AMD reports 3Q07 results

[B3D News]

AMD has just released its quarterly earnings report, and it turned out to be slightly better than expected by both analysts and yours truly: revenue came in at $1.63B and the non-GAAP operating loss decrease substantially, from $363M in Q2 to $148M in Q3.<br />
<br />
Despite that, net loss figures were worse than expected by some, at no less than $396M (versus $600M in Q2). But this was partially due to AMD converting its Spansion stake into common stock: because Spansion's value went down further since last quarter, they had to endure a $57M charge related to this operation. All business segments improved, although none have yet returned to profitability; the GPU business, for example, has gone from a $50M operating loss to only a $3M loss.<br />
Read the full news item (http://www.beyond3d.com/content/news/513)

[Geo]

As I said on the other thread, these results are not as good as I hoped, but definitely not as bad as I feared.

They still are suggesting they can get to break even in 4Q, and it might not be out of the question.

Gotta like the improvement of margins to 41%, which begins to approach non-embarrassing for a CPU company.

I wish we knew what the heck that amortising $76M/quarter charge is for ATI acquistion. The fact that it's now flattened out and that they are predicting about the same for 4Q suggests it could be around for some time (years?!). I expected it to trend down over time, not be large and flat.

[ShaidarHaran]

Return to profitability for 1Q '08. ~250M loss for 4Q '07.

Reasoning? Increased GPU profitability in 4Q (55nm lineup looks extremely good) and significant revenue from Phenom in 1Q.
Other than that just shots in the dark.

[Pete]

Arun, thanks for the comprehensive, informative news post. I'd just add a link to the figures and conference call, for easy reference: http://www.amd.com/us-en/Corporate/InvestorRelations/0,,51_306_643,00.html