AMDs Q1 Report

[fazers_on_stun]

According to MSN's Ahead of the Bell: AMD to report 1Q results:

Advanced Micro Devices Inc. is expected to post a wider first-quarter loss as the chip maker's sales keep suffering from a global slowdown in personal computer sales, though bigger rival Intel Corp.'s claim that PC sales have "bottomed out" is providing some hope that the numbers won't be terrible.

Sunnyvale-based AMD reports its quarterly numbers Tuesday after the market closes.

Analysts expect a loss of 66 cents per share and sales of $977.8 million, which represents a 35 percent drop from last year.

If, and that's a big if, this report bears out then it would seem the P2 didn't do much to gain ground on the Core2 in DT.

 

[jimmysmitty]

Possibly. I mean a slowing global economy is hard to take on with a new CPU, even if it does perform decently.

 

[loneninja]

Well even Intel's profits are way down and they're making a lot off the Atom with all those netbook sales.

 

[Wisecracker]

AMD 1Q loss widens
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=AP&Date=20090421&ID=9823078&Symbol=AMD

Sales dropped 21 percent to $1.18 billion. That was higher than estimates of $978 million.

AMD expects sales to fall in the current quarter.

Sales* 5.81 Bil
Income* -2.41 Bil
Sales Growth* -0.90%
Income Growth* -8.90%
Net Profit Margin -41.56%
Debt/Equity Ratio NA

* last 12 months



Sell Dirk's desk !

 

[djcoolmasterx]

Maybe we should start pimping AMD products to everyone we see...

 

[fazers_on_stun]

Possibly. I mean a slowing global economy is hard to take on with a new CPU, even if it does perform decently.

So true - just ask Intel and its i7 sales . Although I was surprised that they did sell over 1M of them by the end of Q1.

The other shoe about to drop would be the GF spinoff, I think. A bad time to be getting into the semiconductor fab business with worldwide shipment down 30% IIRC. I don't believe they will be very successful in stealing marketshare from TSMC, etc. (at least in the near term), so the reduced demand from AMD is not going to do their bottom line much good.

 

[fazers_on_stun]

Well even Intel's profits are way down and they're making a lot off the Atom with all those netbook sales.

There was a report out a month or two ago predicting that desktop sales would drop 32% and netbooks increase 80% in 2009. AMD missed the boat by dropping bobcat and putting most of its marbles into the desktop/server arena with P2 and Shanghai. From a couple netbook reviews, it seems the "neo" alternative uses too much juice and the 2nd most important reason to buy a netbook is - battery life. First is small size/portability. Much lower down the list is the performance.

 

[fazers_on_stun]

AMD 1Q loss widens
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=AP&Date=20090421&ID=9823078&Symbol=AMD

Sales dropped 21 percent to $1.18 billion. That was higher than estimates of $978 million.

AMD expects sales to fall in the current quarter.

Sales* 5.81 Bil
Income* -2.41 Bil
Sales Growth* -0.90%
Income Growth* -8.90%
Net Profit Margin -41.56%
Debt/Equity Ratio NA

* last 12 months



Sell Dirk's desk !

AMD's investor relations page still doesn't have the Q1 report up, so I dunno the cash on hand, etc. Should have gone up since they got $800M from the GF spinoff. But at least they pawned Hector off to GF so there's $14M saved annually.

 

[jed]

I want here the excuses JDJ will have for phenom II not bringing
the revenue AMD needed, because let's be fair the price/performance
arguement has completely failed.

 

[B-Unit]

Price/performance doesnt matter when people arn't buying anything.

Except for me of course. Ive bought more PCs in the last 6 months than I know what to do with... :S

 

[Dekasav]

Price/performance doesnt matter when people arn't buying anything.

Except for me of course. Ive bought more PCs in the last 6 months than I know what to do with... :S

You can send me one!

 

[fazers_on_stun]

I want here the excuses JDJ will have for phenom II not bringing
the revenue AMD needed, because let's be fair the price/performance
arguement has completely failed.

IMO AMD was up to its old trick of sacrificing profitability in an attempt to retain marketshare. They've been doing this ever since Conroe debuted, AFAIK. Lessee now - 10 consecutive quarterly losses, somewhere around $4B not including the "goodwill impairment" tax writeoff charges for the ATI acquisition. Add those and the other losses in and we are over $7B I think...

AMD needs to dump the Hector Ruiz "grow marketshare at all costs" legacy - they could get as much share as their fab capacity could produce, if they gave the CPUs away for free, but then how long would they stay in business?

As I said quite some time ago, I think it was Hector's hubris that was responsible for a lot of AMD's blunders over the years. Yes, IMC/HT, native quad, etc. were all good innovations but as Intel proved, not quite economical or even necessary at the particular time AMD introduced them. Either they need to take the conservative route more often or hire better analysts who can correctly predict the best hardware configuration for the cost and benefits for the time.

 

[fazers_on_stun]

Price/performance doesnt matter when people arn't buying anything.

Except for me of course. Ive bought more PCs in the last 6 months than I know what to do with... :S

Send one to my daughter - she's on her 3rd laptop in the past year.

First one drowned in beer

Second one I dunno yet as she hasn't brought the corpse home yet, for dissection.

Third is a refurbished Lenovo cheapie.

There ain't gonna be a fourth!

 

[roofus]

who is to say the P2 didn't help their margins? they may have been far worse off without it. had it been a flop, i would imagine AMD would be referred to in the past tense by June but it wasnt.

 

[fazers_on_stun]

who is to say the P2 didn't help their margins? they may have been far worse off without it. had it been a flop, i would imagine AMD would be referred to in the past tense by June but it wasnt.

Duly noted, but there will be marketshare reports out before too long. And then we shall see .

 

[Wisecracker]

I want here the excuses JDJ will have for phenom II not bringing
the revenue AMD needed, because let's be fair the price/performance
arguement has completely failed.

From DigiTimes:

In related news, market demand for AMD's desktop CPUs including Phenom II X3 700 series and Phenom II X4 920 is climbing due to their low price, prompting motherboard makers to forecast that AMD's share of the global desktop CPU market will step up to 30% in the second quarter.

Not sure exactly what you mean by the failure of the price/performance " ...arguement... " [sic]



edit: Oops! Here's the linky - - -
http://www.digitimes.com/news/a20090331PD205.html

 

[roofus]

well unfortunately, speculation cannot drive tech markets like the oil market. that is at best a guess.

 

[Wisecracker]

well unfortunately, speculation cannot drive tech markets like the oil market. that is at best a guess.

Speculation, innuendo and 'marketing' drive tech all the time.

I agree that DigiTimes, Fuad, etc., play a game of speculation (and that 30% Q2 share is quite a reach) but who more so than mobo manufacturers are more market driven ???

 

[caamsa]

AMD Set to Ship Six-Core AMD Opteron Microprocessors in May to Boost Profitability.

As Profits Decline, AMD Looks to Launch Six-Core Opteron to Improve Financial Results

Maybe this will help.

http://www.xbitlabs.com/news/cpu/display/20090421191307_AMD_Set_to_Ship_Six_Core_AMD_Opteron_Microprocessors_in_May_to_Boost_Profitability.html

 

[roofus]

AMD CEO Dirk Meyer said, "The economy is still weak, making it very difficult to forecast end-user demand. I've heard some say we've hit bottom. I don't know how someone could say we've hit bottom in the current economic climate."

http://www.dailytech.com/article.aspx?newsid=14936

maybe you guys should have Dirk Myers consult with xbitlabs and digitimes instead of relying on his own numbers?

 

[WR2]

Phenom II X3 700 series and Phenom II X4 920 are the "hot" AMD processors of the moment but if they're not helping pulling people and companies to buy the other CPUs and GPUs in the full AMD lineup it's not going to end up helping AMD's bottom line.

The DailyTech article was a bit of a scary read (between the lines).

 

[fazers_on_stun]

Phenom II X3 700 series and Phenom II X4 920 are the "hot" AMD processors of the moment but if they're not helping pulling people and companies to buy the other CPUs and GPUs in the full AMD lineup it's not going to end up helping AMD's bottom line.

The DailyTech article was a bit of a scary read (between the lines).

Overclockers has an analysis out: http://www.overclockers.com/

Looks like the ATI division made a $1M profit last quarter. To date, that adds up to a $51M profit in 2 quarters (3Q 2008 was the other), and I dunno how many millions in losses in all the other quarters. Not to mention the interest on the $5.4B debt.

However the CPU division only lost about $36M, so that is heading in the right direction at least.

GlobalFoundries lost $141M. Hope the Sheikhs over in the UAE are patient. If I were Hector, I think I'd avoid being in a public plaza at noon Fridays, while visiting there .