AMD Q4 2011 quarterly earnings

[-Slacker-]

-- AMD revenue $1.69 billion, flat sequentially and increased two percent year-over-year
-- Net loss $177 million, loss per share $0.24, operating income $71 million
-- Non-GAAP(1) net income $138 million, earnings per share $0.19, operating income $172 million
-- Gross margin 46 percent

-- AMD revenue $6.57 billion, flat year-over-year
-- Net income $491 million, earnings per share $0.66, operating income $368 million
-- Non-GAAP(1) net income $374 million, earnings per share $0.50, operating income $524 million
-- Gross margin 45 percent
-- More than 30 million Accelerated Processor Unit (APU) shipments in 2011 drives record annual notebook revenue

Hope it's not a repost. Put it in VCG because it's a wash and the most successful products form AMD are their GPUs.

I would comment on the figures, but the truth is I have no idea what half of that even means.

If anyone can tell me what their actual net profit is, I would appreciate that.


http://quarterlyearnings.amd.com/phoenix.zhtml?c=74093&p=quarterlyearnings

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[thilanliyan]

In the quarter I think they lost money, but overall in 2011 they made a profit. I think that's what it says but I'm not an expert.

If you already knew that...oops

 

[Olikan]

it not a bad result actually. AMD increased revenue while intel and nvidia decreased.

* Cash & AR is up 68M - good
* Payables are down 78M - good
* Long term debt down 44M - good
* inventory down 74M

NET = 116M

edit...they lost ~180M, but invested ~210M for GLOFO ( not really needed)

 

[RavenSEAL]

In other words, they made a little bit of money...which isn't too bad considering how bad some of their outcomes have been. Look for the 7 series & maybe Piledriver to bolster their profits in 2012

 

[Olikan]

In other words, they made a little bit of money...which isn't too bad considering how bad some of their outcomes have been. Look for the 7 series & maybe Piledriver to bolster their profits in 2012

yep, they just spend alot this quarter for theyr future proof

 

[-Slacker-]

Ah, so the negative 'net income' thingy is due to a 200m investment they made in global foundries.

 

[blackened23]

Like others said, not a bad result. Would have been in the + for the quarter without the 2 one-time charge-offs, but they are still in the + for the year

 

[Phynaz]

Ah, so the negative 'net income' thingy is due to a 200m investment they made in global foundries.

No. They had to write off $200M that they already had invested in GloFo that they will now not be able to get back.

Basically when they spun off their fabs, they were given a percentage ownership in them, and this ownership was assigned a value. It turns out that their chunk of GloFo isn't worth what they said it was. So at some point you have to say "oops" and take the hit on your books.

 

[sontin]

it not a bad result actually. AMD increased revenue while intel and nvidia decreased.

Because AMD is/was supply constraint with their 32nm processors. So the hard drive shortage didn't really affect them. But their GPU business was down 5% qtq and 10% yty.

nVidia decreased their revenue estimation yesterday but with $950 millions it will be a 7% increase in revenue over last year.

I'm a little shocked that AMD guided Q1 so low - -5 - -11%? They have a full range of 32nm products, Brazos and their 28nm graphics and don't expect more?!

 

[Phynaz]

I should know better than to straddle with AMD. They lost 2.5% of their value after the close yesterday and in the pre-market are down 5%.

Blah, just when they were starting to look reasonable.

 

[Phynaz]

I'm a little shocked that AMD guided Q1 so low - -5 - -11%? They have a full range of 32nm products, Brazos and their 28nm graphics and don't expect more?!

They are expecting the hard drive shortage to impact the sales of pc's. Less pc's shipped means less chips shipped.

 

[wahdangun]

so did AMD gaining revenue or not ??

sorry i didn't understand this kind of thing

 

[sontin]

They are expecting the hard drive shortage to impact the sales of pc's. Less pc's shipped means less chips shipped.

I read the transcript and they don't really think that the shortage would have a huge impact...

Rory P. Read

Now at the end of 4Q, we did see a little bit of pressure in terms of hard disk, but we actually saw it in the area of the graphics chips. And this, we think, is going to be reflected in a very resilient PC supply chain that we think will recover relatively quickly.

And

Thomas Seifert

Well, I think it's fair to say from the improvements we have seen and the -- and our foundry partners that we are not going to be supply-constrained in the first quarter.

http://seekingalpha.com/article/321...1-results-earnings-call-transcript?part=qanda

 

[OILFIELDTRASH]

I don't think the outlook for the 7XXX series sales are great. Too high prices on the high end and they add no value at the low-mid end where the gpu companies make the majority of their money. If you have a 6950 or 6970 all AMD can offer is a 7970 for $550 or a 7870 which will be around the same performance as the card you already own at the same price.

 

[wahdangun]

I don't think the outlook for the 7XXX series sales are great. Too high prices on the high end and they add no value at the low-mid end where the gpu companies make the majority of their money. If you have a 6950 or 6970 all AMD can offer is a 7970 for $550 or a 7870 which will be around the same performance as the card you already own at the same price.

i dunno, remember HD 7970 is sold out everywhere. so people think it have more value compared competitor card.

 

[Olikan]

No. They had to write off $200M that they already had invested in GloFo that they will now not be able to get back.

Basically when they spun off their fabs, they were given a percentage ownership in them, and this ownership was assigned a value. It turns out that their chunk of GloFo isn't worth what they said it was. So at some point you have to say "oops" and take the hit on your books.

ahhh...thx for the clarification

so did AMD gaining revenue or not ??

they are, but a small increase.

 

[OILFIELDTRASH]

i dunno, remember HD 7970 is sold out everywhere. so people think it have more value compared competitor card.

Just checked Amazon and Newegg and I find plenty of stock. There are only so many early adopters willing to throw down $550 for a gpu. Add to that the 7970 is a marginal upgrade for most early adopter types since they already own a high end card and the number of buyers shrinks even more. AMD could of sold a ton of 7970 or 7950 if priced right. Now there are many buyers just like myself that will just wait it out and see what nvidia brings to the table. They lost my business with these prices.

 

[Stuka87]

I don't think the outlook for the 7XXX series sales are great. Too high prices on the high end and they add no value at the low-mid end where the gpu companies make the majority of their money. If you have a 6950 or 6970 all AMD can offer is a 7970 for $550 or a 7870 which will be around the same performance as the card you already own at the same price.

AMD will charge what people will pay. nVidia already has shown enthusiast will pay up to $600 for a card. AMD would have to be stupid to compete with themselves. Prices will equalize once they actually have some competition.

But, thats not why they are expecting a slower Q1. Enthusiast cards are a VERY tiny spec on the board when it comes to total revenue.

The new cards won't really start to effect their revenue until the mid and lower end cards come out. But even then, the retail cards are a small percentage of their total revenue. Now if they can land some big OEM deals with their new cards, that will help more. It also looks like AMD will be providing the graphics chip for the XBox 720 (in the form of an HD6650). This could result in quite a bit of revenue, but that wont start to really have any effect until Q3/Q4 time frame.

 

[Stuka87]

Just checked Amazon and Newegg and I find plenty of stock. There are only so many early adopters willing to throw down $550 for a gpu. Add to that the 7970 is a marginal upgrade for most early adopter types since they already own a high end card and the number of buyers shrinks even more. AMD could of sold a ton of 7970 or 7950 if priced right. Now there are many buyers just like myself that will just wait it out and see what nvidia brings to the table. They lost my business with these prices.

I just checked amazon, almost every single card is sold out. The ones that are in stock only have quantities of 3-4. On new egg only th XFX and PowerColor's are in stock, but they don't show quantities. But even then thats hardly "plenty" of stock.

 

[OILFIELDTRASH]

People aren't buying the 7XXX series though. They are supposedly supply constrained yet I can find some at every major retailer. Also there have been many posters here saying that the 7970 is so ridiculously priced they aren't selling at all in Europe.

 

[KCfromNC]

People aren't buying the 7XXX series though.

Evidence for this claim?

They are supposedly supply constrained

Evidence for this claim?

 

[wand3r3r]

I'd venture a guess the $177 million loss has a lot to do with the pricing of the HD 7970 / 7950.

 

[Lepton87]

People aren't buying the 7XXX series though. They are supposedly supply constrained yet I can find some at every major retailer. Also there have been many posters here saying that the 7970 is so ridiculously priced they aren't selling at all in Europe.

In Poland 7970 costs as much as 6990 so the price really is ridiculous. (750USD) For that price you can almost buy 3 6950 2gb over here.

 

[Phynaz]

I read the transcript and they don't really think that the shortage would have a huge impact...

Rory P. Read


And

Thomas Seifert

http://seekingalpha.com/article/321...1-results-earnings-call-transcript?part=qanda

I'll admit I didn't read the call transcript. I just read the Reuters report.

http://finance.yahoo.com/news/Chipmaker-AMD-expects-lower-rb-1426238737.html?x=0

 

[boxleitnerb]

Is there a comparison of the profits in the GPU segment between Nvidia and AMD?