strategy of its high growth product transition. In 2012, the company's revenue comprised of only 9% from high growth markets and 91% from the traditional mature or declining markets - in 2013, this ratio became 30/70. The company expects to take this ratio to 50/50 by 2015. Focus on high growth areas will continue to drive the revenue growth over the next few quarters.
Despite impressive revenue growth, the company was not able to report a profit, and the net loss for the quarter stood at $20 million, or $0.03 per share. Nonetheless, the changes in the revenue mix should allow the company to report profits in the medium to long term. The cash position of the company is extremely strong, which is important for a company making a turnaround. AMD had $982 million in cash and cash equivalents, well above the minimum limit of $600 million set by the company. The company also issued new debt securities worth $600 million at 6.75% - the proceeds were used to buy back $423 million worth of convertible notes yielding 6%. The company also repurchased $48 million worth of senior notes and $64 million worth of convertible notes, yielding 8.125% and 6%, respectively. As a result, of this bond issue, the interest expense of the company should go up. For the first quarter, interest expense for AMD went up by $3 million. The growth in the graphics segment remains extremely impressive - the company recorded year-over-year growth of 118% for this segment - however, sequentially, the revenues were down 15%.
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If they could produce decent cpu's again, (ala s939) things might get better, Intel released c2d/q and haven't looked back since. But you do pay more for them.
 
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