AMD Reports 2014 First Quarter Results: Net loss of $20 million

[Boomstick777]

AMD Reports 2014 First Quarter Results
Delivering on Its Commitments and Transforming to Win

SUNNYVALE, CA -- (Marketwired) -- 04/17/14 -- AMD (NYSE: AMD)

Q1 2014 Results

Revenue of $1.40 billion, decreased 12 percent sequentially and increased 28 percent year-over-year
Gross margin of 35 percent
Operating income of $49 million and non-GAAP(1) operating income of $66 million
Net loss of $20 million, loss per share of $0.03 and non-GAAP(1) net income of $12 million, earnings per share of $0.02

AMD (NYSE: AMD) today announced revenue for the first quarter of 2014 of $1.40 billion, operating income of $49 million and net loss of $20 million, or $0.03 per share. The company reported non-GAAP operating income of $66 million and non-GAAP net income of $12 million, or $0.02 per share.

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=1919886&highlight

 

[Boomstick777]

Below from AMD themselves... Doesn't give much confidence..

Forward-looking statements are commonly identified by words such as "believes, "expects," "may," "will," "should," "seeks," "intends," "pro forma," "estimates," "anticipates," "plans," "projects," "would" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact AMD's plans, that AMD will require additional funding and may be unable to raise sufficient capital on favorable terms, or at all; that customers stop buying AMD's products or materially reduce their operations or demand for AMD's products; that AMD may be unable to develop, launch and ramp new products and technologies in the volumes that are required by the market at mature yields on a timely basis; that AMD's third-party foundry suppliers will be unable to transition AMD's products to advanced manufacturing process technologies in a timely and effective way or to manufacture AMD's products on a timely basis in sufficient quantities and using competitive process technologies; that AMD will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will not fully utilize its projected manufacturing capacity needs at GF microprocessor manufacturing facilities; that AMD's requirements for wafers will be less than the fixed number of wafers that it agreed to purchase from GF or GF encounters problems that significantly reduce the number of functional die it receives from each wafer; that AMD is unable to successfully implement its long-term business strategy; that AMD inaccurately estimates the quantity or type of products that its customers will want in the future or will ultimately end up purchasing, resulting in excess or obsolete inventory; that AMD is unable to manage the risks related to the use of its third-party distributors and add-in-board (AIB) partners or offer the appropriate incentives to focus them on the sale of AMD's products; that AMD may be unable to maintain the level of investment in research and development that is required to remain competitive; that there may be unexpected variations in market growth and demand for AMD's products and technologies in light of the product mix that it may have available at any particular time; that global business and economic conditions will not improve or worsen; that PC market conditions, will not improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or internationally, on AMD's sales or supply chain.

 

[drunkenmaster]

Well done for posting the disclaimer that every big company will post with regards to predictions of future results. When you claim X billion in revenue for the next quarter and don't meet it, and don't post a disclaimer of what the estimates are based on you get sued by everyone who bought stock. It's common and standard and in no way remotely interpretable as bad news or lack of confidence.

Intel posted results of 2.5billion profits and yet included this in there financial results

Risk Factors

The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should" and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel's actual results, and variances from Intel's current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be important factors that could cause actual results to differ materially from the company's expectations.

Demand for Intel's products is highly variable and, in recent years, Intel has experienced declining orders in the traditional PC market segment. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; customer acceptance of Intel's and competitors' products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers.
Intel operates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term.
Intel's gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intel product introductions and related expenses, including marketing expenses, and Intel's ability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, which may result in restructuring and asset impairment charges.
The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments.
Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
Intel's results could be affected by the timing of closing of acquisitions, divestitures and other significant transactions.
Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues, such as the litigation and regulatory matters described in Intel's SEC filings. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel's ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.

A detailed discussion of these and other factors that could affect Intel's results is included in Intel's SEC filings, including the company's most recent reports on Form 10-K.

Does this change the confidence in Intel as a company, or the million other companies that post such factors that can effect their future financial results, no.

 

[Boomstick777]

I had no idea that either company had disclaimers like that lol. I quoted that bit in the second post because I thought it was funny.

Does this change the confidence in Intel as a company, or the million other companies that post such factors that can effect their future financial results, no.

AMD's Net loss of $20 million does though..

 

[rare]

Its not like they are going to fold tomorrow. Revenue shows an 28 percent increase year on year so..they are coming out with some decent products which should help them achieve good growth especially in the lower segments which are growing in much of the world.

 

[Martini1991]

AMD's net loss should inspire confidence given what it what it means in the big picture.

 

[Boomstick777]

Its not like they are going to fold tomorrow.

They won't be aloud to fold. Intel would be sued for being a monopoly. AMD will stick around for a long while yet, even if just competing in the lower end of the CPU/APU market.

I Hope they get enough money together to start financing R&D and making products in the high end CPU space again. APU's are ok, but I would like high end AMD CPU's to put some pressure back on Intel. I would switch over from Intel if they had anything near competitive in performance / power consumption, for now at least AMD are focused on the lower budget stuff.

Looks like AMD could release something on smaller nodes in 2015 as Glofo are upgrading process.. This could just end up being APU's again though.

 

[rare]

I guess the reality is theres a lot more money to be made in the lower end segments. Low end PC's selling in India, South America etc all need cheap APU's.

 

[spoffle]

The money isn't in high end anyway, it doesn't make sense, if they're struggling financially, to try and get back in to the high end. Intel can simply afford to bring out the high end stuff as part of their R&D, as well as it serving as marketing for their whole range of CPUs.

 

[ukbilleh]

however on the bright side…

erm, is there a bright side to all this? :/

 

[l2ez4m]

The most disappointing thing about Amd is that despite all those stupendous console wins and sales, scrypt mining sellout extravaganza, fresh lineups of Kaveri APU's and refreshed series of gpus, numerous software advances - they're still in the deep Red.
So the light at the end of the tunnel just might easily end up being nothing else but advancing train lights.

 

[as905]

well i hope if this lousy company who can't even make decent cpu's does go down it doesn't take the only good part down with it which is ati.

why on earth did ati share holders agree to sell their successful company to a struggling company such as amd ?

 

[setter]

well i hope if this lousy company who can't even make decent cpu's does go down it doesn't take the only good part down with it which is ati.

why on earth did ati share holders agree to sell their successful company to a struggling company such as amd ?

Actually we need amd to do more on the cpu front. Intel have had it good since c2q/d. Amd's last good cpu's were the s939 range. Intel released c2d/q and have been superior ever since. On the gpu front, amd/ati are doing well, what with mantl;e and true audio but they still lay way behind intel on cpu's. Personally, i wouldnt buy any amd cpu and mobo combo on the market at present. Im too happy with my mediocre overclocking intel 4770k.

 

[spoffle]

well i hope if this lousy company who can't even make decent cpu's does go down it doesn't take the only good part down with it which is ati.

why on earth did ati share holders agree to sell their successful company to a struggling company such as amd ?

They can and do make decent CPUs, maybe you just don't know what decent means?

Actually we need amd to do more on the cpu front. Intel have had it good since c2q/d. Amd's last good cpu's were the s939 range. Intel released c2d/q and have been superior ever since. On the gpu front, amd/ati are doing well, what with mantl;e and true audio but they still lay way behind intel on cpu's. Personally, i wouldnt buy any amd cpu and mobo combo on the market at present. Im too happy with my mediocre overclocking intel 4770k.

I don't really understand this attitude, it's not that AMD's CPUs are crap compared to Intel's, it's that they aren't targeting the high end, which a 4770K would be in terms of the mainstream range of CPUs.

AMD are simply not competing at that part, at the lower end to say mid range mainstream CPUs, their offerings are fine in terms of price to performance ratio.

So the bottom line is, if you need out and out performance, then you'll need an Intel CPU, however AMD doesn't even have CPUs available in those price brackets anyway so it's pointless comparing.

 

[FrankJH]

The most disappointing thing about Amd is that despite all those stupendous console wins and sales, scrypt mining sellout extravaganza, fresh lineups of Kaveri APU's and refreshed series of gpus, numerous software advances - they're still in the deep Red.
So the light at the end of the tunnel just might easily end up being nothing else but advancing train lights.

I doubt that will have hit their financials yet - yes they may have had a boost when they started delivering, but IF (not gaurenteed that sales will actually have any effect on what AMD get paid) AMD get paid after reaching sales numbers, it may well not be reflected in their income for at least another 1/4

 

[setter]

They can and do make decent CPUs, maybe you just don't know what decent means?



I don't really understand this attitude, it's not that AMD's CPUs are crap compared to Intel's, it's that they aren't targeting the high end, which a 4770K would be in terms of the mainstream range of CPUs.

AMD are simply not competing at that part, at the lower end to say mid range mainstream CPUs, their offerings are fine in terms of price to performance ratio.

So the bottom line is, if you need out and out performance, then you'll need an Intel CPU, however AMD doesn't even have CPUs available in those price brackets anyway so it's pointless comparing.

But the Z87 chips such as the 4670/4770k are intels mainstream chips now, x79 is the full blown enthusiast setup, amd cant even compete with intels mainstream stuff theese days, despite the fact that haswell is gimped by intel with their use of shoddy paste below the ihs. Heck even the older ivybridge chips are better than anything amd have done since 939. Yes i would love to see amd bringing out a new cpu that runs cool, uses less power, is able to oc on normal cooling. But they offer nothing so you have to go intel and suffer with the gimped ib and hw chips. (ive owned both i7's from those ranges). amd need to up their game to keep the market competitive, otherwise intel will continue to dominate the enthusiast market which they have held since c2d/q.

 

[as905]

They can and do make decent CPUs, maybe you just don't know what decent means?
.

i was talking about amd not intel.

 

[as905]

Actually we need amd to do more on the cpu front. Intel have had it good since c2q/d. Amd's last good cpu's were the s939 range. Intel released c2d/q and have been superior ever since. On the gpu front, amd/ati are doing well, what with mantl;e and true audio but they still lay way behind intel on cpu's. Personally, i wouldnt buy any amd cpu and mobo combo on the market at present. Im too happy with my mediocre overclocking intel 4770k.

i agree we do need amd to stay in the cpu business otherwise intel will sell us outdated desktop cpu's for $1000+.

 

[Jamin280672]

i agree we do need amd to stay in the cpu business otherwise intel will sell us outdated desktop cpu's for $1000+.

+1, can you imagine what Intel prices would be like if they were the only manufacturer of these parts like chipsets and CPU's, they already know they are the best which is why CPU's are twice the price of an AMD CPU.

 

[Freddie1980]

I had no idea that either company had disclaimers like that lol. I quoted that bit in the second post because I thought it was funny.



AMD's Net loss of $20 million does though..

Although it's a loss performance from AMD is massively better then the same period last year were it made a loss of over $146m. This also cames on the back of a profit for q4 2013 ($20m, compared to a q4 2012 loss of $432m) which does a point that things are getting better for AMD.