AMD Q4 results

[USER8000]

AMD losses detailed:

http://www.theregister.co.uk/2013/01/22/amd_q4_2012_financial_results/

http://www.theregister.co.uk/2013/01/23/amd_seeks_profitability_by_end_of_this_year/

Losses were actually below what analysts had predicted,margins have increased somewhat and share price actually has increased slightly:

http://www.forbes.com/sites/ericsav...oss-smaller-than-expected-shares-inch-higher/

It seems the payment to Global Foundries is the main part of the loss,and other operating losses have actually gone down.

It appears around one third of all notebooks sold in Q4 2012 in the US used AMD CPUs.

 

[amdisstaying]

Integrated Electronics Fans, Did you know?

Advanced Micro Devices was founded on May 1, 1969.

I have seen AMD in much worse shape before than it is today. And AMD is still here.

So don't underestimate AMD's tenacity to stay alive.

Jim Keller is the chief AMD chip architect.

I know this site is loaded with AMD haters. Keep up the good work.

Mods if you hate this post then delete my Id.

 

[frozentundra123456]

Probably because stocks tank a lot more quickly than they recover, so a loss in share price is not particularly indicative of any company's bottom line.

Neither is a high stock price indicative of future success. Wasnt AMD in the 40.00 range in the heyday of the Athlon?

 

[Homeles]

Integrated Electronics Fans, Did you know?

Advanced Micro Devices was founded on May 1, 1969.

I have seen AMD in much worse shape before than it is today. And AMD is still here.

So don't underestimate AMD's tenacity to stay alive.

Jim Keller is the chief AMD chip architect.

I know this site is loaded with AMD haters. Keep up the good work.

Mods if you hate this post then delete my Id.

So brave.

 

[pablo87]

Integrated Electronics Fans, Did you know?

Advanced Micro Devices was founded on May 1, 1969.

I have seen AMD in much worse shape before than it is today. And AMD is still here.

So don't underestimate AMD's tenacity to stay alive.

Jim Keller is the chief AMD chip architect.

I know this site is loaded with AMD haters. Keep up the good work.

Mods if you hate this post then delete my Id.

I'd have to agree that bankruptcy is no longer in the cards but doesn't mean it's a good investment.

 

[Haserath]

it's funny how they don't give tdp values for the temash bs they were showing off. They did in previous presentations -- 3.6w - 5.9w -- but of course, when you're presenting in a tent at ces, you can't tell your audience that your quad core downclocked-kabini will be within a watt of intel's much superior "haswell".

sdp!=tdp

 

[USER8000]

Some people might find comfort in AMD doing worse,but TBH,it is still worrying that Intel with a virtual X86 monopoly,around 9X to 10X times the number of personal than AMD,more free cash,cutting edge process tech and a whole load of patents,has seen its shares reduce in value by over 30% in the last year. On top of this it seems they have less cash and more debt than they had a year ago too.Even the nearly 30% reduction in profits,is a big deal for such an important tech stock too. AMD has been barely profitable even during the good years IIRC,so they are not really a metric people should be judging Intel by TBH!

Compare that with companies like Qualcomm and Samsung who are making increasing profits each quarter,Intel really needs to pull an ace out of the hole sooner rather than later.

The 2014 Broadwell and next generation Atom CPUs,will need to be very successful.

 

[Idontcare]

Welcome to the forums amdisstaying :thumbsup:

 

[Homeles]

Welcome to the forums amdisstaying :thumbsup:

Pretty sure it's a throwaway account, lol.

 

[OCGuy]

Hopefully the shareholders get news of this thread and the new member's handle so that they do not panic even further.

 

[pablo87]

Just read the earnings call transcript over on seekingalpha. They're being very coy about Seamicro mix vs legacy server, Seamicro intel vs AMD, and their so called embedded business (basically console) and the margins they're expecting there vs their traditional business. Typical Non transparent AMD.

Rory doesn't know much, this is the second time I hear him talk about Black Friday sales...

Lisa Su is the one running the business, period. Her answers are clear and concise, no beating around the cloud like RR...Liked her answer on GPU biz being better in 2013.

If I were Intel, I'd be trying to hire her though knowing Intel, they'd put her 2 in a box...

 

[amdisstaying]

Pretty sure it's a throwaway account, lol.

Opinions...
==================

Here are the facts:

Intel high market CAP for 2012 was $29.27x5 = $146 billions.
Intel market CAP in Jan. 2013 = $21.17x4.98 = $105.4 billions.

Total equity loss of all Intel shareholders = $146 B -$105 B = $41 billions.
====================

AMD high market CAP for 2012 was $8.35x 712 = $5.95 billions.
AMD market CAP in Jan 2013 = $2.45 x 712 = $1.74 billions.

Total equity loss of all AMD shareholders = $5.95 - $1.74 = $4.21 billions.

Is Intel 10 times bigger than AMD? No.

Intel is about 8 to 9 times bigger than AMD.

Intel pays 4.25% in dividend and P/E is only 9.93. Intel's beta is only 1.07.

AMD pays no devidend and has negative P/E. AMD's beta is 2.21, that is, twice that of Intel.

 

[CHADBOGA]

Opinions...
==================

Here are the facts:

Intel high market CAP for 2012 was $29.27x5 = $146 billions.
Intel market CAP in Jan. 2013 = $21.17x4.98 = $105.4 billions.

Total equity loss of all Intel shareholders = $146 B -$105 B = $41 billions.
====================

AMD high market CAP for 2012 was $8.35x 712 = $5.95 billions.
AMD market CAP in Jan 2013 = $2.45 x 712 = $1.74 billions.

Total equity loss of all AMD shareholders = $5.95 - $1.74 = $4.21 billions.

Is Intel 10 times bigger than AMD? No.

Intel is about 8 to 9 times bigger than AMD.

Using the market CAP figures you have provided

In Jan 2012, Intel's Market Cap was 24.537 times as big as AMD's.
In Jan 2013, Intel's Market Cap was 60.574 times as big as AMD's.

 

[Centauri]

I thought market cap/stock price didn't matter?

Make up your minds people.

 

[beginner99]

Were are the AMD Fan-Boys that said AMD canceled wafers from GloFo due to some conspiracy from MoBo manufacturers?

Occam's razor was right again. The simplest solution is the correct one, namely lack of demand.

 

[Haserath]

One more quarter like this and AMD's total assets will be below their liabilities. At that point, their stock shouldn't be worth anything.

I didn't even expect AMD to do this poorly.

 

[Homeles]

One more quarter like this and AMD's total assets will be below their liabilities. At that point, their stock shouldn't be worth anything.

I didn't even expect AMD to do this poorly.

Even with the widely-announced wafer order cancellation penalty? This wasn't exactly unforeseen.

 

[wlee15]

On the plus(?) side, extremely high levels of attrition are reducing their costs. Much of the Jaguar design team is now at Apple, Qualcomm, Samsung, etc (including the chief architect, who gave the Hot Chips talk back in August).

Are you sure you're not thinking about Brad Burgess the Chief Architect of Bobcat who was hired by Samsung in 2011? As far as know Jeff Rupley who gave the AMD presentation on the Jaguar core at HC25 and is the Chief Architect of the Jaguar core is still with AMD.

On the topic of AMD personnel movements AMD has hired Charles Matar formerly of Qualcomm as VP of System-on-Chip Development, and Wayne Meretsky formerly from Apple as VP software IP development.

http://www.mercurynews.com/business...ecutive-ranks-former-apple-qualcomm-officials

 

[Haserath]

Even with the widely-announced wafer order cancellation penalty? This wasn't exactly unforeseen.

15% gross margins? Unsold product shouldn't affect margins. Unless they really counted it that way...

How much was that penalty again?

 

[AtenRa]

- trinity shipments doubled.

Where did they say that ??

 

[amdisstaying]

Welcome to the forums amdisstaying :thumbsup:

Thanks IDC.

Now back on topic.

In 2012, AMD has to pay GF $424 millions in incentive and $320 millions in penalties.

AMD also has to writedown about $100 millions in inventory in Q3 2012.

Total $424 + $320 + $100 = $844 millions + severance charges of say $100 millions due to 14% in work-force reductions in Q4 2012 and Q1 2013.

AMD has to pay GF $175 millions of $424 millions in Q1 2013. AMD is selling Austin Campus for $150-$200 millions.

AMD has $1.2 billions in cash now.

I don't see AMD bankruptcy in Q1 2013 or Q2 2013 or Q3 2013.

At this moment, AMD is in a good shape.

I have to admit AMD got to execute better if AMD wants to stay in business for many many years.

If AMD bashers can predict the future, then please give me some lottery numbers and I will split the jackpot.

By the way, Micron's revenue was also down so the problem is not AMD specific.

AMD got hurt badly due to economic conditions as well as 2011 WSA/2012 WSA.

 

[wlee15]

15% gross margins? Unsold product shouldn't affect margins. Unless they really counted it that way...

How much was that penalty again?

Most of the charge was put into inventory so the cost of goods sold is greatly increased which pushes down gross margins.

 

[Haserath]

If AMD bashers can predict the future, then please give me some lottery numbers and I will split the jackpot.

You don't gamble on a company. You invest in them.

Warren Buffet didn't gamble with his money.

Most of the charge was put into inventory so the cost of goods sold is greatly increased which pushes down gross margins.

Makes sense then.

To tell the truth, I completely forgot the write-off was this quarter.

 

[amdisstaying]

http://www.fudzilla.com/home/item/30217-amd-beats-expectations-on-stagnant-revenue

"All in all, the results are not all that bad. The slowdown is also affecting Intel, which reported a 3-percent drop in revenue, as well as significantly lower profits.

However, AMD has an exciting roadmap for 2013 and the company could easily see its fortunes turn around. It will benefit from the introduction of next-gen consoles later this year and it will also roll out several interesting chips. We would put our money on AMD’s upcoming low-end APUs, provided they are not delayed."

I agree with Fudzilla.

I also know that Q1 2013 is going to be brutal and Q2 2013 to a lesser extent.

On the other hand, Q3/Q4 2013 are looking good provided the world economy stays relatively healthy.

 

[mrmt]

Intel pays 4.25% in dividend and P/E is only 9.93. Intel's beta is only 1.07.

AMD pays no devidend and has negative P/E. AMD's beta is 2.21, that is, twice that of Intel.

Yes, AMD is a more volatile stock than Intel, and...?