AMD make a profit?

Can anyone tell me if AMD turned a profit on any quarter during 2002?

I am sure they did, but I do not know for sure. Check the AMD website or something...I dunno.

I don't think they did. They just didnt lose as much as they normally do.

Does AMD usually lose a lot of money? If they do, how do they stay afloat?

yeah for real. considering that most computer enthusiasts will go AMD and build several machines. friend of mine has built at least 7 AMD rigs in the last year.

looks like they lost 3 cents 1st quarter, 54 cents 2nd quarter, 74 cents 3rd quarter, and 69 cents 4th quarter. this year, lost 42 cents 1st, and estimate losing 25 cents this quarter, but they did drop their expectations down which i imagine aren't reflected here.

and how do they stay alive as a company? well, here is how it works if you don't know how companies work. AMD i am guessing has about 350,000,000 million shares of common stock based on earnings and EPS. they sell that stock in the NYSE to people like you and me. so since AMD is a public company, which means, there is no real owner, just the common stock holders own the company.

an easy way to explain it is...a man wants to start a business. so he gets his 10 friends to each give him $1,000 each to start his business. so his friends each own 10% of his new business. so when he starts selling stuff, he divides his profits up between each of the owners. so if he makes $10 a day, each guy makes $1 a day since they each own 10%. this is pretty much a simplified way of how companies work that are public. but in companies like AMD, there are 350,000,000 pieces of the company that people own.

so what happens is the stock is worth say $5 (currently $6.31 a share), how they come up with the price is what people are willing to pay for it, how the market is, how people think the company will do, how they are doing, tons of factors affect stock price, and also, how much money the company needs or is worth. so this quarter AMD brought in 715,000,000. and from that they take away all their costs like, cost of goods sold, wages, theft, taxes, and other costs like that. so they may have sold 715,000,000 in chips, but they spent $861,000,000 to make that much. so their income was $715,000,000 expenses were $861,000,000 so they made a total of -$146,000,000 for this quarter. but AMD the company doesn't lose $146,000,000 each share of stock loses 146,000,000/350,000,000 or 42 cents per share.

so that is basically how a company works. the actual company doesn't really lose money, but the people that own the company do. hope that wasn't too long for yall too read. but i bet a bunch of people on here will learn somethin new. it is over simplified, but what do i know, i'm just a Sr. Finance/Real Estate/Investing major here at Texas Tech

almost all companies have their financial statements on their website for people to go through and look at to see how "their" company is doing

woah LilBuddy!! nice explaination i learned something out of it.

altec said:

I am sure they did, but I do not know for sure.

Click to expand...

But are you sure you don't know for sure?


At any rate, here are some 2002 figures for AMD (from their annual report).

Net sales were $2.679 billion
Net operating loss was $1.303 billion
Working capital (liquid assest) was $647 million (down from $1.039 billion in 2001).
Long-term debt was $1.780 billion (up from $672 million in 2001).

So basically AMD was bleeding money in 2002 and staying in business by floating large bonds and spending down their cash.

They're still losing money in 2003 -- in Q1 they lost $146 million. That's better than any quarter in 2002, but nothing to be proud of.

their long term debt is outrageous. it will be hard to gain a lot of that back. hopefully the market will pick back up or they will just start sinking under more and more

Heh, AMD doesn't even manufacture microprocessors in the 'states anymore. That all got moved to Dresden, Germany. Fab 25 changed over to flash modules last year or the year before. A little off topic, however, people fail to realize AMD and Intel are not simply CPU makers. Intel has done almost everything: motherboards, chipsets, network cards, a video card at one point... AMD does processors, some crappy chipsets, and an excessively abundant amount of flash memory modules... which might or might not help the company (it hasn't the past year and a half, but who knows).

$.02

-Frank

with people getting rolls of 500 case stickers for free i dont think they are making money. that is why i ony asked for 7

If they were to convince dell, gateway etc. to buy there products, they would really really really be making profit. or at least they wouuld be selling a large amount of pruducts.

They do. But dell, gateway etc all sell to the customers and the customers want options so they give them amd and intel. How much of their income do you think is based on processors and how much on flash memory?

it's the whole clock speed stigma. people think microprocessors are like engines. Mhz = horsepower and more = better. this would be true if all cars were the same size and shape. a 3000lb car with a 140hp motor would be pretty wimpy but a 3000lb car with a 500HP motor would rock. consumers fail to realize that not all cars weigh 3000lbs. some cars weigh less than 2000lbs and a 140hp motor is plenty. the same is true with processors. a more efficient design (lighter weight) needs less power (Mhz) to do the same work.

Honestly, I don't think AMD is doing badly just because Intel has more Mhz. Even if that were the case, AMD should be able to take market share with drastically cut prices. But they're not doing that either.

No, AMD's problems stem from poor marking and branding, as well as their inability to ramp and deliver chips when promised. The general public probably feels about AMD like most people feel about Daewoo cars: few even know they exist and of those who do know, few are particularly interested in buying one.

in Q4 of 2002, 61% of sales were processors, 32% flash memory.

in Q3 of 2002, 52% processor, 37% flash memory

in Q4 2001, 75% processor, 21% flash memory

for all of 2002, 65% processor, 27% flash memory

for all of 2001, 62% processor, 29% flash memory

so in 2002 1,746,000 in processors, 741,000,000 in flash memory

2001 2,419,000,000 in processors, 1,133,000,000 in flash memory

the reason that the processors are made in germany now is because germany restructured it's entire economy to encourage companies to move there and to do better. they are more friendly in germany than in any other country now. they may have "moved" to germany, but the company is still an american company. by having their main operations in germany, they can pay less taxes and then ship all their products here. USA taxes are around 35%, while in germany it is around 25%. a very large difference when you deal with billions of dollars.

kinda like how HP moved all it's "offices" to maryland and made that it's base. when in marlyland there is only a small amount of HP stuff. the laws are much more favorable to large businesses there. i think it is maryland

AMD has restructured recently and has focused more on selling higher end chips that are mor profitable. also all the layoffs are helping them a lot too

they should just start some commercials. intel advertises. and they should explain why the amd's go faster with less mhz.

XxxexcelsiorxxX said:

they should just start some commercials. intel advertises. and they should explain why the amd's go faster with less mhz.

Click to expand...

*cough* do more work not go faster *cough*

Thanks for the info lilbuddy, I kinda understand now.

NookieN I said that because I figured that to stay afloat, a company had to make some kind of profit, but I did not know the exact numbers or had not seen anything about AMD making a profit or not, so I did not know for sure.