backtop


Print 92 comment(s) - last by Targon.. on Jul 31 at 4:24 PM


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: 1.2 Billion in Losese Total Now
By Viditor on 7/20/2007 12:59:52 AM , Rating: 5
quote:
if AMD doesn't have enough cash to pay interest payments, let alone paychecks, they will be going into bankruptcy


I think you are confusing losses with cash burn rate...they are NOT the same thing. AMD still has plenty of money. Look closer at what some of those numbers!
$255 Million Depreciation
$414 Capex
Accounts Payable dropped by $380 Million
They wrote off the rest of the 90nm inventory (they are now on 65nm only) for another $30 Million

quote:
AMD cannot compete against Intel. Not in the Long Term

It's funny, but that's what most said in July of 1999...at the time, AMD competed with Intel in only a single area (discount desktop and mobile) and they had no OEM contracts at all.
Today, AMD competes with Intel in all segments (including chipsets and graphics), has contracts with ALL OEMs, and has vastly greater revenue share than they did. That's 8 years to go from a nothing company to a major rival in an industry with perhaps the highest barriers to entry that there are!
In addition, the anti-trust suit has forced Intel to back off from most of their "shady" marketing practices (and don't forget that the suit is still pending and may represent as much as a $4-10 Billion settlement).


RE: 1.2 Billion in Losese Total Now
By jdun on 7/20/2007 1:11:19 AM , Rating: 2
Here is the balance sheet as of March 07. I assume that they have already sold a number of assets to keep making payroll and interest payments.

http://finance.yahoo.com/q/bs?s=amd


RE: 1.2 Billion in Losese Total Now
By defter on 7/20/2007 2:35:38 AM , Rating: 2
quote:
I think you are confusing losses with cash burn rate...they are NOT the same thing. AMD still has plenty of money. Look closer at what some of those numbers!


Actually if you look at those numbers, then the cash burn rate is actually HIGHER than losses.

In Q2 AMD paid $2.2B to take $1.8B loan. They also paid back $500M of their old loan, thus they got $1.3B of extra cash.

However, current results show that their cash increased only by about $400M (1594-1167). Which means that $900M just dissapeared....

Now they have $1.6B of cash with $5.3B of debt...


RE: 1.2 Billion in Losese Total Now
By Viditor on 7/21/2007 12:12:26 AM , Rating: 2
quote:
However, current results show that their cash increased only by about $400M (1594-1167). Which means that $900M just dissapeared....


You missed the part where they paid off much of their short-term (expensive) payables...$358 Million (short-term payables has reduced from $695M to $337M).
Also, $500M of that "dissapearing money" was spent on Capex for the conversion of Fab 30 to Fab 38.
In addition, the EU is giving AMD 262 Million Euros this quarter...($362 Million USD)
http://www.vnunet.com/vnunet/news/2194633/ec-appro...


RE: 1.2 Billion in Losese Total Now
By Phynaz on 7/20/2007 10:49:25 AM , Rating: 1
quote:
They wrote off the rest of the 90nm inventory (they are now on 65nm only) for another $30 Million


I'd really like to know why you make this up.

They are still producing 90nm chips on 200mm wafers, as from this quote from the conference call.

"Fab 30 winds down output of 90-nanometer 200-millimeter material in the second-half and, as a result, we’ll ship an expanded mix of 65-nanometer CPUs from 300-millimiter wafers in the second-half of this year"


RE: 1.2 Billion in Losese Total Now
By wordsworm on 7/20/2007 11:25:47 PM , Rating: 2
Aren't GPUs and Itaniums (albeit Intel) also being produced using 90nm? Can a fab change from a CPU manufacturer to a GPU manufacturer?


RE: 1.2 Billion in Losese Total Now
By Viditor on 7/21/2007 12:15:22 AM , Rating: 2
quote:
Aren't GPUs and Itaniums (albeit Intel) also being produced using 90nm?

Yes...
quote:
Can a fab change from a CPU manufacturer to a GPU manufacturer?

Yes...or DRAM, or chipsets, etc...


RE: 1.2 Billion in Losese Total Now
By wordsworm on 7/21/2007 2:16:23 AM , Rating: 2
I therefore find it confusing as to why people would be suggesting that the fab is worthless. You mentioned that they're converting it to 65nm/300mm. Nonetheless, I don't see how they concluded that its fab is useless.


RE: 1.2 Billion in Losese Total Now
By Viditor on 7/21/2007 2:29:15 AM , Rating: 2
quote:
I therefore find it confusing as to why people would be suggesting that the fab is worthless


In fairness to defter, he is probably going by older prices for Fabs. Back when Fab 30 was first being built, a new Fab was costing in the $2 Billion range...now it's closer to $4 Billion (in fact just the upgrade to Fab 30 is $2.2 Billion).

You are correct though, Fab 30 is FAR from worthless as an asset...


RE: 1.2 Billion in Losese Total Now
By Viditor on 7/21/2007 12:56:48 AM , Rating: 3
quote:
They are still producing 90nm chips on 200mm wafers

You are correct, I made an error. The $30 Million write-down was for the remainder of the 939 chips.
Currently,
All output from Fab36 (the vast majority) is 65nm.
Fab 30 is being converted to 300mm and they are selling off the 200mm equipment. There will continue to be a dribbling output of 90nm from Fab 30 while they do the conversion.

BTW, as a suggestion to you, you might try to focus more on the discussion than on trying to flame people (specifically me). For example, if you had made this post more in the tenor of a correction than a flame, you might not get modded down so much (it was a good catch after all).

Just a thought...


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki