AMD

[sirspotti]

AMD announced earnings today, it was bad but even after the announcement the stock went up 22 cents.

AMD said Thursday it lost $611 million, or $1.11 per share, in the first three months of the year. That compares with a profit of $185 million, or 38 cents per share, in the same quarter a year ago.

The company's gross margin percentage plunged from 58 percent last year to just 28 percent in the recent quarter. AMD blamed the decline on significantly lower microprocessor unit shipments, selling prices and the inclusion of ATI's operations, which generally have had lower margins. Excluding one-time charges, the story wasn't much better, as the gross margin comparison was 59 percent versus 31 percent.

A high-flier just a year ago, AMD's stock has plummeted amid signs a resurgent Intel is stealing back market share and forcing AMD to cut deeply into its own profit margins with equally severe price cuts to try and sustain its hard-won gains.

Investors are also concerned about AMD's ability to pay for the $5.6 billion ATI acquisition while still spending heavily to add manufacturing capacity and transition to a new chip-making process.

 

[Shawn]

They shouldn't have bought ATI. Anyway they need to come out with a new processor soon to compete with the core 2 duo or they will be in trouble.

 

[compuwiz1]

Terrible company....wtf?

 

[Goosemaster]

Originally posted by: Shawn
They shouldn't have bought ATI. Anyway they need to come out with a new processor soon to compete with the core 2 duo or they will be in trouble.

worse is that they are stagnating as far as everyone is concerned. they need to roll out something fast, and same with their graphics card business.

 

[Smartazz]

Originally posted by: Shawn
They shouldn't have bought ATI. Anyway they need to come out with a new processor soon to compete with the core 2 duo or they will be in trouble.

I think that it's too early to tell if that was a mistake considering the R600 hasn't been released yet and AMD does have plans to beat them don't they? I think it's the Barcelona.

 

[sirspotti]

Originally posted by: compuwiz1
Terrible company....wtf?

I meant management-wise.. and their CEO is a LIAR. I have used AMD and ATI for my cpu/video card combo for the past 6 years and will probably continue that trend in the future. Hopefully they will be around to still produce something for me to buy.

 

[Lonyo]

Shares often look to the future.
AMD just sucked, and their price has been going down recently to reflect that, but the future looks potentially good. They have improved marketshare, they can work on improving margins, and they should have new product launches soon. In theory they could be through the worst and soon on the up.

 

[IAteYourMother]

how profitable was ATi before the merger anyways?

 

[ViRGE]

Just to put things in perspective, the entire revenue for the quarter was only $1.233B, so they spent roughly 50% more money than they earned in that period.

 

[futuristicmonkey]

At least Hyper-Transport whups Intel's fsb's ass. How long that remains so, and to what extent they can milk that in the business sector, I know not.

 

[jpeyton]

Now would probably be the time to pick up some shares, if you were on the fence.

AMD will probably counter this news with more solid performance data (or perhaps a soft-launch) of Barcelona/R600 to counter their mounting losses.

That would be the best time to ride the investor wave.

 

[bobdelt]

Originally posted by: jpeyton
Now would probably be the time to pick up some shares, if you were on the fence.

AMD will probably counter this news with more solid performance data (or perhaps a soft-launch) of Barcelona/R600 to counter their mounting losses.

That would be the best time to ride the investor wave.

I wonder how many people said that at 22, and 18, and 16....

Dont catch a falling knife. Wait for the stock to start an upward trend to buy in.

 

[91TTZ]

Originally posted by: jpeyton


AMD will probably counter this news with more solid performance data (or perhaps a soft-launch) of Barcelona/R600 to counter their mounting losses.

That would be the best time to ride the investor wave.

I was thinking the same thing.

 

[Kelvrick]

Originally posted by: sirspotti

Originally posted by: compuwiz1
Terrible company....wtf?

I meant management-wise.. and their CEO is a LIAR. I have used AMD and ATI for my cpu/video card combo for the past 6 years and will probably continue that trend in the future. Hopefully they will be around to still produce something for me to buy.

My conversations with people who work there say he also treats the company like his personal bank, so I'd have to agree. As a company and its products though, I love them.

 

[Alone]

Probably the best time to buy stock and dump it a month after the R600.

With that being said, Intel and nVidia both know the R600 and and Barcelona are coming, do you think they aren't ready for it by now? AMD can't keep up with Intels budget and production times.

 

[jpeyton]

Originally posted by: bobdelt

Originally posted by: jpeyton
Now would probably be the time to pick up some shares, if you were on the fence.

AMD will probably counter this news with more solid performance data (or perhaps a soft-launch) of Barcelona/R600 to counter their mounting losses.

That would be the best time to ride the investor wave.

I wonder how many people said that at 22, and 18, and 16....

Dont catch a falling knife. Wait for the stock to start an upward trend to buy in.

AMD

Looks pretty steady for the past couple of months now.

And they need to counter, with Intel releasing so much Penryn data to the public and their partners.

 

[Miramonti]

Unless AMD closes the speed gap, I'm going to have to go with Intel next time. Business is business.

 

[LegendKiller]

AMD was desperate in acquiring ATI. That desperation is being proven by sliding results. You acquire when your costs are cheap and your cashflow is strong, not when you have negative cashflow and increasing debt costs. All that even has done is destroy investor wealth.

 

[Special K]

Originally posted by: LegendKiller
AMD was desperate in acquiring ATI. That desperation is being proven by sliding results. You acquire when your costs are cheap and your cashflow is strong, not when you have negative cashflow and increasing debt costs. All that even has done is destroy investor wealth.

At what point would you start to question whether or not they will even still exist in the near future?

 

[jpeyton]

Originally posted by: Special K

Originally posted by: LegendKiller
AMD was desperate in acquiring ATI. That desperation is being proven by sliding results. You acquire when your costs are cheap and your cashflow is strong, not when you have negative cashflow and increasing debt costs. All that even has done is destroy investor wealth.

At what point would you start to question whether or not they will even still exist in the near future?

If Barcelona/R600 doesn't bring them back into the black, that's the point of no return.

That's why I speculate they are holding such a tight grip on information surrounding the pair of product launches; they know that one screwup could be lethal for the company.

 

[SpanishFry]

Originally posted by: futuristicmonkey
At least Hyper-Transport whups Intel's fsb's ass. How long that remains so, and to what extent they can milk that in the business sector, I know not.

Intel is beating the ****** out of them. In the server market Intel is dominating.

 

[jpeyton]

Originally posted by: SpanishFry

Originally posted by: futuristicmonkey
At least Hyper-Transport whups Intel's fsb's ass. How long that remains so, and to what extent they can milk that in the business sector, I know not.

Intel is beating the ****** out of them. In the server market Intel is dominating.

On the strength of their CPUs alone.

Their server platform sucks ass. Poor scaling, bandwidth starved, power-hungry FB-DIMMs. Luckily their Core 2 architecture more than makes up for it.

 

[sirspotti]

Originally posted by: Special K

Originally posted by: LegendKiller
AMD was desperate in acquiring ATI. That desperation is being proven by sliding results. You acquire when your costs are cheap and your cashflow is strong, not when you have negative cashflow and increasing debt costs. All that even has done is destroy investor wealth.

At what point would you start to question whether or not they will even still exist in the near future?

Probably right now... they are down from $1.54 to 1.17 in cash between year-end and March. Another loss like this in Q2 and they will be hurting much much worse for cash and still be stuck with all that debt. The stock is supposedly up on news of a private equity buyout. Now the question is what kind of private equity group would be willing to pay over the current stock price for company in this much trouble?

 

[ntdz]

I really hope for the sake of competition that AMD comes out of this a stronger rival for intel, even though intel is putting out better chips right now.

 

[50cent1228]

amd is nott terrible