AMD Q3 results: even worse than revised expectations

[RussianSensation]

This is unfortunate for AMD but a lot of things people my have been praising them for could have contributed. The massive write offs of at least 100million $$ were all from older stocks of products that they did not sell.

It's like no matter how many times I repeat it, it goes from one ear and leaves the other. AMD said Revenue fell 10% for the entire firm. You realize Desktop Discrete GPUs are just 8% of the entire firm?

Correlating AMD's stock price falling 50-60% in the last 6 months, AMD having $100 million writedown as being related to desktop discrete GPUs, it's financially impossible. Why can't you connect the dots and see that AMD's failure largely relates to 90% of other products such as Llano, Bulldozer, Opteron CPUs, losing designs wins to Kepler in the mobile space, etc.?

Not to mention we know AMD's discrete GPU division gained market share last quarter. If you gained market share that means your inventory was selling, not sitting idle. That's another sign that it's not desktop graphics that's the problem here.

Why is it you continue to ignore 92% of the company and continue to put the blame on how AMD is doing by focusing on desktop graphics products when the math simply does not add up?

You realize if AMD HD7000 series made 50% less money than HD6000 series on the desktop, that would drop the stock price just 4% and if the entire desktop discrete GPU line was discontinued, the stock would fall 8%?

The best part is AMD's "Computing Solutions" Group has nothing to do with its GPU department. Where did AMD say the main weakness came from? Their Computing Solutions unit.

"...which contributed to lower than anticipated average selling prices (ASPs) for the company’s computing solutions group products and lower than expected utilization of its back-end manufacturing facilities"

There is no mention at all about inventory issues for desktop GPUs, or declining ASPs for graphics cards.

Your entire Post #30 has not an ounce of truth in it about what's really happening at AMD.

Here is the most shocking part - what you keep saying is contrary to facts.

"Meanwhile on the GPU side of things this was the first quarter where AMD’s new Southern Islands GPUs were shipping, which is both good news and bad news for AMD. Traditionally quarters where major new GPU architectures are introduced see lower revenue as customers hold off on purchases, and with the launch of Southern Islands early in the year this was no exception. However new GPUs also launch at higher prices, which pushes margins up. The net result is that while revenue takes a step back profits increase, which is exactly what AMD needs at the moment. Altogether AMD booked 2M of GPU revenue in Q1’12 with an operating income of M, versus 413M in revenue with an operating income of only M in Q1’11. The increase in operating income over Q1’11 is thanks in large part to AMD’s nearly quarter-long 28nm product lead, combined with AMD’s conservative pricing." ~ Source

As I said before, the first mover advantage strategy with high prices lowered AMD's GPU revenue but made them more $ than in the past. This is exactly why they did it. So again, you can keep putting the blame all you want on HD7000 desktop discrete GPUs but real worlds facts from market share to profits for that unit contradict your opinion. Ironically, it is AMD's desktop GPUs that have been doing OK, not the claims you keep making that HD7000 series was poorly executed by AMD.

It appears 90% of AMD's problems stem somewhere else then. You can either face the facts, or continue to ignore them, putting the blame on HD7000 desktop cards.

 

[chimaxi83]

Nvidia fanboys and nerds interpret things in any way that makes them Geforce-gasm. Good luck talking sense into them.

Anyway, I hope my favorite GPU maker gets their crap together. They should've left ATI alone.

 

[tviceman]

http://news.cnet.com/8301-10805_3-5...ffs-that-could-hit-30-percent-of-its-workers/

http://semiaccurate.com/2012/10/12/amds-layoffs-target-engineering/

Holy crap, this is getting very real and very bad now. If AMD goes under, in a best case scenario someone buys their graphics business but I don't see anyone wanting to take over the x86 operations. Intel would probably ultimately be left alone by the FTC, so long as ARM continues to make inroad into servers and is able to maintain it's dominance in the mobile space. But overall, that is not a very pretty best case scenario.

As I (and many other people) have said over and over, AMD management simply sucks.

 

[RussianSensation]

Nvidia fanboys and nerds interpret things in any way that makes them Geforce-gasm. Good luck talking sense into them.

Anyway, I hope my favorite GPU maker gets their crap together. They should've left ATI alone.

:biggrin:

Today the stock price fell 14.38% in 1 day. The entire HD7000 desktop division is worth ~8.04% of the company. But as of August 28, 2012, AMD's GPU division's units shipped fell just 0.3% from Q2 2012, while NV's fell 10.4% in the same quarter.

Of course, let's continue to blame desktop HD7000's high prices, nuclear reactor power consumption of reference 7970 GE, etc. etc. and ignore real world increases in operating profits and market share for the division as a result of launching first just because....

Waiting for someone to drop Steam sales numbers as a rebuttal any minute now. ^_^

 

[Siberian]

Nvidia fanboys and nerds interpret things in any way that makes them Geforce-gasm. Good luck talking sense into them.

Anyway, I hope my favorite GPU maker gets their crap together. They should've left ATI alone.

ATI would not have survived this long without AMD. ATI may have returned the favor by killing them.

 

[Keysplayr]

Ah. So the whittling of most non-essential personnel has begun. They could be charging the CFO with an exit strategy. I've seen this a few times with companies that dissolve away slowly.

 

[Keysplayr]

:biggrin:

Today the stock price fell 14.38% in 1 day. The entire HD7000 desktop division is worth ~8.04% of the company. But as of August 28, 2012, AMD's GPU division's units shipped fell just 0.3% from Q2 2012, while NV's fell 10.4% in the same quarter.

Of course, let's continue to blame desktop HD7000's high prices, nuclear reactor power consumption of reference 7970 GE, etc. etc. and ignore real world increases in operating profits and market share for the division as a result of launching first just because....

Waiting for someone to drop Steam sales numbers as a rebuttal any minute now.

Blame whoever this that and the other thing dude, look what is happening! Argue about who is to blame another day. Stuff just got real.

 

[RussianSensation]

ATI would not have survived this long without AMD. ATI may have returned the favor by killing them.

Yes, because the unit that's arguably the most successful in the firm right now is killing AMD, makes sense. . .

ATI graphics division had the fastest single-GPU product during 9700/9800 series, X800/850 series and X1900/1950 series. You never fail to troll though. Keep it up and you might get a VC&G troll badge of the year.

Blame whoever this that and the other thing dude, look what is happening! Argue about who is to blame another day. Stuff just got real.

Oh, so now AMD is in real trouble and you feel bad about it?

It's pretty funny how NV fans never saw this coming. Some people on our forum admitted they only bought NV GPUs or done so for 10+ years and now they are surprised AMD might go under? What did you all think when AMD went out to give you the best price/performance during HD4000-6000 series and you never bought a single card? If you never bought their CPUs or GPUs, what did you think would happen? Even with bitcoin mining, people on our forum still refused to buy AMD GPUs. Woops, that means some of you wouldn't even convert if AMD GPUs were free.

I guess PhysX will become mainstream soon?

 

[Keysplayr]

ATI would not have survived this long without AMD. ATI may have returned the favor by killing them.

You really think so? I mean how was ATI doing against the market at the time they were purchased? Were they doing that badly? I really don't know.

 

[Smoblikat]

Yes....emphasis on 'noninvested'.

Looks at sig
AMD CPU and ATI GPU..................

 

[Siberian]

Also graphics income is far more than 8%.

 

[Keysplayr]

Yes, because the unit that's arguably the most successful in the firm right now is killing AMD, makes sense. . .

ATI graphics division had the fastest single-GPU product during 9700/9800 series, X800/850 series and X1900/1950 series. You never fail to troll though. Keep it up and you might get a VC&G troll badge of the year.



Oh, so now AMD is in real trouble and you feel bad about it?

It's pretty funny how NV fans never saw this coming. Some people on our forum admitted they only bought NV GPUs or done so for 10+ years and now they are surprised AMD might go under? What did you all think when AMD went out to give you the best price/performance during HD4000-6000 series and you never bought a single card? If you never bought their CPUs or GPUs, what did you think would happen? Even with bitcoin mining, people on our forum still refused to buy AMD GPUs. Woops, that means some of you wouldn't even convert if AMD GPUs were free.

I guess PhysX will become mainstream soon?

You shouldn't be concerned about how I feel. I'm glad you can find humor in this pretty upsetting turn of events. All you can think about are NV fans. Good on ya bro. sheesh. You are officially not interested in the tech in my book. Just here to make the fans miserable one either side. You have no preference. And by the way, my assuming Russian friend, I buy enough AMD hardware. 2 of the 5 rigs in my home are AMD. Both Phenom IIs. I just traded a 4870x2 away. I've purchased many ATI/AMD cards over the years. More than most I would imagine. So don't pretend this horsexxxx excuse: "Some people on our forum admitted they only bought NV GPUs or done so for 10+ years and now they are surprised AMD might go under?" is every Nvidia fan. Blame anything else in the world except those who should be blamed. Right?

 

[NIGELG]

Looks at sig
AMD CPU and ATI GPU..................

WTF?....Noninvested means not a stockholder,or Focus Group member,or paid shill.


I am not any of those things.I want all of AMD,Intel and Nvidia to be around.It's good for us all.


But there are hypocrites with fake sympathy circling like vultures over a carcass so they can gloat and relish the death of a Firm which will cause loss of jobs and monopolies in the CPU and GPU markets.

Of course if one doesn't pay for stuff then this doesn't affect one....

 

[RussianSensation]

Also graphics income is far more than 8%.

Income and cash flow are not the same thing. To value the division you need cash flows, not income. Continue to ignore that AMD's GPU unit is basically the only unit that's doing relatively well and blame the company's woes on HD7000 series. :whiste:

 

[Keysplayr]

WTF?....Noninvested means not a stockholder,or Focus Group member,or paid shill.


I am not any of those things.I want all of AMD,Intel and Nvidia to be around.It's good for us all.


But there are hypocrites with fake sympathy circling like vultures over a carcass so they can gloat and relish the death of a Firm which will cause loss of jobs and monopolies in the CPU and GPU markets.

Of course if one doesn't pay for stuff then this doesn't affect one....

You shouldn't give a rats arse if the GD sympathy is fake or not. Why the hell would you care? OMFG tunnel vision-itis.
Anyway, you have my condolences and that is genuine.

 

[tviceman]

Of course, let's continue to blame desktop HD7000's high prices, nuclear reactor power consumption of reference 7970 GE, etc. etc. and ignore real world increases in operating profits and market share for the division as a result of launching first just because....

Waiting for someone to drop Steam sales numbers as a rebuttal any minute now. ^_^

I really don't understand why you feel the need to start an argument that doesn't yet exist in this thread. You're purposely trolling.

 

[NIGELG]

You shouldn't give a rats arse if the GD sympathy is fake or not. Why the hell would you care? OMFG tunnel vision-itis.

Do you want AMD to survive yes or no?Do you care about competition or choice or does it not matter as one who gets the free stuff?

I care because I abhor fakers,hypocrites and liars even on the Internets.

Edit....I don't want your condolences,they're worth nothing.

 

[RussianSensation]

Just here to make the fans miserable one either side. You have no preference.

Why would I have a preference? I enjoy both NV and AMD graphics products. I have always stayed objective in regard to GPU selection, focusing on price/performance and overclocking. I pointed out people's incorrect statements of trying to put the blame on desktop HD7000 series and they provided no evidence to dispute those claims for months now, but continue to repeat their opinions as facts, despite the facts being thrown at them. This has nothing to do with me making fans miserable but about stopping the malarkey that's being spread about desktop HD7000 series destroying the company.

I am very much interested in tech despite your claims to the contrary. The difference between you and I is when I joined this forum, I decided to maintain my integrity and objectivity.

Back to topic:

S&P may cut Advanced Micro Devices 'BB-' rating
"In our view, Intel's sequential revenue decline expectation for the September quarter, which ranges between - 4.5% and flat sequential performance, implies market share weakening for AMD during this period."
http://www.reuters.com/article/2012/10/12/idUSWNA746220121012?type=marketsNews

 

[Keysplayr]

I really don't understand why you feel the need to start an argument that doesn't yet exist in this thread. You're purposely trolling.

He's gone dude.

 

[Keysplayr]

Do you want AMD to survive yes or no?Do you care about competition or choice or does it not matter as one who gets the free stuff?

I care because I abhor fakers,hypocrites and liars even on the Internets.

Edit....I don't want your condolences,they're worth nothing.

Wow. You really think I want AMD to go under. Amazing. I don't care for their products although I do buy more of them than probably most people do in a lifetime, but I don't want them to die. NIGEL, it would really be cool if just for a few moments, you can put your hate aside and not consider anyone who isn't a devout AMD user to be the enemy or have pre-determined thoughts on what the other must want or must be.

 

[RussianSensation]

I really don't understand why you feel the need to start an argument that doesn't yet exist in this thread. You're purposely trolling.

My post #51 was in response to this post #30. Did you read post #30 and then post #51? How is my post trolling when I provided an counter-argument with facts?

you can put your hate aside and not consider anyone who isn't a devout AMD user to be the enemy or have pre-determined thoughts on what the other must want or must be.

It has nothing to do with people who don't buy AMD products. There are plenty of people who never bought AMD products over the years for whatever reasons (better Linus drivers, PhysX, 3D Vision, familiarity, etc.). There is no problem with that. But it's the way you always downplayed the positives AMD GPUs had every generation, and yet suddenly you are trying to pretend you actually care. It's amazing because just recently before this negative Q3 earning announcement, you failed to admit that GTX650Ti is an overpriced card against HD7770 and HD7850. So how can anyone take anything you post as objective and unbiased in regard to AMD graphics products?

How many superior AMD GPUs did you recommend over the years? Or is there no such thing?

 

[blastingcap]

The cnet and semiaccurate articles prove that Amd does not have paid shills on forums... It can't afford them.

For the hypersensitive among you, yes, that was a bit of gallows humor, so don't take it literally.

 

[SirPauly]

:biggrin:

Today the stock price fell 14.38% in 1 day. The entire HD7000 desktop division is worth ~8.04% of the company. But as of August 28, 2012, AMD's GPU division's units shipped fell just 0.3% from Q2 2012, while NV's fell 10.4% in the same quarter.

Of course, let's continue to blame desktop HD7000's high prices, nuclear reactor power consumption of reference 7970 GE, etc. etc. and ignore real world increases in operating profits and market share for the division as a result of launching first just because....

Waiting for someone to drop Steam sales numbers as a rebuttal any minute now. ^_^

AMD clearly had more GPU share and GPU profits in the past.

http://news.cnet.com/8301-13924_3-20012025-64.html

 

[NIGELG]

Wow. You really think I want AMD to go under. Amazing. I don't care for their products although I do buy more of them than probably most people do in a lifetime, but I don't want them to die. NIGEL, it would really be cool if just for a few moments, you can put your hate aside and not consider anyone who isn't a devout AMD user to be the enemy or have pre-determined thoughts on what the other must want or must be.

LOL....I don't hate anyone ...well not on this forum anyway.Or any company.

Thanks for stating that you don't want them to die.I agree they need good management and a healthy dose of capital from an Investor with deep pockets.

 

[Siberian]

Income and cash flow are not the same thing. To value the division you need cash flows, not income. Continue to ignore that AMD's GPU unit is basically the only unit that's doing relatively well and blame the company's woes on HD7000 series. :whiste:

The 7 series is part of the problem. But no it is not their only problem, or even their main problem. We are in a graphics forum so that is where the focus is.