AMD Plunges Back in the Red, Posts Gloomy Outlook
January 25, 2012 12:42 PM
comment(s) - last by
AMD at least has the release of Trinity, Southern Islands to look forward to
Advanced Micro Devices, Inc.'s (
) new CEO Rory Read said AMD is working to be a company that "consistently delivers on its commitments."
It looks as though the company has a bit of work left to do.
its earnings for (calendar) Q4 2011 late Tuesday and the result was a clear miss. Versus much of the rest of 2011 [
], where it posted profits, Q4 saw a $177M USD net loss when the results were adjusted to the general acceptable accounting practices (GAAP), the U.S. accounting standard.
Revenue stayed constant from Q3 2011 at $1.69B USD. This is a fairly substantial miss from the analyst consensus earnings target of $1.71B USD [
Aside from a slightly depressed gross margin (down 1 percent), the net loss comes largely due to a set of charges (losses). AMD took a $209M USD impairment charge on its investment in the GlobalFoundries chip fab, a $24M USD payment to GlobalFoundries charge, and a $98M USD general restructuring charge. AMD
began laying off some employees
in Nov. 2011.
AMD warns that the situation will get worse, with weakening demand expected for H1 2012. It's predicting$1.56B USD in Q1 2012 revenue. Previously, analyst targets had hovered around $1.7B USD, but they've since been adjusted down to a slightly more optimistic $1.59B USD.
The chipmaker saw graphics revenue dip 10 percent, with mobile GPU sales down. This dip may be compensated in H1 2011 by the official availability of
the Radeon 7000 HD series
). In the good news department, AMD's "computing solutions" department surged 7 percent in sales, keeping revenue steady from Q3 2011. AMD says its server and chipset sales have improved.
Picture top to bottom:
, the Fusion APU
(middle), and the
are expected to launch in 2012 and give a boost to AMD's revenue
's on-die GPU is partially derived
). [Image is property of DailyTech/Jason Mick]
In total, AMD made a net income (annual profit) of $491M USD in 2011, up modestly from 2010, a critical turnaround year for the firm.
Looking ahead AMD's gloomy forecast is definitely cause for caution. However, substantial excitement is surrounding AMD's next-generation
ultrathin-geared "Fusion" accelerated processing units
AMD is looking to stay aggressive with pricing, allowing for sub-$500 ultrathin laptops. Assuming AMD can keep its volume of the new chips high, it could see strong sales based on this attractive price point. AMD is confident that its APUs will beat similar Intel Corp. (
in price, battery life, and graphics, though it concedes that
will likely have more computing power.
AMD shares were puzzling trading 2.6 percent higher, despite the earnings miss and despite the general market being down about a quarter of a percent.
FT [analyst predictions]
This article is over a month old, voting and posting comments is disabled
1/25/2012 8:07:03 PM
Here's a case in point to my original post:
My dad (who I would call the average person when it comes to computers) isn't happy with his PC anymore after upgrading to Windows 7 only because his WEI for gaming graphics is a 3.0. I would think the "average" person knows enough to check the WEI of any computer they are looking at when at Best Buy (aka Worst Buy).
At my local Best Buy they have an E-450 based AMD machine for 349. RIGHT NEXT TO IT is a 399 intel second gen core i3. Sure you can have "good enough" but when you are looking at WEI side by side and you see 3.4 for the AMD and 6.2 for the Intel it's still an obvious choice. Even the average joe knows 6 is better than 3. For 50 bucks more I still think the choice is an easy one for the average person. And even if graphics, battery life and everything else is equal the CPU score will stand out to "average people."
BTW I'm really happy the industry didn't decide to settle for what was "good enough" back alllll the waaay back in 2001. It's called progress, and it's a good thing.
1/27/2012 8:29:09 AM
That's an interesting sales pitch, the WEI. I know it's not a complete indicator of performance (and certainly doesn't take battery life into it), but I think it would be remarkably forthcoming to have that visible. The average person probably doesn't consider the WEI though - they go off buzzwords and added extras in my experience. I've never seen the WEI advertised.
Still, for the knowledgeable, $50 is nothing for a much faster CPU, but only if you're happy for the lower battery life and worse GPU.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
CES 2012: Prepare for Sub-$500 Ultrathins: AMD's Fusion Trinity, Pictured
January 15, 2012, 12:15 PM
CES 2012: Intel -- 2012 is the Year of the Ultrabook
January 9, 2012, 12:05 PM
AMD Regains Single-GPU Performance Crown From NVIDIA, For Now
December 22, 2011, 2:07 PM
Quick Note: AMD To Trim Workforce by 10%, Expects $200M Operational Savings
November 3, 2011, 9:35 PM
AMD's Q3 Profit Constrained by Manufacturing Problems
October 28, 2011, 8:29 AM
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
NVIDIA Kills Mobile GPU Overclocking, Robs Customers Who Paid For It
February 16, 2015, 8:59 AM
Apple Offers Refurbished 5K Retina iMacs for $2,119 Online
January 16, 2015, 12:37 PM
SanDisk Unveils Pricey iXpand USB 2.0/Lightning Drive to Expand iPhone, iPad Storage
November 13, 2014, 2:29 PM
Most Popular Articles
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Texan WISP Owner With Colorful History Sues to Block FCC Net Neutrality Rules
March 24, 2015, 1:19 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Half a Billion Dollars of U.S. Weaponry May be Lost to al-Qaeda, Rebels in Yemen
March 23, 2015, 2:12 PM
NVIDIA's Latest Windows 10 Drivers: Still Too Unstable For Primetime
March 24, 2015, 4:45 PM
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