Friday, April 22nd 2011

AMD Reports First Quarter Results

AMD today announced revenue for the first quarter of 2011 of $1.61 billion, net income of $510 million, or $0.68 per share, and operating income of $54 million. The company reported non-GAAP net income of $56 million, or $0.08 per share, and non-GAAP operating income of $92 million.

“First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs),” said Thomas Seifert, CFO and interim CEO. “APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our ‘Llano’ APU.”

Quarterly Summary
  • Gross margin was 43 percent.
  • o Non-GAAP gross margin was 45 percent, flat sequentially.
  • Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.75 billion.
  • Computing Solutions segment revenue decreased 2 percent sequentially and increased 3 percent year-over-year. The sequential decrease was driven primarily by lower average selling price (ASP) partially offset by higher desktop microprocessor sales. The year-over-year increase was primarily driven by strong microprocessor unit sales in the channel.
  • o Operating income was $100 million, compared with $91 million in Q410 and $146 million in Q110.
    o Microprocessor ASP decreased sequentially and year-over-year.
    o AMD commenced revenue shipments of AMD’s first Fusion APU for mainstream notebooks (codenamed “Llano”) that combines discrete-class graphics capabilities, personal supercomputing performance and AMD AllDay power.
    o Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Sony and Toshiba shipped sleek new thin-and-light notebooks based on AMD’s low-power APUs capable of delivering high definition visual experiences and extended battery life.
    o More than 50 applications from software companies including Adobe, ArcSoft, Corel, CyberLink and Microsoft take advantage of the incredible compute power found in AMD’s APUs and GPUs to dramatically improve application performance and power efficiency.
    o AMD launched the world’s first APU specifically designed for embedded systems with a record number of embedded partners for the company. Fujitsu, Kontron, Quixant and Congatec announced APU-based solutions for graphics-intensive markets like digital signage, Internet-ready set top boxes, casino gaming machines and point-of-sale kiosks. Acer, Cray, Dell, HP, SGI and other server manufacturers launched new or updated systems based on five newly introduced AMD Opteron 6100 series processors.
    o In the high performance computing market (HPC), AMD Opteron-based solutions continue to gain traction based on their greater scalability. New customer wins include Lockheed Martin’s cluster for the US Department of Defense and the University of Sao Paulo’s cluster to enable advanced scientific astronomical research.
    o AMD expanded its enthusiast desktop offerings with the introduction of its fastest four-core processor, the AMD Phenom II X4 975 Black Edition.
  • Graphics segment revenue decreased 3 percent sequentially and was flat year-over-year. The sequential decrease was driven primarily by a seasonal decline in royalties received in connection with the sale of game console systems.
  • o Operating income was $19 million, compared with $68 million in Q410 and $47 million in Q110.
    o GPU ASP decreased sequentially and year-over-year.
    o AMD maintained its graphics performance leadership position with the launch of the world’s fastest graphics card, the AMD Radeon HD 6990.
    o Apple refreshed its Macbook Pro line-up with the new AMD Radeon HD 6490M and HD 6750M graphics chips. AMD now provides discrete graphics solutions across Apple’s iMac and Macbook Pro product lines.
    o Strong industry adoption of AMD’s mobile graphics continued, as HP and Dell launched new designs powered by the new AMD Radeon HD 6000M family of graphics processors.
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

AMD expects revenue to be flat to slightly down sequentially for the second quarter of 2011.

For additional detail regarding AMD’s results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
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19 Comments on AMD Reports First Quarter Results

#2
Thefumigator
Could someone enlighten me at this maremagnum of numbers...
Is it real?
NO LOSS THIS QUARTER? (!)

I mean... Is it good news or what?
Posted on Reply
#3
Zubasa
by: Thefumigator
Could someone enlighten me at this maremagnum of numbers...
Is it real?
NO LOSS THIS QUARTER? (!)

I mean... Is it good news or what?
AMD have been "making money" for the last year or so.
Posted on Reply
#4
Relayer
Anyone else get the impression that GPU's aren't real profitable? I mean they've been selling the crap out of GPU's for a while now (Since the 4000 series anyhow) and all they want to talk about are APU's. Confusing?
Posted on Reply
#5
DannibusX
Of course they want to talk about their APU's, it's the future of their company and the only leg up they have on Intel. For now.
Posted on Reply
#6
hat
Maximum Overclocker
At least they're running in the black.
Posted on Reply
#7
Sihastru
by: DannibusX
Of course they want to talk about their APU's, it's the future of their company and the only leg up they have on Intel. For now.
Sandy Bridge.
Posted on Reply
#8
Velvet Wafer
by: Sihastru
Sandy Bridge.
is not an APU per se, as there are 2 seperate dies for CPU/GPU, and not only one, like in AMDs products ;)
Posted on Reply
#9
Kreij
Senior Monkey Moderator
by: DannibusX
Of course they want to talk about their APU's, it's the future of their company.
I agree, but it would be interesting to see a break-out of how the discrete GPU division is doing.

Nevermind, it's in there. lol
Posted on Reply
#10
lucas4
i like AMD, so im glad to see them doing well :)!
they offer the more affordable route around most things (CPU's, GPU's and their motherboard's are cheap even if they dont produce them :p) which is good for the average buyer who doesnt always need the best performance.
i hope they keep it this way, but challenge more in the high end market so nobody can complain :p!
Posted on Reply
#11
suraswami
Good to see AMD is gaining some $.

Future is mobile business, small powerful netbooks and handheld devices are going to be the next storm in IT. I wish AMD will jump into the mobile phone chip making band and make an impact (if they don't have a chip yet).
Posted on Reply
#12
TheLaughingMan
This is a trick of numbers due to the deal they cut with Global Foundaries. They basically are hiding their R&D operatings cost in a delayed payment plan with GF. The point of the deal worked though as AMD made their numbers, which were decent look much, much better to investors.

This is it people. AMD has bet the company on future sales figures of Bulldozer. If it flops, which I don't think will happen, AMD will owe GF a lot of money next year.
Posted on Reply
#13
yogurt_21
by: TheLaughingMan
This is a trick of numbers due to the deal they cut with Global Foundaries. They basically are hiding their R&D operatings cost in a delayed payment plan with GF. The point of the deal worked though as AMD made their numbers, which were decent look much, much better to investors.

This is it people. AMD has bet the company on future sales figures of Bulldozer. If it flops, which I don't think will happen, AMD will owe GF a lot of money next year.
hence the difference in net income between GAAP and non-GAAP. Still even with all factors in they're making money. Not alot of it but some.
Posted on Reply
#14
cheesy999
by: TheLaughingMan
This is a trick of numbers due to the deal they cut with Global Foundaries. They basically are hiding their R&D operatings cost in a delayed payment plan with GF. The point of the deal worked though as AMD made their numbers, which were decent look much, much better to investors.

This is it people. AMD has bet the company on future sales figures of Bulldozer. If it flops, which I don't think will happen, AMD will owe GF a lot of money next year.
with this market i think its less on bulldozer, more on its newnotebook line with the suprisinly powerfull intergrated gpu's
Posted on Reply
#15
Mandown
by: suraswami
Good to see AMD is gaining some $.

Future is mobile business, small powerful netbooks and handheld devices are going to be the next storm in IT. I wish AMD will jump into the mobile phone chip making band and make an impact (if they don't have a chip yet).
Every heard of Imageon? They were ATI first then AMD in '06, but then sold that part off to Qualcomm in 2008. Right around the time of the smartphone age. Sad they did that, even after they said there was huge potential in handheld devices.

Can't even remember what devices they were in but it was a lot.
Posted on Reply
#16
Imsochobo
by: Mandown
Every heard of Imageon? They were ATI first then AMD in '06, but then sold that part off to Qualcomm in 2008. Right around the time of the smartphone age. Sad they did that, even after they said there was huge potential in handheld devices.

Can't even remember what devices they were in but it was a lot.
and now they're in 50% of all smartphones ? :P
snapdragon :P
Posted on Reply
#17
suraswami
by: Mandown
Every heard of Imageon? They were ATI first then AMD in '06, but then sold that part off to Qualcomm in 2008. Right around the time of the smartphone age. Sad they did that, even after they said there was huge potential in handheld devices.

Can't even remember what devices they were in but it was a lot.
by: Imsochobo
and now they're in 50% of all smartphones ? :P
snapdragon :P
If it is the 'snapdragon', then its really sad AMD didn't have that vision to let go a gold pot :shadedshu.
Posted on Reply
#18
Imsochobo
by: suraswami
If it is the 'snapdragon', then its really sad AMD didn't have that vision to let go a gold pot :shadedshu.
the gpu's in the snapdragons are amd design.
intels igp's are also amd design.

but yeah, might have paid off to keep cellphone gpu division alive for a little while longer.
maybe make a new one ? :P
Posted on Reply
#19
Sihastru
by: Velvet Wafer
is not an APU per se, as there are 2 seperate dies for CPU/GPU, and not only one, like in AMDs products ;)
It's one single die, it also incorporates the PCIe controller and the memory controller. It's coupled with a simple south bridge that has USB, SATA, extra PCIe and some other small things like that (exactly like the AMD APU is). You're thinking of the old Pentium G9xxx series CPU that was on the old LGA1156 platform.

Another example of an Intel APU is the Atom 510, 525, 410, 425 and so on... they all have integrated graphics on the CPU die. "APU" is just some invented term (marketing blurb), the technology and the products existed long before AMD cooked up their first ever APU.
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