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Robert J. Rivet, AMD Executive Vice President and Chief Financial Officer  (Source: AMD)
Just a day after Intel's Q2 performance report, it's now AMD's turn

Yesterday, DailyTech reported on Intel's Q2 earnings. The company posted Q2 revenue of $8.7 billion USD, operating income of $1.35 billion USD and net income of $1.3 billion USD.

Today, it's archrival AMD's turn with regards to financial performance for the quarter. AMD recorded revenue of $1.378 billion USD, an operating list of $457 million USD and a net loss of $600 million USD.

This compares with revenue of $1.216 billion USD and operating income of $102 million USD for Q2 2006.

"While we made solid progress in the second quarter across a number of fronts, we must improve our financial results," said AMD CFO Robert J. Rivet. "We achieved a 12 percent sequential revenue increase, improved the gross margin and won back microprocessor unit and revenue market share."

AMD appears to have worked out problems that it had in late 2006 with OEM/channel processor distribution and attributes 38 percent sequential increase in microprocessor unit shipments to orders from Toshiba, an increased adoption of AMD-based platforms and strong initial sales of the ATI Radeon HD 2000 graphics family.

"We continue to focus on realigning our business model and reducing our capital expenditures and cost structure in the second half of the year," said Rivet.



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RE: CPU/GPU Breakdown?
RE: CPU/GPU Breakdown?
By Viditor on 7/20/2007 12:26:55 AM , Rating: 3
Thanks for posting the link Nemrod...
This illustrates in numbers exactly why people need to understand accounting to analyse a report.
For example, notice that AMD's property, plant and equipment net is $4.5 Billion? I would bet that most don't realise that this does not include Fab 30 at all because Fab 30 has been fully depreciated.
While I would venture to guess that AMD could sell it for $1-2 Billion, it's accounting value is still zero...

This is why Ringold's comment about EBITDA is extremely well taken. Trying to understand what a company has/will have/is spending/owes/etc... without a full analyses is futile.


RE: CPU/GPU Breakdown?
By defter on 7/20/2007 2:30:33 AM , Rating: 1
You can't seriously think that an ancient 200mm/90nm FAB is worth $2 billion these days, when majority of industry has moved their latest fabs to 65nm and 300mm wafers???

Maybe $0.5B is the most that AMD could get from the fab30... Just enough to cover losses for additional quarter.


RE: CPU/GPU Breakdown?
By Phynaz on 7/20/07, Rating: 0
RE: CPU/GPU Breakdown?
By Viditor on 7/20/2007 11:50:10 PM , Rating: 4
quote:
You can't seriously think that an ancient 200mm/90nm FAB is worth $2 billion these days, when majority of industry has moved their latest fabs to 65nm and 300mm wafers

Well firstly, the vast majority is nowhere near 300mm/65nm...even Intel's Fabs are only 1/3 300mm.
Secondly, the output of Fab 30 is now rated at well over 5500 WSPW. There are fewer than 5 other Fabs in the world with this capacity.
Thirdly, Fab 30 is one of only 2 (the other being Fab 36) Fabs that use the automated carrier system that is incorporated into AMD's APM systems (originally developed by Phillips, it's still the absolute cutting edge).


RE: CPU/GPU Breakdown?
By dwalton on 7/23/2007 1:30:08 PM , Rating: 2
Fab 30 hasn't been fully deprecated. AMD is in the middle of a 2.5 billion upgrade on Fab 30 and 38. The facilities and equipment of Fab 30 will probably never fully deprecate unless AMD discontinues any investment into that fab.


RE: CPU/GPU Breakdown?
By Viditor on 7/23/2007 1:41:24 PM , Rating: 2
quote:
Fab 30 hasn't been fully deprecated. AMD is in the middle of a 2.5 billion upgrade on Fab 30 and 38

It has, actually...
While AMD is indeed in the middle of a $2.2 Billion upgrade to turn Fab 30 into Fab 38, the equipment they're replacing (the 200mm lines) is being sold off as well...


RE: CPU/GPU Breakdown?
By dwalton on 7/23/2007 4:32:44 PM , Rating: 2
Every time you reinvest and purchase new equipment and upgrade your facilities, you have to reflect that cost on your balance sheet.


RE: CPU/GPU Breakdown?
By Viditor on 7/23/2007 10:25:55 PM , Rating: 2
quote:
Every time you reinvest and purchase new equipment and upgrade your facilities, you have to reflect that cost on your balance sheet

True, the upgrade cost must be reflected (and will also begin to be depreciated).
However, the upgrades are actually a conversion of Fab 30 to Fab 38...so it's actually Fab 38 that won't be depreciated.


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