AMD reports Q3 results

[BaronMatrix]

EPS of $0.27 Driven by 18 Percent Quarter-over-Quarter Increase in Microprocessor Unit Shipments and Record Sales of Mobile Processors


SUNNYVALE, Calif.--(BUSINESS WIRE)--AMD (NYSE:AMD - News) today reported sales of $1.33 billion, operating income of $119 million, and net income of $134 million, or $0.27 per share, for the quarter ended October 1, 2006. These results include $16.5 million of employee stock-based compensation expense.
In the third quarter of 2005, excluding the Memory Products segment(1), AMD reported sales of $1.01 billion and operating income of $129 million. In the second quarter of 2006, AMD reported sales of $1.22 billion and operating income of $102 million.

As I suspected sales are up and ASP is upn. $.27 is not too bad in the midst of a price war with a big bully.
I think the 4th quarter will be even better if they can get good volume on 65nm. I guess they won't be going BK either.

ALL HAIL THE DUOPOLY!!!!

 

[theaxemaster]

I'm going to, because without it, we'd all be using netburst chips.

 

[cooperaaaron]

Right, no BK, it seems that they are on track with their plans. So, let us all wait for next month when they introduce the 4X4 platform and see how that goes.

 

[RichPLS]

To see if these price slashing wars of the past few months, you will have to wait another few months still, to see how the effects hit thier bottom line...

 

[exit2dos]

Wow, look at the after hours trade:

Listening to AMD's conference call, the investor's sure hate this price war...

 

[spongebob]

Not looking too good in after-hours trading, though.

http://finance.yahoo.com/q?s=amd

 

[spongebob]

Bah... beat me by 2 min.

 

[racerboywonder]

Funny you should mention the duopoly...I just had a Managerial Economics exam this afternoon that dealt with duopolies and cournot situations...in fact, this whole Intel vs. AMD thing is my term paper for my Organizational Behavior class...

I'm looking forward to seeing how the switch to a 65-nm process and larger wafers will translate to their costs/earnings for the next couple quarters.

 

[r0ck]

"Gross margin fell to 51.4 percent, from 56.8 percent the previous quarter."
Wow, 10% difference..

 

[exit2dos]

Bah... beat me by 2 min.

:lol:
Well, at least AMD is only down 12.05% right now.

If anyone wants to hear the conference call, they will be streaming it through Friday here:
http://biz.yahoo.com/cc/9/73739.html

 

[dasickninja]

Which more or less equals the amount that Intel lost when you think about it.

 

[racerboywonder]

I'm not that worried about the future. The fact that they were able to ship more processors despite the price cuts, and consequently increase their revenue is a good sign. The decrease in stock value because of the profit loss is understandable, and once this "new equlibrium" for the market sets in, it should rise again.

Interestingly enough, it's being said that Intel is no longer a good indicator of how the tech sector is doing (which they used to be)...basically because they're in this price war with AMD.

But hey...as long as I get my cheap-ass, kick-ass procesor, I'm happy either way.

 

[kamel5547]

A bit below 27 cents actually. 4 cents of that was a one time tax benefit

Well see how it opens tomorrow, after hours is whacky, I've seen stocks up 10-15% after hours and open up down the next morning (based on previous days normal hours trading price) with nothing new since the after hours trading, limited trading throws things off.

I am interested in seeing someone put up some commentarty on what was said about expected sales in 2007 rather than this last quarter, if they ahve much up their sleave they won't push ASP's and profits down too much in their forecast.

 

[exit2dos]

Which more or less equals the amount that Intel lost when you think about it.

Yeah, but I think AMD price will rebound a bit. Some are bound to see it as undervalued and start buying at this low price.

What troubles me is the Q & A session at the end of the conference call. You can tell by the questions, and the tone they're asked in, that investment firms aren't impressed with AMD's performance last quarter:
While mobile sales were up strongly, desktop market was hit by Conroe and the price war. On the server end, AMD was rather vague in answering if they lost any market share, or what their plan is in this sector for the next quarter.

While I'm not predicting gloom or doom for AMD, they have a lot on their plate right now. I'm sure they have a plan, but apparently they are unable (or maybe unwilling) to articulate it.

 

[dasickninja]

I'm leaning to unwilling. AMD has been holding there cards pretty close when you look at the past month.

 

[exit2dos]

I'm leaning to unwilling. AMD has been holding there cards pretty close when you look at the past month.

I hope you're right, but unfortunately, I'm leaning towards unable.

If they're holding any cards, now is the time to play them. They need to counter the momentum Intel is gaining. 4x4, by AMD's own admission, is not going to be geared for the mainstream. Barcelona is still a long ways off. They are going to lose 60% capacity in one of their fabs until 2008, as they retool to 300mm/65nm, and their roadmaps show no great performance benefit at 65nm uarch.

With the Xmas season (huge selling time) and Vista coming in January, AMD should be announcing new product to stir interest and create demand. If they do have anything up their sleeve, now is the time to show it.

 

[BaronMatrix]

Wow, look at the after hours trade:

Listening to AMD's conference call, the investor's sure hate this price war...

ya looks like they are jumping ship before the big intel iceberg hits it and titanics them


It's funny you said that considering that the nickname for Itanium is Itanic cause it sank real well.

 

[exit2dos]

when does the 5 billion ati show up on amd's books?
is that a 5 billion dollar operations expense?

Congrats on your 666 post! :twisted:

I'm not sure. It just passed the final shareholder approval, so I'm wondering if it will be Q1-07 or next quarter. All the info today keeps mentioning that the numbers do not include ATI.

 

[BaronMatrix]

I'm leaning to unwilling. AMD has been holding there cards pretty close when you look at the past month.

I hope you're right, but unfortunately, I'm leaning towards unable.

If they're holding any cards, now is the time to play them. They need to counter the momentum Intel is gaining. 4x4, by AMD's own admission, is not going to be geared for the mainstream. Barcelona is still a long ways off. They are going to lose 60% capacity in one of their fabs until 2008, as they retool to 300mm/65nm, and their roadmaps show no great performance benefit at 65nm uarch.

With the Xmas season (huge selling time) and Vista coming in January, AMD should be announcing new product to stir interest and create demand. If they do have anything up their sleeve, now is the time to show it.


I disagree. I think it's better for them to have a tried and true architecture that provides better perf than MOST of Intel's current inventory.

The Fab 38 retool should go well since Fab 36 should be at 100% by the time they start. CHartered has already qualified their 65nm and AMD has promised a quick ramp. They also have the option of increasing to 3000WSPM from them.

4x4 was designed to be the next step for FX and I think that they will make a splash if system prices come in under or close to $2000.

Intel can't have momentum as the leader. They can only try to "stem the tide."

ALL HAIL THE DUOPOLY!!

 

[exit2dos]

Do you think that's enough reason to develop a fear of clowns?

 

[spud]

Do you think that's enough reason to develop a fear of clowns?

I personally like the clown, but then again I am not really afraid of too many things.

 

[RichPLS]

Intel can't have momentum as the leader. They can only try to "stem the tide."

FUD PotD!

 

[BaronMatrix]

your clown avatar isnt funny In fact, its kind of scary. I've wondered where this started and I think it goes back to the time I went to the circus, and a clown killed my dad.

That was a kick ass movie.

"Killer Clowns From Outer Space." No pun intended and sorry for your loss.

 

[ElMoIsEviL]

EPS of $0.27 Driven by 18 Percent Quarter-over-Quarter Increase in Microprocessor Unit Shipments and Record Sales of Mobile Processors


SUNNYVALE, Calif.--(BUSINESS WIRE)--AMD (NYSE:AMD - News) today reported sales of $1.33 billion, operating income of $119 million, and net income of $134 million, or $0.27 per share, for the quarter ended October 1, 2006. These results include $16.5 million of employee stock-based compensation expense.
In the third quarter of 2005, excluding the Memory Products segment(1), AMD reported sales of $1.01 billion and operating income of $129 million. In the second quarter of 2006, AMD reported sales of $1.22 billion and operating income of $102 million.

As I suspected sales are up and ASP is upn. $.27 is not too bad in the midst of a price war with a big bully.
I think the 4th quarter will be even better if they can get good volume on 65nm. I guess they won't be going BK either.

ALL HAIL THE DUOPOLY!!!!

Considering the dramatic price decreases of its desktop processors over the past three months, AMD delivered a solid third quarter result. Sales increased almost 32% from $1.01 billion to $1.33 billion year-over-year. Operating income retreated from 129 million to $119 million in the same time frame.

This is what will hurt AMD big time starting next quarter. As I stated in my other post they will be selling more processors (thanks to Dell) but making less profits. This is a direct consequence of Intel's strategy with Core 2 Duo pricing.

It is an advantage of Intels (due to the manufacturing cost superiority of 65nm vs 90nm and soon 45nm vs 65nm).

Looks like things are going exactly the way Wusy predicted.

 

[exit2dos]

I disagree. I think it's better for them to have a tried and true architecture that provides better perf than MOST of Intel's current inventory.

With Intel discontiuning and "firesaling" the Netburst line in January, C2D will be it's only desktop line.

The Fab 38 retool should go well since Fab 36 should be at 100% by the time they start. CHartered has already qualified their 65nm and AMD has promised a quick ramp. They also have the option of increasing to 3000WSPM from them.

But, with limited supply and outright shortages occuring now, AMD can't afford even a slight mis-step. 2008 looks like it's going to be productive for AMD, but I question their ability to meet demand in the short term.

4x4 was designed to be the next step for FX and I think that they will make a splash if system prices come in under or close to $2000.

If it lives up to expectations, the 4x4 will be a good enthusiast product. It won't (and is not intended to) be mainstream, however.

Intel can't have momentum as the leader. They can only try to "stem the tide."

ALL HAIL THE DUOPOLY!!

As far as the stock market goes, sometimes momentum (and hype) is more important than the P&L, take the dot com boom in the nineties for example.