AMD Q2 Results

[Snafuh]

AMD did well and exceeded the expectations.

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsarticle&ID=2187336

Revenue of $1,027 million, up 23 percent sequentially and up 9 percent year-over-year
Gross margin of 31 percent, down 1 percentage point sequentially
Operating expenses of $353 million, compared to $344 million for the prior quarter.
Operating loss of $8 million, compared to an operating loss of $68 million in Q1 2016.
Net income of $69 million, earnings per share of $0.08, and non-GAAP(1) net loss of $40 million, non-GAAP(1) loss per share of $0.05
Cash and cash equivalents were $957 million at the end of the quarter, up $241 million from the end of the prior quarter
Total debt at the end of the quarter was $2.24 billion

 

[Elixer]

http://forums.anandtech.com/showthread.php?t=2480653

 

[Snafuh]

I didn't check the VCG forum for a thread. Sorry.

 

[FIVR]

Does this include the RX480 launch?
Edit: Nooo please leave the thread here. I will not mention these "video cards" or whatever they are, if I ever heard of such a thing.



But do these numbers include the launch of some new product?

 

[Snafuh]

But do these numbers include the launch of some new product?

Increased notebook sales, IP licencing gains and higher sales of semi-custom SoCs.

 

[jpiniero]

Part of it was the selling of the wafer packaging plant that was announced a long time ago. Still, not bad.

Consoles continue to be the main source of income for AMD. And it does basically confirm that the Neo is coming out this year.

 

[Arachnotronic]

AMD is basically a game console company in terms of revenue. PC CPU + dGPU combined are less than half of the business.

 

[Flash831]

Earlier reports AMD have highlighted "double digit growth" regarding their notebook sales.

As they have not mentioned "double digit growth" this time, I guess Carrizo/Bristol Ridge is selling 1-9% more compared to Q1 (assuming they don't still sell any old Richland/Steamroller chips).

EDIT: I forgot about Stoney Ridge being released in Q2, so the sales of Carrizo/Bristol Ridge might not be so easy to calculate :-(

 

[Dresdenboy]

Does this include the RX480 launch?
[...]
But do these numbers include the launch of some new product?

They at least had to ship most of the cards before end of that quarter.

AMD is basically a game console company in terms of revenue. PC CPU + dGPU combined are less than half of the business.

This is true for Q2, but might change again due to different seasonality effects.

 

[frozentundra123456]

So is this pretty much on line with expectations? Stock was down today but up after hours.

 

[Snafuh]

So is this pretty much on line with expectations? Stock was down today but up after hours.

They expected 15% (+-3%) revenue increase and got 23%.

 

[Dresdenboy]

So is this pretty much on line with expectations? Stock was down today but up after hours.

My guess: the downmove was part caused by overall markets + option expiration tomorrow + maybe some "last chance" manipulation to get in (big downmove 2h before market downmove).

Usually (not always) the stock went up before ER to mostly drop AH and PM + following trading day. Some might manipulate it the other way round. But nobody would manipulate it down if it would drop anyway. ^^

 

[frozentundra123456]

Ehh, it was back up after hours. Personally I am amazed it hasnt had a downward correction after more than doubling. Only negative I see are the margins, which are terrible. But with the revenue from polaris, hopefully they will turn a profit next quarter. Wish I had had the guts to buy some at sub 2.00. I thought it had to go up, but didnt pull the trigger. Now though, I think it is overbought.

 

[Arachnotronic]

They at least had to ship most of the cards before end of that quarter.


This is true for Q2, but might change again due to different seasonality effects.

Q3 looks like the sequential increase will be due to gfx + semicustom.

 

[dark zero]

AMD is basically a game console company in terms of revenue. PC CPU + dGPU combined are less than half of the business.

Actually this is getting reverted at least in dGPU. The RX 480 wasn't that bad as expecting and that is considering that 460 and 470 are comming.
So the true statement is:
AMD is basically a game console AND dGPU company. PC CPU + Mobile CPU combined are less than half of the business.

 

[AtenRa]

Q3 2016 will be the best quarter this year most probably with close to 1.2B revenue.

Things will start to change in a bigger way with Vega and ZEN next year.

2016 may close aproximately at 4.2B and 2017 may close at 5B.

 

[Flapdrol1337]

Non gaap loos of $40M, was $96M last quarter, $131M Q2 last year.

With the rx480 they could make a profit next quarter.

 

[AtenRa]

Hmm, stock jumped to $5.85 currently. I have the feeling in Q3 it could reach close to $7.

Also, Desktop ZEN will launch in 2016 but it seems availability will only reach acceptable volume in Q1 2017, that is when Server ZEN will launch.

 

[Dresdenboy]

Hmm, stock jumped to $5.85 currently. I have the feeling in Q3 it could reach close to $7.

83 cents to go. Edit: 76 cents.

But I see some shorts building up positions, causing resistance just before $6.20. OTOH in some of AMD's reports, the net change in shares held by the biggest mutual funds is >20M (reported on 3/31 or before, so a bit old).

 

[AtenRa]

Hell already at $6.25,

If they will make close to +20% increase of revenue in Q3 we may see the stock jump 2-3 dollars right after the conference call.

If ZEN will get a few SERVER wins and affect revenue, the stock will increase more in Q1 2017.

 

[Arachnotronic]

Hell already at $6.25,

If they will make close to +20% increase of revenue in Q3 we may see the stock jump 2-3 dollars right after the conference call.

If ZEN will get a few SERVER wins and affect revenue, the stock will increase more in Q1 2017.

Do you own any AMD stock?

 

[AtenRa]

Do you own any AMD stock?

nope

 

[Dresdenboy]

Now it looks like an intraday short squeeze. (Funnily this was a topic in the episode of "Billions" I watched today). No reasonable buyer would simply jump in but wait for some dips instead. So it's likely some people cutting losses. But NVDA did a similar move, so it might just be the markets, or both.

 

[Arachnotronic]

Now it looks like an intraday short squeeze. (Funnily this was a topic in the episode of "Billions" I watched today). No reasonable buyer would simply jump in but wait for some dips instead. So it's likely some people cutting losses. But NVDA did a similar move, so it might just be the markets, or both.

Definitely seems like a short squeeze to me.

 

[ZGR]

Wow, big jump in AMD stock again! Still mad at myself for not buying AMD stock when it was below $2.

$7 per share is approaching reality. How high can it go?