AMD Reports Third Quarter Results

[v_rr]

SUNNYVALE, Calif.--(BUSINESS WIRE)--AMD1 (NYSE:AMD - News) 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 below2. 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 million3.

“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.

Additional Highlights

* AMD introduced the ATI Radeon HD 5000 family of graphics processors, the industry’s only graphics chips that support the DirectX11 technology featured in Microsoft’s upcoming Windows 7 operating system. The flagship ATI Radeon™ HD 5870 captured the graphics performance title and has won more than 50 industry awards to date. The new ATI Radeon HD 5000 family of graphics cards also includes ATI Eyefinity multi-display technology, allowing a single graphics card to drive up to six monitors.
* AMD delivered several new computing platforms in the quarter.
o For the notebook market, global computer manufacturers including HP, Acer, Toshiba, Asus and MSI announced plans to introduce more than 70 notebooks based on AMD’s latest mainstream and ultrathin platforms.
o For the server market, AMD began shipping server platforms with the introduction of three new AMD server chipsets.
o For the commercial client market, HP began selling the Compaq 6005 Pro Business PC based on the new AMD Business Class Desktop Platform.
o For the embedded market, AMD announced dual- and quad-core platforms for client and high-end commercial embedded solutions.
* AMD launched VISION Technology from AMD, a differentiated approach to retail merchandising designed to reinforce the value proposition of AMD platforms and simplify the consumer buying experience by highlighting what can be done with a PC rather than what is inside the PC.
* AMD launched the AMD Fusion Partner Program, a business acceleration program designed to help AMD channel partners gain sales traction and speed the delivery of AMD platforms.
* AMD joined with GLOBALFOUNDRIES to break ground on Fab 2 in New York, GLOBALFOUNDRIES’ state-of-the-art semiconductor manufacturing facility that AMD expects will provide additional leading-edge manufacturing capacity when the facility enters production, scheduled for 2012.

http://finance.yahoo.com/news/AMD-Re....html?x=0&.v=1

[Mechromancer]

The bleeding is slowing a bit at least.

[Russian]

I find this funny, because they say "only" 128 Million. Do you realize how terrible that is? 128M is a hell of a lot of money considering how profitable ATi appears to be. But AMD is such a bad financial positition... like honestly. They need to start making the CPU division profitable or else the company will be forced to break up. Because AMD is still ridiculously in debt compared to almost everyone else...

oh, and this makes all those statements of nvidia going out of business hilarious.

[gallag]

I find this funny, because they say "only" 128 Million. Do you realize how terrible that is? 128M is a hell of a lot of money considering how profitable ATi appears to be. But AMD is such a bad financial positition... like honestly. They need to start making the CPU division profitable or else the company will be forced to break up. Because AMD is still ridiculously in debt compared to almost everyone else...

oh, and this makes all those statements of nvidia going out of business hilarious.

This is obviously true but you are about to incur the wrath of the AMDfanboy society. Only losing 128million is good lol.

[Manicdan]

for those who play WoW

/e attacks %t with the anger of AMDism

[eleeter]

Step in the right direction. But SOON AMD needs to make something known as profits.

[NaMcO]

They need to make their products appealing. They're not, no matter what.

[Manicdan]

They need to make their products appealing. They're not, no matter what.

the products are great for the cost,

i think what they need is something revolutionary. when was the last time they could charge more than 300$ for a desktop chip. before intel's core wasnt it?

[NaMcO]

They are great for the cost, but that alone doesn't make them appealing. Good solid overall product does, even if it costs that "bit" more.

[highoctane]

They are great for the cost, but that alone doesn't make them appealing.

Same can be said of a hooker and why we don't marry them!!

[Sparky]

This is obviously true but you are about to incur the wrath of the AMDfanboy society. Only losing 128million is good lol.

Trying to start something already? That was only the 4th post of the thread, no need for crap yet

[Clairvoyant129]

This is obviously true but you are about to incur the wrath of the AMDfanboy society. Only losing 128million is good lol.

Anyway, it isn't as bad as before...

[kadozer]

Cool, maybe they can break even some time in the near future.

[Vienna]

The bleedings slowing down, gross margin is up, costs are down, and sales(revenue) is up(down over last year, but up over last quarter), who knows, it looks like they may be returning profitablity soon!

[w0mbat]

And Fusion is 32nm SOI in Q4 2010, BD could come Q1 2011.

[villa1n]

I find this funny, because they say "only" 128 Million. Do you realize how terrible that is? 128M is a hell of a lot of money considering how profitable ATi appears to be. But AMD is such a bad financial positition... like honestly. They need to start making the CPU division profitable or else the company will be forced to break up. Because AMD is still ridiculously in debt compared to almost everyone else...

oh, and this makes all those statements of nvidia going out of business hilarious.

want to see a lot of money... look at the american debt counter.. or better yet, the unsecured credit swap markets..

[tajoh111]

want to see a lot of money... look at the american debt counter.. or better yet, the unsecured credit swap markets..

Nonetheless, AMD is one of the companies most likely to go bankrupt.

From how much people say NV is screwed. You would have to think AMD is ten times more screwed, as I don't see them making a profit anytime soon. I can see NV making a product that beats AMD 58xx and capturing its lost marketshare, than AMD pulling a rabbit out of its CPU division that beats intels core ix or intel core2duo in the mobile market.

Bulldozer is crazy far away, and what had AMD done lately to be competitive in the mobile market which they have pretty much forfeited? Turion?

I cannot see AMD making a profit until they make a CPU chip better than Intel.

Which is sadly not for the forseeable future.

People might say low end(under 200 dollar market is where the money is at because of volume), but when your chips cost as much as a high end to produce and you have to sell them at the lower end to be competitive, you won't make money.

AMD won't make a net profit(something that doesn't not include the selling of factories or assets), for the next 2 years atleast.

[vengance_01]

They are great for the cost, but that alone doesn't make them appealing. Good solid overall product does, even if it costs that "bit" more.

True Intel fanboy. AMD products are just as solid as Intel's counter parts.

[trinibwoy]

Nice, both CPUs and GPUs made money. That hadn't happened in a while.

[eleeter]

AMD won't make a net profit(something that doesn't not include the selling of factories or assets), for the next 2 years atleast.

AMD will likely make a small profit in Q4-09.

[informal]

And Fusion is 32nm SOI in Q4 2010, BD could come Q1 2011.

I just listened to the Q3 earnings call audio webcast and both Meyer and Rivet said(wrt to 32nm node ramp-up) that they will be sampling customers in H1 2010 and ramping up and production in H2 2010- fast forward to 23rd minute in the Q&A session. 32nm looks like a rerun of 45nm ramp and product introduction in 2008. This time the first 32nm part will be Fusion part and not an Opteron. Bulldozer looks like Q1 or Q2 2011 and done on the client side,while server parts may come a bit later.

[eleeter]

I just listened to the Q3 earnings call audio webcast

Got a link for us lazy people?

[informal]

Got a link for us lazy people?

Yep
http://phx.corporate-ir.net/phoenix....reamId=1371282

You'll need to fill in a small form before you can listen to it.I had to use Iexplorer for it,ff wouldn't play it due to plug-in incompatibility.

[eleeter]

Thanks.

[informal]

Oh and they conformed the Fusion is monolithic product at 34:40 in the Q&A ,that's petty significant information(basically a 32nm Deneb with an evergreen derivative on a same die and same process node).This means a bulldozer will be a second design on a new 32nm node,1 or 2 quarters after Fusion is introduced.