Remember AMD also sold there Singapore facility this quarter. It added $46 Million to there books this quarter. Take that out of the equation and the quarter was pretty much nonprofitable. They did the same thing previous quarter when they sold the Texas facility. It's not sustainable to sell off assets for immediate revenue because you'll eventually run out of assets to sell and your operating expense goes up in the long term from having to lease the facility back.
Notice how he corrected me without being insulting?
You could learn from him.
Its not that surpricing.
Amd entire server line is junk. Desktop is very bad. Midrange and up mobile is bad. Discrete gfx is a little under average. Gf is expensive junk.
Lowend mobile is good. Consoles is very good. Mantle is brilliant.
The results fit that. For the first time in years amd have a strategy not going straight to hell but leverages on the strenght.
...and could you go as far as to say - AMD is betting on what it can just like NVidia is trying to do with building a mobile division?
Both of them seem to not give much credence to a 300w dGPU Solution on a future outlook (5-10 years) for revenue.
This however makes me worried - how they are going to make enough money to do their traditional core businesses.
(You could argue AMD is all but out the door in that, i geuss).
Only Intel can keep doing that because of high margin servers that will probably grow ever slightly with more mobile devices requiring compute in the cloud.
...and could you go as far as to say - AMD is betting on what it can just like NVidia is trying to do with building a mobile division?
Both of them seem to not give much credence to a 300w dGPU Solution on a future outlook (5-10 years) for revenue.
This however makes me worried - how they are going to make enough money to do their traditional core businesses.
(You could argue AMD is all but out the door in that, i geuss).
Only Intel can keep doing that because of high margin servers that will probably grow ever slightly with more mobile devices requiring compute in the cloud.
Is that a joke? You, complaining about someone else's knowledge in finance, and just below a post exposing another one of your bluffs/mispredictions? Or did you conveniently forget what you were saying about console margins?
David Wong of Wells Fargo noted that console margins came in "better than expected."
Lol did I forget? What were you saying, 15% console margin or so?
Read and learn something for a change - http://seekingalpha.com/article/175...-q3-earnings?source=email_rt_article_readmore
And in case you didn't realise yet, AMD's CPU division revenue was up by 12% on Q2.
Rory Read is a machine btw. He hit every single target he said he would a year ago.
All the pages of talk about low earning on consoles. All the bs. Today it is burried.
The operating margin on the consoles is "mid teens", so basically what mrmt thought the gross margins were going to be. "Mid teens" operating margins are what Intel is on for most of their lineup.
The operating margin on the consoles is "mid teens", so basically what mrmt thought the gross margins were going to be. "Mid teens" operating margins are what Intel is on for most of their lineup.
The cpu drop is disappointing and graphics was poor, but that will change in Q4. They also have (at least) one other big server win that they can't talk about yet. Paying globalfoundries is no problem at all even with dropping cpu sales.
It's all set up for Kaveri to complete the turnaround.
I'm glad for AMD that they made a profit and I'm glad for Intel when they make a profit. May I humbly suggest that we posters who love our PCs and our Overclocking etc should cheer every time AMD OR Intel posts a profit. We win because the companies who make our cpus are viable.
Vivek Arya - Bank of America Merrill Lynch
Rory, maybe one more on the PC business, now that Intel is starting to become more aggressive in the lower priced segment of the market, also in the tablet category with Bay Trail. And these are segments where you have traditionally held a larger market share on a relative basis. So if you are expecting the PC market to decline 10% next year and Intel continues to be aggressive in that lower priced segment of the market, how do you think your PC sales will trend next year? Just conceptually, I understand it’s too early to make a specific prediction.
Rory Read - President and CEO
From my perspective, Vivek, I think that we’ve created a very interesting product set, with the current products and the feedback I'm getting from our customers in terms of the design wins and the ramp. They look solid. Our volume is solid in that space. And the next-generation products, the silicon’s already in shops. So that’s positioning us well to continue to compete in the segment. But make no mistake about it. The PC industry is clearly in transition and will continue to be in transition, as tablet continues to attack particularly in the consumer segment. We think we can compete well and it will make a significant portion to our business moving forward.
But think about it. Two years ago we were 90% to 95% of our business centered over PCs and we’ve launched the clear strategy to diversify our portfolio taking our IT-- leadership IT and Graphics and CPU and taking it into adjacent segment where there is high growth for three, five, seven years and stickier opportunities.
We see that as an opportunity to drive 50% or more of our business over that time horizon. And if you look at the results in the third quarter, we are already seeing the benefits of that opportunity with over 30% of our revenue now coming from semi-custom and our embedded businesses.
We see it is an important business in PC, but its time is changing and the go-go era is over. We need to move and attack the new opportunities where the market is going, and that’s what we are doing.
AMD sure is tanking today. -14%.
Enlighten us please. That's another one pulled from the same place of your console margins estimates or do you actually have a scenario to back that number?
How so, Krumme? Console sales are around 360MM per quarter, with a 15% gross margins. Let's say that they spend 1% in SG&A for consoles. That leaves them with some 50MM per quarter, or roughly 11% of their OPEX. I don't think this is high earnings and I don't think this is something that will save AMD. It's good money, and it's far better than no money at all. But 11% of their OPEX is not enough to offset the budget losses they had since RR came, and surely is not enough to develop anything other than another cheap, embedded/semi custom chip.
In the mean time their CPU business is dying, and regardless of how bad are the products they current sell, the bulk of their R&D bill is paid by this line up. They are expecting further contraction on that business and that means further operating losses, personnel cuts or a further shift to the embedded division, plus a worst negotiation position in the WSA discussions next month.
I haven't much to add to what I have been saying in the last few months. Their CPU business started to feel Haswell impact, and you can bet that with the bottom of the Haswell line up arriving in the next months and bay trail flooding the bottom PC market, things will get even worse. Consoles and embedded are generating peanuts cash, and they are not enough to sustain the kind of bleeding edge engineering we were used to see in AMD. And I don't expect AMD manufacturing consumer bleeding edge products a few years down the road.
On the upside, this is going to keep the company alive. It's a strategy that they are being able to execute, and that's a good thing, especially when you factor in the amount of constraints AMD has. As much as it will make AMD in a 2nd tier MPU designer, that's better than bankruptcy.
If operating margins are "mid teens", how can your estimate of 15% gross be correct? Don't you think it's a lot more likely that my estimate of 22% is nearer the mark?
AMD sure is tanking today. -14%.
You mean the turnaround from going bankrupt to barely surviving?
50mm per quarter is super fine in AMD world, and safe money on top of it. I dont know why people have those high expectations for AMD. A business not turning profit is meaningless and it doesnt matter if its highend cpu or plastic bags. Amd was only seriously compettitive from 2000 to 2006, and for the rest of its lifetime it was not. And prior to 1995 it was nothing. If fact the last year is clearly among the best. lol.