AMD making $300M last quarter

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Finally some good finanical news for AMD; they are still not reporting a profit (but none was expected) but at least the loss was much smaller than expected and they had a $300M positive cashflow, which is excellent (well, for AMD anyway). here is the link:
<A HREF="http://www.aceshardware.com/forum?read=105046630" target="_new"> Aces forum </A>

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castle

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The title is misleading. AMD didnot lose as much money as planned. This is not equal to making that amount of money.
 
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pied_piper2004

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FYI...

Hector Ruiz now calls AMD the new AMD. Here are some highlights from the earnings conference call.

There are 90nm engineering starts at Dresden now.
50% of starts in Q1 will be for AMD64 CPUs.
90nm production production starts will come in the 1st half of 2004.
AMD64 production will surpass 50% by the end of 2004. SOI yields are characterized as good.
AMD also said they were not expecting such high Athlon 64 demand, and they are ramping up to meet it.
CPUs and flash are now a 50/50 mix of product revenue.
Mobile CPU sales were at a record high.
Major Athlon 64 OEM wins are coming in Q1.
ASP and unit shipments were both up.
Channel inventory for CPUs is at under 4 weeks.
10-15% growth is expected for Q4 in CPUs and flash.
1 billion dollars is the new break even point with the FASL acquisition.
Growth occured world wide.

Well there you have the highlights. I'm posting up the notes now.
 
eden

eden

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That's all very great news, but now is the real deal, and if Omid's question which holds true: "Will that all translate into profits or not" will get answered.

Because it's true, it can be as great as ever, the K8, but you simply won't benefit if AMD doesn't prosper from it. So we'll see just how the next 2 quarters do. It's gonna be VERY interesting, because it's a very crucial point in their company finance.

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Captain Obvious says what AMD needs now is good marketing!
Make people aware of the A64!

<b><font color=red>Captain Obvious To The Rescue!!!</font color=red></b>
 
Crashman

Crashman

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Doh! This will surely slow the recovery of their stock value, which otherwise should be around $20 by the end of the year.

You see, for some odd reason sellers react favorably, and buyers negatively, to good news about this company.

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They didn't loose money, they got (a lot) more money in than went out. positive cashflow is more important than posting profits; a company could literally post losses for decades, as long as cashflow is positive, this isnt an issue.

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>50% of starts in Q1 will be for AMD64 CPUs.
>AMD64 production will surpass 50% by the end of 2004.

Isnt that a bit strange ? Sure, hammers are larger, and yields likely lower than for bartons, but still.. :/

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eden

eden

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How exactly can it be positive if you're still losing money?
I mean, if you're only spending, and getting less in return, how exactly can it still be good?
Eventually you would die out if you never get profits, no?

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Zoron

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I was about to ask the same thing... doesn't positive cash flow = profit and negative cash flow = loss? If you post a loss, then how can you say your cash flow was positive?


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Profit and loss is about a lot more than just getting more (or less) money in than out. You can make bookkeeping profits while spending more than you earn in cash, and vice versa. Thing like writing off investments(if that is the correct english term), goodwill, stock, depreciation, and tons of others have an influence on your operating profit (or loss) while they don't have an impact your cash position.

Many small companies never ever post a profit (if for any other reason than to evade taxes), yet they make their owners (and or investors) money. Yes, you could operate almost like forever, never ever posting a postive profit. Amazon operated for like 10 years while never posting a cent of profit; doesnt mean they didnt make any money or didnt grow though.

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a simple example.. say you build a $1 Billion fab. you pay for it cash in the year 2000. That means your cash flow will be hit hard in 2000, but not at all in the years after. However, in the bookkeeping you have to write off such an investment over, lets say 10 years. That means from 2000 to 2010 you will have to take a $100M cost into account, weighing on your profit/loss, while it will not impact your cash position at all since you paid for it entirely in 2000. So in 2000 you be very cash flow negative while still posting profits, and in the years after it you may be cash flow positive while posting losses.. see the difference ?

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eden

eden

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Oh I see what you mean.
Non-profit orgs often get their expenses leveled with incomes, but seriously though, without profits, AMD can't expand.
They can cut some costs and spend elsewhere, or earn more in a section of their bill, but still, if they can't generate overall profit to really start putting money somewhere, it just ain't good. It's a big company, let's face it, and they need to compete. If they did keep losing for a while, they'd be gone, for sure.

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> but seriously though, without profits, AMD can't expand

? On the contrary, companies expanding fast are prime candidates to post losses while having positive cashflow. Amazon went from a $10.000 no name website to a multi billion (?) coroporation without ever making a profit (until recently). Now, Im no accountant either, so I tend to agree that posting profits is still better than posting losses though :) but I expect AMD to be in the black next quarter with ease.

= The views stated herein are my personal views, and not necessarily the views of my wife. =
 
eden

eden

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Although I don't drink, here's a glass raised for that. :wink:

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bandikoot

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Anyone who has grown up on a farm has knowledge of something very similar from personal experience. Lets say when you're getting started you buy all the new good stuff, you can easily drop $500,000 on a tractor, combine, head, planter, baler and such, but, at least where I grew up, farms that pulled down that much money in a year numbered maybe one. For your average guy, that ment he never had a profit any year he worked because he was always in debt. Does that mean they all starved and went out of buisness? Obviously not. That money is spread out over many years, (and since these machines can last decades you can really plan to do it over the long run) and the taxes are much lower when on paper the money you owe is much more than what you make. It's not exactly the same, but I think it's still in the same ballpark. :smile:
 
eden

eden

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To be honest it's still a bit vague in my mind.
But we CAN agree, AMD as a big company, wants to expand their fabs, add into R&D, market, etc.
I just wouldn't believe they can operate for a long time on losses anymore, without profits eventually, even if they go on the borderline. I'd need real figures on them to be proven otherwise.

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TTZX

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Intel's revenue last quarter was $7.8 Billion, with a $1.7 Billion profit, nice. :cool:

<A HREF="http://news.com.com/2100-1003_3-5091113.html" target="_new">http://news.com.com/2100-1003_3-5091113.html</A>

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eden

eden

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It will also be interesting to see if Intel's revenues will be down at all from last Q4, this time, aside from how AMD will fare.

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