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AMD Reports Q2 2015 Results $181M loss

AthlonXP1800

AthlonXP1800

AthlonXP1800

Soldato
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http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=2068551

Q2 2015 financial is AMD worst result ever in more than a decade with $942M revenue, $137M operating loss, $181M net loss and now has $829M cash reserve at the end of Q2.

AMD said it is due to fall demand in PCs? LOL very funny, Intel reported much better result of $13.2bn revenue and $2.7bn net profit.

I guess Q3 will be yet another loss and burn nearly $100M cash, AMD could run out of cash at the end of 2015 or Q1 2016. They may still have trouble with Fury yield 3 months after launch but sub £450 Fury cards not sold out like hot cake and Carrizo APUs is nowhere to be seen, there was no review since the launch in June.

AMD stock tanked hit 52 week low at $1.87.
 
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Ouch their long term debt is still in control but they aren't looking good. Wasn't an idle comment before about them needing a decently successful product launch this year or Q1 2016 could see the end of AMD as we know them.
 
Fury has been out for three months?? :confused: I thought it only launched a few weeks ago.

From their website:

Computing and Graphics segment revenue decreased 29 percent sequentially and 54 percent from Q2 2014. The sequential decrease was primarily due to decreased sales to OEMs of client notebook processors and the annual decrease was driven by decreased sales across client and graphics product lines.

Operating loss was $147 million, compared with an operating loss of $75 million in Q1 2015 and an operating loss of $6 million in Q2 2014. The sequential decrease was primarily driven by lower notebook processor sales. The year-over-year decrease was primarily driven by lower sales partially offset by lower operating expenses.
Client average selling price (ASP) increased sequentially and year-over-year primarily driven by product mix.
GPU ASP increased sequentially and year-over-year primarily due to higher channel and desktop GPU ASPs.
Click to expand...

At least their desktop GPU side is probably doing OKish,but I expect laptop GPU sales will down if their laptop CPU sales are down as most AMD mobile card sales tend to be with laptops containing their own CPUs.

They better do something about their CPUs sooner rather than later,otherwise their graphics section is going to get dragged down with it.

Not seeing it happening,as Intel with vastly better CPUs,saw a 14% decrease in revenues on that side due to weaker PC demand,at least according to their bean counters.
 
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Not being intentionally a defence post, but all I read into that Cat is that laptops/notebooks sales are declining and it is shrinking the market where they once could make money.

This would go for most big brands and seems reasonable as tablets and mobile phones soak up that market share.

I am disapointed to see constant losses but the real figures are disguised by the accounts people and who knows what their 'real' losses are. Without AMD though the market would not be a better place for us consumers.
 
Flying_Hellfish said:
Good point about laptops.

This news is pretty brutal reading in numbers terms. What will their gameplan be from here?

Some more reading here
Click to expand...

Not much choice other than ride out until 16nm products come out. May see slight bump in revenue Q3/4 with holiday demand for consoles/devices and the launch of win 10 (reliance on oems and win10 not falling flat on its face).
 
NMBlack said:
AMD got that correct though, as there has been a fall in demand for PCs.....that have AMD processors and graphics cards.
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Intel also saw a 14% drop in consumer CPU revenue and blamed it on the PC market too. That's with superior products especially in mobile.

OTH,their revenue from the commercial side has gone up a decent amount to compensate.

You can see why Intel is putting more and more into servers now.

Plus when Xeon Phi starts getting traction they will start eating into professional cards sales of both AMD and Nvidia too.

IIRC,the fastest supercomputer in the world is using Xeon Phi.
 
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I'll admit that I'm more of an Intel and Nvidia person when it comes to hardware. But unless Intel or Nvidia have competition from AMD, they will stiff us with high prices for 5% speed increases for each generation of hardware they release. :(
 
3 months ago CEO Lisa Su was confided the second half will be stronger and return to profitability.

But it will not happen, AMD wont be back into profitable in either Q3 and Q4.

http://venturebeat.com/2015/07/16/a...han-expected-in-advance-of-windows-10-launch/

For the third quarter, AMD expects revenue to increase 6 percent (plus or minus 3 percent), sequentially. The third quarter will be the peak for semi-custom chip sales as Sony and Microsoft ramp up for holiday game console sales. Devinder Kumar, chief financial officer, said the company will no longer return to profitability in the second half of the year, as it previously planned. He said the company is contemplating restructuring to align its costs with revenues.
Click to expand...

AMD now has 9,700 employees, Lisa Su will probably restructuring the company at the end of Q3 or Q4. I think she need to lay off around 1,000 to 2,000 employees to make company much smaller than Nvidia's 9,228 employees and capped revenue to less than $1bn a quarter trying to stop further losses compared to $2.5bn a quarter revenue cap 10 years ago and reduced to $1.5bn a quarter revenue cap 3 years ago.
 
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