The AMD Execution Thread [2007 - 2017]

[wishiknew]

I saw AMD posted a profit. Is that right???

 

[BRiT]

I saw it was $257 Million on margins of 47%.

 

[neliz]

cc transcript: http://seekingalpha.com/article/199...q1-2010-earnings-call-transcript?source=yahoo

First quarter revenue was $1.57 billion, down 4% compared to the fourth quarter of ’09 and up 34% compared to the same period a year ago. AMD reported non-GAAP net income of $63 million in the first quarter of 2010. To calculate the non-GAAP net income, we excluded the $17 million amortization of intangible assets and three items related to the deconsolidation of Global Foundries.

First, a non-cash onetime gain of $325 million based on the fair value assessment of our investment in Global Foundries. Second, a gross margin benefit of $59 million related to inventory and third, a non-cash loss of $183 million which includes our share of Global Foundries operating results and other equity accounting related adjustments.

First quarter non-GAAP operating income was $130 million excluding the gross margin benefit related to inventory and amortization of required intangible assets. Non-GAAP gross margin for the quarter was 43%, up 2% from last quarter mainly due to improved product mix that drove higher ASP’s.

n the Graphics segment, revenue for the quarter was $409 million, down 3% sequentially in a constrained capacity environment.Record mobile CPU shipments were more than offset by a combination of seasonally lower gain royalties and desktop discrete traffic sales.

Graphics processor ASP’s increased sequentially and continued demand for ADI’s 5000 series traffic parts. Graphic segment operating income was $47 million compared with $50 million in the fourth quarter.

Our cash and marketable security balance at the end of the quarter was $1.9 billion. Long-term debt as of the end of the first quarter of 2010 was $2.6 billion.

So Evergreen brought nothing to the table for AMD?

Later on there's some talk about the limited 40nm capacity etc. and a confirmation that GloFo will do 28nm graphics for ATI.

 

[trinibwoy]

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDA4MjR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

I wonder why such a large chunk of change ($904m) went into the deconsolidation. At least going forward we will now get a clearer view of how well the core AMD business is doing.

 

[cal_guy]

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDA4MjR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

I wonder why such a large chunk of change ($904m) went into the deconsolidation. At least going forward we will now get a clearer view of how well the core AMD business is doing.

Under the consolidation method of accounting AMD included the full amount of Globalfoundries' asset and liabilities on their balance sheet. The portion of the assets and liabilities that weren't owned by AMD (i.e the 70% or so owned by ATIC) was treated an liability called non controlling interest. Now that AMD is recording it's interest in GF through the Equity method it's no longer recording GF's cash in it's Cash Flow statement.

 

[Psycho]

Regarding evergreen:

Can you give us the mix of40 nanometer shipments in the GPU space for the quarter?
Derrick Meyer: I don’t want to be precise but it was over 30%.

What were they in Q4 just as a reference?
Derrick Meyer: Much less. As I said, we shipped about six million units in total of DX 11 40-nanometer CPU’s through the end of Q1.

Wonder how much the console royalities (x360, wii) accounts for, since it's seasonal variation is mentioned as driving graphics division revenue down.

 

[rpg.314]

Wonder how much the console royalities (x360, wii) accounts for, since it's seasonal variation is mentioned as driving graphics division revenue down.

I am sure they are very less. A few $ per unit at max. It's just my guess though.

 

[rpg.314]

I saw it was $257 Million on margins of 47%.

http://www.brightsideofnews.com/new...arnings-report-shows-hope-for-the-future.aspx

The major reason why AMD was able to post such a large profit of $257 Million during 1Q 2009 was largely in fact due to the fact that AMD recognized a non-cash, one-time gain of $326 Million.

So still losing money it seems

 

[chavvdarrr]

Can you give us the mix of40 nanometer shipments in the GPU space for the quarter?

Derrick Meyer: I don’t want to be precise but it was over 30%..

So, only 30% of shipped GPUs are 40nm ?!? How is this possible? I thought all 5xxx and some 4xxx are 40nm ?

The major reason why AMD was able to post such a large profit of $257 Million during 1Q 2009 was largely in fact due to the fact that AMD recognized a non-cash, one-time gain of $326 Million.

Someone who can explain this?
How is it possible for a firm to "recognize a non-cash, one-time gain"?

 

[trinibwoy]

Under the consolidation method of accounting AMD included the full amount of Globalfoundries' asset and liabilities on their balance sheet. The portion of the assets and liabilities that weren't owned by AMD (i.e the 70% or so owned by ATIC) was treated an liability called non controlling interest. Now that AMD is recording it's interest in GF through the Equity method it's no longer recording GF's cash in it's Cash Flow statement.

Right but that doesn't explain the $900m outflow. That says to me that a lot of the cash on the books was actually in GF's coffers before the split.

 

[Kaotik]

So, only 30% of shipped GPUs are 40nm ?!? How is this possible? I thought all 5xxx and some 4xxx are 40nm ?

Are they counting XB360 GPU's, even though they don't really "ship them", but gain royalties for every produced one?
And then Wii GPU/NB/DSP-whatever-that-chip-has-in-it?

 

[rpg.314]

Someone who can explain this?
How is it possible for a firm to "recognize a non-cash, one-time gain"?

Well, BSN didn't provide any reasons for this thing. Nor did any other tech site pick it up. May be that's a clue there....

 

[leoneazzurro]

So, only 30% of shipped GPUs are 40nm ?!? How is this possible? I thought all 5xxx and some 4xxx are 40nm ?

Someone who can explain this?
How is it possible for a firm to "recognize a non-cash, one-time gain"?

If he's talking about "total mumber of GPUs" maybe he's counting also the IGP there.
Moreover, I think there is still a good request for lower end 46xx and 43xx GPUs and Cedar and Redwood GPUs started shipping only in the middle of Q1 (except to some OEMs).

 

[Psycho]

Well, BSN didn't provide any reasons for this thing. Nor did any other tech site pick it up. May be that's a clue there....

And searching for those "326" millon doesn't yield any results either...

There's also this statement from the same article which I find highly doubtful, considering AMDs rise in notebook gpu shipments, and what's actually on store shelves:

=We also believe that AMD missed a very large opportunity with the Calpella notebook designs, a segment now owned by nVidia

I think it's more like nvidia claimed all those design wins almost a year ago, but failed to deliver because their 40nm woes, and the evergreen notebooks appeared at almost the same time as most GT21x designs.

 

[Lightman]

cc transcript: http://seekingalpha.com/article/199...q1-2010-earnings-call-transcript?source=yahoo



So Evergreen brought nothing to the table for AMD?

Later on there's some talk about the limited 40nm capacity etc. and a confirmation that GloFo will do 28nm graphics for ATI.

It did brought quite a bit:

Graphics segment revenue decreased 3% sequentially and increased 88% year-over-year. The sequential decrease was driven primarily by a seasonal decline in royalties received in connection with the sale of game console systems, largely offset by an increase in graphics processor unit (GPU) revenue. The year-over-year increase was driven primarily by an increase in GPU shipments.

Looks like 88% increase YoY shows HD5xxx impact where 3% decrease can be attributed to much smaller royalties from console chips. This makes sense because consoles sees biggest sale in Q4 whenever PC components are on a much smaller roller-coaster through the year.

 

[Silent_Buddha]

So, only 30% of shipped GPUs are 40nm ?!? How is this possible? I thought all 5xxx and some 4xxx are 40nm ?

Existing obligations to OEMs for contracts on 4xxx chips, both desktop and mobile would be the most likely explanation. Also someone already mentioned Cedar and Redwood only started shipping mid quarter, and products in that market segment would account for the majority of shipped GPUs.

Looks like 88% increase YoY shows HD5xxx impact where 3% decrease can be attributed to much smaller royalties from console chips. This makes sense because consoles sees biggest sale in Q4 whenever PC components are on a much smaller roller-coaster through the year.

Seasonal decline of 3% from Holiday season sales. So that's actually quite good. Usually the Quarter following the Holiday season would show a larger Quarter to Quarter (sequential) drop, no?

And 88% YoY growth shows how well the GPU division is doing overall. Of course, that was accomplished in the virtual absense of significant competition for the "halo" parts.

Regards,
SB

 

[dkanter]

Existing obligations to OEMs for contracts on 4xxx chips, both desktop and mobile would be the most likely explanation. Also someone already mentioned Cedar and Redwood only started shipping mid quarter, and products in that market segment would account for the majority of shipped GPUs.



Seasonal decline of 3% from Holiday season sales. So that's actually quite good. Usually the Quarter following the Holiday season would show a larger Quarter to Quarter (sequential) drop, no?

And 88% YoY growth shows how well the GPU division is doing overall. Of course, that was accomplished in the virtual absense of significant competition for the "halo" parts.

Regards,
SB

YoY growth probably reflects the economy more than anything else.

DK

 

[Silent_Buddha]

That's a possibility but I'm not yet ready to consider the economy is in recovery just yet. And it's a bit much of a coicidence that YoY growth just happens to coincide with lack of availability for high end parts from Nvidia for the past few months. Likewise with the Holiday Quarter -> Next Quarter loss of only 3%.

Regards,
SB

 

[rpg.314]

YoY growth probably reflects the economy more than anything else.

DK

If it's just the economy, then nv should see a similar bump. We'll know soon enough.

 

[dkanter]

It's really easy to figure out. Intel's revenue was up 44% YoY and NV's revenue is probably going to increase by around 50%.

So the increase in revenue for ATI is primarily due to the economy (call it a 50% increase), while the remaining 20% is probably due to improvements relative to NV.

DK