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AMD Reports $590 Million Loss Due to Breakup with GF

By - Source: AMD | B 69 comments

AMD has taken an expected hit on its Q1 quarter earnings as a result of the decision to buy itself out of a manufacturing agreement with Globalfoundries. The agreement would have given Globalfoundries exclusive manufacturing rights of AMD 28 nm APUs.

The $703 million payment drove AMD to a $590 million loss for the second quarter 2012. Revenue was down 2 percent year over year to $1.59 billion. Non-GAAP net income was $92 million, up from $56 million in Q1 2011. AMD also noted that its cash reserves declined by $201 million to $1.71 billion, which was due to a $281 million cash payment in the SeaMicro acquisition and a $150 million expense due to wafer supply in 2012. AMD previously said that the total cost of SeaMicro will be $336 million.

CEO Rory Read said that AMD was able to meet customer demand for 32 nm products in the first quarter as 32 nm processor supply improved. AMD was able to ramp its APU share in mobile processors to "nearly 100 percent" and achieve 30 percent unit growth year over year. While not explicitly stating that AMD is focusing on the very low end of the notebook market, Read said that "APUs continue to increase as a percentage of […] top-selling notebook SKUs in North America, priced at about $400." Bulldozer cores accounted for the first time for more than 50 percent of AMD server CPU revenue and unit shipments in the quarter. Read noted that demand for AMD GPU is "strong" and that he was "happy" with 28 nm chip supply.

For the second quarter, AMD expects revenue to increase about 3 percent sequentially as Trinity and Brazos 2.0 will launch "later this quarter".

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  • 28 Hide
    santiagoanders , April 20, 2012 6:09 PM
    AMD breakup with GF? I see what you did there. It's like AMD has a girl friend.
  • 25 Hide
    ang1dust , April 20, 2012 6:21 PM
    This is not bad. Its a negative perspective. Its like moving from one apt to the next but having to break the lease in the process. "Owner breaks lease and has a 800 dollar loss for the month" little do they know they are now paying 300/m less in rent and will make it up in a month or 2. AMD will make that up in a quarter or 2. Its already been talked about when they broked it off with GF....OLD NEWS
  • 24 Hide
    Devoteicon , April 20, 2012 6:08 PM
    It's okay AMD...there are plenty of fish in the sea.
Other Comments
  • 24 Hide
    Devoteicon , April 20, 2012 6:08 PM
    It's okay AMD...there are plenty of fish in the sea.
  • 28 Hide
    santiagoanders , April 20, 2012 6:09 PM
    AMD breakup with GF? I see what you did there. It's like AMD has a girl friend.
  • 6 Hide
    maxinexus , April 20, 2012 6:10 PM
    I still don't get why AMD had to pay GF. For break up of an agreement? They basically own a big share of the company and sold the shares...
  • 25 Hide
    ang1dust , April 20, 2012 6:21 PM
    This is not bad. Its a negative perspective. Its like moving from one apt to the next but having to break the lease in the process. "Owner breaks lease and has a 800 dollar loss for the month" little do they know they are now paying 300/m less in rent and will make it up in a month or 2. AMD will make that up in a quarter or 2. Its already been talked about when they broked it off with GF....OLD NEWS
  • 16 Hide
    wiyosaya , April 20, 2012 6:22 PM
    Sometimes, hits like this are planned and have to be taken. I hope AMD knows what it is doing on this front.
  • 11 Hide
    tmk221 , April 20, 2012 6:23 PM
    frozonici see amd is having a bad time, they suck at making decent CPU´s and their GPU´s will get outperformed by nvidia´s gtx 6xx series.... they either go loud or go home.


    I don't agree with the gpu part.

    Come on nVidia released their new GPU 3 moths later than AMD. So I guess it's nothing special that 680 is 10-15% faster that 7970. AMD is almost done with 7xxx series while nVidia is at the very begining of introduction of 6xx series. I think nothing changed in AMD-nVidia race. It's constantly amd taking over performance crown, then nVidia follows up 2-3 moths later and takes over. And the cycle repeat.

    That's my opinion. Maybe something gonna change if nVidia has gk110 ready to go. But that is rumor so far. And even if it's true, AMD will be ready with 8xxx series by the end of the year.
  • 12 Hide
    ang1dust , April 20, 2012 6:23 PM
    frozonici see amd is having a bad time, they suck at making decent CPU´s and their GPU´s will get outperformed by nvidia´s gtx 6xx series.... they either go loud or go home.


    ... after almost 4 cards being number 1 by AMD and nvidia finally gets it right. Sadly i have seen posts about nvidia rebranding half their crap.

    Edited by moderator to remove personal attack.
  • -9 Hide
    sp0nger , April 20, 2012 6:39 PM
    ang1dust ..., after almost 4 cards being number 1 by AMD and nvidia finally gets it right. Sadly i have seen posts about nvidia rebranding half their crap.


    wrong, it took AMD almost a year and half to release a card that out performed the 5 series. Then Nvidia fired back 3 months later that gave them what a 3 month gap ahead of AMD compared to years of being behind?
  • -6 Hide
    stingstang , April 20, 2012 6:47 PM
    sp0ngerwrong, it took AMD almost a year and half to release a card that out performed the 5 series. Then Nvidia fired back 3 months later that gave them what a 3 month gap ahead of AMD compared to years of being behind?

    Amd decided not to create a GPU which sucks the power of two of theirs, so they released their dual gpu solution, which was right on par with Nvidia's they released 2 weeks later.
  • -1 Hide
    fb39ca4 , April 20, 2012 6:54 PM
    Wait whaaat? AMD had a girlfriend?
  • -3 Hide
    Kibarob , April 20, 2012 6:56 PM
    Guess I'm the only one to notice in the first couple of words that he says Q1 quarter XD, that makes me LOL out loud.....
  • 0 Hide
    upgrade_1977 , April 20, 2012 7:00 PM
    My head hurts..
  • 1 Hide
    ang1dust , April 20, 2012 7:08 PM
    stingstangAmd decided not to create a GPU which sucks the power of two of theirs, so they released their dual gpu solution, which was right on par with Nvidia's they released 2 weeks later.

    HAHA no, AMD had the advantage, i agree with Stingstang, they had the ability to try to lower power consumption which they did. Not to mention, when you KNOW you have the advantage, you can bleed the market. Im not one to SUPPORT this but when you can do it, you do it. Its called capitalism. Did you forget what country your in? :D 
  • 3 Hide
    vpoko , April 20, 2012 7:08 PM
    KibarobGuess I'm the only one to notice in the first couple of words that he says Q1 quarter XD, that makes me LOL out loud.....

    That's actually not redundant, though the "quarter" should be changed to "quarterly" to be used as an adjective. "Q1 quarterly earnings" is proper English.
  • -3 Hide
    Kibarob , April 20, 2012 7:12 PM
    vpokoThat's actually not redundant, though the "quarter" should be changed to "quarterly" to be used as an adjective. "Q1 quarterly earnings" is proper English.


    That's correct, but I guess it would be considered correct for proper American XD
  • 8 Hide
    supall , April 20, 2012 7:33 PM
    tmk221I don't agree with the gpu part.Come on nVidia released their new GPU 3 moths later than AMD. So I guess it's nothing special that 680 is 10-15% faster that 7970. AMD is almost done with 7xxx series while nVidia is at the very begining of introduction of 6xx series. I think nothing changed in AMD-nVidia race. It's constantly amd taking over performance crown, then nVidia follows up 2-3 moths later and takes over. And the cycle repeat.That's my opinion. Maybe something gonna change if nVidia has gk110 ready to go. But that is rumor so far. And even if it's true, AMD will be ready with 8xxx series by the end of the year.


    I don't know what you've been reading, but AMD's 7970s go clock for clock with NVidia's 680s and its pretty comparable, especially once you OC the two. And AMD is the better choice for compute performance. So where has NVidia gained such a huge advantage (10-15%) as to consider it a runaway. Like the 8000 series cards, the GTK110 isn't arriving anytime soon. Truth be told, you can go with either AMD or NVidia right now and still win based on what you want to have. Let's quit making it seem like NVidia has a hugely superior product like Intel over AMD.
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