AMD Q4 results

[Ibra]

Integrated Electronics Fans, Did you know?

Advanced Micro Devices was founded on May 1, 1969.

I have seen AMD in much worse shape before than it is today. And AMD is still here.

So don't underestimate AMD's tenacity to stay alive.

Jim Keller is the chief AMD chip architect.

I know this site is loaded with AMD haters. Keep up the good work.

Mods if you hate this post then delete my Id.

So? Atari was founded in 1972 and today:

On January 21, 2013 Atari SA's U.S. subsidiaries Atari Inc.; Atari Interactive, Inc; California U.S. Holdings, Inc.; and Humongous, Inc. voluntarily filed for chapter 11 bankruptcy protection.http://en.wikipedia.org/wiki/Atari#cite_note-41

And stop begging for AMD's success. ()

 

[SiliconWars]

Intel will not blink. The fact that the PC segment is not growing all that much, and given that shareholders are punishing the stock for not having expanded into other markets yet, means that Intel is on even more of a defensive than they were against the K8.

In short, AMD is done for in the PC space. That includes their BS about "Hondo" and "Temash".

It's funny how they don't give TDP values for the Temash BS they were showing off. They did in previous presentations -- 3.6W - 5.9W -- but of course, when you're presenting in a tent at CES, you can't tell your audience that your quad core downclocked-kabini will be within a watt of Intel's much superior "Haswell".

Show's over folks. Anybody who thinks AMD will "pull a K8" against an Intel this well-oiled is delusional or maybe just way to high on (h)opium.

The ARM guys aren't too much better off in the long run, but they all have profitable, high margin businesses to fund those little ventures.

You are quite clearly worried about the impact Temash is going to have on the tablet space, obviously the Dirt Showdown videos have you spooked. I'll take that as a sign that AMD has produced something special.

Anyway if they wanted to lie about the TDP surely they'd just have used SDP anyway?

 

[Olikan]

well, i really thought that amd was going to have a very, very worse q4

 

[amdisstaying]

Yes, AMD is a more volatile stock than Intel, and...?

And Intel is also spending billions in buying its shares in the open market. Did you know that share buyback provides support to Intel stock prices.

What Mr. Read is saying:

http://techreport.com/news/24251/amd-promises-return-to-profitability-in-latter-half-of-2013

"AMD promises return to profitability in latter half of 2013"

Soon, we will see Richland APUs (which are shipping now) in action.

Lisa Su also mentioned that 28nm (Kabini/Temash) at TSMC & (assuming Kaveri) at GF are looking good.

 

[amdisstaying]

So? Atari was founded in 1972 and today:



And stop begging for AMD's success. ()

Truth will set you free from your inner prison.

I'm done with this thread. I have nothing more to say.

See you guys on April 18, 2013 (AMD's Q1 2013 Webcast).

 

[SiliconWars]

Q4 highlights - http://seekingalpha.com/article/112...-2012-results-earnings-call-transcript?page=2

nearly one in every three notebooks sold in U.S. retail in the fourth quarter were powered by AMD.

Not bad for a "failed" APU strategy

sequential increase in desktop microprocessor ASP based on strong channel adoption of our new Athlon FX CPU and A-Series APUs in the quarter.

Not bad for chips that apparently, nobody wants.

significant revenue growth for our SeaMicro dense servers, driven by large-scale cloud data center wins.

Even server is looking up....

Our graphics business performed well in the quarter as well, highlighted by record workstation and gaming revenue

unit shipments and revenue for our high-end Radeon graphics grew, driving a richer mix and increased ASP from the previous quarter.

....and graphics.

And over the next couple of quarters...

began shipping Richland and secured solid design wins for the Brazos follow-on Kabini and our new ultra low power Temash APU.

AMD’s first mobile GPU is based on our graphics core next architecture also began shipping in the fourth quarter.

For a company that supposedly can't seem to execute, they seem to be executing on a lot of different fronts.

Had it not been for the GF payments AMD would probably be looking in better shape than intel at the moment.

 

[SiliconWars]

Also of note - http://seekingalpha.com/article/112...arnings-call-transcript?page=5&p=qanda&l=last

I think if you look at Q4 you’re right about the one-time charge and let me just take a moment to explain that. We had previously said a $165 million one-time charge and $110 million of our termination fee related to the WSA would be spread over Q4 and Q1.
As we completed the analysis from an inventory standpoint, it was more appropriate to record almost the whole charge in Q4 and we went ahead and did that and that is $273 million.

So the Q1 charge is almost wiped out, which should help make the numbers better in this quarter.

 

[sontin]

What are you talking?
Compute solutions is down 37%, Graphics is down 15% from last year.

This is not the result of a company which is " executing on a lot of different fronts.".

 

[Olikan]

any numbers about wiiU ?

 

[SiliconWars]

What are you talking?
Compute solutions is down 37%, Graphics is down 15% from last year.

This is not the result of a company which is " executing on a lot of different fronts.".

Intel's net income is down 15% as well. I guess it's been a bad year for PC's?

 

[SiliconWars]

any numbers about wiiU ?

Just that there was record game console revenue.

 

[sontin]

So, AMD graphics business has a "record workstation, gaming and [game console] revenue" and yet revenue and net income is down from last year.

I guess we should compare it with Q4 2010. $424 million revene and $68 million operating income...

So how it is possible that 3/4 of a whole business has records but yet the business is down from last year and two years ago...

 

[SiliconWars]

So, AMD graphics business has a "record workstation, gaming and [game console] revenue" and yet revenue and net income is down from last year.

I guess we should compare it with Q4 2010. $424 million revene and $68 million operating income...

So how it is possible that 3/4 of a whole business has records but yet the business is down from last year and two years ago...

One word - Restructuring.

Su also said that discrete graphics share was at it's lowest point and is set to rise again over the year. The graphics has always gone in a cycle like this.

 

[Keysplayr]

Truth will set you free from your inner prison.

I'm done with this thread. I have nothing more to say.

See you guys on April 18, 2013 (AMD's Q1 2013 Webcast).

Thanks Kumar. See you then. :thumbsup:

 

[sontin]

The restructuring is not accounting in the direct cost.

Sorry, but that statement about the graphics business is nonsense. Compare Q4 2010 with this year: Same situation (full year of products on a new node process) but different earnings. Why would 2013 be better for AMD? nVidia has their full lineup in the market. There will be a Kepler v1 refresh and new chips in the mobile market.

2011 was much more worse for AMD than 2010. There is no reason to believe that 2013 will be better than 2012.

 

[mrmt]

Well, here's my summary after reading the transcript:

- Good they could deliver their sales estimates, which means they are at least being forthcoming here. But they are still very opaque with their forecasts.

- Prospect is still bleak, with another 9% drop in sales in the next quarter. This marks a reduction of more than 30% from their 2012 average quarterly sales. 1 billion in sales with current gross margins this should give AMD some 100-120 million in operating losses and correspondent cash burn, on top of GLF payments.

- Q1 and Q2 should be relatively calm, only in Q3 when the full effect of Haswell will be felt we'll have a clear idea on where things will go regarding their desktop and notebook line.

- They are taking a hit on GPU, selling only 326 million per quarter, about a third of what Nvidia sells and they don't make too much cash with it. One has to wonder what kind of scale AMD will have against Nvidia in developing new GPUs. They might face a similar R&D crunch they face with Intel in CPUs, albeit in a minor scale.

- Their cash reserves should be sufficient to bring the company until the end of the year if they take 100-120 million in negative cash flows per quarter.

- Inventory burn was most credited to the WSA amendment, in other words, they didn't sell better, but manufactured only the best selling products in Q4. As not manufacturing at GLF is a luxury that AMD cannot afford, this quarter result in inventory and gross margin isn't representative of the scenario they will face in 2013, at least until they move Kabini to GLF.

- They still didn't open up their plans for the future, 2014, 2015, 2016. Things seem to be very fluidly internally.

 

[ShintaiDK]

Intel's net income is down 15% as well. I guess it's been a bad year for PC's?

You mix revenue and income on purpose?

 

[krumme]

Well, here's my summary after reading the transcript:

- Good they could deliver their sales estimates

Well thats a major difference imho, it could mean they are getting into some sort of control.

Even RR might understand a little bit more, and i frankly dont think it is a problem he dont understand much but can let the most competent take the decisions.

 

[Arachnotronic]

Intel's net income is down 15% as well. I guess it's been a bad year for PC's?

Net income was down mostly due to increased R&D + excess capacity charges. Revenues were down ~1%.

Intel is investing in the future of its business. AMD is trying to save itself.

 

[Dribble]

Mmm, that's a 1.18 billion loss for the year. The AMD we all know - producer of desktop/laptop x86 cpu's and gpu's isn't going to be around much longer. They clearly can't survive in this market.

 

[Idontcare]

- Inventory burn was most credited to the WSA amendment, in other words, they didn't sell better, but manufactured only the best selling products in Q4. As not manufacturing at GLF is a luxury that AMD cannot afford, this quarter result in inventory and gross margin isn't representative of the scenario they will face in 2013, at least until they move Kabini to GLF.

Speaking specifically of 2013 and the WSA + take-or-pay situation, any insights into what sort of contractually obligated cost structure AMD is facing with GloFo for the next four quarters?

Is 1Q13 going to be yet-another-$360m write down situation? If it won't be, why? What's changed?

 

[SiliconWars]

Speaking specifically of 2013 and the WSA + take-or-pay situation, any insights into what sort of contractually obligated cost structure AMD is facing with GloFo for the next four quarters?

Is 1Q13 going to be yet-another-$360m write down situation? If it won't be, why? What's changed?

They committed to $1.15 billion in wafers in 2013 and $250 million in the first quarter of 2014. That's down from the $1.5 billion in 2012, or up slightly from the $1.1 billion they paid GF for not including the take-or-pay fee.

 

[trivik12]

I think AMD will stuggle to survive. I think Qualcomm and Samsung will eat their lunch. Qualcomm is/will be a formidable competitor to Intel as well. They will ensure Intel has to execute like crazy or they will also go down as well.

 

[nemesismk2]

Hopefully if the rumors are true about next gen consoles using apus/gpus from AMD. It will increase revenue and then they could put some money in r&d to get back on cpu front to give Intel a run for the money in the high end.

I hope so as well because i have purchased ONLY amd processors since my first pc which had a amd 386 dx 40mhz cpu

 

[Arachnotronic]

I think AMD will stuggle to survive. I think Qualcomm and Samsung will eat their lunch. Qualcomm is/will be a formidable competitor to Intel as well. They will ensure Intel has to execute like crazy or they will also go down as well.

LOL

Comparing Qualcomm to Intel is a little silly. Intel's low end, half-arsed Atom competes favorably with the best Qualcomm makes.

They're comparable in market cap only.