AMD Return to profit Q3 2009.

[jennyh]

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc2MjJ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

AMD, the product company, are basically profitable again.

Though that shows a small loss of $128m, $191m of that is on Global Foundries, which of course is still very much in the setting up stage.

AMD, the product company, had a net income of $56m. In short, the cpu's and graphics you buy that AMD make *are profitable once more*. AMD's chip sales make money...repeat after me...AMD's chip sales turn a profit!

AMD are not doomed, far from it. The chip business is profitable, and Global Foundries has the potential to make far, far more cash than AMD ever did once it actually starts.

So, in summary....revenues are down on last year but that is due to the recession. Costs are down too however, AMD is a much leaner corporation with better products than ever. Although still in transition, it is testament to the greatness of AMD that they can turn a profit in such a hostile environment, and for sure will post an overall profit Q4 'guaranteed'.

 

[bboynatural]

http://www.tradingmarkets.com/.site/quotescharts/news/

Yup! Hopefully, smart gamers will still keep AMD alive and with low prices, while others will give intel their hard earned money for us to profit from the REAL deal!

 

[TechnologyCoordinator]

In what world does a loss of 18 cents a share equal a profit? In what world!?!?

128 million dollar loss = profit?

 

[jennyh]

Like I said, AMD 'the product company' had a net income of $56m. It's all there just look and see. AMD's chips are profitable. All the nonsense about horrible margins etc were just that - nonsense.

The only reason AMD didn't post an overall profit is because they spent $200m on global foundries, a company that doesn't even have anything to sell yet. But that will change soon, and the cash will come rolling in.

 

[TechnologyCoordinator]

Like I said, AMD 'the product company' had a net income of $56m. It's all there just look and see. AMD's chips are profitable. All the nonsense about horrible margins etc were just that - nonsense.

The only reason AMD didn't post an overall profit is because they spent $200m on global foundries, a company that doesn't even have anything to sell yet. But that will change soon, and the cash will come rolling in.

You really are crazy. AMD has a loss!

Anyway, I must admit, I now think that there is a chance that they can pull a break even in Q4. We'll have to wait and see.




"AMD ARE PROFITED!!!"

 

[bboynatural]

The loss is less big then Q2, so you can already consider profit here
Also that 128m loss would never have been if they didnt buy golbafoundries.
$200m. they would have made profit of 72m. But this is what we call investment.
the cash will DEFINITLY ROLL IN MOFO!

 

[bboynatural]

AMD Planned everything so well.
Laptop will always keep them alive, because the market of laptop are people that hardly care wether they get intel or AMD, they just want the laptop to be beautifull, and to use it for the lesser price.
Graphic is what make them profits. ESPECIALLY now.
CPU is sometimes good, sometimes extremly bad. But as long as there will be gamers with a budget mind, their CPU will sell good enough to keep them alive.
And now with the new globalfoundries, it's more profit on the way.

Basically, laptops/pc keep them safe and alive while Globalfoundries/ATI is the profit making part

 

[RetiredChief]

Let’s see, Intel reported on Tue and had a very good run-up in after hours trading on Tue. AMD reports and their afterhours price drops 4.5 %. Was attributed to investors locking in the nice run-up the past couple of weeks. This could be true, but as an investor if I thought they would continue to climb in value @ at a better rate than others - I think I would hold on. But then I not that great at picking the next good climbing stock. I don't think most analyst share your enthusiasm

 

[jennyh]

Actually Zirb, it's too early for the 5xxx's to be making much of a difference. ATI probably came in at $300m or so, I haven't checked yet but that would be about right I think. (just checked ATI made $306m, which is up slightly more than the cpu's but not that much)

That number has to be closer to $500m in Q4. I not only expect a profit, I expect a $200m+ profit in Q4 from AMD, barring the usual disasters ofc.

 

[jennyh]

Let’s see, Intel reported on Tue and had a very good run-up in after hours trading on Tue. AMD reports and their afterhours price drops 4.5 %. Was attributed to investors locking in the nice run-up the past couple of weeks. This could be true, but as an investor if I thought they would continue to climb in value @ at a better rate than others - I think I would hold on. But then I not that great at picking the next good climbing stock. I don't think most analyst share your enthusiasm

Yes then again IBM are down 4% after posting a large profit, and intel are down 1%. The downward trend today was started by the banks posting some poor results.

 

[yannifb]

Yes then again IBM are down 4% after posting a large profit, and intel are down 1%. The downward trend today was started by the banks posting some poor results.

A cookie to jennyh for succeeding in a prediction ( cause she is right about AMD the company makin profit)

Lets hope she is right about quarter 4!!! AMD has to live till 2011- I wants me some Bulldozer