AMD Reports 2014 Fourth Quarter and Annual Results

[Boomstick777]

Thought I would save Gregster the effort of posting this

SUNNYVALE, CA--(Marketwired - Jan 20, 2015) - AMD (NASDAQ: AMD) today announced revenue for the fourth quarter of 2014 of $1.24 billion, operating loss of $330 million and net loss of $364 million, or $0.47 per share. Non-GAAP(1) operating income was $36 million, non-GAAP(1) net income of $2 million and breakeven non-GAAP(1) earnings per shar

http://finance.yahoo.com/news/amd-reports-2014-fourth-quarter-211500020.html

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=2008997

 

[Rangerjr1]

So.... Why do we care?

 

[Boomstick777]

So.... Why do we care?

Some like to read about this kind of thing, a talking point etc. If you don't no one is forcing you to read or post in the thread.

I thought as Gregster posted the other financial related thread, I would save him having to post the quarter and annual results

Although these are quite shocking, I think AMD will be fine over the long term. Still be going strong 10 years from now.

 

[Wizzfizz]

Well, it would be nice to read the OPs opinion.. Some other parts of the forum would get frowned on for linking and running, just saying

 

[Boomstick777]

Well, it's nice to read the OPs opinion, some other parts of the forum get frowned on for linking a running, just saying

Ha, yeah I no what you mean. I do think AMD have a long-term plan in place for growth. 2015 will see more restructuring, and getting for major release in Q2/Q3 onwards. With 2016 being a push for market share gain with newer more exciting products.

Most people just want to see AMD do well imho, me included.

 

[Wizzfizz]

Me too. We need to a see a healthy but fierce rivalry, as in the end it'll benefit us all.

 

[bru]

So if I have understood those figures, (which I probably haven't as it would probably be clearer if it was written in klingon) it is a loss this quarter, but less of a loss than last time.
So overall it is a good thing, AMD slowly but surely heading in the right direction.

 

[JediFragger]

Losing hundreds of millions of dollars every 3 months is never a *good* thing, but yeah

 

[D.P.]

So if I have understood those figures, (which I probably haven't as it would probably be clearer if it was written in klingon) it is a loss this quarter, but less of a loss than last time.
So overall it is a good thing, AMD slowly but surely heading in the right direction.

You e read it wrong, it is a huge loss. They lost $364m net Q4 vs a $17m profit in Q3. 2014 had a loss of $403m compared to $83m in 2013.

That is likely why a load of the executive have left. That is a pretty major negative swing.

 

[D.P.]

Losing hundreds of millions of dollars every 3 months is never a *good* thing, but yeah

I worked for sun Microsystems for a time when everyone was saying that loosing a 1bn a year was no big when you have 12bn in the bank. A few years later they were no more in name.

 

[shankly1985]

Open's Thread


Leaves Don't Care!

 

[drunkenmaster]

Losing hundreds of millions of dollars every 3 months is never a *good* thing, but yeah

It's not every few months, in fact, it's never.

Keep in mind that $233million of the $330million loss(or $364, not sure which it counts against) was a goodwill impairment charge... or... dodgy accounting.

This is where I get murky at best but as I understand it if AMD were sold they'd be worth $233million less is what they are saying, they didn't actually lose that $233mil in day to day running of the company, the debt hasn't increased $233million and they didn't lose that cash somewhere. If AMD have a good year in 2016 and perceived market value increases then the value of the company increases and the goodwill impairment is effectively reversed.

The real losses in stock write downs and restructuring costs weren't great but acceptable, restructuring is done to save money long term. IE $71mil redundancy in one quarter but saving say 20mil in wages a quarter for the next X number of years... it will pay for itself at some point. Writing down stock is never great but happens to all companies. Unfortunately due to 20/14nm delays and waiting on CPU it's a double whammy of nothing really new on cpu/apu or GPU side, just a lot of older products.

So of the $400mil losses for the year $233mil aren't actual losses and $71mil is for longer term savings leaving $100mil or so of real losses, not good, but not terrible either, a far cry from the billion a year losses and manageable till new products come out. They are in not maintenance mode but, ticking it along till sales increase mode... if they don't there is an issue, if they do the small losses here aren't an issue.

 

[elmuzzy66.]

Maybe if they stopped giving things for free...

 

[ICDP]

Some creative book keeping there then.

 

[Silent_Scone]

So.... Why do we care?

He's over there. You're talking to a coat peg.



/Short sighted






Though there is a much better summary here from Anand.

AMD had three large reasons for the loss this quarter which hit their GAAP numbers pretty hard. First, they had yet another write down of their SeaMicro and ATI acquisitions, which they attribute to a decline in their stock prices. This cost them $233 million this quarter. Second, they have had to perform a write down for their second generation APU products, which they have listed higher on their balance sheets than they can sell them for now, however they do expect to sell through their inventory. This contributed to a $58 million non-cash charge. Finally, restructuring charges based on layoffs and the departure of their CEO, as well as real estate restructuring charges cost an additional $71 million. As these are all one time charges, AMD has also released Non-GAAP results which exclude these write downs.

On a Non-GAAP basis, operating income was $36 million, which is down 45% from last quarter’s $66 million value, and down year-over-year from the $91 million operating income from Q4 2013. Net income equates to $2 million, down from $20 million last quarter and $45 million last year, and Non-GAAP earnings per share is $0.00, which can also be spelled as zero, which missed analyst’s expectations of $0.01 per share. The core business is getting to the break-even point, and AMD has said that they have had six consecutive quarters of Non-GAAP profitability, but even that is on a razor’s edge with this quarter’s numbers.

From a consumer perspective, they need to drop Bulldozer. Reminding me more and more of Netburst with every passing moment