AMD is back in black

[T2k]

Hmmm, it seems this AMD/ATI is working after all: AMD Product Company just posted their first profitable quarter.

Even if we include GlobalFoundries (together AMD Consolidated) they are only ($128M), of which half went for debts so it's something around ($70) - this tells me if Christmas will be strong enough they might come totally clean in Q409 (only if i7 won't kill AMD CPU sales and ATI can keep up with the demand.)

Source

PS: 9m comparo- it's going to be a very tough quarter for NV...



We already have a thread discussing AMD?s third quarter results:

http://forums.anandtech.com/me...=2342610&enterthread=y

Video Mod BFG10K.

 

[Hauk]

Good news for everyone, regardless of gpu tastes :thumbsup:

 

[ronnn]

Some what of a repost.

 

[bryanW1995]

interesting that nvidia market cap has fallen so much, they used to be what, 4x amd's valuation?

btw, who is analog devices inc and why do they have over 8billion in market cap??

 

[woolfe9999]

So hell freezes over, pigs fly, and AMD posts a profit.

Great news indeed.

- woolfe

 

[Idontcare]

Originally posted by: bryanW1995
btw, who is analog devices inc and why do they have over 8billion in market cap??

There is a big big world out there when you get beyond the consumer PC

Analog devices is a huge player in the analog as well as DSP semiconductor markets (as you might have guessed from their name) alongside Texas Instruments, Broadcom, Qualcomm, STMicroelectronics, Maxim and National Semi just to name a few of the companies with annual revenue in the billions.

 

[T2k]

Originally posted by: bryanW1995
interesting that nvidia market cap has fallen so much, they used to be what, 4x amd's valuation?

btw, who is analog devices inc and why do they have over 8billion in market cap??

:Q

It's one of the most important semiconductor companies: SHARC processors, AD/DA converters, all kind of DSPs (SoundMax brand rings a speaker?) - I'm 100% sure you have several AD chips in your machine right now.

 

[T2k]

Originally posted by: Idontcare

Originally posted by: bryanW1995
btw, who is analog devices inc and why do they have over 8billion in market cap??

There is a big big world out there when you get beyond the consumer PC

Analog devices is a huge player in the analog as well as DSP semiconductor markets (as you might have guessed from their name) alongside Texas Instruments, Broadcom, Qualcomm, STMicroelectronics, Maxim and National Semi just to name a few of the companies with annual revenue in the billions.

Qualcomm is rather spec 'd in wireless/embedded stuff, isn't it?

 

[Idontcare]

Originally posted by: T2k

Originally posted by: Idontcare

Originally posted by: bryanW1995
btw, who is analog devices inc and why do they have over 8billion in market cap??

There is a big big world out there when you get beyond the consumer PC

Analog devices is a huge player in the analog as well as DSP semiconductor markets (as you might have guessed from their name) alongside Texas Instruments, Broadcom, Qualcomm, STMicroelectronics, Maxim and National Semi just to name a few of the companies with annual revenue in the billions.

Qualcomm is rather spec 'd in wireless/embedded stuff, isn't it?

Products

Broadcom's product line spans computer and telecommunication networking: the company has products for enterprise/metropolitan high-speed networks, as well as products for SOHO (small-office, home-office) networks. Products include transceiver and processor ICs for ethernet and wireless LANs, cable modems, digital subscriber line (DSL), servers, home networking devices (router, switches, port-concentrators) and cellular phones (GSM/GPRS/EDGE/W-CDMA). It is also known for a series of high-speed encryption co-processors, offloading this processor-intensive work to a dedicated chip, thus greatly speeding up tasks that utilize encryption. This has many practical benefits for e-commerce, and PGP or GPG secure communications.

The company also produces ICs for carrier access equipment, audio/video processors for digital set-top boxes and digital video recorders, Bluetooth and Wi-Fi transceivers, and RF receivers/tuners for satellite TV. Major customers include Apple Computer, Hewlett-Packard, Motorola, IBM, Dell, Lenovo, Linksys, Logitech, Nintendo, Nokia Siemens Networks, Nortel, TiVo and Cisco Systems.

Broadcom also authored its own VoIP codecs in 2002:

BroadVoice 16 with declared bitrate 16 kbit/s and audio sampling frequency 8 kHz
BroadVoice 32 with declared bitrate 32 kbit/s and sampling rate of 16 kHz (note however that X-Lite SIP phone's menu declares bitrate 48000 b/s)

Consumer design wins
Broadcom has also garnished design wins in a number of high-profile consumer devices:

Broadcom supplies the video processor chip for Apple's 5th generation iPod, first generation, 3G, and 3GS iPhone.
Broadcom supplies the WiFi+Bluetooth combo chip for Apple iPhone 3GS and iPod touch second generation.
In Q2 2005, Broadcom Corporation announced it would be providing Nintendo its ?online solution on a chip? as deployed in millions of notebooks and PDAs across the globe, enabling Nintendo 802.11b connectivity with DS and 802.11g for the Wii. More specifically, Broadcom would provide Bluetooth connectivity for Wii's controller.

http://en.wikipedia.org/wiki/Broadcom#Products

Acquisitions

Date........Acquired Company............Expertise
Jan-99......Maverick Networks...........Multi-layer switches for corporate networks
Apr-99......Epigram..........................Home networking using POTS
Jun-99......Amedia Labs....................SOC design services
Aug-99......HotHaus Technologies......DSP software for VOIP
Aug-99......Altocom..........................Software modem software
Jan-00......BlueSteel Networks..........Security processors
Mar-00......Digital Furnace Corp........Data compression software
Mar-00......Stellar Semiconductor......3D graphics processors
Jun-00......Pivotal Technologies.........Digital video chips
Jul-00......Innovent Systems.............Bluetooth radios
Aug-00......Puyallup Integrated Circuit Company......IC design and IC macro blocks
Jul-00......Altima Communications.....Networking chips
Oct-00......Newport Communications..10Gbit Ethernet transceivers
Oct-00......Silicon Spice.....................DSP chips for VOIP
Nov-00......Element 14.......................DSL chipsets
Dec-00......Allayer Communications....Enterprise and optical networking chips
Dec-00......Sibyte..............................Broadband microprocessors
Jan-01......VisionTech, Ltd..................MPEG-2 compression/decompression of PVRs
Jan-01......ServerWorks Corp.............I/O controllers for servers and workstations
Jul-01......PortaTec Corporation..........Mobile devices
Jul-01......Kimalink............................Wireless and mobile ICs
May-02......Mobilink Telecom, Inc.......Baseband processors for cellphones
Mar-03......Gadzoox Networks............Storage-area networks
Jan-04......RAIDCore, Inc..................RAID software
Apr-04......M-Stream Inc...................Technology to improve wireless reception
Apr-04......Sand Video, Inc...............Video compression technology
Apr-04......WIDCOMM, Inc................Software for Bluetooth systems
Apr-04......Zyray Wireless, Inc..........Baseband processors for WCMDA
Sep-04......Alphamosaic, Ltd.............Video processors for mobile devices
Feb-05......Alliant Networks, Inc........Cellular gateway products
Mar-05......Zeevo, Inc......................Bluetooth headset products
Jul-05......Siliquent Technologies, Inc....10Gbit Ethernet interface controllers
Oct-05......Athena Semiconductors, Inc....Digital TV tuners and Wifi technology
Jan-06......Sandburst Corporation......SOC chips for Ethernet packet switching
Nov-06......LVL7 Systems, Inc...........Networking software
May-07......Octalica, Inc...................Multimedia Over Coax technology
Jun-07......Global Locate, Inc............GPS chips and software
Mar-08......Sunext Design, Inc..........Optical disk drive technologies
Aug-08......AMD (DTV Processor Division)......DTV processor chips, software and TV tuners

http://en.wikipedia.org/wiki/Broadcom#Acquisitions

 

[OCGuy]

Still losing money.

 

[GundamSonicZeroX]

Great, now let's see if AMD can get their investment back.

 

[Idontcare]

OCguy I'm not entirely following the shellgame but somehow by selling chips to themselves cheaply (GF selling chips/wafers to AMD cheaply) it makes the CPU business side of AMD Product company post higher net profits while pushing down the revenue (and hence increasing the losses) of the GlobalFoundries portion of the AMD Consolidated financials.

To me it seems very reminiscent of that good old "internal customer double-billing" shenanigans that went on during the dot-com bubble earnings run-up which is now no longer allowed by GAAP.

AMD lost money, but we move dollars here and there in a spreadsheet and viola some virtual segment of AMD the company made money and for some reason we are supposed to consider that to be the relevant information here. I don't fully get it either.

 

[OCGuy]

Originally posted by: Idontcare
OCguy I'm not entirely following the shellgame but somehow by selling chips to themselves cheaply (GF selling chips/wafers to AMD cheaply) it makes the CPU business side of AMD Product company post higher net profits while pushing down the revenue (and hence increasing the losses) of the GlobalFoundries portion of the AMD Consolidated financials.

To me it seems very reminiscent of that good old "internal customer double-billing" shenanigans that went on during the dot-com bubble earnings run-up which is now no longer allowed by GAAP.

AMD lost money, but we move dollars here and there in a spreadsheet and viola some virtual segment of AMD the company made money and for some reason we are supposed to consider that to be the relevant information here. I don't fully get it either.

Intel posted a better-than-expected loss as well this week I believe, so maybe this is a good sign....the PC market is on the rebound.

If AMD can truly get into the black in Q4 from strong Xmas sales, that would be something.

Intel keeps squeezing back the marketshare though, so who knows. It will be an interesting season.

 

[akugami]

AMD is still losing money as a whole. The good thing is that they have bandaged the wounds and have stopped some of the bleeding. They need to truly get back in the black as a whole company so we can have two healthy competitors in the x86 CPU business as well as in the GPU business.

 

[T2k]

Originally posted by: Idontcare

Originally posted by: T2k

Originally posted by: Idontcare

Originally posted by: bryanW1995
btw, who is analog devices inc and why do they have over 8billion in market cap??

There is a big big world out there when you get beyond the consumer PC

Analog devices is a huge player in the analog as well as DSP semiconductor markets (as you might have guessed from their name) alongside Texas Instruments, Broadcom, Qualcomm, STMicroelectronics, Maxim and National Semi just to name a few of the companies with annual revenue in the billions.

Qualcomm is rather spec 'd in wireless/embedded stuff, isn't it?

Products

Broadcom's product line spans computer and telecommunication networking: the company has products for enterprise/metropolitan high-speed networks, as well as products for SOHO (small-office, home-office) networks. Products include transceiver and processor ICs for ethernet and wireless LANs, cable modems, digital subscriber line (DSL), servers, home networking devices (router, switches, port-concentrators) and cellular phones (GSM/GPRS/EDGE/W-CDMA). It is also known for a series of high-speed encryption co-processors, offloading this processor-intensive work to a dedicated chip, thus greatly speeding up tasks that utilize encryption. This has many practical benefits for e-commerce, and PGP or GPG secure communications.

The company also produces ICs for carrier access equipment, audio/video processors for digital set-top boxes and digital video recorders, Bluetooth and Wi-Fi transceivers, and RF receivers/tuners for satellite TV. Major customers include Apple Computer, Hewlett-Packard, Motorola, IBM, Dell, Lenovo, Linksys, Logitech, Nintendo, Nokia Siemens Networks, Nortel, TiVo and Cisco Systems.

Broadcom also authored its own VoIP codecs in 2002:

BroadVoice 16 with declared bitrate 16 kbit/s and audio sampling frequency 8 kHz
BroadVoice 32 with declared bitrate 32 kbit/s and sampling rate of 16 kHz (note however that X-Lite SIP phone's menu declares bitrate 48000 b/s)

Consumer design wins
Broadcom has also garnished design wins in a number of high-profile consumer devices:

Broadcom supplies the video processor chip for Apple's 5th generation iPod, first generation, 3G, and 3GS iPhone.
Broadcom supplies the WiFi+Bluetooth combo chip for Apple iPhone 3GS and iPod touch second generation.
In Q2 2005, Broadcom Corporation announced it would be providing Nintendo its ?online solution on a chip? as deployed in millions of notebooks and PDAs across the globe, enabling Nintendo 802.11b connectivity with DS and 802.11g for the Wii. More specifically, Broadcom would provide Bluetooth connectivity for Wii's controller.

http://en.wikipedia.org/wiki/Broadcom#Products

Acquisitions

Date........Acquired Company............Expertise
Jan-99......Maverick Networks...........Multi-layer switches for corporate networks
Apr-99......Epigram..........................Home networking using POTS
Jun-99......Amedia Labs....................SOC design services
Aug-99......HotHaus Technologies......DSP software for VOIP
Aug-99......Altocom..........................Software modem software
Jan-00......BlueSteel Networks..........Security processors
Mar-00......Digital Furnace Corp........Data compression software
Mar-00......Stellar Semiconductor......3D graphics processors
Jun-00......Pivotal Technologies.........Digital video chips
Jul-00......Innovent Systems.............Bluetooth radios
Aug-00......Puyallup Integrated Circuit Company......IC design and IC macro blocks
Jul-00......Altima Communications.....Networking chips
Oct-00......Newport Communications..10Gbit Ethernet transceivers
Oct-00......Silicon Spice.....................DSP chips for VOIP
Nov-00......Element 14.......................DSL chipsets
Dec-00......Allayer Communications....Enterprise and optical networking chips
Dec-00......Sibyte..............................Broadband microprocessors
Jan-01......VisionTech, Ltd..................MPEG-2 compression/decompression of PVRs
Jan-01......ServerWorks Corp.............I/O controllers for servers and workstations
Jul-01......PortaTec Corporation..........Mobile devices
Jul-01......Kimalink............................Wireless and mobile ICs
May-02......Mobilink Telecom, Inc.......Baseband processors for cellphones
Mar-03......Gadzoox Networks............Storage-area networks
Jan-04......RAIDCore, Inc..................RAID software
Apr-04......M-Stream Inc...................Technology to improve wireless reception
Apr-04......Sand Video, Inc...............Video compression technology
Apr-04......WIDCOMM, Inc................Software for Bluetooth systems
Apr-04......Zyray Wireless, Inc..........Baseband processors for WCMDA
Sep-04......Alphamosaic, Ltd.............Video processors for mobile devices
Feb-05......Alliant Networks, Inc........Cellular gateway products
Mar-05......Zeevo, Inc......................Bluetooth headset products
Jul-05......Siliquent Technologies, Inc....10Gbit Ethernet interface controllers
Oct-05......Athena Semiconductors, Inc....Digital TV tuners and Wifi technology
Jan-06......Sandburst Corporation......SOC chips for Ethernet packet switching
Nov-06......LVL7 Systems, Inc...........Networking software
May-07......Octalica, Inc...................Multimedia Over Coax technology
Jun-07......Global Locate, Inc............GPS chips and software
Mar-08......Sunext Design, Inc..........Optical disk drive technologies
Aug-08......AMD (DTV Processor Division)......DTV processor chips, software and TV tuners

http://en.wikipedia.org/wiki/Broadcom#Acquisitions

What does Broadcom have to with my question..?

I know Broadcom very well BTW.

 

[T2k]

Originally posted by: OCguy
Still losing money.

No, its isn't. GF does, AMD Product - our concern here - is making profit.

 

[T2k]

Originally posted by: akugami
AMD is still losing money as a whole. The good thing is that they have bandaged the wounds and have stopped some of the bleeding. They need to truly get back in the black as a whole company so we can have two healthy competitors in the x86 CPU business as well as in the GPU business.

Another person with little understanding of these results...

 

[T2k]

I think it's alos nice that AMD PRoduct has an almost 40% margint range while AMD COnsolidated has 42%... sounds nice for the next quarter...

 

[OCGuy]

Originally posted by: T2k

Originally posted by: akugami
AMD is still losing money as a whole. The good thing is that they have bandaged the wounds and have stopped some of the bleeding. They need to truly get back in the black as a whole company so we can have two healthy competitors in the x86 CPU business as well as in the GPU business.

Another person with little understanding of these results...

Apparently you are the only one not getting them.

 

[Jacen]

Originally posted by: OCguy

Originally posted by: T2k

Originally posted by: akugami
AMD is still losing money as a whole. The good thing is that they have bandaged the wounds and have stopped some of the bleeding. They need to truly get back in the black as a whole company so we can have two healthy competitors in the x86 CPU business as well as in the GPU business.

Another person with little understanding of these results...

Apparently you are the only one not getting them.

Do we really need to be splitting hairs over something so trivial?

The point is, ATI is doing well, and I think that is all that matters for fans of PC hardware industry that like lower prices and competition.

I told numerous people before the launch of the 5xxx to pick up AMD stock as the reports looking good and the OEM talk from the Green guys was not promising at all. Seems things have turned out all right.

 

[TurtleCrusher]

Originally posted by: Jacen

Originally posted by: OCguy

Originally posted by: T2k

Originally posted by: akugami
AMD is still losing money as a whole. The good thing is that they have bandaged the wounds and have stopped some of the bleeding. They need to truly get back in the black as a whole company so we can have two healthy competitors in the x86 CPU business as well as in the GPU business.

Another person with little understanding of these results...

Apparently you are the only one not getting them.

Do we really need to be splitting hairs over something so trivial?

The point is, ATI is doing well, and I think that is all that matters for fans of PC hardware industry that like lower prices and competition.

I told numerous people before the launch of the 5xxx to pick up AMD stock as the reports looking good and the OEM talk from the Green guys was not promising at all. Seems things have turned out all right.

Don't fret over it too much. Numerous people threadcrap all the time and I'm pretty sure the higher-ups just don't care anymore. I made a list of 4 people in my head that would ruin this thread, and only one has shown up.

I'd say it's not as bad as most pro-amd threads.

 

[Mem]

Its important for the consumer and gamer that AMD does well and survives ,we all like choices and competition.

The day Nvidia has no competition from AMD is the day its a very dark world for the general consumer/gamer.
Lets hope they stay in the black.

 

[Phynaz]

Street sure didn't like these results, stock price is down 7%.

Next time I'm going with my gut and selling before earnings.

 

[BenSkywalker]

Real numbers if you scroll down.

ATi made an $8Million dollar profit which is a good sign, revenue is also up sharply from last quarter(they posted a $12Million dollar loss last quarter), ASP is down but we all knew that was going to happen(well, anyone who knows anything about financials and reads this board). Given their platform sales, and taking into consideration Intel's it looks like nVidia should be in good shape this quarter too(thinking the streets consensus of $.10 EPS may be a bit low, that would be about $54.7Million profit).

It would be nice to see both companies doing as well as possible, more money for them encourages more R&D which we see the benefits of.

 

[Gikaseixas]

they'll eventually get there. It will be hard since Intel has a great line of cpus but it's possible, things can change anytime.