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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: Encouraging
By defter on 7/20/2007 2:40:40 AM , Rating: 3
quote:
The vast majority of those costs have nothing to do with production, they are finance and acquisition costs...they are also not ongoing costs.


Of $600M loss, only $78M were related to ATI acuisition. "Finance" costs include things like interest payments, how they aren't ongoing costs? AMD paid $99M in interest payments in Q2, they will definitely pay similar amounts in the near future (unless they take additional loan in which case their payments would increase).


RE: Encouraging
By Viditor on 7/20/2007 11:30:57 PM , Rating: 3
quote:
Of $600M loss, only $78M were related to ATI acuisition

No...
Acquisition related costs were $94 Million (not counting interest payments)...down from $113 Million last quarter. (page 3)
http://www.amd.com/us-en/assets/content_type/Downl...

Interest payments are scheduled to reduce over time, and as revenue increases (k10 release, increased seasonal revenue) the amount can reduce quickly from early payoff.


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