AMD Q4 2013 result. 1.59B$ revenue, 5.3B$ for the year

[ShintaiDK]

Good side is they posted a profit. Bad side is the CPU division is still in free fall. From 790M$ to 722M$. Graphics division due to consoles rose again. This time from 671M$ to 865M$. AMDs biggest division is now officially their graphics and visual solution. The CPU division dropped around 25% YoY. And there is no recovery in sight. R&D dropped roughly 15% YoY as well. Gross margins was down 1% QoQ.

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=1892414&highlight=

Q4 2013 Results

• AMD revenue of $1.59 billion, increased 9 percent sequentially and 38 percent year-over-year
• Gross margin of 35 percent
• Operating income of $135 million and non-GAAP operating income of $91 million
• Net income of $89 million, earnings per share of $0.12 and non-GAAP net income of $45 million, earnings per share of $0.06

2013 Annual Results

• AMD revenue of $5.3 billion, down 2 percent year-over-year
• Gross margin of 37 percent
• Operating income of $103 million
• Net loss of $83 million and loss per share of $0.11

 

[Fox5]

Good side is they posted a profit. Bad side is the CPU division is still in free fall. From 790M$ to 722M$. Graphics division due to consoles rose again. This time from 671M$ to 865M$. AMDs biggest division is now officially their graphics and visual solution. The CPU division dropped around 25% YoY. And there is no recovery in sight. R&D dropped roughly 15% YoY as well. Gross margins continued to slip another % in Q4 due to the low margins on consoles.

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=1892414&highlight=

How is AMD grouping APU sales? They used to group them under CPU, artificially inflating cpu and deflating GPU. The only way I could see GPU hit that high is through APUs, it used to be 1/10th the size of their CPU sales.

 

[ShintaiDK]

How is AMD grouping APU sales? They used to group them under CPU, artificially inflating cpu and deflating GPU. The only way I could see GPU hit that high is through APUs, it used to be 1/10th the size of their CPU sales.

Only consoles are under the graphics unit. Regular APUs are under the CPU division. AMD is losing more ground to Intel.

 

[mrmt]

How is AMD grouping APU sales? They used to group them under CPU, artificially inflating cpu and deflating GPU. The only way I could see GPU hit that high is through APUs, it used to be 1/10th the size of their CPU sales.

APU is compufing solutions the division in free fall. GPU revenues raised because console SoCs.

 

[Torn Mind]

I suspect miners might have helped them in December...All those new Radeons they released were pretty much gone immediately....

 

[ShintaiDK]

I suspect miners might have helped them in December...All those new Radeons they released were pretty much gone immediately....

That account for minimal amounts. Remember (GPU) mining is almost exclusively north america only. And that area accounts for something like 15% of revenue.

 

[krumme]

Damn fine results for q4. They are perfectly executing their strategy. Explains why amd shareprice have risen so much for the last months.

Rr and his team is imho doing the best management in amd in 30 years despite a bd and gf rock at their neck.

 

[Slomo4shO]

Beat analyst expectations... Their computing solutions divisions revenue dropped Y2Y and profits dropped Q2Q but the graphics division revenue nearly tippled Y2Y and profits doubled Q2Q thanks to the consoles and litecoin craze.

I still have no idea what AMD is thinking when it comes to their computing solutions division. Notebook APU have been fairly successful and are gaining some market share but they have no clear cut vision for the desktop market.

 

[BurnItDwn]

Only consoles are under the graphics unit. Regular APUs are under the CPU division. AMD is losing more ground to Intel.

Let's be honest, AMD and Intel are continuing to lose colossal ground to ARM.

AMD's strength right now is in consoles. They potentially can make a comeback if their ARM based Opterons that are due to come out in 2014 provide better performance/power than Intel or other ARM based options. It's not very likely, but what is likely is that they will continue to release things that supply niche markets.

I think the consoles + AMD ARM Cpus potentially may bring their shares back up around $10, but, I don't see them making it back up to the $50 Athlon glory days any time soon unless they pull a crazy Ivan..

 

[ShintaiDK]

Let's be honest, AMD and Intel are continuing to lose colossal ground to ARM.

AMD's strength right now is in consoles. They potentially can make a comeback if their ARM based Opterons that are due to come out in 2014 provide better performance/power than Intel or other ARM based options. It's not very likely, but what is likely is that they will continue to release things that supply niche markets.

I think the consoles + AMD ARM Cpus potentially may bring their shares back up around $10, but, I don't see them making it back up to the $50 Athlon glory days any time soon unless they pull a crazy Ivan..

AMD needs to turn their R&D cuts around, if they want to be anything noticeable in the future. Roughly -15% R&D YoY.

 

[ShintaiDK]

AMD is down 10% in aftermarket trade atm.

 

[Centauri]

AMD is down 10% in aftermarket trade atm.

Run for the hills!

 

[BurnItDwn]

AMD needs to turn their R&D cuts around, if they want to be anything noticeable in the future. Roughly -15% R&D YoY.

Yes, more R&D would obviously help them to compete in the very crowded semiconductor market. But, I think they are in a good place, at least compared to a year or two ago...

(I purchased 400 shares for$2 and change... not a big amount, just a small Gamble)

 

[Slomo4shO]

AMD is down 10% in aftermarket trade atm.

Same trend as the last couple reports, large dip then gradual climb (check the graph for July 18 and October 17).

 

[bradley]

Run for the hills!

!!!!

 

[DaZeeMan]

Do keep in mind that the consoles do have CPU cores in them as well as GPU cores, so although they are grouped under the GPU division, the CPU division did contribute to the design. So while the two divisions are 'tracked' separately, at the end of the day they are still one big happy company.

Gross Margins are up 14% year over year as well, to 37%. Long term debt continues to fall, slowly. And I did note that the R&D budget went up slightly in Q4. Cash on hand jumped significantly between Q3 and Q4 as well.

As I've commented before, I'm seeing a long term strategy here, to keep the company in profitability. The GPU division will be carrying the company for a bit, while AMD preps the next round of CPUs and APUs for 2015. Also, Kaveri didn't launch in Q4, so Kaveri sales in Q1 will help bolster the computing division. As I remember, AMD didn't release any new CPUs in Q4 2013, so they had to rely on those already on the market.

By comparison, Intel's revenues slid year over year, their gross earnings fell, and their E.P.S. fell slightly. AMD's revenues also fell slightly, but the 14% increase in gross earnings is a huge deal for them. As is increasing their E.P.S. quarter on quarter.

We'll know more when the market shares for APUs and GPUs are released by John Peddie in February...

 

[ShintaiDK]

Yes, more R&D would obviously help them to compete in the very crowded semiconductor market. But, I think they are in a good place, at least compared to a year or two ago...

(I purchased 400 shares for$2 and change... not a big amount, just a small Gamble)

Consoles will certainly keep them alive for quite some years. But the rest of the company is in ruins. CPU division is a mere shadow.

 

[Abwx]

Damn fine results for q4. They are perfectly executing their strategy. Explains why amd shareprice have risen so much for the last months.

Rr and his team is imho doing the best management in amd in 30 years despite a bd and gf rock at their neck.

This strategy saved them from a total disaster.

On a YoY graphics solution increased by 539 millions , otherwise
at equal amount they would have made only 1.05bn in Q4 2013,
also despite a shrinking market share their CPU/APU division is no
more bleeding money.

Consoles will certainly keep them alive for quite some years. But the rest of the company is in ruins. CPU division is a mere shadow.

CPU division can only improve.

 

[el etro]

APU is compufing solutions the division in free fall. GPU revenues raised because console SoCs.

AMD GPU division is getting bigger without consoles help.

Consoles make so little money to AMD...

 

[ShintaiDK]

AMD GPU division is getting bigger without consoles help.

Consoles make so little money to AMD...

Consoles makes revenue. The console revenue was 500-550M$ or so. But all the hyped income didnt materialize.

 

[jpiniero]

They made far more on the consoles than anticipated. Both consoles have sold far more than anyone thought, so I suppose that should not be a surprise. The PS4 at this point is amazingly still seriously constrained so Q1 sales should still be decent; the question is whether they shipped the chips to Sony already. After Q1, things will slow down.

CPU division can only improve.

The revenue drop on the CPU business suggests they are justified in cutting back more on the x86 business. I've already suggested that they are going to end development of Big Core at Excavator, and the Cats seem kind of redundant with the ARM development starting up.

 

[frozentundra123456]

I am no financial analyst, but it doesnt look bad. At least they still made a profit.

The problem I see is down the line. By the time the current consoles are ready to be replaced, both nVidia/arm and intel could have very viable solutions, which they did not have when the current generation was contracted out. Not to mention that the discrete gpu division will also be badly hurt by increasingly powerful igps. They still really need a comptitive cpu for the enterprise/server market.

 

[Abwx]

The revenue drop on the CPU business suggests they are justified in cutting back more on the x86 business. I've already suggested that they are going to end development of Big Core at Excavator, and the Cats seem kind of redundant with ARM.

Without X86 they wouldnt have the console market , besides, now that the XB1 and PS4 are launched they have plenty of human ressources at disposal for both their divisions, also it is likely that excavator wont close the gap with HW but performance delta will be reduced on a core per core basis, BD and consequently SR is a very versatile core , i guess that it s actualy its main feature , to be easily upgradable with any new ISAs.

 

[Fox5]

Consoles will certainly keep them alive for quite some years. But the rest of the company is in ruins. CPU division is a mere shadow.

Big core is the albatross around it's neck. AMD's small cores may not be lighting the world on fire, but the R&D that went into them is very cheap compared to the big cores.

X86 is still a strength for AMD though, they don't have much hope of breaking into phones or tablets, they're kind of tied to Windows for the foreseeable future. And the ARM server market is a pipe dream that isn't going to replace AMD's lost Opteron sales any time soon.

 

[Slomo4shO]

Consoles makes revenue. The console revenue was 500-550M$ or so. But all the hyped income didnt materialize.

In Q4 2012 the graphics division had net revenues of 326 million and 22 million in operating income, assuming that this quarter's 865 mill revenue included 500 million in revenue from consoles, we are left with revenues of 365 million which would equate to 12% Y2Y growth in revenues for all other sectors of this division. Even if we increase Y2Y operating income by 50%, you end up with operating income of 33 million. Considering that the operating income of the graphics division was 121 million this quarter, We are looking at a ~88 million operating income off the console revenue of 500 million. I would consider this fairly high returns especially when compared to their previous figures...