3rd Quarter Loss For AMD Not So Bad

[AngelfireUk83]

http://www.theinquirer.net/gb/inquirer/news/2008/10/17/amd-third-quarter-loss-bad

Third quarter loss for AMD not so bad after all
Will be sipping flat bubbly next quarter

By Sylvie Barak: Friday, 17 October 2008, 10:55 AM


AMD HAS ANNOUNCED a massive reduction in third quarter loss, down about six times what the company lost in last year’s third quarter, thanks to a higher than usual income from technology licensing fees, fewer charges and higher margins.

The Chip maker surprised analysts, who expected the firm to lose 40 cents a share in Q3, by only reporting a loss of $67 million, or 11 cents a share. Compared to last year’s third quarter loss of $396 million (71 cents per share), these recent results are almost cause for celebration at the firm, which has suffered eight consecutive quarterly losses.

AMD managed to reach its operational profitability goals for the quarter and even increased gross margins by from 41 to 51 per cent.

The fact that AMD’s latest upgrade to the ATI graphics processor line proved so successful did no harm either and was particularly helpful in driving revenues up 40 per cent from the same period last year.

Another crucial factor was a 14 per cent rise in revenues from last year, reaching $1.78 billion this quarter. $191 million of that came from technology licensing revenue mainly from flogging older manufacturing equipment to a Russian firm.

Also, not counting losses from discontinued operations, or money spent on restructuring and acquisitions ($39 million), AMD reckoned it earned $80 million, or roughly 13 cents per share.

Trying to claw itself back to black, AMD recently confirmed it was spinning off its manufacturing division to go “asset smart”, cutting AMD’s workforce by 3,000 people, slashing capital expenditures and focusing more on chip design. The spin-off, dubbed The Foundry Co. has been heavily invested in by the Abu Dhabi government which now owns more than half of it.

Looking toward the current fourth quarter, AMD reckoned its revenues would stay around the $1.6 billion mark, which is more or less flat with third quarter revenue, not counting any license cash.

AMD shares soared by 73 cents in extended trading, a 19 per cent boost to $4.59.

Not bad with ATi's 4000 series the card to own and Denab coming the 4th quarter could be even better.

 

[Kuroimaho]

Finally.

 

[funnyperson1]

Man, I wish I'd bought some AMD stock at 3.40. Things look pretty decent for AMD in the short term, considering they have backers with endless pockets.

 

[Kuroimaho]

AMD stock ? I know of stocks which went up 25% this week after the fall already.

 

[Sgt_Pinto]

i could retire of $67 million and so could a few of the generations i produce.

its still a big loss imo.

 

[Hipcrostino]

Not for a company as large as AMD. tis but a drop in the ocean.

 

[Yahira]

Yeah, considering that this is a company that deals in billions of dollars per year (well over a billion per quarter) 67 million isn't all that much.

Heck, isn't that about what they paid Ruiz last year? So next year they just don't give him a paycheck and they break even for a quarter (nice thought, isn't it).

Maybe, just maybe if Deneb gives good showing on release and they keep it up in the GFX market they might start turning a profit soon. I still think that a good bit of their near future will be weighed on the impressions that deneb will give upon release. First impressions last, look what happened to phenom because of the B2 revision bug (people still seem to think the phenoms have that problem). To go even further there are many who still think that there is the gap in performance against the "other guys" that there was with early C2Ds and A64s. Takes a while to reverse those impressions and right now AMD doesn't need anything like that happening again.

So, heres to hoping that AMD has a fantastic release with Deneb and that the stock price climbs back up closer to what it used to be (and makes me and a few others around here a few coin while doing it).

 

[Dolk]

My suggestion to you all, put aside $500 - $1000 and just store it into AMD. No matter what it will go up during the Christmas season. The battle between Intel and AMD will be based on a lot of speculation and 100s of different CPU tests. During speculation time, stock either goes up a lot or down a lot. As far as I can see it right now, AMD's stock will just go up. I know for myself, my next paycheck is going directly to AMD ;D

 

[White_Pawn]

still a loss. =T

 

[Badbonji]

Just hope AMD can catch up with intel, Nehalem will be here soon and will be even better than current Intel chips in workstations and laptops...

 

[Dapman02]

Just hope AMD can catch up with intel, Nehalem will be here soon and will be even better than current Intel chips in workstations and laptops...

In gaming it isn't any better than penryn. For the average person and gamers Neha means nothing. Most people want to go back to AMD and if Deneb can get even close to penryn than I can see that they can come back. With the added cash and motivation I could see AMD coming back by this time next year.

I can say that my sig could change pretty soon after the release of deneb

 

[hi-yield]

AMD themselves predicts Q4 to be flat.
I'm rooting for them though. It's good to have healthy competition.