AMD Announces Preliminary Third Quarter Results

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AMD today announced that revenue for the third quarter ended September 29, 2012 is expected to decrease approximately 10 percent sequentially. The company previously forecasted third quarter 2012 revenue to decrease 1 percent, plus or minus 3 percent, sequentially. The lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment.
 
not good. with share price at less than $4 it's not looking good for AMD. :(
 
This concerns me as well since I typically prefer AMD products. Once day at a time I guess and hopefully they will be able to ramp up production. (I have a feeling that lack of production is one of the reasons demand is not where it could be in comparison to their competition.)
 
The lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment.
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or it could also be that AMD isn't offering as competitive products as their two main competitors (Intel and NVidia) AND the challenging macroeconomic environment ;)
 
wra18th said:
not good. with share price at less than $4 it's not looking good for AMD. :(
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It's the media and the consumers that take it as a competition of being the largest, I dont guess AMD does.

Matrox still lives, and I guess AMD will survive also, just not as the largest (well, maybe later :D ).
 
I am trying to remember the last time AMD published good quarterly results.
 
Oh yeah, and release the flood of "the PC is dead" stories!
 
AMD needs to advertise. Intel does and I think consumers think about that when they go to the store. I think if AMD started running some flashy commercials it would help with brand recognition and confidence of consumers buying their products. When thinking about this I started to google "does AMD advertise" and I realized if they advertised effectively I wouldn't have to as that....
 
what a shitty stock. it's below $3 and will continue to go lower.
Every little bit of bad news drops the stock price, and there seems to be an endless amount of it, from executives resigning to analyst downgrades to their own shitty announcements.

all their products are uncompetitive or buggy and half broken. It's almost painful to watch.

$100 million in excess inventory? WTF were they thinking. They thought their trinity chips would sell, so they overbooked?
 
MindBuster said:
It's the media and the consumers that take it as a competition of being the largest, I dont guess AMD does.

Matrox still lives, and I guess AMD will survive also, just not as the largest (well, maybe later :D ).
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I hope so too.
 
^ the excess inventory isn't likely to be Trinity. The link suggests it's a write-off of products with little demand. Just $100 million in inventory is dragging down processor division gross margins from 44% to 31%. Sounds like they're landfilling old netbook bound APUs, desktop/mobile Llano and "salvaged" desktop BD processors... things since superseded by new products with bottom of the barrel pricing. Ouch.

I wonder how far along nvidia is in planning to purchase AMD's x86 business after AMD goes toe up. I think a moment of silence is in order to remember Hector Ruiz's successful plan to kill AMD.
 
MacLeod said:
In the meantime Intel revenue expected to drop 7.3% in the third quarter. They're citing the same reasons AMD are. Weak demand and generally crappy economy.
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Yeah, this is pretty much in line with the current economy and market trends.

Even if Intel makes more money than AMD, both are generally forecasting lower than expected revenue for this quarter.

There are already talks and news of slowing and declining demand for desktop computers in this market. At the same time, mobile devices-- smartphones and tablets-- have gone up. Consoles are even going down, but I'm probably sure that decline is much lower than PC sales in total.

It's the "way the cookie crumbles" I guess.

Plus, economy isn't as strong as it was five-plus years ago, which is ironically around the time PS3 and 360 sales picked up after their launch, and the economic crisis started to become known. iPhone was unveiled back in 2007, and five years since then, every other non-Apple manufacturer has been releasing a flurry of mobile devices and media services to compete against Apple.

In a way, if you can think about it, there are generally three causes behind Intel's and AMD's lower revenue, which in turn led to slower and slower PC sales:
  1. Apple releasing the iPhone, competitors soon followed after along with Google and Amazon.
  2. Consoles became mainstream thanks to the 360 and PS3, and were sold in great numbers.
  3. Economic crises that hit every country in this global economy since 2005-2007-ish.
$200 to $500 smartphone or tablet? OR, a $300 to $1000-plus desktop PC?

$200 to $400 console? OR, a $300 to $1000-plus desktop PC?

It's all a matter of numbers and dollar signs, and market conditions, market demands and market trends.
 
pxc said:
^ the excess inventory isn't likely to be Trinity. The link suggests it's a write-off of products with little demand. Just $100 million in inventory is dragging down processor division gross margins from 44% to 31%. Sounds like they're landfilling old netbook bound APUs, desktop/mobile Llano and "salvaged" desktop BD processors... things since superseded by new products with bottom of the barrel pricing. Ouch.

I wonder how far along nvidia is in planning to purchase AMD's x86 business after AMD goes toe up. I think a moment of silence is in order to remember Hector Ruiz's successful plan to kill AMD.
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It would be to neither Intel's or NVidia's advantage for AMD to go completely belly up ... I suspect you would either see a white knight come in and save them (if it got that far) or Intel would do like MS did with Apple and provide some capital investment for them to survive ... as long as AMD exists then Intel and NVidia can avoid some of the worst monopoly scrutiny and interference ... especially from the EU ;)
 
sinclair-zx81 said:
AMD needs to advertise.
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AMD does advertize, they are just really, really bad at it.

Look at Nvidia splash screen ("The Way It's Meant To Be Played") vs AMDs ("The Future Is Fusion"). On the surface one message is "hey, you're using a superior product, and this is great for you, well done!" the other is..."haha you bought some outdated junk, should have gone for the cheaper APU, idiot!". :confused:
 
octoberasian said:
Plus, economy isn't as strong as it was five-plus years ago,
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and yet, every poor fucker manages to buy an iphone or ipad in this shitty economy.

I was at walmart the other day, and a poor momma was putting a $500 ipad on layaway, slowly paying that off till xmas.
People don't have their priorities straight.
However, the good news is that you could have capitalized on this by dumping all your other stocks and using the proceeds to buy apple stock.
 
It doesn't matter what's ideal, and the white knight fantasy is fully debunked now. The ME ownership of GLF is investing less into it than AMD did when it owned its own fabs, and no bailouts from those funding sources have come forward to help AMD in it's funk either.

Anyways, falling further and further behind, I think the writing is on the wall. Maybe not one or two years (but possibly), nothing in current or future prospects is favoring AMD's survival at this point. It will dissolve and the parts will find interested buyers. While there are regulatory issues, many can be avoided by different possible buyers.

A few years ago I would have pegged VIA as the buyer of AMD's CPU division, as nvidia was off on some ARM fantasy (lol too much competition and price sensitivity). But by now even old Jen Hsun Huang should realize that nvidia's ARM business isn't going to take off. x86 would buy a ticket into the big league though.

And BTW, it's not against the law (even in the EU) to have a monopoly. If AMD fails, it fails. No doubt the EUC will trump up something new even though Intel has been abiding by the restrictions and running plans by it since the ruling.
 
dr.kevin said:
and yet, every poor fucker manages to buy an iphone or ipad in this shitty economy.

I was at walmart the other day, and a poor momma was putting a $500 ipad on layaway, slowly paying that off till xmas.
People don't have their priorities straight.
However, the good news is that you could have capitalized on this by dumping all your other stocks and using the proceeds to buy apple stock.
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Yeah, it's weird. (Or, stupid.)

People were buying $300 to $500 consoles and smartphones right when the economy was starting to go downward, and people are still buying them.

Many people are investing their money in the wrong places nowadays.
 
Of course it isn't against the law but especially in the EU they tend to make your life more difficult - the browser battle in Windows has been a good example of that ;) ... ironically if AMD got cheap enough it might be to ARMs advantage to buy them so they have a foot in both camps
 
kbrickley said:
but especially in the EU they tend to make your life more difficult
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It's called giving others a chance.

Imagine you wanna start making something, whatever, but are disencouraged by huge American Corps that you'll never have a chance against, so you dont make it, and evolution comes to a halt and is stuck at American Corps level of intelligence.

:p
 
pxc said:
A few years ago I would have pegged VIA as the buyer of AMD's CPU division, as nvidia was off on some ARM fantasy (lol too much competition and price sensitivity). But by now even old Jen Hsun Huang should realize that nvidia's ARM business isn't going to take off. x86 would buy a ticket into the big league though.
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I had the same thought about VIA being a potential buyer of AMD's CPU division. Or IBM.

Would be kind of cool to see IBM march back into the PC arena with a new x86 uProc. Ahh, the memories!
 
does anyone remember how AMD recovered from the 2009 recession?

stock price recovered from super lows, and kept going up until last spring. As of last christmas, AMD didn't have very competitive products either, and the ipad had already sold bajillions.

so what's different now compared to last year around this time?
 
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