Revenue down 22%.
Edit: Oh and it gets better... Intel posted a loss!
It is Q2 related only due to Amortizations regarding the Xilinx acquisition. See Appendices in the slide presentation.
Isn't that from the cost of the Xilinx acquisition? In that case, it's just a great tax write off.
There's a reason for GAAP (Generally Accepted Accounting Principles) vs non-GAAP (i.e. not generally accepted).
If you use non-GAAP numbers, you're subject to how they decided to amortize asset depreciation. Things like 'intangible' asset depreciation in particular is dubious. Any company can basically make their numbers look better or worse for a number of quarters using non-gaap accounting tricks.
This is not something BTW that plays well into Intel's hand. Ex accounting tricks, Intel lost 0.11c per share and and a net income of -$500M,
If you are using Non-GAAP numbers, Intel made 0.29c/share and $1.2B.
I think it's obvious that this is not reflective of reality. I find Non-GAAP numbers to be highly deceptive.
Write off? For what? If anything it appreciated in value.
I have said this for YEARS here, that Intel needs to stop relying on their reputation or bad things will happen. NO I don't think they will go under, but it may be time for the monopoly to end, and be a 50-50 race, and thats only if they get their act together in the next couple of years. I mean Alder lake has a few strenghts, but a lot of weaknesses also, and using it in their SPR server chip is hurting badly, hence them being like 2 years late.Thinking about this some more, this is really a remarkable crisis for Intel. A good turnaround needs a hard reality. Intel needs to get themselves in order fast. A lot of axes will fall I think, unfortunately, on Intel management.
Yeah and my point is you should not claim a 3 year lag, when it was a 6 month lag.
Please check your facts before commenting. The batteries in the MacBook Air 2022 and MacBook Pro 2021 are not glued in.glued in batteries
You will see a downturn there as well, it will be milder and will happen later.
Have you used an iPhone 13? I have a pro max and it outclasses every other phone I have owned. It is no surprise to me they are selling like hot cakes.
You're redefining when the Macbook Air was introduced based on standards unique to you to try to excuse Intel's total failure to recognize market trends? Whatever you need to do to defend them I guess.
While non-GAAP allows businesses to play some silly games some times with the numbers, AMD GAAP vs non-GAAP numbers typically are very close, if not exactly in line with one another. The main reason they are not this quarter is because of acquisition costs related to XLNX and Pensado. AMD offering non-GAAP numbers lets investors see how the actual business did in the quarter if you take out those temporary added costs and AMD did very well. Intel clearly lost market share (x86) to AMD this past quarter due to a much greater exposure in markets that shrank significantly as well as being behind in product competitiveness in non-high power mobile and especially server.
Getting SPR finally out will help Intel slow the bleeding a bit but they will still be the follower in the server space for at least a couple more years. In a shrinking market, it really hurts to not be the technology leader, especially when you are by far the volume leader. Intel benefited by being the volume leader during / right after the pandemic because the demand exploded and Intel could use their volume dominance to feed the market even though they were the tech follower. Now with the demand pull back, that position has kind of come back to bite Intel in the butt for at least the next few months.
I think everyone will feel some effect of the market going into next year but beyond that, who knows what will happen in the macro environment.
Nailed it.I expect AMD to not have Intel's issues last quarter. However, I expect AMD to reduce its server growth projections.
Once again, I wonder why you keep making it sound like you're the only one who saw Intel's problems on the internet. People were bearish on Intel on any tech forum on the internet. Literally everyone was saying the same as you about Intel.I have said this for YEARS here, that Intel needs to stop relying on their reputation or bad things will happen. NO I don't think they will go under, but it may be time for the monopoly to end, and be a 50-50 race, and thats only if they get their act together in the next couple of years. I mean Alder lake has a few strenghts, but a lot of weaknesses also, and using it in their SPR server chip is hurting badly, hence them being like 2 years late.
That wasn't my point anyway. Samsung is a follower and they are doing great in the Smartphone market. Also inventing a category is good, but you can do better in revisions.
You have companies like Framework that has replaceable motherboards and they sell replacements for every part. You have many mini PC vendors coming up. It's ripe with new ideas even though it's a very established market. The mentality Apple has towards repair is still pretty bad by the way.
You may complain about the market created by Ultrabooks but it did result in higher quality systems and sort of stemmed the tide into more and more Netbooks. Yes it didn't get as big as they expected but now we see the benefits. I am a big fan of ultra light(2.5lbs or under) convertible laptops for example. You've got many more choices into form factors than you did then. Also note that the average joe consumers don't care about the things we do.
What do you call the super light and portable systems aimed for the Japanese market? Did Apple really invent it or they did they market it really well so people think they did? Previous to Airs and Ultrabooks no company in NA cared to make one. Yet in Japan the local companies did because their people liked very portable systems. Laptops like Portege way predate the Macbook Air.
We have lots more choices now. That's why Apple vs rest argument still exist. Even Apple is another choice.
Anyway if everyone is smart, no one is. If everything is innovative then none are. The truly innovative thinkers are often once in a generation thing. Steve Jobs did a good thing. But now he's dead and gone!
Maloney would have resulted in a far better result for them. But it did not work out. Now Pat has to work first to reverse the decline rather than in the alternate timeline where he could have spent all the time strengthening it.
Well, maybe you didn't see the roasting I got from several posters that did not believe as we do.Once again, I wonder why you keep making it sound like you're the only one who saw Intel's problems on the internet. People were bearish on Intel on any tech forum on the internet. Literally everyone was saying the same as you about Intel.
Everyone knew Intel was in trouble and that COVID gave them 2 more years of growth that they really didn't deserve.
True. The only surprise was how long it actually took till it caught up. I guess the pandemic was actually good for intel with many people buying laptops + services like online meetings needing to scale up (= server sales). So the numbers from 20 and 21 were likley a bit inflated.I don't want to say "I told you so" but I have been pointing out for the last year or two that Intel has terrible progress/competitiveness in server, and even desktop is weak, and I said it will eventually catch up to them. Well, this is the first evidence that I was right.
Intel canceling ARC wouldn't really surprise given their history with GPUs. And with ARC I mean the gaming architecture not the compute/datacenter products. The gaming part however always has the benefit of getting some more money from the same core R&D but also incurs additional cost. Not sure it is a net positive.
I wasn't necessarily trying to claim Apple invented the category - they are the best there is at being a "better follower" and taking something others have done half assed and refining it into something people want. That's what the iPod, iPhone, and iPad are after all.
I was just replying to the claim that some guy at Intel (who the poster thought would have done a better job as CEO than Krzanich) "invented Ultrabooks" when no one at Intel did anything of the sort. Whether Steve Jobs invented the concept or got the idea from seeing mini-notebooks in Japan is irrelevant to my point.
It was really Apple that really pushed the ultrabook to popular levels with the MacBook Air in 2008.I said that. And without his push we wouldn't have the Ultrabook category at all. Plus he was said to be few in the company who thought mobile devices would be a thing while most at Intel were content with success of Core.
I don't think you understand non-GAAP at all. It's only relevant if you know the minutia.
Now, why's that relevant? Well everyone is pointing at that 1.1B line item "amortization of intangible assets". I hate to break it to you, but that is unlikely to be a one time thing. It is going to continue to inflate their non-GAAP earnings for the next 15 years.
Apparently the Xilinx deal was mostly to acquire IP. That line means they are depreciating the value of the IP, amortizing it (depreciation is for physical assets - but this is the same thing). They are valuing the IP they acquired around $60B. The normal amortization time frame is 15 years. 60B/15 = 4B / year. 1B per quarter.
So this isn't necessarily bad for AMD or its fans. From what I can tell though, Xilinx isn't adding to their bottom line, their operating expenses and R&D went up significantly. Since AMD acquired Xilinx via an all-stock transaction, for AMD shareholders, it means the value of their stock just got whacked. And this line item, it's not going away, which means funny non-GAAP numbers for a long time.
So maybe more on topic to this thread, while Gelsinger is running around building new fabs (physical assets that will depreciate once built), Su is running around buying up more IP / design studios.
Which brings me back to my original point. Non-GAAP is almost always deceptive. Next quarter should be a lot more telling for both AMD and Intel.
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So I hope the new management has foresight to deal with this and keep the gaming GPU line. Because I assure you if they don't they'll pull ALL dGPU efforts in a few years.
I agree. They were, but a few yrs ago they started diverging. Easier driver development also.Server compute GPUs are completely different from gaming gpus now. There shouldn't be much of an overlap.
Server compute GPUs are completely different from gaming gpus now. There shouldn't be much of an overlap.
Serious question as I am a dual platform user and have used 8/11/12, what make 13 so special?