AMD's Q3 Profit Constrained by Manufacturing Problems
October 28, 2011 8:29 AM
comment(s) - last by
Strong mobile and server results power profits
Advance Micro Devices saw gains in revenue and profits in the third quarter of 2011, but those were tempered by "significant manufacturing challenges" at GlobalFoundries. The company's results were generally positive: revenue rose to $1.69 billion, a 7 percent sequential increase and a 4 percent increase year-over-year. Net income was $97 million, with earnings per share of $0.13.
The company was particularly strong in the mobile and server spaces. Its
mobile Fusion APUs
saw a 60% increase in shipments, while the first deliveries of its
led to a 27% gain in server revenue sequentially. The mobile segment was strong thanks to increased sales in emerging markets like India and China, which saw a 23% growth in quarterly CPU revenues.
"Strong adoption of AMD APUs drove a 35 percent sequential revenue increase in our mobile business," elaborated Rory Read, AMD's new President and CEO.
That success is part of the problem. Yield, ramp, and other 32 nm manufacturing issues at GlobalFoundries' Fab 1 in Dresden limited supply of
"Llano" Fusion APUs
-based FX CPUs
The company has been divesting its ownership of GloFo, its former manufacturing arm. It now holds 9.6% of its primary manufacturing partner, with the majority controlled by the Advanced Technology Investment Company (ATIC), wholly owned by the Emirate of Abu Dhabi.
Supply of 45nm product was also less than expected, due to unforeseen complexities related to the use of common tools across both technology nodes. Read admitted that he was "disappointed with yields" so far, but said that both companies were working closely together to overcome those problems.
"Despite supply constraints, we saw double-digit revenue and unit shipment growth in emerging markets like China and India as well as overall notebook share gains in retail at mainstream price points. Through disciplined execution and continued innovation we will look to accelerate our growth and refine our focus on lower power, emerging markets, and the cloud," he stated.
AMD spent $361 million on research and development during Q3, and also saw strong graphics revenue of $403 million thanks to robust back-to-school upgrades. It should see a boost this quarter, thanks to the launch of its next-generation of
GPUs using 28nm technology
This article is over a month old, voting and posting comments is disabled
10/28/2011 8:52:00 AM
Can't wait to see what the Radeon HD 7000 series is like...
Should be a fairly hefty jump as they had to stick with 45/40nm again, And hold off on a move to 32nm thanks to TMSC.
SO, hopefully it should result in a significantly more powerful/smaller/efficient GPU this time around compared to this generation. (Complete with yield issues due to the new process.)
Don't know about anyone else... But my 2x Radeon 6950 2gb cards unlocked into 6970's are starting to be a little long in the tooth when running some of the newer games at 5760x1080 (Eyefinity) resolution. - Especially when you sprinkle some Anti-Aliasing into the mix.
10/28/2011 9:35:51 AM
They shouldn't have any trouble manufacturing the 7000 on TSMC 28nm. TSMC is currently turning out parts on that process as we speak.
So I doubt we'll see many 40nm parts. I have a feeling thats why the 7000 isn't even out yet; AMD was waiting for 28nm to come online to prevent yet ANOTHER generation of 40nm parts. After all, they demo'd the 7000 architecture with working silicon in what, June?
10/31/2011 8:07:29 AM
You have misread his post Samus. When he said AMD *had* to hold out for 40nm, he meant the HD6xxx series,
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
TSMC Confirms 28nm Chips in Mass Production
October 24, 2011, 3:43 PM
AMD Launches FX CPUs with Bulldozer Architecture
October 12, 2011, 12:01 AM
AMD Ships World's First 16-Core Server CPUs, New Fusion Chips
September 8, 2011, 9:07 AM
AMD Fusion Emerges as Serious Threat to Intel in the Notebook Mid-Market
May 30, 2011, 3:05 PM
AMD Prepares to Unleash High-Performance Budget "Llano" Processors
April 5, 2011, 10:29 AM
Samsung Adds 2 TB 850 EVO, PRO SSDs for $800, $1000
July 7, 2015, 4:23 PM
Seagate Senior Researcher: Heat Can Kill Data on Stored SSDs
May 13, 2015, 2:49 PM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Facebook-Backed Oculus Rift's Release Date Slips to 2016; Valve and HTC Salivate
March 16, 2015, 5:58 PM
Hackers Steal Roughly $1 Billion From Banks Using Malware RAT
February 17, 2015, 9:30 AM
Most Popular Articles
Worth the Wait? Microsoft Teases at Windows 10 Flagship Phones to Air Oct. 6
September 15, 2015, 5:13 PM
Apple's First Fixes to iOS 9 Land w/ iOS 9.0.1 Release
September 23, 2015, 6:11 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Apple Watch Commands 2 in 3 Smart Watch Sales, WatchOS 2 Sweetens the Pitch
September 20, 2015, 6:07 PM
Fakebook Pt. I: From "The Chive" to "AskMen"; How Facebook's Phonies are Born and Used
September 15, 2015, 4:00 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information