AMD Q4 results

[Phynaz]

Revenue $1.16 billion, decreased 9 percent sequentially and 32 percent year-over-year.

Gross margin 15 percent

Operating loss of $422 million, net loss of $473 million, loss per share of $0.63

Computing Solutions segment revenue decreased 11 percent sequentially and 37 percent year-over-year. The sequential and year-over-year decreases were primarily driven by lower microprocessor unit volume shipments.

Graphics segment revenue decreased 5 percent sequentially and 15 percent year-over-year. Graphics processor unit (GPU) revenue decreased sequentially and year-over-year due to lower unit volume shipments.


2012 Results:
Revenue $5.42 billion, down 17 percent year-over-year
Gross margin 23 percent
Operating loss of $1.06 billion, net loss of $1.18 billion, loss per share $1.60

 

[mrmt]

Revenue $1.16 billion, decreased 9 percent sequentially and 32 percent year-over-year.

Kudos for Rory and his team. They hit their sales forecast this time.

 

[Ventanni]

Yikes...

 

[mrmt]

Another Kudo for Rory and the team, they improved gross margin by 1%

 

[ShintaiDK]

Kudos for Rory and his team. They hit their sales forecast this time.

That basicly covers the positive parts.

For those interested:
http://ir.amd.com/phoenix.zhtml?c=74093&p=quarterlyearnings

R&D spending was also cut further.

 

[zootedd]

Hopefully if the rumors are true about next gen consoles using apus/gpus from AMD. It will increase revenue and then they could put some money in r&d to get back on cpu front to give Intel a run for the money in the high end.

 

[Abwx]

With 23% gross margin they would be currently bankrupt if it wasnt
from Mubadala s last moment december 2012 cash transfusion(!)....

AMD apparently received a safety net from Mubadala Development, which reportedly increased its share in the company to 19 percent, in exchange for a cash payment and an additional seat on the company's board.

http://www.tomshardware.com/news/amd-mubadala,19550.html

 

[VirtualLarry]

Can a company the size of AMD, survive on 15% or 23% gross margins? That doesn't sound so good to me, considering Intel had what, 58% gross margins?

 

[SiliconWars]

Only being 17% down YoY in a bad year is actually quite good considering.

Nvidia must have been down 50% to 100% while they restructured. AMD is restructuring make no mistake about it, and the pain has a bit longer to go on yet.

 

[AtenRa]

RR said that Richland has already launched ???

 

[Hitman928]

Some more info:

---Cash, cash equivalents and marketable securities balance, including
long-term marketable securities, was $1.2 billion at the end of the
quarter.

---Gross margin 15 percent, non-GAAP(1) gross margin 39 percent

---Non-GAAP(1) operating loss of $55 million, net loss of $102 million,
loss per share of $0.14 ($0.20 expected)

---Gross margin 23 percent, non-GAAP(1) gross margin 41 percent (Annual)

---Fourth quarter gross margin was positively impacted by
the sales of higher priced desktop microprocessors.

---AMD announced restructuring actions and operational efficiencies in Q4
2012, resulting in a net restructuring charge of $90 million in the
quarter, which includes costs related to actions taken in Q4 2012 as
well as an estimate of the expected costs related to Q1 2013
workforce reductions

Advanced Micro Devices, Inc. (NYSE: AMD) said it expects first quarter revenue of of $1.02 billion to $1.09 billion. The current consensus revenue estimate is $1.11 billion for the quarter ending March 31, 2013.

So, pretty bad, but better than expected in some ways. By AMD's own admission they don't plan on being profitable again until 4q 2013 at the earliest. It is nice to see that Piledriver FX cpu's seem to be selling better.

 

[Abwx]

Can a company the size of AMD, survive on 15% or 23% gross margins? That doesn't sound so good to me, considering Intel had what, 58% gross margins?

The 1bn loss say that their break even is at about 40% gross margin
accounting the exceptionnal charge they payed to Glofo.

 

[Hitman928]

RR said that Richland has already launched ???

Richland has been launched (i.e. Richland products have been shipped to some OEMs).

 

[Arachnotronic]

Lost CPU market share to Intel, lost GPU market share to Nvidia.

Let's hope that their "semi-custom APU" strategy works out...

 

[Arachnotronic]

Can a company the size of AMD, survive on 15% or 23% gross margins? That doesn't sound so good to me, considering Intel had what, 58% gross margins?

That's including one-time charges. Look at the Non-GAAP stuff for a more comparable view.

 

[mrmt]

Only being 17% down YoY in a bad year is actually quite good considering.

Nvidia must have been down 50% to 100% while they restructured. AMD is restructuring make no mistake about it, and the pain has a bit longer to go on yet.

The annual number doesn't really matter. AMD's revenue next year should be around 4 billion, a whopping 30% less than in 2011.

Ed. Computing solutions group fell 37% YoY.

 

[mrmt]

The 1bn loss say that their break even is at about 40% gross margin
accounting the exceptionnal charge they payed to Glofo.

The 40% number came from Kumar, when he mentioned break even in Q313, and he mentioned 1.3 billion in sales, not the gross margin target.

With revenues touching 1 billion now, there is no way they can break even with 40% margins without cutting R&D and SG&A.

 

[Abwx]

The 40% number came from Kumar, when he mentioned break even in Q313, and he mentioned 1.3 billion in sales, not the gross margin target.

With revenues touching 1 billion now, there is no way they can break even with 40% margins without cutting R&D and SG&A.

I dont know who is this Kumar and what he said , i computed
grossly in a few seconds this number using the datas provided
by other members in the previous posts.

You have to account for exceptionnal restructuration charges
as well as for Glofo s badly negociated WSA , all expenses that
wont appear in 2013 , so it s quite possible that they will drastically
reduce the break even point but it can be only a timely solution.

 

[blackened23]

Yikes.

 

[dud]

You don't need an MBA to see that this is bad news for computer enthusiasts. If AMD fails to fix themselves everyone will suffer due to a lack of competition in the market.

 

[mrmt]

I dont know who is this Kumar and what he said , i computed
grossly in a few seconds this number using the datas provided
by other members in the previous posts.

You have to account for exceptionnal restructuration charges
as well as for Glofo s badly negociated WSA , all expenses that
wont appear in 2013 , so it s quite possible that they will drastically
reduce the break even point but it can be only a timely solution.

Devinder Kumar is AMD's CFO, and he stated that break even point would happen with 1.3 billion in revenues AFTER completing the restructuring, so no reduction in break even point here.

They *don't* break even with 1 billion in revenues and 40% gross margins with current levels of SG&A and R&D. They need around 52% in gross margins to do so. As gross margins won't magically go up 13% and neither will revenues go up 30%, I expect further cuts around Q2.

 

[mrmt]

You don't need an MBA to see that this is bad news for computer enthusiasts. If AMD fails to fix themselves everyone will suffer due to a lack of competition in the market.

Whatever hopes you have for AMD, give up. If they survive, they won't compete against Intel for the performance crown anymore.

As Mubadala is just expecting GLF to be on its feet to pull the plug on AMD, AMD is racing to develop new markets to pull the plug on their big core line.

 

[Arachnotronic]

You don't need an MBA to see that this is bad news for computer enthusiasts. If AMD fails to fix themselves everyone will suffer due to a lack of competition in the market.

Stupid myth. Without Intel and Nvidia making new products that give people a real reason to upgrade (this means making them affordable too), they will go out of business.

AMD is really no longer needed.

 

[Abwx]

All boils down to their ability to deliver Kabini/Temash.

10% higher pricing on this line compared to bobcat is largely
within reach , wich should help increase the GM in this sector.

Also , Vishera likely allow to sustain price on GPU less CPU.

There are still lot of unknown , so you cant jump on conclusions
made using obsolete datas.

As Mubadala is just expecting GLF to be on its feet to pull the plug on AMD, AMD is racing to develop new markets to pull the plug on their big core line.

They wont throw 1bn+ investment through the window ,
be sure about it.

 

[SiliconWars]

Devinder Kumar is AMD's CFO, and he stated that break even point would happen with 1.3 billion in revenues AFTER completing the restructuring, so no reduction in break even point here.

They *don't* break even with 1 billion in revenues and 40% gross margins with current levels of SG&A and R&D. They need around 52% in gross margins to do so. As gross margins won't magically go up 13% and neither will revenues go up 30%, I expect further cuts around Q2.

Well it's no surprise that you are expecting further woe, however it's clear enough that AMD is at the end of their most important product cycles.

When Kabini replaces Brazos the margins will rise again. When the console money starts coming in that's a big bonus, and with 8x series graphics as well it's pretty obvious that 2013 is a good year technically for AMD and it should help to steady the ship.