turpit

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AMD inventory buildup reported


Michael McManus, DigiTimes.com, Taipei [Friday 12 January 2007]


AMD today announced that its fourth quarter revenues, excluding ATI-related segments, will only increase about 3% from the US$1.33 billion reported in the third quarter of 2006. The revenue growth is much lower than 6-13% growth range the company mentioned during its third quarter investor conference.

According to Bloomberg, AMD indicated that falling CPU ASPs (average selling prices) impacted the company last quarter, and a report from Banc of America Securities report also noted that AMD was facing renewed competition from Intel in the channel.

The channel had previously seen an en an extended period of AMD CPU shortages, but inventory began piling up at the end of last quarter, with Banc of America noting that the ramp of AMD-based Dell notebook shipments has been slower than expected.
The financial firm added that it expects AMD to offer significant price cuts later this month, right after Intel cuts prices on January 21.

Dell only began shipping AMD notebooks in the fourth quarter of last year, with the PC maker first targeting the entry-level segment with a 15.4-inch model manufactured by Taiwan-based Quanta Computer.


This goes with qcmadness post about 4th quarter earnings report.
The Channel is filling in addition to profits falling
 

1Tanker

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AMD inventory buildup reported


Michael McManus, DigiTimes.com, Taipei [Friday 12 January 2007]


AMD today announced that its fourth quarter revenues, excluding ATI-related segments, will only increase about 3% from the US$1.33 billion reported in the third quarter of 2006. The revenue growth is much lower than 6-13% growth range the company mentioned during its third quarter investor conference.

According to Bloomberg, AMD indicated that falling CPU ASPs (average selling prices) impacted the company last quarter, and a report from Banc of America Securities report also noted that AMD was facing renewed competition from Intel in the channel.

The channel had previously seen an en an extended period of AMD CPU shortages, but inventory began piling up at the end of last quarter, with Banc of America noting that the ramp of AMD-based Dell notebook shipments has been slower than expected.
The financial firm added that it expects AMD to offer significant price cuts later this month, right after Intel cuts prices on January 21.

Dell only began shipping AMD notebooks in the fourth quarter of last year, with the PC maker first targeting the entry-level segment with a 15.4-inch model manufactured by Taiwan-based Quanta Computer.


This goes with qcmadness post about 4th quarter earnings report.
The Channel is filling in addition to profits fallingSELL SELL SELL!!! J/K. :lol: It's going to take a lot to beat out brand awareness(from Intel) with DELL. In Canada...i still haven't seen a DELL/AMD commercial on tv.... but many for DELL/C2D. :?
 

BaronMatrix

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AMD inventory buildup reported


Michael McManus, DigiTimes.com, Taipei [Friday 12 January 2007]


AMD today announced that its fourth quarter revenues, excluding ATI-related segments, will only increase about 3% from the US$1.33 billion reported in the third quarter of 2006. The revenue growth is much lower than 6-13% growth range the company mentioned during its third quarter investor conference.

According to Bloomberg, AMD indicated that falling CPU ASPs (average selling prices) impacted the company last quarter, and a report from Banc of America Securities report also noted that AMD was facing renewed competition from Intel in the channel.

The channel had previously seen an en an extended period of AMD CPU shortages, but inventory began piling up at the end of last quarter, with Banc of America noting that the ramp of AMD-based Dell notebook shipments has been slower than expected.
The financial firm added that it expects AMD to offer significant price cuts later this month, right after Intel cuts prices on January 21.

Dell only began shipping AMD notebooks in the fourth quarter of last year, with the PC maker first targeting the entry-level segment with a 15.4-inch model manufactured by Taiwan-based Quanta Computer.


This goes with qcmadness post about 4th quarter earnings report.
The Channel is filling in addition to profits falling


So you are upset with shortages and with inventory? In order for AMD to have growth AT ALL they have to be selling more units, so the buildup may be a factor of the changing market to emphasize mobile. It would be easier to determine if they had numbers for which parts were building up.

I guess when HP's and Dell's numbers come out we'll have a better idea of where AMD is growing and where they are not.

I would think that their main growth is occurring in China with Lenovo but Dell is definitely doing their part as it was said that AMD is now around 30%.
 

BaronMatrix

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After a bit of a healthy rise on Thursday, shares of Intel (Nasdaq: INTC) are falling again on news that competitor AMD (NYSE: AMD) has just released an earnings warning. Is it logical for one company to be punished when its competitor does badly? Doesn't that more likely mean that the first company beat up its competition in the quarter? We'll find out on Tuesday, when Intel releases its Q4 and full-year 2006 earnings results.

What analysts say:

* Buy, sell, or waffle? A whopping 39 analysts follow Intel, where a bare majority of 20 rate the stock a buy, 16 more say hold, and three vote sell.
* Revenues. On average, the analysts will be looking for a 7.4% decline in sales to $9.45 billion.
* Earnings. Meanwhile, profits are predicted to slide 37.5% to $0.25 per share.

Motley Fool
 

bfellow

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Well that article was released too early. Because Intel share prices actually have gone up since this morning to above yesterday's prices.

AMD has slowly bounced back towards a stable price now.
 

NMDante

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So keen are we to quote analysts.

Here's one:
Growth Est AMD
Current Qtr. -51.10%
Next Qtr. -52.60%
This Year 69.40%
Next Year 4.80%
Past 5 Years (per annum) -32.90%
Next 5 Years (per annum) 15.00%
Price/Earnings (avg. for comparison categories) 19.2
PEG Ratio (avg. for comparison categories) 1.28

Nice growth in the year, but the quarter is worse than 37% of Intel, and the next quarter number does not bode well, either.

Compared to Intel's forecast:

Growth Est INTC
Current Qtr. -37.50%
Next Qtr. 0.00%
This Year -40.00%
Next Year 34.50%
Past 5 Years (per annum) N/A
Next 5 Years (per annum) 12.00%
Price/Earnings (avg. for comparison categories) 26.1
PEG Ratio (avg. for comparison categories) 2.17

So take it what you will, but to keep saying that one company is going to lose in a quarter, and not show the other side, is misleading a bit.

Yahoo! Finance
 
This is at least the 3rd post about the earnings article...who would have thought that an earning estimate would have generated so much interest...although I have enjoyed reading the posts from the airchair analysts and monday morning investors...nice light banter and Friday afternoon fodder.
 

BaronMatrix

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So keen are we to quote analysts.

Here's one:

Growth Est AMD
Current Qtr. -51.10%
Next Qtr. -52.60%
This Year 69.40%
Next Year 4.80%
Past 5 Years (per annum) -32.90%
Next 5 Years (per annum) 15.00%
Price/Earnings (avg. for comparison categories) 19.2
PEG Ratio (avg. for comparison categories) 1.28

Nice growth in the year, but the quarter is worse than 37% of Intel, and the next quarter number does not bode well, either.

Compared to Intel's forecast:

Growth Est INTC
Current Qtr. -37.50%
Next Qtr. 0.00%
This Year -40.00%
Next Year 34.50%
Past 5 Years (per annum) N/A
Next 5 Years (per annum) 12.00%
Price/Earnings (avg. for comparison categories) 26.1
PEG Ratio (avg. for comparison categories) 2.17

So take it what you will, but to keep saying that one company is going to lose in a quarter, and not show the other side, is misleading a bit.

Yahoo! Finance


I usually don't quote analysts, but I kinda like Motley Fool. AMD has already posted their results, hence the reason for this post.
 

NMDante

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I usually don't quote analysts, but I kinda like Motley Fool. AMD has already posted their results, hence the reason for this post.

No they haven't.

They won't report out until Jan. 23rd for Q406. What results are you talking about?
 

Wombat2

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The financial firm added that it expects AMD to offer significant price cuts later this month, right after Intel cuts prices on January 21.

I thought the next intel price cuts were only in Q2??? :?