AMD Reports Second Quarter Results

[btarunr]

AMD today announced revenue for the second quarter of 2011 of $1.57 billion, net income of $61 million, or $0.08 per share, and operating income of $105 million. The company reported non-GAAP net income of $70 million, or $0.09 per share, and non-GAAP operating income of $114 million.

“In the first half of 2011, AMD brought to market the most competitive client offerings in our history, reinforcing our position as a design and innovation powerhouse,” said Thomas Seifert, CFO and Interim CEO. “Today’s computing experience is increasingly being defined by the ability to deliver brilliant multimedia and video content with all day battery life. Fusion APUs are ideal to meet this need, positioning AMD to gain unit market share in the mobile computing space.”



Quarterly Summary

• Gross margin was 46 percent.
• Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.86 billion.
• AMD’s second quarter had 13 weeks of business compared to 14 weeks for the first quarter.
• Computing Solutions segment revenue was flat sequentially and year-over-year. Sequentially, higher mobile microprocessor revenues were offset by lower desktop and server revenue. The year-over-year decrease was primarily driven by lower server revenue.
  o Operating income was $142 million, compared with $100 million in Q1 11 and $128 million in Q2 10.
  o Microprocessor ASP decreased sequentially and year-over-year.
  o AMD launched the highly-anticipated AMD A-Series APU for client PCs combining a brilliant HD experience, supercomputer-like performance and all-day battery life for notebooks.
  o AMD Fusion APUs received the 2011 Best Choice of Computex Taipei Award and the A-Series APU-based products have won 20 reviewer awards to-date.
  o The AMD A-Series APU has secured more than 150 notebook and desktop design wins across leading PC manufacturers including Acer, Asus, Dell, HP, Lenovo, Samsung and Toshiba.
  o Acer and MSI introduced new tablets based on AMD’s 2011 HD Tablet Platform and AMD Z-Series APU that enables outstanding video, graphics experience and content creation capabilities for Windows-based tablets.
  o The new AMD Embedded G-Series APU was named Best in Show for hardware at the Embedded Systems Conference by industry analyst firm VDC Research.
  o The number of AMD-powered offerings on the most recent TOP500 supercomputers list increased 15 percent, with more than half of the AMD systems featuring the AMD Opteron 8- or 12-core processors.
  o Dell, Cray and NexServe announced new AMD Opteron processor-based systems aimed at high-performance, compute-intensive workloads. Leading enterprises, universities and research facilities worldwide announced new high-performance computing installations featuring the AMD Opteron processor.
• Graphics segment revenue decreased 11 percent sequentially and 17 percent year-over-year. The sequential decrease was driven primarily by lower discrete mobile unit shipments and seasonality in the desktop discrete graphics add-in board market. The annual decrease was primarily driven by lower unit shipments.
  o Operating loss was $7 million, compared with operating income of $19 million in Q1 11 and $33 million in Q2 10.
  o GPU ASP was flat sequentially and year-over-year.
  o AMD expanded its offerings for the professional graphics market with the introduction of the AMD FirePro V5900 and FirePro V7900 graphics cards which provide enhanced visual capabilities designed to improve workflow and increase productivity for engineers and designers.
  o Dell announced a new, ultra-high performance blade server powered by the AMD FirePro V7800P professional graphics.
  o The award-winning AMD Radeon HD 6000 family of graphics expanded with the introduction of two sub-$100 cards offering support for DirectX 11, AMD App acceleration and AMD Eyefinity multi-display technologies.
  o AMD extended its position as the graphics provider of choice for the game console market, where more than 140 million current-generation games consoles are powered by AMD graphics technology. Nintendo announced it selected AMD to provide the graphics technology for its next-generation Wii U System that will be available next year.

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 increase 10 percent, plus or minus 2 percent, sequentially for the third quarter of 2011.

For additional detail regarding AMD’s results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

[63jax]

they are really struggling, i hope it all turns good for them

[Yukikaze]

They are in the black even with all the R&D they are doing, so it isn't all bad.

Originally Posted by 63jax

they are really struggling, i hope it all turns good for them

How do you figure? They expect revenue to increase by 10% in just one quarter. Plus they have positive net income. How many years did they go with negative net income? More than a few. They're dominating in video if you look at their full product line. Although I don't keep up with it, my impression is that the same goes for the APU market. And even if bulldozer doesn't crush Sandy Bridge, they're still the only alternative to Intel. I'd say the future is so bright they need to buy some shades.

[mastrdrver]

I can't wait for the 17/18 watt Trinity parts they talked about in the CC.

[jpierce55]

agreed, it is an improvement.

[Trackr]

I'm really happy for AMD. I hope Bulldozer nets them $1B net income.

But that's also what scares me. This industry is fickle. One month you could make tremendous profit, the next you could be losing money.

If Bulldozer doesn't succeed, I fear they may be seeing losses soon once more.

[1Kurgan1]

Originally Posted by Trackr

If Bulldozer doesn't succeed, I fear they may be seeing losses soon once more.

Bulldozer was suppose to release last month, but they have really diversified themselves. Even if Bulldozer doesn't do extremely well, the new APU lineup, and the fact that they will be supplying the videocards for all 3 next gen consoles, I don't think AMD is going anywhere within the next 10 or so years (I would say that simply based on the console part).

[General Lee]

Graphics segment did 7 million loss. It seems the 6xxx series hasn't faired all that well.

[TheMailMan78]

Originally Posted by twilyth

How do you figure? They expect revenue to increase by 10% in just one quarter. Plus they have positive net income. How many years did they go with negative net income? More than a few. They're dominating in video if you look at their full product line. Although I don't keep up with it, my impression is that the same goes for the APU market. And even if bulldozer doesn't crush Sandy Bridge, they're still the only alternative to Intel. I'd say the future is so bright they need to buy some shades.

I'm no stock guru but I have to agree. Its lookin a lot better then it did a year or two ago for them. Now they need something epic so I can gain back my almost 14k back out of them! .....................

Here is the year in review for them. I need them to hit 15.80 to break even. So close back in March.....so close.

Originally Posted by General Lee

Graphics segment did 7 million loss. It seems the 6xxx series hasn't faired all that well.

Nobody has faired well man. You can thank two things for that. The overall work economy and gaming ports. No need to spend money when nothing worth playing will punish older cards (5xxx series).

[Thrackan]

Originally Posted by General Lee

Graphics segment did 7 million loss. It seems the 6xxx series hasn't faired all that well.

I have never seen so little need for a GFX upgrade as right now. The 6XXX series do add some performance, but for the lump sum of the games on the market right now, it's overkill. nVidia's "counter" release isn't spectacular either, so lots of people stick with their current cards.

[de.das.dude]

Go go go amd!

[happita]

Originally Posted by Thrackan

I have never seen so little need for a GFX upgrade as right now. The 6XXX series do add some performance, but for the lump sum of the games on the market right now, it's overkill. nVidia's "counter" release isn't spectacular either, so lots of people stick with their current cards.

I would beg to differ, what nvidia did with their 5xx lineup is a big step up from what they were achieving with the 4xx series.

I feel quite comfortable sitting on my 5850 with the games I play right now. If their next gen graphics offer a decent performance upgrade while keeping within the same thermal envelopes, I might be tempted to replace it.

[Thrackan]

Originally Posted by happita

I would beg to differ, what nvidia did with their 5xx lineup is a big step up from what they were achieving with the 4xx series.

Might be, but it's still not impressive enough to make people switch to something new:

I feel quite comfortable sitting on my 5850 with the games I play right now. If their next gen graphics offer a decent performance upgrade while keeping within the same thermal envelopes, I might be tempted to replace it.

Point confirmed

[johnnyfiive]

I'm glad AMD is reporting quarter results, but I want AMD to report a f'ing Bulldozer already, WHERE IS IT?

[TheLaughingMan]

This is good. Operational cost are down, revenue is up. The only reason they are still reporting a lost is this is a bad season for computer tech and they were so far in the hole any increase would still be a lose.

I expect more than a 10% increase in the 3rd quarter due to contracts being signed now for APU's. What AMD needs to do is ramp up production and advertise to the people.

[TheMailMan78]

Originally Posted by TheLaughingMan

This is good. Operational cost are down, revenue is up. The only reason they are still reporting a lost is this is a bad season for computer tech and they were so far in the hole any increase would still be a lose.

I expect more than a 10% increase in the 3rd quarter due to contracts being signed now for APU's. What AMD needs to do is ramp up production and advertise to the people.

Advertising has always been AMD's weakness.

[seronx]

Originally Posted by johnnyfiive

I'm glad AMD is reporting quarter results, but I want AMD to report a f'ing Bulldozer already, WHERE IS IT?

August like you were told

[[H]@RD5TUFF]

Originally Posted by Yukikaze

They are in the black even with all the R&D they are doing, so it isn't all bad.

Yes it's good to see they are doing better than expected, I hope they can get back to being able to compete with Intel but that is likely to never happen.

[seronx]

Originally Posted by [H]@RD5TUFF

Yes it's good to see they are doing better than expected, I hope they can get back to being able to compete with Intel but that is likely to never happen.

It going to happen with Zambezi rofl



Well Orochi exactly

Interlagos will take the TOP500
Valencia will like Data Centers with its 45-65 ACP
Zambezi will take the Gaming/Enthusisast market

because Real Cores always beats out Virtual Threads

[Jonap_1st]

desktop computer and notebook market are taken hard hit with the succesfull of tablet and smartphone. but as long as manufactures like AMD still able to take some profit, they will keep moving forward..

[seronx]

Originally Posted by Jonap_1st

desktop computer and notebook market are taken hard hit with the succesfull of tablet and smartphone. but as long as manufactures like AMD still able to take some profit, they will keep moving forward..

Well AMD has a niche in the Tablet Market

http://www.amd.com/us/products/noteb.../tablet.aspx#3

But can it play Crysis? probably not

[NdMk2o1o]

Originally Posted by Thrackan

I have never seen so little need for a GFX upgrade as right now. The 6XXX series do add some performance, but for the lump sum of the games on the market right now, it's overkill. nVidia's "counter" release isn't spectacular either, so lots of people stick with their current cards.

Originally Posted by happita

I would beg to differ, what nvidia did with their 5xx lineup is a big step up from what they were achieving with the 4xx series.

I feel quite comfortable sitting on my 5850 with the games I play right now. If their next gen graphics offer a decent performance upgrade while keeping within the same thermal envelopes, I might be tempted to replace it.

I have a GTX 470 and haven't seen anyone reason to upgrade, I can easily OC to match a GTX 570 and can play all of my games at 2048x1152 on max settings, used to be 2 years in between new gen with double the performance in the saqme price segment, now its a new gen every year with 25% performance increase at the same price segment, it's pointless upgrading from anything from a 5850/GTX 470 to HD 6***/GTX 5** imo

I could maybe get £120 for my 470 and it would cost me £250 for a GTX 570, it's ridiculous and if no games come out that don't completely shit all over my 470 by the next gen I won't pay £250 to upgrade then either of there's no point.

[[H]@RD5TUFF]

Originally Posted by seronx

It going to happen with Zambezi rofl



Well Orochi exactly

Interlagos will take the TOP500
Valencia will like Data Centers with its 45-65 ACP
Zambezi will take the Gaming/Enthusisast market

because Real Cores always beats out Virtual Threads

Architecture trumps core count every time, you could have 100 cores but if the cores aren't very powerful then it's pointless as most things just aren't multi threaded yet.

Originally Posted by NdMk2o1o

I could maybe get £120 for my 470 and it would cost me £250 for a GTX 570, it's ridiculous and if no games come out that don't completely shit all over my 470 by the next gen I won't pay £250 to upgrade then either of there's no point.

Also at 120 pounds it would be cheaper to simply purchase another and SLI the 2.

[seronx]

Originally Posted by [H]@RD5TUFF

Architecture trumps core count every time, you could have 100 cores but if the cores aren't very powerful then

AMD K10h Core = 3 IPC
AMD K15h Core = 4 IPC
AMD K10h Floating Point Unit = 1 x 128 bit up to SSE3
AMD K15h Floating Point Unit = 2 x 128 bit up to SSE5 and 1 x 256 bit AVX

The K15 Architecture beats out the K10 Architecture on both integer and floating point

The K15h has 50% more throughput than K10h with 33% more cores (12 cores to 16 cores)

The K15h is 35% more faster than K10h (1 MC core to 1 BD core)

Originally Posted by [H]@RD5TUFF

it's pointless as most things just aren't multi threaded yet.

All games released this year are multithreaded and the games that use DX11 later this year will use all cores(Next year is a pure multithreaded game industry)

Most media creation apps are multithreaded

The Windows OS and most of its Applications are multithreaded

Most things are multithreaded and if not will be very soon