Actually, you have that bass-ackwards. AMD blew the street's estimate away, by more than 2x, at .17c. The 1.6B write down is non cash, and operating loss shrank to near 0 at (9m). Margins gained 3 points to %44, and guided Q1 in line with seasonality. So while some (most) headlines are spinning it as a massive loss, either that is a headline before understanding the results, or there is an agenda.
Most headlines have been updated to add that fairly significant information.
Something to note is that while ASP's are extremely low, and quad cores selling for not much more than the highest end dual core SKU's, margins increased. I'd say that points to exceptional yields among other things.
They are selling the crap out of old tech that the R&D has already been paid for. K8 apparently still sells very well. Even though Barcy had a stop ship, they are still selling them.
And, ATI could very well have lost money because they lost ALOT of business with Intel taking the ATI chipsets away from Intel based systems.
This is all pretty interesting really. AMD beat expectations, the stock is up about 5.5% after hours. If they can get things moving a little more smoothly they very well could post a gain next Q.
Message edited by weskurtz81 on 01-18-2008 at 06:11:44 AM
Actually, you have that bass-ackwards. AMD blew the street's estimate away, by more than 2x, at .17c. The 1.6B write down is non cash, and operating loss shrank to near 0 at (9m). Margins gained 3 points to %44, and guided Q1 in line with seasonality. So while some (most) headlines are spinning it as a massive loss, either that is a headline before understanding the results, or there is an agenda.
Most headlines have been updated to add that fairly significant information.
Something to note is that while ASP's are extremely low, and quad cores selling for not much more than the highest end dual core SKU's, margins increased. I'd say that points to exceptional yields among other things.
You are quite correct about the earnings. Assuming no 'funny business' has gone into the books, then these results are far and above what everyone, including the analysts, were expecting. So much so as to look exceptionally hopeful for AMD
Though I disagree that it points to exceptional yeilds. The ongoing transition to 65nm can yeild more dies per wafer, yet do so at a lower yeild than their 90nm process. The higher than predicted numbers could point to anyone of several things.
In AMDs Press release, Mr Robert J. Rivet, AMD’s Chief Financial Officer, stated:
Quote :
We were close to break-even operationally for the quarter, reducing our fourth quarter non-GAAP operating loss to $9 million1. We improved gross margin by three points sequentially, driven by increased shipments of new products, higher average selling prices and cost containment actions,” said . “We shipped a record number of microprocessor units in the quarter, including nearly four hundred thousand quad-core processors
Looking at Mr Rivets statement, it would seem the corporate blood letting, slow down in the price war, and increased (not exceptional) 65nm production all contributed. Additionally, consider the $622 million investment and the sale (pending????/Completed????) of the 200mm wafer manufacturing equipment....all money in AMDs coffers.
Regardless of why, it looks really great, and goes a long way to restoring hope for AMDs future. Again, IF, the numbers have been 'optimized'.
Actually, you have that bass-ackwards. AMD blew the street's estimate away, by more than 2x, at .17c. The 1.6B write down is non cash, and operating loss shrank to near 0 at (9m). Margins gained 3 points to %44, and guided Q1 in line with seasonality. So while some (most) headlines are spinning it as a massive loss, either that is a headline before understanding the results, or there is an agenda.
Most headlines have been updated to add that fairly significant information.
Something to note is that while ASP's are extremely low, and quad cores selling for not much more than the highest end dual core SKU's, margins increased. I'd say that points to exceptional yields among other things.
While I wouldn't say exceptional, I feel you are correct about all the other positive signs, like operating loss, margin and quarterly earnings.
Mmm yes but amd would need to offer them more cash than any hidden losses might amount to to get an accountancy firm to do that, seeing as anderson was broken up as punishment for complicity.
Yeilds are not exceptional. Point and case: You still can't get a high clocking Phenom. The whole tri-core line also points to low yeilds on the quads.
Yeilds are not exceptional. Point and case: You still can't get a high clocking Phenom. The whole tri-core line also points to low yeilds on the quads.
The lack of high clocking Phenom does not imply low yields -- it implies a mediocre process/design flaw. We've all seen the thermals of AMDs 65nm -- we know that they've increased the gate oxide. These things are *designed* to run slower to reduce the leakage current.
Please explain how its possible to write off GOODWILL and hide anything concerned with operational expenses in it? Anyone with the remotest idea of accounting would know that is not possible as goodwill is generally an intangible asset. Enron "hid" their losses by using fake shadow corporations and shifting around money they did not have between them, while having no standard for accounting, and not following GAAP (generally accepted accounting principals), which should have red-flagged immediately.
"goodwill is generally an intangible asset" didnt one of their statements say that the billion plus loss was the write down of intangible assets?
Hence wite down of goodwill?
Correct, though in accounting there are three general areas. Income (or loss) from Operating, Investing, and stockholders equity + intangible assets. My question was how can you hide the loss of operating in goodwill (intangible asset) loss? It would be blatantly obvious on their K10.
There are many shady ways to obscure an operational cash loss, but goodwill is not one of them.
Without scrutinizing their core accounting practices (what auditors are paid to do), the fourth-quarter report appears strong in context and suggests they are recovering quickly toward sustainability.
While goodwill is intangible and has no direct bearing on how far AMD is from bankruptcy, a loss here is simply an admission that AMD wasted stockholder value. The market value of AMD was already corrected for the goodwill loss before the 4th quarter announcement - we all saw the steady but dramatic decline, which was not simply due to concerns about the future of its product lines. AMD is just admitting, in retrospect, that it basically handed out free checks and stock certificates for nothing in return (by however much it overpaid for ATI). It diluted its own shares and emptied its coffers in the past; a summary report of what it lost won't suddenly make it insolvent.
