AMD Q3 revenues increase, profits decline

[Zap]

AMD Q3 revenues increase, profits decline

The company also said that it was able to ship more desktop processors, while decreased average selling prices resulted in flat revenues

Just goes to show... no matter what fanboys of either side say, in the end Joe Sixpack just wants the "better cheaper" processor. There are Semprons for socket 754 and AM2 starting at $40 shipped for retail box, and socket 939 has the A64 3000+ for $55 shipped, retail box. IMO if that's your price range, those are the CPUs to get.

BTW, I got one of those $40 Sempron 2800+ socket AM2 chips (well, $36 plus shipping) clocked at 2.6GHz (1GHz overclock) on a Biostar Tforce6100-AM2 board. Great fun! :thumbsup:

 

[Viditor]

Originally posted by: Zap
AMD Q3 revenues increase, profits decline

The company also said that it was able to ship more desktop processors, while decreased average selling prices resulted in flat revenues

Just goes to show... no matter what fanboys of either side say, in the end Joe Sixpack just wants the "better cheaper" processor. There are Semprons for socket 754 and AM2 starting at $40 shipped for retail box, and socket 939 has the A64 3000+ for $55 shipped, retail box. IMO if that's your price range, those are the CPUs to get.

BTW, I got one of those $40 Sempron 2800+ socket AM2 chips (well, $36 plus shipping) clocked at 2.6GHz (1GHz overclock) on a Biostar Tforce6100-AM2 board. Great fun! :thumbsup:

You may want to change the header a bit...
1. Revenues increased
2. Volume increased
3. Profit increased
4. Profit margin dropped (though it is still higher than Intel's by ~2%)

Edit: BTW, surprisingly one of the things to catch AMD off-guard was demand for Turions being up 50% in Q3...they said in the CC that it cost them 1-2% of their profit margin because this threw off their production mix estimates significantly.

 

[sandorski]

AMD seems to be doing alright against Conroe. Perhaps it's too early to tell for sure though.

 

[Zap]

Originally posted by: Viditor
You may want to change the header a bit...

Whoops, revenue, profit, gross, net... gah!

 

[Viditor]

Originally posted by: Zap

Originally posted by: Viditor
You may want to change the header a bit...

Whoops, revenue, profit, gross, net... gah!

LOL...welcome to MY world, mate!

 

[Viditor]

Originally posted by: sandorski
AMD seems to be doing alright against Conroe. Perhaps it's too early to tell for sure though.

Intel doesn't have NEAR enough volume yet on Conroe to hurt AMD, but Q2 07 may get a bit ugly for the boys in green...

 

[j00fek]

time will tell my friends

 

[nyker96]

it just means they got more sales by lowering prices but probably is not making much on these low end stuff, they need something like C2D high perf, high margin parts.

 

[smthmlk]

Originally posted by: nyker96
it just means they got more sales by lowering prices [...]

true. i bought an x2 during the first price-cut and an opteron 144 during the second (just happened). glad to see AMD is still making some cash despite the price-cuts.

 

[aka1nas]

I think this was to be expected with the price cuts and supplying Dell.

 

[SexyK]

Originally posted by: sandorski
AMD seems to be doing alright against Conroe. Perhaps it's too early to tell for sure though.

Seems like Wall St. feels otherwise:

AMD Advanced Micro Devices, Inc. 21.40 -2.83 (-11.68%)

 

[sandorski]

Originally posted by: Viditor

Originally posted by: sandorski
AMD seems to be doing alright against Conroe. Perhaps it's too early to tell for sure though.

Intel doesn't have NEAR enough volume yet on Conroe to hurt AMD, but Q2 07 may get a bit ugly for the boys in green...

Ya, that's what I was unsure of. Will have to see how well Live does after Dell seems to have abandoned Viiv(sp, according to some reports). If that takes off it could help AMD out a lot.

 

[Viditor]

Originally posted by: nyker96
it just means they got more sales by lowering prices but probably is not making much on these low end stuff, they need something like C2D high perf, high margin parts.

Actually, AMD has a higher profit margin than Intel (51% vs 49%)

 

[Viditor]

Originally posted by: SexyK

Originally posted by: sandorski
AMD seems to be doing alright against Conroe. Perhaps it's too early to tell for sure though.

Seems like Wall St. feels otherwise:

AMD Advanced Micro Devices, Inc. 21.40 -2.83 (-11.68%)

No, sandorski is correct...AMD has dropped 4% Gross Margin in a year, and Intel has dropped more than 10%.
The difference is that Intel's drop was already priced into the stock, while AMD's wasn't.
If you look at a comparison chart of the 2 over the last year, you'll see that AMD is almost exactly where they were a year ago on share price, and Intel's at ~10% lower than they were...
That said, for some reason AMD ALWAYS drops after an earnings report...even a good one! Look for a correction to the upside over the next few weeks.