AMD Q414 results

[monstercameron]

the stock price jumped like $0.40 today, this can't just be based on the buyout rumors?

edit: jumped $0.40 since yesterday.

 

[Arachnotronic]

the stock price jumped like $0.40 today, this can't just be based on the buyout rumors?

Sure it can. AMD is highly shorted, so those sitting on large paper profits on the short side -- as well as the "me too" shorts that jumped on the bandwagon too late -- are covering on buying fears, which is driving the stock up.

 

[MiddleOfTheRoad]

And those companies are healthier than AMD, because debt/equity is largely irrelevant to evaluate the health of a healthy business. The single most important metric in this case is how much money a company generates in comparison to debt redemptions. AMD can barely service the debt, let alone repay it. All they can do is kick the can down the proverbial road and hope for a better future.

It's actually laughable that you think I actually care what you say. I guess you didn't get the memo.


Insulting other members is not allowed
Markfw900

 

[mrmt]

It's actually laughable that you think I actually care what you say. I guess you didn't get the memo.

This is a public forum, I don't reply your posts for your sake. In fact, I wouldn't bother to answer privately someone who talks debt/equity when talking about debt sustainability, or that AMD is "fine" in 2014 after the cuts like you did.

 

[MiddleOfTheRoad]

Are you trying to make it into more people's sigs?

I'm just stating a fact. It's not hard to point to companies with a higher debt to equity ratio.

The average company in the financial sector carries around 10 times the debt load that AMD does. AMD's debt is pretty high based on its competitors in the same sector, but relatively benign compared to other industries. They are also not bleeding cash like they were (at least through Q4). As another poster had stated -- they are just kicking the can down the road (probably until 2016). Even with the 2016 products, though.... I personally don't see a sustainable financial recovery possible without a sale / bankruptcy / spinoff.

 

[Qianglong]

US and China recently signed an agreement further opening up technology export, which has been limited/restricted - http://www.industryweek.com/trade/made-america-tech-products-get-export-push-china-us-agreement

Not sure how this will come into play if this Chinese company is indeed interested in purchasing AMD. AMD is also the preferred CPU choice at many of China's government and educational institutions due to the low cost.

It just baffles me, the US government throws billions at the banks and auto to bail them out, why can't they purchase some mid to low end AMD based desktops for non-critical roles? This will at least throw a lifeline to a local company.

 

[mrmt]

It just baffles me, the US government throws billions at the banks and auto to bail them out, why can't they purchase some mid to low end AMD based desktops for non-critical roles? This will at least throw a lifeline to a local company.

If we are talking about bailing out companies, why not bail out IBM foundry business, or HP notebook business, or Dell tablet business?

 

[Qianglong]

If we are talking about bailing out companies, why not bail out IBM foundry business, or HP notebook business, or Dell tablet business?

Well none of the three above-mentioned companies are as in a dire straits as AMD lol...

 

[positivedoppler]

It just baffles me, the US government throws billions at the banks and auto to bail them out, why can't they purchase some mid to low end AMD based desktops for non-critical roles? This will at least throw a lifeline to a local company.

Because there is a perception that AMD is a bootlegged imitation of Intel in the government spawn by the millions Intel spend on commercials. Out of the countless of government computers I've seen, I've yet to ever encounter an AMD one even back in the Athlon glory day when it blew the P4 out of the water. That's why you still see people crawling around with celerons and atom computers sold on the Intel Inside when often an A10 computer is around the same price range.

 

[Qianglong]

Because there is a perception that AMD is a bootlegged imitation of Intel in the government spawn by the millions Intel spend on commercials. Out of the countless of government computers I've seen, I've yet to ever encounter an AMD one even back in the Athlon glory day when it blew the P4 out of the water. That's why you still see people crawling around with celerons and atom computers sold on the Intel Inside when often an A10 computer is around the same price range.

Exactly, there is absolutely no reason why, in the interest of taxpayers that some government computers can be AMD based.

 

[Arachnotronic]

As a tax paying citizen, I don't want my money being handed to AMD (or any other corporation for that matter).

 

[Fjodor2001]

Now compare AMD's R&D to Intel's R&D budget:

Intel isn't contracting, which bodes well for their shareholders and their customers.

Apples and oranges. Check this out:

http://www.intel.com/products/sitemap.htm

As can be seen, Intel currently develops Semiconductor process tech, CPUs, iGPUs, mobile phone chips, SSDs, smart TV solutions, various software, WLAN chips, Ethernet controllers, health care solutions, cable modems, ..., you name it!

So the Intel R&D budget is spread out over lots of different areas. To make a fair comparison with AMD's R&D budget, you should compare the part of Intel's R&D budget that is directed only towards those areas that AMD is active, i.e. primarily CPU, chipset and GPU development (and related SW such as drivers).

 

[ShintaiDK]

It just baffles me, the US government throws billions at the banks and auto to bail them out, why can't they purchase some mid to low end AMD based desktops for non-critical roles? This will at least throw a lifeline to a local company.

Why not bail out every single company then? Nomatter if they are how important they are, what influence they got on society, how they are run or if their business model can substain them or not.

 

[ShintaiDK]

Exactly, there is absolutely no reason why, in the interest of taxpayers that some government computers can be AMD based.

You are asking to waste taxpayer money choosing something that wouldnt be picked in a free market situation. Thats not in the interest of the taxpayers.

 

[Fjodor2001]

Why not bail out every single company then? Nomatter if they are how important they are, what influence they got on society or how they are run.

Agreed. That is no good policy. Government should not own or fund companies, except in certain very specific cases. The market economy in general handles that more efficiently.

 

[Qianglong]

You are asking to waste taxpayer money choosing something that wouldnt be picked in a free market situation. Thats not in the interest of the taxpayers.

How is it a waste of taxpayers money, when in certain branches of the government an AMD based system provides identical performance to an Intel system at lower cost of procurement?

 

[mrmt]

How is it a waste of taxpayers money, when in certain branches of the government an AMD based system provides identical performance to an Intel system at lower cost of procurement?

AMD lost their performance/price edge years ago.

 

[DrMrLordX]

As a tax paying citizen, I don't want my money being handed to AMD (or any other corporation for that matter).

Generally-speaking, I agree with you whole-heartedly. The only reason why the gubment has any vested interest in keeping AMD afloat is the same reason why AMD was able to produce x86 PC processors (legally) in the first place: as a second source manufacturer.

That being said, the context in which AMD became a second source in the past is no longer applicable (that was IBM's deal, not the government's). The gubment may well be capable of muddling along with ARM processors and (where necessary) software emulators or virtual machines.

 

[Enigmoid]

How is it a waste of taxpayers money, when in certain branches of the government an AMD based system provides identical performance to an Intel system at lower cost of procurement?

The vast majority of government workers will be fine with a pentium (cheap office PC) for basic browsing, spreadsheet, word processing, etc. Any more than a minimal IGP simply isn't needed. Intel's pentium chips are cheap. Do exactly what you need, and use very little power.

Maybe for certain high performance areas but then given the public sector bloat and general inefficiency (I'm Canadian) I would rather the government spend money for equipment 30% faster for 50% more than have to deal with another worker to pay salaries and pensions.

 

[witeken]

Apples and oranges. Check this out:

http://www.intel.com/products/sitemap.htm

As can be seen, Intel currently develops Semiconductor process tech, CPUs, iGPUs, mobile phone chips, SSDs, smart TV solutions, various software, WLAN chips, Ethernet controllers, health care solutions, cable modems, ..., you name it!

So the Intel R&D budget is spread out over lots of different areas. To make a fair comparison with AMD's R&D budget, you should compare the part of Intel's R&D budget that is directed only towards those areas that AMD is active, i.e. primarily CPU, chipset and GPU development (and related SW such as drivers).

 

[Fjodor2001]

You cannot extract the info I requested from that graph. E.g. it contains process development, which is a huge portion of Intel's R&D.

 

[Idontcare]

Apples and oranges. Check this out:

http://www.intel.com/products/sitemap.htm

As can be seen, Intel currently develops Semiconductor process tech, CPUs, iGPUs, mobile phone chips, SSDs, smart TV solutions, various software, WLAN chips, Ethernet controllers, health care solutions, cable modems, ..., you name it!

So the Intel R&D budget is spread out over lots of different areas. To make a fair comparison with AMD's R&D budget, you should compare the part of Intel's R&D budget that is directed only towards those areas that AMD is active, i.e. primarily CPU, chipset and GPU development (and related SW such as drivers).

Yeah, you're probably right, there is simply no excuse for AMD's piss-poor product offerings in today's environment, nothing to do with the R&D delta between the two.

 

[mrmt]

Yeah, you're probably right, there is simply no excuse for AMD's piss-poor product offerings in today's environment, nothing to do with the R&D delta between the two.

And the bulk of the R&D of Intel, a MPU company, shouldn't be going to improve MPUs and its manufacturing node.

 

[frozentundra123456]

Yeah, you're probably right, there is simply no excuse for AMD's piss-poor product offerings in today's environment, nothing to do with the R&D delta between the two.

This is not meant to be argumentative, but what is your take on the reason(s) for AMD's poor product lineup?

 

[Idontcare]

This is not meant to be argumentative, but what is your take on the reason(s) for AMD's poor product lineup?

The R&D gap.

In R&D you don't always get what you paid for, but you sure don't going anything you haven't paid for.