piesquared :
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.
AMDs Quartely Earnings Press Release
In AMDs Press release, Mr Robert J. Rivet, AMD’s Chief Financial Officer, stated:
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'.