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
Not bad at all
10/28/2011 9:06:15 AM
Not bad at all considering the lousy fabs problem and supply constraint and no descent server CPU to sell for the quarter, they still make more than Q3 2010 when the 45 process node was running smoothly and they where only fighting against Nahalem.
Despite all we say, AMD is not dead. They sell out everything they make. If they could make more they would sell more.
"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher
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
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Microsoft Surface Pro 3 - Battery Issue Fixed
August 30, 2016, 6:30 AM
First Apple Computer Auctions for $815,000
August 27, 2016, 7:51 AM
Lenovo vs. Asus vs. HP - Best Laptop Under $500.00
August 19, 2016, 4:00 AM
Best Router for Your Home Network (Under $200.00)
August 6, 2016, 9:51 PM
5 Top Rated Printers for Home or Small Office
July 29, 2016, 10:44 PM
Most Popular Articles
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
FDA Cleared, Shockwave Lithoplasty for Peripheral Vascular Disease
September 22, 2016, 5:45 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Are you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information