AMD post big loss in Q1 2015 | New graphic cards coming in H2 2015

[Cloudfire777]

So the Q1 2015 results from AMD are just in:
$180M loss in Net Income from just one quarter!

If you look at the two departments, "Enterprise, Embedded and Semi-Custom" and "GPU/Computing", AMD lost money on the GPU department:
-$75M from GPU/Computing (Operating income)
+$45M from Enterprise, Embedded and Semi-Custom (Operating income)

AMD are down 38% in revenue from GPU/Computing compared to Q1 2014, and they went from $3M in surplus to a $75M in loss from Q1 2014 > Q1 2015.

http://www.anandtech.com/show/9172/amd-posts-q1-2015-results-180-million-net-loss

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From AMD`s Earning Call. AMD will talk about new graphic cards this quarter (Q2, Computex?) and launch sometime during H2 2015:

That, I do believe PC gaming and gaming in general is a growth opportunity in the market and a growth opportunity for AMD. So as I look forward, we're launching Carrizo on the APU side and we're also launching some graphics products in the second half of this year.

So as we go into the second half of the year, we would like to see some regain of share in both the desktop and the notebook business. I've talked about Carrizo being a strong product for us, I talked about some of our graphics launches that we'll talk about later this quarter

Another interesting snippet which hints that they will most likely use Global Foundries (28nm SHP?) as manufacture for all their upcoming products considering the wafer buy increase:

We entered into a Fifth Amendment to our wafer supply agreement with Global Foundries. Under the terms of the agreement, we expect to purchase approximately $1 billion of wafers in 2015 on a take-or-pay basis. In the first quarter, we spent $161 million on wafer purchases with Global Foundries.

http://seekingalpha.com/article/307...-2015-results-earnings-call-transcript?page=1

 

[thilanliyan]

What does the GPU/Computing department comprise? Consumer dGPUs and the Pro market?

 

[stahlhart]

Please confine the discussion on the quarterly report here to graphics products only. There is already a discussion relevant to CPUs (and the company overall) taking place in the CPUs and Overclocking forum.
-- stahlhart

 

[chimaxi83]

Oh dammit! Guess I'll go with Nvidia next round. Financials are always my #1 performance metric. Perf/$, perf/w, FPS?? Pfft please!

 

[railven]

Please confine the discussion on the quarterly report here to graphics products only. There is already a discussion relevant to CPUs (and the company overall) taking place in the CPUs and Overclocking forum.
-- stahlhart

Quoting mod so he could answer my question (if unfit, please delete it):

Would it be okay to discuss Free-sync since it is, at the moment, sort of tied to the health of AMD GPUs?

EDIT: To elaborate, as someone looking to buy a new monitor and GPU, sort of makes me weary that AMD isn't doing so good.

 

[Cloudfire777]

What does the GPU/Computing department comprise? Consumer dGPUs and the Pro market?

From another Anandtech article

Starting July 1st, 2014, AMD reorganized their reporting structure into two groups. The Computing and Graphics group focuses on desktop and notebook processors, chipsets, discrete desktop GPUs, and workstation GPUs. The Enterprise, Embedded, and Semi-Custom group includes server processors, embedded processors, dense servers, semi-custom SoCs, engineering services, and royalties, which is pretty much every market AMD is in other than the traditional desktop/notebook market.

From the investor call, Lisa Su explains the loss:

...desktop processor and GPU revenue decreased significantly from the year-ago period.
On the positive side, we did see progress in several of our strategic initiatives. Mobile APU ASPs and revenue increased from the year-ago period, highlighted by increases in commercial client APU shipments and revenue from the fourth quarter, setting a record for commercial client processor sales

So since mobile APU`s revenue have increased and is part of the "GPU/computing" group, AMD must have had a big loss in discrete graphic cards and desktop CPUs.

 

[stahlhart]

Quoting mod so he could answer my question (if unfit, please delete it):

Would it be okay to discuss Free-sync since it is, at the moment, sort of tied to the health of AMD GPUs?

EDIT: To elaborate, as someone looking to buy a new monitor and GPU, sort of makes me weary that AMD isn't doing so good.

It's all good.
-- stahlhart

 

[96Firebird]

While the financial results are not shocking and pretty much expected at this point, the second half of the OP is interesting. Looks like we won't be getting new AMD cards until H2, and not releasing around Computex as previously speculated. More waiting, I guess...

 

[railven]

It's all good.
-- stahlhart

Thanks

While the financial results are not shocking and pretty much expected at this point, the second half of the OP is interesting. Looks like we won't be getting new AMD cards until H2, and not releasing around Computex as previously speculated. More waiting, I guess...

Well that just sucks. I guess they'll get the paper launch at Computex?

With the sticker shock value of a used GTX 780, was really leaning R9 390x+Freesync monitor.

Feels like a gamble locking myself into that eco-system with AMD on the ropes like this.

I wonder what the future possibilities are for AMD/ATI-GPU IPs/Division. Is it possible for AMD to spin it off to a standalone? Or perhaps another (I've keep reading Samsung is eyeing them, the whole company that is) to buy it flat out? Or would you guys see AMD death gripping ATI/GPU_Patents to the grave with them?

 

[Cloudfire777]

While the financial results are not shocking and pretty much expected at this point, the second half of the OP is interesting. Looks like we won't be getting new AMD cards until H2, and not releasing around Computex as previously speculated. More waiting, I guess...

Yeah, if they are just gonna "talk" about it at Computex, maybe its just a preview and a introduction to HBM?
Last thing I`ve heard is that GTX 980Ti is supposedly moved to September for launch, and I think that card is specifically aimed toward 390X, so perhaps Nvidia knows something and 390X won`t come out until September?

Which means GTX 980 have been alone on the market for a whopping 1 year and GTX Titan X alone for 6 months. Thats a loooong time

 

[S.H.O.D.A.N.]

Feels like a gamble locking myself into that eco-system with AMD on the ropes like this.

They are not on the ropes, by any definition of the term. You'll be seeing AMD products on the market for years to come unless something catastrophic happens in the future. This report isn't a catastrophe and should not dissuade anyone from purchasing AMD products.

If they're doing a paper launch of the R9 3XX series during Computex, it's likely because they're leaving the whole second quarter to the wolves, and hope for a strong third and fourth quarter to boost investor confidence.

 

[railven]

They are not on the ropes, by any definition of the term. You'll be seeing AMD products on the market for years to come unless something catastrophic happens in the future. This report isn't a catastrophe and should not dissuade anyone from purchasing AMD products.

I'm sure they will, but just stating this doesn't really instill confidence in buying their products.

If they're doing a paper launch of the R9 3XX series during Computex, it's likely because they're leaving the whole second quarter to the wolves, and hope for a strong third and fourth quarter to boost investor confidence.

2 years between launches. Nvidia is loving it.

 

[senseamp]

Did they explain why they tweeted that they were putting finishing touches in February, and now the release is in H2?

 

[Subyman]

I was disappointed to see the bit about GPUs in H2. I doubt I'll wait it out. H2 usually means Aug/Sept or 4-5 months away. 970/980 would have be almost a year old at that point.

 

[Head1985]

I was expecting this.
Last GPU they release(dont count 285) was hawaii ONE and half year ago.After NV launched maxwell 7 monts ago their GPU looks pretty bad vs them.
They needed r300 series back in December when GTX970 have 3.5GB fail.
Now its r300 series so late its really does not matter.

 

[Cloudfire777]

I was disappointed to see the bit about GPUs in H2. I doubt I'll wait it out. H2 usually means Aug/Sept or 4-5 months away. 970/980 would have be almost a year old at that point.

I`m getting sick and tired of waiting as well.
When Skylake and Windows 10 (both is said to launch in the summer) is available, I`m building a rig, and if 390X isnt available then, screw AMD.
I don`t think I will miss out on anything with Titan X anyway. But I sure would like a cheaper GTX 980Ti though.

Argh

 

[B-Riz]

So much FUD.

AMD knew the 290, 290x and 295x2 would stay competitive for the games on the market and the games releasing 1H 2015.

I would rather see a hard launch with 110% stable drivers and so much supply you don't get stuck in back order limbo.

We all know a flawless launch is what is important and what is being targeted.

 

[lavaheadache]

I was expecting this.
Last GPU they release(dont count 285) was hawaii ONE and half year ago.After NV launched maxwell 7 monts ago their GPU looks pretty bad vs them.
They needed r300 series back in December when GTX970 have 3.5GB fail.
Now its r300 series again so late its really does not matter.

R300 came out a longggg time ago. :biggrin:

The R9 3xx cards that are speculated to come this year will only truly be late to the game if they miss the price to performance target they need to hit to make sales happen.

AMD has bigger problems than late new cards. The whole reason AMD is posting big losses is consumers are choosing competing products more often than not. No duh , huh...

Amd's products themselves are fine, great even. The company just has to work on changing their image. Across the board their competitors just market themselves better. For Example, Intel is a household name while AMD not so much. Go walk up to strangers and ask them who both Intel and AMD are.

 

[railven]

R300 came out a longggg time ago. :biggrin:

The R9 3xx cards that are speculated to come this year will only truly be late to the game if they miss the price to performance target they need to hit to make sales happen.

AMD has bigger problems than late new cards. The whole reason AMD is posting big losses is consumers are choosing competing products more often than not. No duh , huh...

Amd's products themselves are fine, great even. The company just has to work on changing their image. Across the board their competitors just market themselves better. For Example, Intel is a household name while AMD not so much. Go walk up to strangers and ask them who both Intel and AMD are.

I agree with most of your post. But when R9 290/290X launched, they pretty much blew their cred with that stock HSF. I was already waiting for that card but flat out refused to spend a dime on their decision. I decided to wait for custom cards but of course than the bitmine craze blew up and by then the cards were $800+.

There image is definitely shot. Chasing Nvidia with their ceiling climbing hasn't worked for them very well and frankly I think it's chased off more sales than made head turns "oh look, AMD is charging same price as Nvidia, they must be equal!!" Nope.

If 390x launches in September that's 23 months after 290X. WTF, mate!

 

[Cloudfire777]

Even for a company with reduced R&D, they should have been able to release one product, the 390X, much sooner than what it looks like.

Major fail in product development in my book and it only fortify why AMD is stuck in red. They might need to fire more people and hire better management because they are horrible late to the party and doesnt look like they know how to control the company at all. AMD will face a small niche market that have begun to be saturated if they launch 390X in September

 

[Riceninja]

At this point I'm not willing to wait another 5 months for a gpu. I've given them plenty of time already and summer is a prime gaming season. Seriously considering nvidia right now.

 

[B-Riz]

If the 390 series tech is going to trickle down to the next iteration of x86 consoles, after their current design wins there, it *has* to repeat the 290 series success with getting better due to driver optimizations and software tweaking.

By waiting to launch for stability, then showing that it has legs like the last gen, it will mitigate any fears of performance falling off when the current game engines become the standards for next gen consoles.

I would bet dollars to donuts that DICE has had 390 tech for a while, and the Battlefront engine (or iteration there of) will be a cornerstone of PS5 and next XB One games.

 

[SimianR]

June or later launch for the R300 series feels like they've missed a big upgrade window. An early May launch would at least catch people who aren't happy with performance in GTAV and those looking to upgrade ahead of the Witcher 3. Those are two huge demanding titles this year that it will hurt to miss.

 

[Adampa1006]

At this point I'm not willing to wait another 5 months for a gpu. I've given them plenty of time already and summer is a prime gaming season. Seriously considering nvidia right now.

I agree. I've been an AMD enthusiast for a long time and love my 290x but launching a year after the 980 is not acceptable. Look on gaf, about 80% of PC gamers there have 970 or 980. They don't care about paying more. They act like AMD doesn't even exist. 390x could have destroyed the 980 if launched at the right time. But they screwed it up. This company is a sinking ship, gamers don't care about paying way more for Nvidia products, so I might as well switch over.

If you can't beat em, join em. AMD is toast.

 

[B-Riz]

Even for a company with reduced R&D, they should have been able to release one product, the 390X, much sooner than what it looks like.

Major fail in product development in my book and it only fortify why AMD is stuck in red. They might need to fire more people and hire better management because they are horrible late to the party and doesnt look like they know how to control the company at all. AMD will face a small niche market that have begun to be saturated if they launch 390X in September

The PC market, in reality, is small potatoes to Steam boxes and next gen consoles.

The 390 series is next gen console stuff before next gen console stuff is slated to replace PS4 and XB One.

To think AMD is going to change anything after locking up a whole market that Intel and nVidia didn't really want to fight for...

The fact that PC gamers are beside themselves waiting and wanting to buy this stuff and abuse it, (an ingenious performance test for moving it towards console integraton) is frankly amazing, and am surprised no on else has glommed on to it.