AMD
AMD up 1.8% AH in spite of light guidance
AMD expects Q1 revenue to be down 15% Q/Q (+/- 3%). At the midpoint, that implies revenue of $1.05B, well below a $1.2B consensus. But with shares having made fresh 52-week lows earlier today - they closed regular trading down 6.3% - investors are cutting the company some slack.
Q4 computing/graphics (PC CPU/GPU) sales -25% Y/Y to $662M (share loss), with an op. loss of $56M. Enterprise, embedded, and semi-custom sales -17% to $577M (lower console-related shipments), with an op. profit of $109M.
Gross margin fell 100 bps Q/Q and Y/Y to 34%. Thanks to job cuts, R&D spend fell 19% Y/Y to $238M, and MG&A spend 15% to $144M. Free cash flow was $94M.
AMD ended Q4 with $1.04B in cash/marketable securities, and $2.21B in debt.
Wrong on all counts.AMD settled because AMD was almost bankrupt at the time. Had AMD more cash (for example, not having burned all the cash they can for acquiring ATI) they would have settled in much better terms. The ATI acquisition paid in cash was a disaster of epic proportions for AMD.
I don't know why people think AMD's new flagship GPU is going to actually draw 300W... at this point, even AMD doesn't have its final specifications hammered down yet. And that engineer may have been just "sprucing up" his résumé.Owch.
And 2015 isn't going to bring much relief. They're launching a ridiculous 300W GPU and, erm, that's about it as far as potentially profitable products go.
Samsung merger in 3, 2, 1...
This ignorant garbage doesn't belong here. It's amazing the crap people are able to get away with, now that neither ViRGE or Mark spend much time around here.
Cherry Trail is a tick though.Nail in the coffin will be Intel 14nm on volumes and Cherry Trail. Those will dislodge AMD from its traditional niches in the bottom market. The GPU business is far smaller than the CPU business, and cheaper to maintain, the CPU business is not, widening the losses on the CPU business will wreak havoc in AMD's balance sheet.
Nail in the coffin will be Intel 14nm on volumes and Cherry Trail. Those will dislodge AMD from its traditional niches in the bottom market. The GPU business is far smaller than the CPU business, and cheaper to maintain, the CPU business is not, widening the losses on the CPU business will wreak havoc in AMD's balance sheet.
Ed: I think Lisa Su has one very important question to answer right now: Can AMD have a viable consumer CPU/SoC business?
Intel can't buy out AMD, it is as simple as that.I don't see why Samsung would want AMD, the only logical company to buy AMD is Intel. Otherwise whoever gets AMD loses the X86 patent rights, so flush down the APU business completely. Unless Samsung or someone else wants to go on a patent trolling exercise.
The report is pointless. AMD's focus is on Zen and K12 @ 16/14 nm destined for 2016. Everyone knows they will have a tough time until that. They'll come back with a vengeance.
Intel can't buy out AMD, it is as simple as that.
A lot of people have a short memory -- like ignoring 2007, When AMD was losing around $500 million every quarter. 2014 pales by comparison.
Surprisingly, the stock is up slightly in after hours trading after the earnings report. I think a bad report had already been factored in.
Not really surprising, some are hoping to buy in when the stock is at a very low point. Good strategy usually but this time I dunno, makes me nervous. I'll hold onto the share I have and see what happens.Surprisingly, the stock is up slightly in after hours trading
I don't see why Samsung would want AMD, the only logical company to buy AMD is Intel. Otherwise whoever gets AMD loses the X86 patent rights, so flush down the APU business completely. Unless Samsung or someone else wants to go on a patent trolling exercise.
I don't think they will last that long, we are talking 1.5 years realistically before they have in theory class leading products, and then it takes time for sales to accumulate. Hope I'm wrong, unlike several people in this thread who can't wait for AMD to go bankrupt.
At one point this was true, now with ARM being much more prevalent I don't see it as near the issue it once was.
Wrong on all counts.
I dont know about negotiating for a better settlement, but paying 5 billion in cash for a company, and turning it into a combined company with a market cap of 2 billion would seem to qualify as a pretty serious disaster to me. Reverse midas touch.
Dont know for 2007 but for last quarter most of the loss is purely technical, due to charge impairement, and wont burn any cash, so the numbers are not even comparable.
I could see a lot of companies that would want their GPU tech -- Samsung, Apple, perhaps even Microsoft to block Nintendo and Sony from using AMD technology for their next generation.
Right now, I agree -- I don't think their CPU tech is very valuable. In AMD's hobbled state, they could probably be purchased very cheap. Heck, Samsung looks to be buying Blackberry -- and that company is in arguably worse shape based on current marketshare.
I dont know about negotiating for a better settlement, but paying 5 billion in cash for a company, and turning it into a combined company with a market cap of 2 billion would seem to qualify as a pretty serious disaster to me. Reverse midas touch.
What they paid for ATI has little to do with recent events - AMD acquired ATI 9 years ago, not 9 months ago. What has ruined AMD these past 5 years is the WSA with Global Foundries.
What they paid for ATI has little to do with recent events - AMD acquired ATI 9 years ago, not 9 months ago. What has ruined AMD these past 5 years is the WSA with Global Foundries.