AMD Reports 2016 Third Quarter Results

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AMD today announced revenue for the third quarter of 2016 of $1,307 million, operating loss of $293 million, and net loss of $406 million, or $0.50 per share. Non-GAAP1 operating income was $70 million and non-GAAP1 net income was $27 million, or $0.03 per share. "Our third quarter financial results highlight the progress we are making across our business," said Lisa Su, AMD president and CEO. "We now expect to deliver higher 2016 annual revenue based on stronger demand for AMD semi-custom solutions and Polaris GPUs. This positions us well to accelerate our growth in 2017 as we introduce new high-performance computing and graphics products."
 
DukenukemX said:
Is that good? I can't tell.
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No way in hell. GAAP accounting rules are there for a reason and what investors look at. You can do "funny tricks" to make your numbers look good on non GAAP rules.
 
I would beg to disagree, or at least say the answer is somewhat indeterminate without a solid list of what's making their GAAP numbers so terrible. If they're reporting pro-forma (the non-GAAP) at a profit, then that's pretty decent, especially compared to last year. Is their GAAP-adjusted loss a paper loss, like they wrote down the "brand value" of ATi another $100 million or whatever, or is it a real issue like they had to pay a bunch of one-time costs for letting people go and restructuring, or somewhere in between like they marked down the value of unsold video cards by a bunch due to the 1050 introduction but haven't actually paid anything out on that (ie less expected profit, but no real loss either)? The answer on good/bad is probably somewhere in the middle.

Edit: On looking through the expanded documentation on their site, it looks like the majority of their loss is due to re-negotiating their deal with GlobalFoundries for wafers. As GF has been a continual source of problems for them, this is probably a net benefit in the long run. They also have more cash on hand and less debt, which are both positive signs. Overall it looks like they took a one-time hit but are doing okayish (on the AMD scale of things, anyway; for someone like Intel it would be a terrible quarter).
 
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There can't be much left in the pot now, can't remember that last time they were turning a profit.
 
Zen + Vega: produce something out of this world that is affordable (not just 800$ video cards ) then I'll 100% support AMD again. I'm waiting it out, alot of us geeks are. No point of upgrading in Q4 when we were to get Zen in Q4 which now is Q1. Keep pushing both platforms will make them both dated again compared to Intel and Nvidia which would lead us back to where we are today. They need to kick butt, be affordable and not 2 years late.
 
Read the actual report and the numbers actually look somewhat hopeful.

...due to a $340 million charge related to the 6th amendment to the Wafer Supply Agreement (WSA) with GLOBALFOUNDRIES (GF)...
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...$61 million loss on debt redemption offset by increased revenue...
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Accounting math.

Overall, revenue is up, cash is up, gross margin is at a good level, and they're paying down debt.
 
I think they are good. I think revenue went up a lot, they have been under a billion for while I think.
Yeah, no profit, but if they are really making more business (revenue) then profit should follow I hope.
 
Reminds me of Amazon posting loss after loss for years. They are making headway it looks like.
 
Parja said:
Read the actual report and the numbers actually look somewhat hopeful.




Accounting math.

Overall, revenue is up, cash is up, gross margin is at a good level, and they're paying down debt.
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Indeed, they are in a better position than they were a year ago.
 
I'm really hoping this is just the calm before the storm with Zen and Vega coming. I'm certainly not holding my breath, but I'm hoping.
 
JDon said:
I'm really hoping this is just the calm before the storm with Zen and Vega coming. I'm certainly not holding my breath, but I'm hoping.
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Wishful thinking deja vu. Seems like every few years we hear the cries of "just wait until (XYZ), just wait..." and then.... Price Is Right Failhorn.mp3
 
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