AMD Reports 2013 Third Quarter Results

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AMD today announced revenue for the third quarter of 2013 of $1.46 billion, operating income of $95 million and net income of $48 million, or $0.06 per share. The company reported non-GAAP operating income of $78 million and non-GAAP net income of $31 million, or $0.04 per share.

“AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago,” said Rory Read, AMD president and CEO. “We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets.”
 
Good on them. :D So much for the doom and gloom predictions of 2011. :)
 
Here is breakdown of operating income:
CPU: 22m
Graphic: 76m
Others: (6)m

It appears that AMD is depending on graphic revenue to make profit.

While Intel is

CPU: 3,260m
Data Center: 1,393m
Others: (1,149)m

It seems that McAfee is part of others.
 
Here is breakdown of operating income:
CPU: 22m
Graphic: 76m
Others: (6)m

It appears that AMD is depending on graphic revenue to make profit.

While Intel is

CPU: 3,260m
Data Center: 1,393m
Others: (1,149)m

It seems that McAfee is part of others.

Wow.
Really? Amd only has < 1% of the cpu revenue that intel has?

That really puts it into perspective.
 
Awesome! Now they should be able to reinvest in CPU development and maybe catch up with Intel again. I hope.
 
Wow.
Really? Amd only has < 1% of the cpu revenue that intel has?

That really puts it into perspective.

Yep, that AMD can compete at all with Intel is incredible considering the revenue difference.
 
Great to see this after the previous quarters and years of decline & bad news.
 
That quarter included the one time payments for the PS4/Xbone console chips. That is not going to be an ongoing payment, and AMD will only be getting royalty rates in the future, which are much smaller amounts per quarter. Yay small profit, but it's almost certainly back to losses for the forseeable future. That's why AMD dropped 8% after hours. The good news was pretty bad.
 
That quarter included the one time payments for the PS4/Xbone console chips. That is not going to be an ongoing payment, and AMD will only be getting royalty rates in the future, which are much smaller amounts per quarter. Yay small profit, but it's almost certainly back to losses for the forseeable future. That's why AMD dropped 8% after hours. The good news was pretty bad.

So every XBoxOne and PS4 chip that AMD will ever make has all ready been sold? Congratulations to Sony & MS for being able to accurately forecast the next decade of sales of the units and for ordering enough chips to meet the demand.

The initial orders to AMD likely won't satisfy manufacturing needs for more than one year. AMD having a chip in all three gaming consoles on the market is huge and likely will result in years of revenue if the next gen consoles sell anywhere close to the current gen consoles.

AMD's stock is currently going down because of the lack of sales from their core business (CPU). PC manufacturers and component manufacturers aren't doing so well due to the transition to tablets and other devices that replace the PC. AMD is trying to diversify itself because the PC market will likely never be enough to keep them going due to its competition and the lack of future growth. AMD is heading in the right direction as a company.
 
That quarter included the one time payments for the PS4/Xbone console chips. That is not going to be an ongoing payment, and AMD will only be getting royalty rates in the future, which are much smaller amounts per quarter. Yay small profit, but it's almost certainly back to losses for the forseeable future. That's why AMD dropped 8% after hours. The good news was pretty bad.

They were able to lower their operating expenses this quarter because they laid off a bunch of people. They also sold off their headquarters in Asia which added $22 million to these results. Someone posted elsewhere that they have a $200 million payment due to Global Foundry coming up which will hurt a lot.
 
Awesome! Now they should be able to reinvest in CPU development and maybe catch up with Intel again. I hope.

Not likely. They have to sell at less of a profit margin than Intel and the cost of R&D to get there is beyond them at present. So unless they buy some CPU technology like they did with NexGen Systems and hire a bunch of talented engineers all at once it isn't likely to happen ever again. Most people don't realize that AMD's always been well behind Intel in terms of technology and manufacturing processes. So much so as overtaking them has never been realistic. They have been that "other" CPU maker for about two decades or so. When the Athlon came out and AMD was able to dominate the performance benchmarks, a lot of things aligned perfectly in order to make that happen. The types of things that almost never happen and aren't likely to happen again anytime soon. If ever.

On another note: People used to mock AMD for purchasing ATI. Looks likes that decision has paid off for AMD after all.
 
People used to mock AMD for purchasing ATI. Looks likes that decision has paid off for AMD after all.

I still do. How many billion dollars did AMD end up paying for ATI?
 
So every XBoxOne and PS4 chip that AMD will ever make has all ready been sold?
It just looks foolish when you ridicule things that are not written in the post you just quoted. What I wrote, since you obviously didn't understand it the first time, is that AMD just got the one time payments from Sony and MS. That pumped up graphics revenue by 96% YoY. Going forward, AMD is not getting any more large one time payments. It will be getting lower royalty rates on units, as it does from Nintendo.

In the Intel results thread, I posted a link to the AMD financial results (because this thread didn't exist yet). An interesting thing is that this rare $48 million profit will barely cover next quarter's interest on AMD's $2 billion debt, mostly left over from the ATI purchase. Note, this is not a principle payment, it's just servicing the debt's interest.

It's fairly certain that AMD will dip back into red next quarter, and for the foreseeable future. There are no more large items to sell off to prop up earnings. It's not just me. When investors got the news, AMD dropped 8% after hours. CPU sales dropped 2x faster than PC sales declined, and margins are shrinking.
 
I still do. How many billion dollars did AMD end up paying for ATI?
I mock them for buying ATi and then selling ALL of their mobile assets.

The Adreno graphics core, found in the Snapdragon SoC, was formerly ATi property. AMD would have likely done better holding on to that property...

Fun fact: Adreno is an anagram of Radeon ;)
 
I still do. How many billion dollars did AMD end up paying for ATI?

Also if you read the press release:

GPU revenue declined sequentially and year-over-year. In the third quarter customers began transitioning to our new products late in the quarter.

GPU ASP decreased sequentially and year-over-year.

They are also wrapping the game console stuff into the graphics segment

Graphics and Visual Solutions (GVS) is comprised of graphics processing units (GPUs), including professional graphics, as well as semi-custom products and development and game console royalties.
 
I mock them for buying ATi and then selling ALL of their mobile assets.

The Adreno graphics core, found in the Snapdragon SoC, was formerly ATi property. AMD would have likely done better holding on to that property...

Fun fact: Adreno is an anagram of Radeon ;)

Yeah, that was a serious mistake on their part. I wish Rory Read had been CEO back then. Thankfully, Rory Read is not looking back well moving forward except to make sure the same decisions are not made that brought AMD near to bankruptcy.
 
Well Intel has sold all its ARM ventures and a lot of its mobile stuff as well so they have made that mistake as well.
 
I mock them for buying ATi and then selling ALL of their mobile assets.

The Adreno graphics core, found in the Snapdragon SoC, was formerly ATi property. AMD would have likely done better holding on to that property...

Fun fact: Adreno is an anagram of Radeon ;)

pretty much this.

while the ATI property has basically saved their asses and is giving new life to the company, they would be WAY further along had they not gutted pieces of ATI. All the money out would have been forgiven if they were really focusing on all avenues of graphics tech from way back then.
 
Well Intel has sold all its ARM ventures and a lot of its mobile stuff as well so they have made that mistake as well.
Same mistake?

The tech AMD threw out was actually power efficient and performant. It's still being used today in anything based on a Snapdragon SoC.

The tech Intel threw out wasn't at anywhere near the level of the Adreno...
 
pretty much this.

while the ATI property has basically saved their asses and is giving new life to the company, they would be WAY further along had they not gutted pieces of ATI. All the money out would have been forgiven if they were really focusing on all avenues of graphics tech from way back then.

At least they sold off the Xilleon portion to Broadcom
 
The tech Intel threw out wasn't at anywhere near the level of the Adreno...
XScale was one of the top performing ARM implementations when Intel sold it to Marvell in mid 2006 (last Intel designed product was the Marvell PXA320 released a few months after the sale was announced). Marvell paid $660 million for XScale (just the IP, no fabs) and Marvell also took on certain liabilities (I imagine royalty payments and contracts relating to filling XScale orders).

The Adreno 3x0 series, which are great mobile GPUs, is a far cry from the "media processor" Imageon architecture AMD sold off a years ago to Qualcomm for pennies on the dollars it cost to purchase it (sold for $65 million, nearly a 5x drop in its valuation at purchase). What AMD sold was a basic media processor with also-ran performance. ATI created some early 3D accelerators for phones and other handhelds, but was eclipsed by other competition in the space in both features, efficiency and performance. AMD ultimately sold it because it wasn't profitable and didn't fit in with the company's core goals.

I don't think AMD or Intel really needs either of those two lines they sold. Intel is pushing Atom and Quark, and AMD has been somewhat successful in scaling down newer GPU architectures for low power products (although tablets and handhelds still seem to be out of reach). The Imageon media processor wouldn't do AMD any good right now. Obviously Intel got the better deal while divesting though. ;)
 
So every XBoxOne and PS4 chip that AMD will ever make has all ready been sold? Congratulations to Sony & MS for being able to accurately forecast the next decade of sales of the units and for ordering enough chips to meet the demand.

The initial orders to AMD likely won't satisfy manufacturing needs for more than one year. AMD having a chip in all three gaming consoles on the market is huge and likely will result in years of revenue if the next gen consoles sell anywhere close to the current gen consoles.

AMD's stock is currently going down because of the lack of sales from their core business (CPU). PC manufacturers and component manufacturers aren't doing so well due to the transition to tablets and other devices that replace the PC. AMD is trying to diversify itself because the PC market will likely never be enough to keep them going due to its competition and the lack of future growth. AMD is heading in the right direction as a company.

Sorry to burst your bubble but AMD whored themselves out for the console contracts to build them at break-even (near zero profit) on the basis they'd make it up in PR and marketing propaganda value. This is apparently working since every silly kid has latched onto "AMD being in the x baux and its the fyoo-ture" even though its custom silicon designed to spec for MS & Sony and has little in common with desktop counterparts.
 
Actually the console GPU architecture is GCN/APU tech, there is a significant amount of transferability to the desktop, hence Mantle is going to be important.

Sorry to burst your bubble but AMD whored themselves out for the console contracts to build them at break-even (near zero profit) on the basis they'd make it up in PR and marketing propaganda value. This is apparently working since every silly kid has latched onto "AMD being in the x baux and its the fyoo-ture" even though its custom silicon designed to spec for MS & Sony and has little in common with desktop counterparts.
 
So every XBoxOne and PS4 chip that AMD will ever make has all ready been sold? Congratulations to Sony & MS for being able to accurately forecast the next decade of sales of the units and for ordering enough chips to meet the demand.

The initial orders to AMD likely won't satisfy manufacturing needs for more than one year. AMD having a chip in all three gaming consoles on the market is huge and likely will result in years of revenue if the next gen consoles sell anywhere close to the current gen consoles.

AMD's stock is currently going down because of the lack of sales from their core business (CPU). PC manufacturers and component manufacturers aren't doing so well due to the transition to tablets and other devices that replace the PC. AMD is trying to diversify itself because the PC market will likely never be enough to keep them going due to its competition and the lack of future growth. AMD is heading in the right direction as a company.

It was a deal at $1.70 and I believe it's a deal $4.
 
Yeah I definitely should've sold half my shares as well. I have plenty holding at the $2 range but I had some at 3.50, kicking myself for not taking my profits. I figured since AMD was finally going back to profit that it would change the outcome, wrong.
 
Actually the console GPU architecture is GCN/APU tech, there is a significant amount of transferability to the desktop, hence Mantle is going to be important.

For lower end and integrated-iGPU parts maybe. Remains to be seen what effect it has on the high end.
 
Well the new AMD ARM server chips next year will be nice, 16 cores at 2Ghz using 8W with similar apache performance to a Intel Xeon, most Intel Xeons can max out an 1Gbps connection with around 10% utilisation so they are mostly wasted. And being able to fit 8 services into the same space as one does today will also be nice.
 
Here is breakdown of operating income:
CPU: 22m
Graphic: 76m
Others: (6)m

It appears that AMD is depending on graphic revenue to make profit.

While Intel is

CPU: 3,260m
Data Center: 1,393m
Others: (1,149)m

It seems that McAfee is part of others.

That is a disgusting disparity.

Then again, intc is worth 100x more than AMD
 
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