AMD Q313 Results

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Phynaz

Phynaz

Lifer
Mar 13, 2006
10,140
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AMD revenue $1.46 billion, increased 26 percent sequentially and 15 percent year-over-year.

Gross margin 36 percent.

Operating income of $95 million.

Net income of $48 million, earnings per share of $0.06.

Gross margin 36 percent.

Looks like a beat to me.
 
Phynaz

Phynaz

Lifer
Mar 13, 2006
10,140
819
126
More:

Gross margin decreased sequentially. Q3 2013 gross margin included a $19 million benefit, approximately 1 percentage point, from the sale of inventory that had been previously reserved in Q3 2012 as compared to a similar $11 million benefit, approximately 1 percentage point, in Q2 2013.

Computing Solutions segment revenue decreased 6 percent sequentially and decreased 15 percent year-over-year. The sequential and year-over-year declines were due to decreased notebook and chipset unit shipments, partially offset by an increase in desktop unit shipments.

Looks like this quarter was all about the console.
 
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SiliconWars

Platinum Member
Dec 29, 2012
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Haven't had a look yet. If PC's has dropped by that much and they still get these numbers though it's proof that they know what they are doing.
 
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liahos1

Senior member
Aug 28, 2013
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down 7% after hours. maybe it ends up ok tmr. growth primarily from big console cycle. unfortunately this stock is a total hedge fund gangbang stock (i work at a hf). always hard to gauge what expectations are on both a print or guide. I would point out that on their 1.5bln of revenue they happened to squeak out 95mln of operating income. intel makes more than that every other day. just saying. sorry amd fans. a spade is a spade.
 
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liahos1

Senior member
Aug 28, 2013
573
45
91
SiliconWars said:
Haven't had a look yet. If PC's has dropped by that much and they still get these numbers though it's proof that they know what they are doing.
Click to expand...

they are trying to keep the lights on. they use to put up 45% gross margins now they are doing 36%. they basically did what they needed to do to stay alive by giving low margin business to sony and msft with the console launch.
 
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liahos1

Senior member
Aug 28, 2013
573
45
91
monstercameron said:
so 95 or 48mil profit?
aside, i shouldnt be commenting in these market/business threads...
Click to expand...

95mln of operating profit. which i focus more on vs net income when comparing the profitability between companies (tax domicile, leverage etc can affect comparison)
 
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SiliconWars

Platinum Member
Dec 29, 2012
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liahos1 said:
they are trying to keep the lights on. they use to put up 45% gross margins now they are doing 36%. they basically did what they needed to do to stay alive by giving low margin business to sony and msft with the console launch.
Click to expand...

Everybody knew GM's were going down and that was made clear in Q2. The important thing is those GM's are almost equating to profit.

They've probably gone full in on consoles and just thrown PC's out the window. Very risky strategy but the bottom line is better.
 
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blackened23

Diamond Member
Jul 26, 2011
8,548
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monstercameron said:
so 95 or 48mil profit?
aside, i shouldnt be commenting in these market/business threads...
Click to expand...

Net income is profit. 48 million. Gross over-simplification: operating income does not include all expenditures which affect the corporation in question, such as taxes and other things. Operating income is a gauge of earnings power while net income is used for the purpose of comparing corporations in terms of profitability for the corporation and shareholders.
 
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liahos1

Senior member
Aug 28, 2013
573
45
91
SiliconWars said:
Everybody knew GM's were going down and that was made clear in Q2. The important thing is those GM's are almost equating to profit.

They've probably gone full in on consoles and just thrown PC's out the window. Very risky strategy but the bottom line is better.
Click to expand...

better for now. but if you're giving away your soul to eke out a 6% operating margin your best days are well behind you. i wish them the best though. i've had dinner with rory, lisa su and papermaster and they are a great bunch of guys put in a very very uncompromising situation with intel.
 
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liahos1

Senior member
Aug 28, 2013
573
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91
blackened23 said:
Net income is profit. 48 million. Gross over-simplification: operating income does not include all expenditures which affect the corporation in question, such as taxes and other things.
Click to expand...

yes ultimately net income is profit but if you wanted to point out how g*d awful their results are vs intel or any other company net income can be a bad compare. either way pretty crazy

- 48mln in net income at AMD in q3
- 3bln of net income at intel in q3

the other thing i'd point out is that on 1.5bln of revenue amd managed to squeeze out a incredible 6mln of free cash in the quarter
 
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monstercameron

Diamond Member
Feb 12, 2013
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blackened23 said:
Net income is profit. Gross over-simplification: operating income does not include all expenditures which affect the corporation in question, such as taxes and other things.
Click to expand...

so operating income pays salaries and net income goes to the bank? and the revenue is the costs of business sans net income?

ok, thnx for the simplfied explanation, ima have to research this more...
 
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blackened23

Diamond Member
Jul 26, 2011
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I remember Mr. SiliconWars telling us that AMD had beat intel in some key PC metric earlier this week in a vague manner. PC shipments or something like that? So what was up with that? Should I dig that post of his up?

I think I know the answer. I am just curious though.
 
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blackened23

Diamond Member
Jul 26, 2011
8,548
2
0
monstercameron said:
so operating income pays salaries and net income goes to the bank? and the revenue is the costs of business sans net income?
Click to expand...

If you want the answers, study college/university level accounting. Net income and operating income both include TONS of things which I can't even begin to list here, it really is beyond the scope of this forum. I can't simplify that answer in a sentence.

All you should know is that for accounting purposes with regard to publicly traded corporations, net income is the gauge for which corporations are compared to each other in terms of profit.

Hey, it's better than last quarter. Being in the green is better than being in the red, so I guess AMD has something to be happy about. And for once Rory Reed doesn't look like a moron because his prediction of a return to profitability in Q3 came true. So, again, AMD has something to be happy about I suppose. What I find telling is that the vast majority of their profit (at first glance) came from their graphics division.
 
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Abwx

Lifer
Apr 2, 2011
10,953
3,474
136
Phynaz said:
Holy Stuff Batman! Look at that inventory balloon!
Click to expand...

Of course it wouldnt touch your mind that they must
have much higher inventory due to MS and Sony , they
just cant take the risk to provide an erratic supply to such
customers....
 
Phynaz

Phynaz

Lifer
Mar 13, 2006
10,140
819
126
Abwx said:
Of course it wouldnt touch your mind that they must
have much higher inventory due to MS and Sony , they
just cant take the risk to provide an erratic supply to such
customers....
Click to expand...

I'm betting you are as wrong as usual. Let's wait for the call and we'll see where that inventory is.
 
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Abwx

Lifer
Apr 2, 2011
10,953
3,474
136
Phynaz said:
I'm betting you are as wrong as usual. Let's wait for the call and we'll see where that inventory is.
Click to expand...

I let other people decide who is the most error
prone betwen us but i already know how much
you re good when betting in some stocks....

For thoses who have a brain they ll just notice
through the numbers that Sony/MS provide about
350 millions per quarter , i guess that such an amount
will mandate the 200 millions more inventory , moreover
given that we re exactly at the console launch period
wich will see the usual high demand for novelty especialy
for this holyday season....
 
AtenRa

AtenRa

Lifer
Feb 2, 2009
14,001
3,357
136
Phynaz said:
I'm betting you are as wrong as usual. Let's wait for the call and we'll see where that inventory is.
Click to expand...

Q4 guidance for the inventory is "Flat from Q3 2013", that only means MS and SONY.

Inventory grew ~30% from Q2 and almost 30% of revenue in Q3 was from semi-custom and embedded.
 
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