Tuesday, July 7th 2015
AMD Updates Second Quarter Outlook
AMD today announced that revenue for the second quarter ended June 27, 2015 is expected to be lower than previously guided. The company now expects second quarter revenue to decrease approximately 8 percent sequentially, compared to the previous guidance of down 3 percent, plus or minus 3 percent. The sequential decrease is primarily due to weaker than expected consumer PC demand impacting the company's Original Equipment Manufacturer (OEM) APU sales. The company expects second quarter channel sales and channel inventory reduction efforts to be in-line with the company's plans.
The company anticipates non-GAAP gross margin to be approximately 28 percent, compared to the previous non-GAAP guidance of approximately 32 percent primarily due to a higher mix of Enterprise, Embedded and Semi-Custom segment sales and lower than anticipated Computing and Graphics segment APU unit volumes due to weaker than expected OEM PC product demand. Additionally the company anticipates GAAP gross margin to be further impacted by a one-time charge of approximately $33 million associated with a technology node transition from 20 nanometer (nm) to FinFET. The company started several product designs in 20 nm that will instead transition to the leading-edge FinFET node.
Cash and cash equivalents at the end of the second quarter are expected to be approximately $830 million, in line with expectations.
AMD will report second quarter 2015 results after market close on Thursday, July 16, 2015. AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 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. The webcast will be available for 10 days after the conference call.
The company anticipates non-GAAP gross margin to be approximately 28 percent, compared to the previous non-GAAP guidance of approximately 32 percent primarily due to a higher mix of Enterprise, Embedded and Semi-Custom segment sales and lower than anticipated Computing and Graphics segment APU unit volumes due to weaker than expected OEM PC product demand. Additionally the company anticipates GAAP gross margin to be further impacted by a one-time charge of approximately $33 million associated with a technology node transition from 20 nanometer (nm) to FinFET. The company started several product designs in 20 nm that will instead transition to the leading-edge FinFET node.
Cash and cash equivalents at the end of the second quarter are expected to be approximately $830 million, in line with expectations.
AMD will report second quarter 2015 results after market close on Thursday, July 16, 2015. AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 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. The webcast will be available for 10 days after the conference call.
20 Comments on AMD Updates Second Quarter Outlook
wccftech.com/tsmc-begins-10nm-finfet-prototyping/
AMD fans
Intel fans
Nvidia fans
They may get a bolster later in the year depending on GPU sales but so far they really have not done much this year. A sale is looking more and more imminent...
Both sets of companies GloFlo, and TSMC, and Nvidia, and AMD have been suffering the poor implementation of nodes and processes.
At this point I don't foresee AMD taking the lead back from anyone, instead if they work hard and catch a break with good designs and a good process they may be able to return to profitability next year, but that is going to require a lot of ground work, some early samples given out of Zen and any new process GPUs. At this point they are profitable with the chips they make for the consoles, some technology royalties, and the initial unique sales of Fury and residual sales of older tech. None of which is profitable enough to support the organization they have in place.
Those are the facts from what I can see. What i would like to see is a pure graphics card released, with gaming performance being the primary goal, not compute as well. Then have them release a cheap low power core with a few shaders and the UVD module on it they can strap on to lower power consumption on high end cards, and to make low power cards with. Then get Zen out, even on the older node at a quad core with SMT but with the higher IPC needed to perform, even with higher power consumption. People will buy it if the performance is there and its not a server spinoff chip.
www.google.com/finance?cid=327
Or this could be AMD being used to launder money for other uses where the same owners have major shares in the foundry and the company.
I may have to buy a few shares at this new lower price in case of a buyout, or for shits and giggles.