AMD financials / ATi sales numbers

[tincart]

There was a large one time loss related to GF.

AMD's non-GAAP business was profitable.

I recall a statement awhile ago claiming that the non-GAAP net profitability level would be around 1.55B in revenue per quarter. I think the statement was in a release around the time the 6-core Opterons were coming out. Revenue is certainly increasing, so the GF liabilities might be making their numbers look a little worse than they should. The large one-time markdown on the book value of ATi turned into a multi-quarter affair, however, so I'm not prone to trust those statements beyond reason.

I was a shareholder of AMD about a year ago, haven't paid too much attention to their books since I dumped all their stock. Their shareholders publications are so much nicer than the crap you get access to online.

 

[bryanW1995]

you picked a bad time to dump it, it looks to be running about double what it was a year ago.

 

[happy medium]

Forgive me , I'm no financial genius, but does this read that AMd still lost 30 million dollars and has made no profit overall?
A simple yes or no will do.

 

[Dark4ng3l]

Forgive me , I'm no financial genius, but does this read that AMd still lost 30 million dollars and has made no profit?
A simple yes or no will do.

Not exactly they basically made money but they had to write off value of their assets in GF that lead to the reporting a loss on paper.

 

[tincart]

you picked a bad time to dump it, it looks to be running about double what it was a year ago.

Not all that bad really, I picked up the stock at the bottom end of around 2.30 and sold when it was swinging up at around 7.50. Made a decent profit in a pretty short period of time - I could have made more, but that's how it always works.

 

[happy medium]

Not exactly they basically made money but they had to write off value of their assets in GF that lead to the reporting a loss on paper.

So yes? all those sales and they still didn't make money?
I'm surprised, I thought for sure they would finally pull a profit.

What the hell are they doing wrong that Nvidia does right? Seriously.

 

[Dark4ng3l]

So yes? all those sales and they still didn't make money?
I'm surprised, I thought for sure they would finally pull a profit.

What the hell are they doing wrong that Nvidia does right? Seriously.

Well they made money in the sense that their oprations yielded profit. Think of it this way it's like you saving 30k last year but your house lost 80k in value because of the housing market thus you are upside down on your total value. That 80k is not any cash that you lost at all and does ne reflect any "real" losses on AMD's part. I'm trying to simplify accounting stuff for you non accountants and maybe my explanations are not that good. English is not my best language either so maybe i'm not using the right words or something.

 

[sandorski]

So yes? all those sales and they still didn't make money?
I'm surprised, I thought for sure they would finally pull a profit.

What the hell are they doing wrong that Nvidia does right? Seriously.

Nothing, they are 2 very different Corps with very different structures. Nvidia has far less Overhead and doesn't have a behemoth as their primary Competitor in their primary Market.

 

[happy medium]

Well they made money in the sense that their oprations yielded profit. Think of it this way it's like you saving 30k last year but your house lost 80k in value because of the housing market thus you are upside down on your total value. That 80k is not any cash that you lost at all and does ne reflect any "real" losses on AMD's part. I'm trying to simplify accounting stuff for you non accountants and maybe my explanations are not that good. English is not my best language either so maybe i'm not using the right words or something.

Well, I think I get what your saying, and thanks for the effort.

 

[happy medium]

Nothing, they are 2 very different Corps with very different structures. Nvidia has far less Overhead and doesn't have a behemoth as their primary Competitor in their primary Market.

So intel is bleeding them ha?

 

[sandorski]

So intel is bleeding them ha?

Not exactly, but they hold AMD down somewhat. Especially on the Process side. AMD had to drop a $Couple Billion every few years just to keep up with new Fabs. That's a Cost Nvidia simply hasn't had. Hopefully AMD's move away from the Fab side solidifies it's bottom line in the future.

 

[Dark4ng3l]

So intel is bleeding them ha?

Intel does not want to kill AMD because then they would have anti monopoly regulators beating down their door. That might, for example, force them to split off their manufacturing into another company to give other competitors a chance to produce competitive products or something like that that would be bad for Intel. They really would just rather have the competitive edge of the best high end products and the cheapest volume parts that having the best manufacturing gives them so they can keep huge margins instead of racing themselves and wasting investment money by not milking the technology as much as they can.

Intel can't be threatened by anyone at least short term because nobody has the capacity to manufacture enough to challenge them. Even if AMD came up with a chip twice as fast as what intel has for the same manufacturing costs they just can't supply the market. When you consider the gigantic barriers of entry in the x86 cpu market you can pretty much see that Intel has 100% control of it and they can pretty much behave(at least pricing wise) as a monopolistic entity.

 

[tincart]

Looking at the info a bit closer, the equity loss on GF that AMD had to account for was $120 million. They don't actually state that the loss is non-recurring, so it may show up in future quarters.