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AMD Hammered In New Financials
#1
http://www.extremetech.com/gaming/203590...r-business
Quote:AMD reported its Q1 2015 results last night, and they’re not pretty. The company’s Q1 2015 revenue was $1.03 billion, a decline of 17% sequentially and 26% year-on-year. Gross margins fell slightly year on year, to 32%, though that improved on Q4 2014’s 29%. AMD reported a net loss of $180 million, compared to Q1 2014, where it recorded a $20 million loss.
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The sharp-eyed will notice that while the data appears mostly identical, any mention of 16-core SOCs or AMD’s Freedom Fabric have both been removed. AMD has also declined to discuss Sea Micro or how the company’s technology fit into AMD’s future server plans. Killing SeaMicro doesn’t mean that AMD has given up altogether on server products, but it does throw a wrench into the mix; dense servers were one of the high-growth areas that Rory Read (repeatedly) identified in various discussions about the future of the company during his tenure as CEO. There’s also no word on whether this will impact Project Skybridge.

Other results

There’s no way around this — the bottom has fallen out of AMD’s traditional business. PC desktop and client sales for APUs and graphics (AMD combines the segments) has fallen by nearly 40%, to $532 million, from $861 million just a year ago. It’s hard to understate how much of a shift this is — while AMD always competed as an underdog, is a fraction of the size it was a few years ago.

We’ve written in the past about how AMD’s long-term plan involves strategic repositioning and additional revenue from other, non-traditional sources, but this is a bloodbath. We’ve heard rumors that Intel may have taken the gloves off this past quarter, sacrificing its own margins to maintain market share, but haven’t seen concrete evidence to that effect.

The hard truth is, there’s not a lot of good here. AMD reportedly has a new GPU part coming in the near future, but GPUs have never been where AMD banked a lot of net profit, and there’s no reason to expect that this has changed. Fighting with Nvidia over the high-end GPU space wins AMD mind share and fans, but it doesn’t generate billions of sales in a year-on-year basis. The console business continues to be a decent source of revenue for the company, but its royalty structures and earnings are front-loaded. As time passes, AMD earns smaller profits on that front.

2015 was always going to be a transition year for AMD, but the next 12 months are looking extremely rocky. During the conference call, Lisa Su noted that she believed the second half of the year would be an improvement over the first year, but we’ll have to wait for the May 6 analyst day to know more. AMD does have two new semicustom wins on-track (it hasn’t announced its customers yet), but doesn’t expect to ship those products for revenue until H2 2016.

AMD does expect to see some stronger results thanks to the launch of Carrizo and the launch of Windows 10 in July, but the company is facing a very difficult operating environment.
Valve hater, Nintendo hater, Microsoft defender, AMD hater, Google Fiber hater, 4K lover, net neutrality lover.
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#2
http://seekingalpha.com/article/3078736-...3&uprof=45

Yep, the ship is sinking. What will the Advocates do when they have to buy intel and NVIDIA parts? (other than have better parts)
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#3
(04-18-2015, 05:31 AM)RolloTheGreat Wrote: http://seekingalpha.com/article/3078736-...3&uprof=45

Yep, the ship is sinking. What will the Advocates do when they have to buy intel and NVIDIA parts? (other than have better parts)

Also in that article:

Quote:Consoles and other semi-custom chips

The possibility of a burst in console sales with the introduction of Xbox and PlayStation to the Chinese market did not materialize. It is still worth watching the ramp, as gaming consoles could yet catch on there. Nor did a price reduction by Microsoft do more than just keep it competitive with Sony (NYSE:SNE), and maybe clear out some inventory.

Big Grin

I guess "by competitive with Sony" the author means in the same way that AMD is "competitive with intel"..........
[Image: ROFLMAO.gif]
Adam knew he should have bought a PC but Eve fell for the marketing hype.

Homeopathy is what happened when snake oil salesmen discovered that water is cheaper than snake oil.

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#4
Did you guys see the thread about this at anandtech?

It is a whole new level.......

I can not believe what I just read
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#5
A lot of turmoil there, and some people getting fed up with AMD.
Valve hater, Nintendo hater, Microsoft defender, AMD hater, Google Fiber hater, 4K lover, net neutrality lover.
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