• Guest, The rules for the P & N subforum have been updated to prohibit "ad hominem" or personal attacks against other posters. See the full details in the post "Politics and News Rules & Guidelines."
  • Community Question: What makes a good motherboard?

AMD q3 earnings - 23% yoy

krumme

Diamond Member
Oct 9, 2009
5,898
1,524
136
"
• Revenue of $1,307 million, up 27 percent sequentially and up 23 percent year-over-year
primarily due to record semi-custom SoC and higher GPU and mobile APU sales, partially
offset by client desktop processor and chipset sales.
• Gross margin was 5 percent, down from 31 percent from the previous quarter due to a
$340 million charge related to the 6th amendment to the Wafer Supply Agreement (WSA)
with GLOBALFOUNDRIES (GF). Non-GAAP gross margin of 31 percent was flat quarter-
over-quarter.
• Operating expenses of $376 million, compared to $353 million for the prior quarter. Non-
GAAP operating expenses of $353 million, compared to non-GAAP operating expenses
of $342 million in Q2 2016, driven by increased investments in research and
development.
• Operating loss of $293 million, compared to an operating loss of $8 million in Q2 2016
due to a $340 million WSA charge. Non-GAAP(1) operating income of $70 million,
compared to non-GAAP(1) operating income of $3 million in Q2 2016, primarily due to
higher revenue.
• Net loss of $406 million, net loss per share of $0.50, compared to net income of $69
million, net earnings per share of $0.08 in Q2 2016. The decline was driven by a $340
million WSA charge and a $61 million loss on debt redemption offset by increased
revenue. Q2 2016 net income included a $150 million pre-tax gain on the sale of 85
percent of assembly, test, mark, and pack (ATMP) facilities to Nantong Fujitsu
Microelectronics"

"Q3 2016 Highlights
• AMD completed capital markets transactions that raised approximately $1.4 billion in
cash, before issuance costs, to lower overall debt, reduce interest expense payments,
and further support growing business opportunities.
• AMD announced a five-year amendment to the WSA with GF that strengthens the
strategic partnership, while providing AMD with flexibility in sourcing foundry services
and greater financial predictability."

"Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are
forward-looking, and actual results could differ materially depending on market conditions and
the factors set forth under “Cautionary Statement” below.
For Q4 2016, AMD expects revenue to decrease 18 percent sequentially, plus or minus 3
percent. The midpoint of guidance would result in Q4 2016 revenue increasing approximately 12
percent year-over-year and 2016 revenue increasing 6 percent from 2015."
 

krumme

Diamond Member
Oct 9, 2009
5,898
1,524
136
Not bad. The console price drops must really be driving sales.
Yep. Its even "record" so Sony is having a good time too it seems. The entire cpu desktop sales is in ruins. What they call "offset"...

But there is a "strong" meaning growing gpu side. Thats surely polaris but amd is helped a lot by the high end gaming segment is a live and well. They just need a true high end gpu and a viable cpu.

As they write the future portfolio havnt been so strong in 10 years. And i beliewe so. Mind you its already factored in in the stock price as they are as usual losing money.

What is not written and far more important is imo the ceo havnt ever been just half as good in amd entire history. She is just executing as planned. She knows what she is talking about and she is intelligent and trustworthy.

It takes a company on the brink of extinction to get a female profile like here as ceo instead of the usual less competent types that enter. Had amd fared a tad better 5 years ago she probably wouldnt stand a chance. Intel needs someone like her to drive their business forward.
 

Phynaz

Lifer
Mar 13, 2006
10,143
816
126
$406M loss. Consoles still aren't saving them. Where's the $300M in profit the consoles were supposed to bring them?
 

krumme

Diamond Member
Oct 9, 2009
5,898
1,524
136
$406M loss. Consoles still aren't saving them. Where's the $300M in profit the consoles were supposed to bring them?
Is this meant to be funny? In the entire portfolio you find the only product that gives a decent profit. The rest is loss.
How is it possible to be so wrong. Is it a joke?
 

RussianSensation

Elite Member
Sep 5, 2003
19,460
743
126
$406M loss. Consoles still aren't saving them. Where's the $300M in profit the consoles were supposed to bring them?
"...due to a $340 million [one-time] charge related to the 6th amendment to the Wafer Supply Agreement (WSA)
with GLOBALFOUNDRIES (GF)"

Nice way to spin one of the best quarters for AMD in the last 5 years.

"
• Revenue of $1,307 million, up 27 percent sequentially and up 23 percent year-over-year
primarily due to record semi-custom SoC and higher GPU and mobile APU sales, partially
offset by client desktop processor and chipset sales.
You missed 2 biggest points that show how good this quarter was.

Cash and cash equivalents were $1,258 million at the end of the quarter, up $301 million from the end of the prior quarter.
Total debt at the end of the quarter was $1,632 million, down $606 million from the prior quarter as a result of the timing and execution of Q3 2016 debt reduction actions and due to bifurcation of the newly issued 2.125 percent Convertible Notes due 2026 into equity and liability components based on GAAP accounting regulations.

This is a hugely positive quarter since it means a net benefit of > $900M for the balance sheet in 1 quarter. The usual non-tech-savvy anti-AMD posters with 0 financial background/industry experience are too focused on worthless net income figures without looking at the important metrics.

The reason the stock is down is because of historically weak guidance for Q4 2016 for Semi-custom chip sales (i.e., the ramp up for Q4 2016 PS4/XB1 console inventory happens mostly in Q3 2016):

For Q4 2016, AMD expects revenue to decrease 18 percent sequentially, plus or minus 3 percent.

Is this meant to be funny? In the entire portfolio you find the only product that gives a decent profit. The rest is loss.
How is it possible to be so wrong. Is it a joke?

Don't even bother. It's pointless to try to argue financials with anti-AMD trolls. Let me celebrate the Nintendo Switch design win after desperately downplaying the PS4/XB1 AMD console designs wins over the last 3.5 years.

"Enterprise, Embedded and Semi-Custom segment revenue of $835 million increased 41 percent sequentially and 31 percent year-over-year due to higher sales of semi-custom SoCs.
  • Operating income was $136 million"
 

AtenRa

Lifer
Feb 2, 2009
13,548
2,522
126
Yea, the most important thing we have to keep from Q3 is the dept reduction. The following slide is the highlight of the Quarter and the future of AMD.

 

Phynaz

Lifer
Mar 13, 2006
10,143
816
126
Is this meant to be funny? In the entire portfolio you find the only product that gives a decent profit. The rest is loss.
How is it possible to be so wrong. Is it a joke?
Wow, you fans sure get riled up easily.

Yes it's joke. It's pointing fun at the AMD fanboys that said the console contracts would earn them $300M a quarter in profit. I believe the poster right above me made comments along that vein.
 

Phynaz

Lifer
Mar 13, 2006
10,143
816
126
Yea, the most important thing we have to keep from Q3 is the dept reduction. The following slide is the highlight of the Quarter and the future of AMD.
How many more times to you think they will dilute their shareholders to keep the debt down as they continue to rack up operating losses?
 

MajinCry

Platinum Member
Jul 28, 2015
2,488
557
136
Cutting out, what, 1/4th of the debt in a single quarter? Isn't that, y'know, pretty damn good?
 
  • Like
Reactions: Centauri

raghu78

Diamond Member
Aug 23, 2012
4,093
1,474
136
AMD's Q3 2016 was good. The problem is desktop CPU sales is in shambles. I hope Zen is competitive enough to get them back in the desktop market. AMD's long term success depends on Zen and its successors. AMD needs to deliver with Zen.
 

zinfamous

No Lifer
Jul 12, 2006
103,539
18,099
136
How many more times to you think they will dilute their shareholders to keep the debt down as they continue to rack up operating losses?
I dunno. Maybe it's worth it to do it again this quarter if they can cut their debt load another quarter, shaving it in half in only 6 months, again doubling their monthly savings in interest payments. Would be a great move for them and for shareholders.
 
Aug 11, 2008
10,457
641
126
Is this meant to be funny? In the entire portfolio you find the only product that gives a decent profit. The rest is loss.
How is it possible to be so wrong. Is it a joke?
That wasn't the point. The point is that even with the consoles they are still losing money.
 

zinfamous

No Lifer
Jul 12, 2006
103,539
18,099
136
AMD's Q3 2016 was good. The problem is desktop CPU sales is in shambles. I hope Zen is competitive enough to get them back in the desktop market. AMD's long term success depends on Zen and its successors. AMD needs to deliver with Zen.
I think the real target for Zen is regaining share in the server market and big data systems. It should be competitive in OEM desktops as well, and especially laptops, but I'd be surprised if they can compete with intel for gaming. That would be awesome, though.
 

Abwx

Diamond Member
Apr 2, 2011
9,117
902
126
Cutting out, what, 1/4th of the debt in a single quarter? Isn't that, y'know, pretty damn good?
It seems to me that they did so with an injection of fresh money by Mubadala who converted some debts to a given amount of stocks, this can be considered as a purely financial operation that is outside of the company s normal money management, that is, the debt wasnt payed with activity revenues but with a stock dilution..
 

AtenRa

Lifer
Feb 2, 2009
13,548
2,522
126
How many more times to you think they will dilute their shareholders to keep the debt down as they continue to rack up operating losses?
I dont believe they really have to do it another time, Q3 2016 was the best Quarter of the last 2-3 years and without the 340M loss for the GloFo WSA they would have had a profit.
Now as 2017 is coming, their revenue and profits will keep increasing each quarter (starting from Q1 2017) due to the best portfolio they will have for the last 5-10 years.
That includes the new 16nm Console SoCs, 14nm ZEN for both Desktop and Server, VEGA GPUs for both Consumer and Professional segments, new 14nm ZEN based APUs in H2 2017 etc etc.

You have to look the future and understand that the move they made in Q3 directly secures the future of the company by eliminating 1.27B of Dept payments due for 2019 and 2020. The dept reduction and the strong 2017 portfolio ensures the survivability of the company for years to come. Investors are gaining more in the long run this way as the company will be able to increase its spendings in R&D in the coming years making it a more aggressive competitor both in x86 CPUs and GPUs, something only AMD is able to.
 
  • Like
Reactions: alexruiz

USER8000

Golden Member
Jun 23, 2012
1,517
741
136
Still not sure why some are so annoyed AMD has managed to cut debt,and have increasing revenue despite falling CPU sales and an old CPU lineup in many areas. Even if AMD with Zen were to gain some marketshare from Intel in laptop,desktop and commercial segments and increase ASP,that should help swing them to a profit and a side effect they would probably have less of these payments too.

Edit to post.

This was pretty much the same response by some when AMD graphics card marketshare went up too.
 
Last edited:

krumme

Diamond Member
Oct 9, 2009
5,898
1,524
136
Better troll than wrong.
Is that so? - or is the sarcasm tack missing :)? Nobody ever said anything about 300M profit each quarter from the consoles, and even if there were what is the point of bring it up like that. Seems to me phynaz either mistakes profit for revenue or otherwise its just one of his usual flaming remarks without content putting up a strawman sidetracking the discussions. He never contributes with content. And btw i prefer people that is wrong to that.
Imagine all people did like him in forum. 2 liner flaming remarks each time.
 
Aug 11, 2008
10,457
641
126
Apparently investors don't share the optimistic spin put on the earnings report by some in this forum, since the share price dropped like a rock this morning and is still down more than 6%.
 
Thread starter Similar threads Forum Replies Date
H CPUs and Overclocking 41
H CPUs and Overclocking 20

ASK THE COMMUNITY