AMD reports Q4 results

[jones377]

http://biz.yahoo.com/bw/080117/20080117006120.html?.v=1

Comments anyone? Viditor, you still on this forum?

 

[aussiestilgar]

Not too bad at all.

 

[rchiu]

It's actually not too bad. The loss from their operation is only 9 million, the rest are charges from ATI purchase, basically accounting loss that doesn't affect how much cash they have. Their margin increased, so either they were able to charge more for their processor or cut some more cost. If they can keep it up, they can at least stay alive until they come up with the next big thing.

 

[jones377]

I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

 

[rchiu]

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

Heh, remember AMD sells chip not the card itself.

 

[Arkaign]

I think this takes into account their corporate welfare from Germany/EU. Not exactly a strong showing, considering that those infusions aren't going to appear next quarter.

 

[myocardia]

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3.

Since they don't sell the cards, just the actual GPU's, they were most likely selling a considerable amount of both the 3850's and the 3870's in Q3.

 

[Phynaz]

Originally posted by: rchiu

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

Heh, remember AMD sells chip not the card itself.

ATI sells plenty of cards. Saphire is their OEM.

 

[Viditor]

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

To be fair, you're quoting net revenue not gross revenue...but I admit that I blew that call. The reality (how much gross revenue was actually made) won't be clear till we get the SEC filing though (ie. what were COGS on graphics).

It seems that AMD beat most expectations by a fairly wide margin, but there were downsides as well.

1. Revenue was $1.77 Billion, short of the $1.79 Billion that was expected (though interestingly it's about the same as Q4 06, so at least they aren't going backwards).

2. After the write-down for the ATI acquisition, they lost $0.17/share instead of the $0.32 loss that was expected.

3. Debts decreased and cash assets increased (total assets decreased because of the ATI value restatement), though shares were diluted.

4. GMs were well up as well, which means that costings on the chips are well down (ie. AMD is making their chips much cheaper).

All in all, it was a very impressive quarter...certainly better than anyone here (including me!) expected on CPUs, but I am dissapointed in graphics. Hopefully it will improve next quarter.

 

[Phynaz]

4. GMs were well up as well, which means that costings on the chips are well down (ie. AMD is making their chips much cheaper).

One little correction, GM was up due to volume and ASP, not a reduction in COG.

I'll admit the $170M (excluding charges) loss was better than the $250M loss I was expecting. I haven't listened to the call yet, how was free cash flow?

Edit:
Just reading the call trascript now, they burned through $250M in cash in the quarter.

 

[rchiu]

Originally posted by: Phynaz

Originally posted by: rchiu

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

Heh, remember AMD sells chip not the card itself.

ATI sells plenty of cards. Saphire is their OEM.

How many ATI branded 3850/3870 have you seen on the market?

 

[Phynaz]

Originally posted by: rchiu

Originally posted by: Phynaz

Originally posted by: rchiu

Originally posted by: jones377
I was a bit surprised by the slow sales growth of the graphics division. $259 million in Q4 vs $252 million in Q3. That doesn't even allow for the seasonal Q3-Q4 growth. I remember someone said they would sell $350 million worth of HD38xx alone...

Other than that I agree, not too bad.

Heh, remember AMD sells chip not the card itself.

ATI sells plenty of cards. Saphire is their OEM.

How many ATI branded 3850/3870 have you seen on the market?

None.

But then I've never actually looked for one.

Of course those are only two of the ATI branded products. AMD lists 42 ATI brand graphics card on their web site available for sale.

 

[Viditor]

Originally posted by: Phynaz

4. GMs were well up as well, which means that costings on the chips are well down (ie. AMD is making their chips much cheaper).

One little correction, GM was up due to volume and ASP, not a reduction in COG.

Huh? If volume was up and ASPs were up, then revenue should have been up as well (and it was only equal to last years, not up). So no, you're wrong here...
In addition, they even stated in the CC that profits were up due to cost reductions.

 

[Lobsang]

What about this bit:

'The Quad-Core AMD Opteron processor was named Chip of the Year by CRN. The publication called the processor a "game changer" because of its blend of "blazing" speed and energy efficiency.'

I've never heard of CRN, anyone know who they are?

 

[zsdersw]

Originally posted by: Lobsang
What about this bit:

'The Quad-Core AMD Opteron processor was named Chip of the Year by CRN. The publication called the processor a "game changer" because of its blend of "blazing" speed and energy efficiency.'

I've never heard of CRN, anyone know who they are?

They're not from a country known for its opiates, are they? Sure sounds like they are.

 

[dmens]

Originally posted by: zsdersw
They're not from a country known for its opiates, are they? Sure sounds like they are.

dirka dirka mohammed jihad!

 

[Idontcare]

Originally posted by: Lobsang
What about this bit:

'The Quad-Core AMD Opteron processor was named Chip of the Year by CRN. The publication called the processor a "game changer" because of its blend of "blazing" speed and energy efficiency.'

I've never heard of CRN, anyone know who they are?

They must not be technology people as it sounds like someone slipped them a Yorkfield and they didn't notice. Energy efficient? Compared to what, a 90nm FX-74? I guess it is "blazing" in its own right with that 140W TDP for the 9900.

 

[Lobsang]

Found the article:

http://www.crn.com/hardware/204700548?pgno=10

and

http://www.crn.com/hardware/201805044

Right before it was announced, Test Center engineers had the chance to run a dual-CPU Barcelona server through a PassMark performance test. It scored higher than any other dual-CPU system we've ever tested.

 

[Phynaz]

Originally posted by: Viditor

Originally posted by: Phynaz

4. GMs were well up as well, which means that costings on the chips are well down (ie. AMD is making their chips much cheaper).

One little correction, GM was up due to volume and ASP, not a reduction in COG.

Huh? If volume was up and ASPs were up, then revenue should have been up as well (and it was only equal to last years, not up). So no, you're wrong here...
In addition, they even stated in the CC that profits were up due to cost reductions.

Oh great, having to counter your misinformation again.

How about I just quote from the call transcript and we call it a day.

Derrick Meyer
"Notebook ASPs were first order flat. Desktop ASPs were up a bit largely driven by mix, contributor to that was additional quad-core shipments in the quarter and then overall ASPs of course got some lift due to increased server business in the quarter."

Robert Rivet
"In the fourth quarter we achieved several new records, including record microprocessor unit shipments, record microprocessor unit shipments into the distribution channel, record desktop processor unit shipments and once again record notebook processor unit shipments.

Fourth quarter gross margin increased sequentially three percentage points to 44% driven by increased new product shipments, higher ASPs and cost containment."


See that? Volume up, ASP up, cost the same.

We're all happy to see AMD moving in the right direction. There's no reason to make misleading posts.