Friday, October 16th 2009

AMD Reports Third Quarter Results

AMD today reported revenue for the third quarter of 2009 of $1.396 billion. Third quarter 2009 revenue increased 18 percent compared to the second quarter of 2009 and decreased 22 percent compared to the third quarter of 2008.

In the third quarter of 2009, AMD reported a net loss attributable to AMD common stockholders of $128 million, or $0.18 per share, which includes a net favorable impact of $54 million, or $0.08 per share, primarily from a $66 million gain from the repurchase of debt as described in the table below. AMD's operating loss was $77 million.

In the second quarter of 2009, AMD had revenue of $1.184 billion, a net loss attributable to AMD common stockholders of $330 million and an operating loss of $249 million. In the third quarter of 2008, AMD had revenue from continuing operations of $1.797 billion, a net loss attributable to AMD common stockholders of $134 million and an operating income of $122 million.

In the third quarter of 2009, AMD Product Company reported non-GAAP net income of $2 million and non-GAAP operating income of $47 million. In the second quarter of 2009, AMD Product Company reported a non-GAAP net loss of $244 million and a non-GAAP operating loss of $205 million.

"Strong demand for our product and platform offerings combined with disciplined execution resulted in AMD Product Company achieving profitability in the third quarter," said Dirk Meyer, AMD president and CEO. "Growth in microprocessor and graphics unit shipments drove an 18 percent sequential revenue increase, while improved factory utilization rates, higher microprocessor average selling price and an increase in 45nm product shipments resulted in a gross margin improvement from the prior quarter."

Third quarter 2009 AMD gross margin was 42 percent compared to 37 percent in the prior quarter. Third quarter 2009 AMD Product Company non-GAAP gross margin was 38 percent compared to 27 percent in the prior quarter.

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 the "Cautionary Statement" below.

AMD expects its Product Company revenue to be up modestly for the fourth quarter of 2009. For more information, visit this page.
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19 Comments on AMD Reports Third Quarter Results

#1
Easo
So, in short, is AMD going up or no? I am too sleepy atm...
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#2
mystikl
To sum it up: they are doing better than expected.
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#3
laszlo
EasoSo, in short, is AMD going up or no? I am too sleepy atm...
no way up but they have slowed the decline nicely compared to older results;i think next year the will have no loss
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#4
dir_d
They should have a nice and decent 4th Quarter too
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#5
mechtech
I think they still have to paying the 5 billion it cost to aquire ATI. So even if they made huge profit, most of it would just to pay off that debt.
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#6
Assimilator
Excellent news - as dir_d says, hopefully the 4th quarter will see AMD returning to profitability, especially with the Radeon 5000 series so strong.
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#7
LittleLizard
seems that the economic recession for amd is going out
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#8
Imsochobo
To sum it up.

Amd is kind of "up", they earn more money again, their loss is way down, and they are marking themself better in the market i think.
ATI have really really made a passing into the Laptop market, AMD cpu's need to pass into them aswell, PHII in laptops will work excellent, i can run a PHII @ 2.8 Ghz at 1.1 V with a bad chip.

anyhow, good to see amd is doing better, they're the only real competitor to Intel in the future, when intel gets graphics, nvidia gonna be stuck in the middle it seems.
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#9
suraswami
Good to see that AMD is gaining and keeping their losses reasonable.
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#10
Steevo
losses are a figure of their clever marteting team.

If I market 10 oranges with a cost of (unknown to you) 1.00 and a profit of $9.00 and pay myself $7.00, reinvest two more of my dollars and the three left over I can show a operating loss of $2.00.


Companies do this all the time to prevent paying taxes, to purchase back stock, to purchase stock and interest in otehr companies they want.
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#11
Salsoolo
^so how much you think it costs them to make a phenom 2 chip? say a 940 x4
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#12
Steevo
Less than $10 would be a guess.

But the R&D time, shipping, each company getting a bit of the pie.........
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#13
extrasalty
I remember they had a goal of no operational loss before the end of the year. Dirk Meyer may just pull it off.
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#14
fullinfusion
Vanguard Beta Tester
2011 is going to be the year AMD really sky rockets :rockout:
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#15
Chad Boga
I think the reason for AMD's cautious outlook for Q4 is that, unlike Q3, Q4 will reflect the effect of Lynnfield, so which will be the more significant sales champion out of i5-750 & i7-860 vs PhII 955 and PhII 965?

In respect of ATI, keep in mind that GPU revenues are only a 1/4 to a 1/5 of CPU revenues.
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#16
TheLaughingMan
mechtechI think they still have to paying the 5 billion it cost to aquire ATI. So even if they made huge profit, most of it would just to pay off that debt.
Paid off during the acquisition with stock and loans. Now they owe a Financial group or corporate bank 5 billion. I am not sure how that pay off works, but I doubt it is a "Get to me when you earn a profit". Hell paying them back may be part of the reason they have been operating at a lose since then, but I am not a business major.
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#17
DaJMasta
SteevoLess than $10 would be a guess.

But the R&D time, shipping, each company getting a bit of the pie.........
Try way more than that. Even on a mature process with great yields, making fully functional silicon, especially for a high end chip, is quite expensive - then there's the packaging (for the die), the product packaging, and the heatsink (provided it's not a BE).
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#18
handsomerichguy
it's good to see AMD is still able to catch Intel in processor manufacturing despite financial crisis. I hope AMD will beat Intel again :nutkick: or at least equal to Intel in the future so that there will be pricing war :D
Salsoolo^so how much you think it costs them to make a phenom 2 chip? say a 940 x4
Maybe ~ $100 because Phenom II X2 use the same chip, the crippled version of x4. I wonder why they don't make different chips for x2 and x3 :confused:
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#19
TheLaughingMan
handsomerichguyit's good to see AMD is still able to catch Intel in processor manufacturing despite financial crisis. I hope AMD will beat Intel again :nutkick: or at least equal to Intel in the future so that there will be pricing war :D



Maybe ~ $100 because Phenom II X2 use the same chip, the crippled version of x4. I wonder why they don't make different chips for x2 and x3 :confused:
It is actually less expensive to make 1 chip and cripple it to yield other lower end products. This is because you can use partial defective items in the lower end yields. This will lower the overall count of unusable silicon.

And while they do not equal Intel in the fastest of the fast, I have never shopped in that Range. Bang for your Buck is my moto and I like to think AMD is thinking the same way. While having the performance crown is nice, I am perfectly satisfied with my AMD 955 BE. If this is slow, then something is very, very wrong.
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