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AMD back into the red, post 20M$ loss.

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Idontcare said:
YoY numbers look great, 1.09B revenue for 1Q2013 versus 1.40B revenue for 1Q2014.

But gross margins fell by 6% (from 41% down to 35%), and perhaps more disquieting is the R&D budget decreased by more than 10% ($279m now versus $312m a year ago) despite revenue increasing by more than 28% over the same period.
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look who's back!
 
Idontcare said:
YoY numbers look great, 1.09B revenue for 1Q2013 versus 1.40B revenue for 1Q2014.

But gross margins fell by 6% (from 41% down to 35%), and perhaps more disquieting is the R&D budget decreased by more than 10% ($279m now versus $312m a year ago) despite revenue increasing by more than 28% over the same period.
Click to expand...

Dont forget no SOI in 2014 onwards so they dont spend on that area anymore and no R&D for new SKUs for High-End Desktop and Server (No Piledriver successor).
 
Phynaz said:
Yep, they actually lost money on the consoles. Very temping to dig up some old posts, isn't it?
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What? How on earth did you figure that? 😵 Consoles are classified under "Graphics and Visual Solutions":

Graphics and Visual Solutions segment primarily includes graphics processing units (GPU), including professional graphics, semi-custom System-on-Chip (SOC) products, development services and technology for game consoles.
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That is the part of the company turning a profit ~6 times bigger than it was a year ago.
 
It was a good quarter for AMD. $20m loss on $1.4b revenue is peanuts. It was expected to be worse.

The only problem with it was they increased their debt. That is a big sticking point for investors. If they paid down their debt instead of increasing it, I could easily see their stock price increasing quite a bit. They have $2b in debt, and $1b in cash. Pay some of that cash towards the debt.
 
ShintaiDK said:
The consoles could only carry them for so much.

http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=1919886&highlight=

Computing solution keeps dropping and is now down to a megre 663M$ revenue. A complete disaster for the future outlook of AMD CPUs. Computing solution is what pays the CPU R&D bill.

Graphics and visual solutions also dropped hard after console sales are slowing down and AMD struggle with GPU marketshare.
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Why am I not surprised to see that you're the person who created this thread?
Day without bashing AMD is obviously a wasted day for you.

Btw, as usual a couple of nicknames appear of those who like attacking AMD too.

Your meta commentary is neither wanted nor appreciated. And since you keep doing this, you can enjoy some time off.
-ViRGE
 
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AtenRa said:
Dont forget no SOI in 2014 onwards so they dont spend on that area anymore and no R&D for new SKUs for High-End Desktop and Server (No Piledriver successor).
Click to expand...

Good points, the shifting R&D monies may well have amounted to a boost in the development budget of key future products despite the headline number itself shrinking modestly.
 
Hitman928 said:
Not comparable, they are completely different situations.

On another note, I'm surprised no one mentioned this yet from the press release:
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Thanks. Ive been curious how the WSA was playing out. But I'm more interested in the 2014 agreement.
 
Idontcare said:
Good points, the shifting R&D monies may well have amounted to a boost in the development budget of key future products despite the headline number itself shrinking modestly.
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A shrinking R&D is not the best thing, if they had a larger market share in High-End Desktop and Servers im sure they would have higher Revenue and thus higher R&D budget to spend on that segment.
But as you have said, they are investing in other areas and products that they believe are more profitable for them currently and the shrinking R&D number is not a disaster like some would like to make it look.

Edit: Also they dont invest on many different Motherboard chipsets anymore, except only for FM2/+ platform. Kabini is a SoC and it doesnt need a chipset and Trinity/Kaveri also only need a single Chipset unlike Socket AM3+.
 
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Idontcare said:
Good points, the shifting R&D monies may well have amounted to a boost in the development budget of key future products despite the headline number itself shrinking modestly.
Click to expand...

IIRC SOI R&D was 28MM per year. That money was stopped in 2012 with the WSA amendment. Any reduction from 2013 to 2014 is not GLF related.
 
erunion said:
Thanks. Ive been curious how the WSA was playing out. But I'm more interested in the 2014 agreement.
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Best I know is that AMD has said they are confident in being able to meet their end of the WSA from here on out. They are transitioning more high volume products to GF this year.
 
Well, between Beema shipping this quarter and even appearing in Dell laptop's and then the new semi-custom design wins, it looks like it's going to be a great year for AMD. I would even say their outlook is a bit pessimistic.
 
Leyawiin said:
Yeah, Nvidia took a lot of "sour grapes" hits when they said consoles weren't worth their time.
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The group responsible for GPUs and console APUs is making 6 times as much profit as it was a year ago, so I rather suspect it would have been worth NVidia's time. 😉
 
NTMBK said:
The group responsible for GPUs and console APUs is making 6 times as much profit as it was a year ago, so I rather suspect it would have been worth NVidia's time. 😉
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How much money geforce + tegra bring home and how much srmicustom does?
 
mrmt said:
How much money geforce + tegra bring home and how much srmicustom does?
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I don't know how much the geforce line (i.e. consumer cards) alone makes, but isn't the Tegra line still loosing lots of money every quarter (a hundred milion)?

Edit:

Found this, best I could find in 5 minutes. Not sure if by GPU division they mean all gpu or just consumer, I don't follow nvidia's financials enough to know. http://www.fool.com/investing/gener...egra-k1-completely-changes-mobile-gaming.aspx

The Tegra division is currently losing money for NVIDIA, with an operating loss of $132 million in the most recent reported quarter. This cut into the $287 million operating profit from the GPU division considerably, leading to a significant decline in earnings year-over-year.
Click to expand...
 
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mrmt said:
How much money geforce + tegra bring home and how much srmicustom does?
Click to expand...

AMD managed to bring out Hawaii whilst still working on consoles, so we can discount Geforce. And while Tegra has made large amounts of money, its all been negative 🙂

Edit: if any R&D suffered for the consoles, it was probably big core. They have been seriously stalling on that front.
 
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NTMBK said:
AMD managed to bring out Hawaii whilst still working on consoles, so we can discount Geforce. And while Tegra has made large amounts of money, its all been negative 🙂

Edit: if any R&D suffered for the consoles, it was probably big core. They have been seriously stalling on that front.
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Sorry, it was supposed to be geforce + quadro. Three times AMD semicustom.
 
In terms of Tegra, MPU revenue wise nVidia is the 4th(5th) largest ARM producer. Only after Qualcomm, Samsung(+Apple) and FreeScale.
 
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