Monday, July 9th 2012

AMD Announces Preliminary Second Quarter Results

AMD today announced that revenue for the second quarter ended June 30, 2012 is expected to decrease approximately 11 percent sequentially. The company previously forecasted second quarter 2012 revenue to increase 3 percent, plus or minus 3 percent sequentially. The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business.

The company expects second quarter gross margin to be approximately in line with prior guidance. Operating expenses for the second quarter are expected to improve and to be approximately 8 percent less than prior guidance of approximately $605 million, a result of tightly controlled expenses in the quarter.

AMD will report second quarter 2012 results after market close on Thursday, July 19, 2012. AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to discuss second quarter financial results and to provide information regarding expected third quarter results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page at http://www.amd.com. The webcast will be available for 10 days after the conference call.
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26 Comments on AMD Announces Preliminary Second Quarter Results

#1
Ravenas
Not good at all. AMD is really struggling right now in the stock market. I really hope AMD is able to stay relevant in the coming years.
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#2
INSTG8R
I did my "fanboy" part, I bought the flagship GPU 7970. Sadly you can't sell me much on the CPU side.
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#3
Crap Daddy
The magnitude of Bulldozer's fail sends ripples through distant quarters.
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#4
Ravenas
by: INSTG8R
I did my "fanboy" part, I bought the flagship GPU 7970. Sadly you can't sell me much on the CPU side.
Honestly I don't see a recovery coming anytime soon. This is an extremely slow death, and has been for the past years, but many companies will begin jumping ship soon.

It's a shame too because I would rather not spend $100 extra dollars on basically the same processor that benches maybe 2-5% higher...
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#5
Ravenas
by: Crap Daddy
The magnitude of Bulldozer's fail sends ripples through distant quarters.
Piledriver will help AMD temporarily but not enough.
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#6
yogurt_21
by: Ravenas
Honestly I don't see a recovery coming anytime soon. This is an extremely slow death, and has been for the past years, but many companies will begin jumping ship soon.

It's a shame too because I would rather not spend $100 extra dollars on basically the same processor that benches maybe 2-5% higher...
I seriously encourage you to do a little more research into their stock.

they peaked at 40$ in 2006 and had gone as low as 1.82$ in the early part of 2009. They rebounded up to 8.50$ and are now experiencing a lull as they wait for the deals they made this year start to pay off. With the console deals that are happening expect the stock to be well above 10$ at the end of 2014.

amd isn't goign anywhere, though their focus has shifted and will continue to do so as the tech world evolves.
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#7
D007
by: Ravenas
Not good at all. AMD is really struggling right now in the stock market. I really hope AMD is able to stay relevant in the coming years.
The entire world is struggling right now..
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#8
Ravenas
by: yogurt_21
I seriously encourage you to do a little more research into their stock.

they peaked at 40$ in 2006 and had gone as low as 1.82$ in the early part of 2009. They rebounded up to 8.50$ and are now experiencing a lull as they wait for the deals they made this year start to pay off. With the console deals that are happening expect the stock to be well above 10$ at the end of 2014.

amd isn't goign anywhere, though their focus has shifted and will continue to do so as the tech world evolves.
Their company is worth $3 billion. Intel is worth $121 billion. Nvidia is worth $9 billion. AMD is struggling. Period.
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#9
seronx
by: yogurt_21
They peaked at $40 in 2006 and had gone as low as $1.82 in the early part of 2009. They rebounded up to $8.50 and are now experiencing a lull as they wait for the deals they made this year start to pay off. With the console deals that are happening expect the stock to be well above $10 at the end of 2013.

AMD isn't going anywhere, though their focus has shifted and will continue to do so as the tech world evolves.
Their focus is still x86/x86-64 though they are just attacking the majority rather than attack the minority. Bobcat and up.

(Fixed somethings in your post)
by: Ravenas
Their company is worth $3 billion. Intel is worth $121 billion
AMD is ~$5 billion. Intel doesn't just do CPUs/GPUs and Chipsets.

Intel makes:
Cable Modems
Demodulators & Tuners
Servers <--- (AMD will soon make with the Freedom Fabric)
Solid State Drives
Wireless devices
Ethernet devices
& more etc.

Intel also owns:
10+ Silicon Foundries

Also, you can tell when AMD has been bad based on what CEO they are on

Jerry Sanders -> 1969 to 2002 (The most successful/competitive era)
Hector Ruiz -> 2003 to 2008 (Rode the wave era)
Dirk Meyer -> 2009 to 2011 (Destroy self and try to repair era)
Rory Read -> 2012 to etc. (So far a continuation of the try to repair era)
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#10
MxPhenom 216
Corsair Fanboy
by: Crap Daddy
The magnitude of Bulldozer's fail sends ripples through distant quarters.
Better hope AMDftw isn't around. he might take a shit down your neck when he reads this haha. But yeah.
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#11
Dent1
by: Crap Daddy
The magnitude of Bulldozer's fail sends ripples through distant quarters.
It's really irrelevant. AMD's success was never contingent on Bulldozer. Even if Bulldozer was a success they'll still be struggling because of their questionable business decisions.

by: D007
The entire world is struggling right now..
Exactly. Most companies are struggling, tightening their belts in this economic climate. Because we are in a computer hardware forum it seems like it's just AMD.

by: yogurt_21
With the console deals that are happening expect the stock to be well above 10$ at the end of 2014.

amd isn't goign anywhere, though their focus has shifted and will continue to do so as the tech world evolves.
Indeed, AMD has potential to be a big threat in the upcoming years with mobile devices and consoles adopting their CPUs. Hopefully they realise this and make wise strategic decisions.
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#12
Xzibit
Both Descrete Graphic companies will be consumed by the evolution of the APU. The stronger it gets the more niche the descret market becomes.

AMD bought ATI to compete with Intel in this front in 2006.

Nvidia is try'n to branch out with Tegra. Thats not gonna do much since battery life on tegra products is horrid.

Both companies have been in a decline since the late 200x.

Intel will win because it could out spend them by taking a dump and not even noticing it from their marketing expenses and its self reliant. The real descrete graphic winner is Real 3D since Intel bought them in 1999.
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#13
phanbuey
by: Xzibit
Both Descrete Graphic companies will be consumed by the evolution of the APU. The stronger it gets the more niche the descret market becomes.

AMD bought ATI to compete with Intel in this front in 2006.

Nvidia is try'n to branch out with Tegra. Thats not gonna do much since battery life on tegra products is horrid.

Both companies have been in a decline since the late 200x.

Intel will win because it could out spend them by taking a dump and not even noticing it from their marketing expenses and its self reliant. The real descrete graphic winner is Real 3D since Intel bought them in 1999.
While I agree with this, it will be a very long time before discrete GPU's leave the spaces that they occupy.

I think that eventually you are right - but I don't see this happening until we start maxing Retina Displays with APUs, and there is code out there that can use the APU to its full potential (i.e. that makes it more efficient due to the on-die properties vs. and interface and a bus). Until that point, where graphics becomes a commodity, I don't think you will get the power that you need from an APU, in either CPU or GPU terms, and most APUs will be low power or low cost solutions.

Remember these guys?
http://www.matrox.com/graphics/en/
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#14
Fourstaff
AMD is still doing fine, they might be struggling a bit but it will be still quite a few more years before they go completely bankrupt, if ever. Share price drifts around $5-10 for a few years now, giving a market cap of about 3-8 billion dollars. Its also important to take note that the market cap reflects the current state of the business and the world economy in general, not the other way round.

Matrox stopped offering consumer products and went to produce specialised graphics cards years ago, and they are probably swimming with money right now.
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#15
Covert_Death
by: Xzibit
Both Descrete Graphic companies will be consumed by the evolution of the APU. The stronger it gets the more niche the descret market becomes.

AMD bought ATI to compete with Intel in this front in 2006.

Nvidia is try'n to branch out with Tegra. Thats not gonna do much since battery life on tegra products is horrid.

Both companies have been in a decline since the late 200x.

Intel will win because it could out spend them by taking a dump and not even noticing it from their marketing expenses and its self reliant. The real descrete graphic winner is Real 3D since Intel bought them in 1999.
nVidia is already far ahead of intel in the mobile CPU game. they aren't going anywhere soon. discrete will still be necessary because with what power an APU can do, a discrete can do ten fold. there is no way my CAD machine will ever (or any engineer's CAD machine) run on an APU alone. discrete graphics will always be more powerful than an APU simply because of size. and a seperate CPU will also be better than an APU for the same reason.

for entry pc's and low level gaming PC's the APU will be a miracle, as it should. but for people who have PC's to do HEAVY work loads or play serious games, seperate components will always win, atleast for this generation. until the modern PC see's a drastic overhall in how it is compiled this will be the case. one day these "big boxes" of electronics will not be necessary and then the cpu and discrete cards will truly die.
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#16
SIGSEGV
i do believe in next few years technology of the APU will be mature and more powerfull, based on green technology. that's what i called with the power of science and technology revolution. amd is on the right track.

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#17
ensabrenoir
If amd can manage to hold its course as the computer world goes metro with potato powered tablet and what not they'll be ok.
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#18
INSTG8R
Yeah AMD have a good handle on the APU front. They are leading the pack there and I believe they will focus on it. The rumours that they will supply GPU's for all the next consoles if true will also be lucrative. They maybe lagging behind right now but all those things will definitely keep them going.
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#19
XNine
CaseLabs Rep
by: INSTG8R
Yeah AMD have a good handle on the APU front. They are leading the pack there and I believe they will focus on it. The rumours that they will supply GPU's for all the next consoles if true will also be lucrative. They maybe lagging behind right now but all those things will definitely keep them going.
I believe so as well. Some very valid points. I didn't have the money to grab a 7970, But I did grab a 7870 and love it to death. Just a shame there's no waterblocks for it.

I'm not too up to date on the whole APU thing, but to me, it doesn't seem like it would be likely to take anyone away from the enthusiast range anytime soon.
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#20
NC37
Problem is...it is July and we only have a handful of Trinity laptops out atm. Where is the great Trinity push which AMD seemed to want to do? Of them is just two brands. HP, which has crappy quality...then Toshiba which doesn't quite have great specs for the money.

Llano launched a lot better than this and that had supply problems up the wazoo. Come on AMD, gimmie something to keep my eyes on. I'm in the market but the longer it takes to get more of Trinity out there, the more I consider saving a little extra and going a Qosmio or MBP (non Retina). Not that I plan to buy now, but back to school sales will be coming.
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#21
seronx
by: NC37
Problem is...it is July and we only have a handful of Trinity laptops out atm. Where is the great Trinity push which AMD seemed to want to do? Of them is just two brands. HP, which has crappy quality...then Toshiba which doesn't quite have great specs for the money.
32-nm still sucks it took half a year to get Trinity even out. It's no reason why GloFo is going pure bulk products like TSMC.
(Trinity, Vishera, Seoul, and Abu Dhabi are all in full production as of now(well since June)).
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#22
Andy77
by: seronx
32-nm still sucks it took half a year to get Trinity even out. It's no reason why GloFo is going pure bulk products like TSMC.
(Trinity, Vishera, Seoul, and Abu Dhabi are all in full production as of now(well since June)).
Well 32nm wouldn't suck if GF had the capacity of intel, then AMD, their biggest client, could aggressively push their products to OEM's and we would have more options and better competition. In time GF will build factories and capacity will improve, but so far AMD can't do anything about it.
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#23
seronx
by: Andy77
Well 32nm wouldn't suck if GF had the capacity of intel, then AMD, their biggest client, could aggressively push their products to OEM's and we would have more options and better competition. In time GF will build factories and capacity will improve, but so far AMD can't do anything about it.
GlobalFoundries problem isn't capacity. It is yield rate.

Worst Process:
GlobalFoundries 32-nm > TSMC 40-nm/TSMC 28-nm
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#24
TheMailMan78
Big Member
If AMD posted positive results people would still say "OMG AMD IS GONNA DIE WITH SUCH SMALL GAINS" Instead we hear "OMG AMD IS GONNA DIE WITH SUCH LOSSES". Broken record is broken.

AMD is doing fine.
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#25
MxPhenom 216
Corsair Fanboy
by: TheMailMan78
If AMD posted positive results people would still say "OMG AMD IS GONNA DIE WITH SUCH SMALL GAINS" Instead we hear "OMG AMD IS GONNA DIE WITH SUCH LOSSES". Broken record is broken.

AMD is doing fine.
agreed. In the Enterprise Server environment and APUs they are doing pretty well.
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