HoTWiReZ's DoMaiN

[News BoT]

<p align="center"></p><p><p>Today AMD has announced their third quarter earnings for fiscal year 2015. AMD saw a 13% increase in revenue over Q2 2015, but revenues were down almost 26% over their Q3 2014 numbers. Revenue for the quarter was $1.06 billion USD, down from $1.43 billion a year ago. AMD continues to use GAAP and Non-GAAP earnings to help show the state of the business in greater detail. On a GAAP basis, AMD had an operating loss of $158 million for the quarter, and a $197 million net loss, which works out to $0.25 per share. Compared to last quarter, both losses were larger despite the increased revenue, and the numbers are down significantly over the $17 million net income a year ago.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q3 2015 Financial Results (GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q3'2015</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
<td align="center" valign="middle" width="85">Q3'2014</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$1.06B</td>
<td align="center" valign="middle">$942M</td>
<td align="center" valign="middle">$1.43B</td>
</tr>
<tr>
<td class="tlgrey">Gross Margin</td>
<td align="center" valign="middle">23%</td>
<td align="center" valign="middle">25%</td>
<td align="center" valign="middle">35%</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">-$158M</td>
<td align="center" valign="middle">-$137M</td>
<td align="center" valign="middle">$63M</td>
</tr>
<tr>
<td class="tlgrey">Net Income</td>
<td align="center" valign="middle">-$197M</td>
<td align="center" valign="middle">-$181M</td>
<td align="center" valign="middle">$17M</td>
</tr>
<tr>
<td class="tlgrey">Earnings Per Share</td>
<td align="center" valign="middle">-$0.25</td>
<td align="center" valign="middle">-$0.23</td>
<td align="center" valign="middle">$0.02</td>
</tr>
</tbody>
</table>

<p>On a Non-GAAP basis, AMD had a $97 million operating loss, which is once again a larger loss than last quarter, and down 211% from the $87 million in operating income last year. Net loss was $136 million, or $0.17 per share, compared to a $41 million net profit and $0.05 per share last year. GAAP to Non-GAAP differences are due to $48 million in restructuring fees and $13 million in stock based compensation.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q3 2015 Financial Results (Non-GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q3'2015</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
<td align="center" valign="middle" width="85">Q3'2014</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$1.06B</td>
<td align="center" valign="middle">$942M</td>
<td align="center" valign="middle">$1.43B</td>
</tr>
<tr>
<td class="tlgrey">Gross Margin</td>
<td align="center" valign="middle">23%</td>
<td align="center" valign="middle">28%</td>
<td align="center" valign="middle">35%</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">-$97M</td>
<td align="center" valign="middle">-$87M</td>
<td align="center" valign="middle">$87M</td>
</tr>
<tr>
<td class="tlgrey">Net Income</td>
<td align="center" valign="middle">-$136M</td>
<td align="center" valign="middle">-$131M</td>
<td align="center" valign="middle">$41M</td>
</tr>
<tr>
<td class="tlgrey">Earnings Per Share</td>
<td align="center" valign="middle">-$0.17</td>
<td align="center" valign="middle">-$0.17</td>
<td align="center" valign="middle">$0.05</td>
</tr>
</tbody>
</table>

<p>The Computing and Graphics segment continues to struggle, although AMD did see stronger sequential growth here with the recent launch of Carrizo. Revenue increased 12% over last quarter, although it is still down 46% year-over-year. This segment had an operating loss of $181 million for the quarter, up from a loss of $147 million last quarter and a loss of $17 million a year ago. Sequentially, the loss is mostly attributed to a write-down of $65 million which AMD is taking on older-generation products. Annually, the decrease is due to lower overall sales. Unlike Intel, AMD processors had a decrease in Average Selling Price (ASP) both sequentially and year-over-year, so there was no help there from the lower sales volume. The GPU ASP was a different story, staying flat sequentially and increasing year-over-year. Recent launches of new AMD graphics cards have helped here.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q3 2015 Computing and Graphics</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q3'2015</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
<td align="center" valign="middle" width="85">Q3'2014</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$424M</td>
<td align="center" valign="middle">$379M</td>
<td align="center" valign="middle">$781M</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">-$181M</td>
<td align="center" valign="middle">-$147M</td>
<td align="center" valign="middle">-$17M</td>
</tr>
</tbody>
</table>

<p>The Enterprise, Embedded, and Semi-Custom segment had a better showing. Revenue increased 13% over last quarter, and was down only 2% year-over-year. Semi-custom sales (read Consoles) drove the sequential increase but lower embedded and server processor sales caused a year-over-year decline. Operating income for this segment came in at $84 million, up from $27 million in Q2 but down from $108 million in Q3 2014. Q2&rsquo;s numbers were skewed though by a $33 million hit on moving to a new process node.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q3 2015 Enterprise, Embedded and Semi-Custom</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q3'2015</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
<td align="center" valign="middle" width="85">Q3'2014</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$637M</td>
<td align="center" valign="middle">$563M</td>
<td align="center" valign="middle">$648M</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">$84M</td>
<td align="center" valign="middle">$27M</td>
<td align="center" valign="middle">$108M</td>
</tr>
</tbody>
</table>

<p>All Other had an operating loss of $61 million for the quarter, up from $17 million loss in Q2 and a $28 million loss in Q3 2014. This is where they stick their &ldquo;restructuring charges&rdquo; and they nicely align with the GAAP vs Non-GAAP values.</p>

<p>The bad news doesn&rsquo;t stop here either. We&rsquo;ve seen the departure of a couple of key people at AMD, and AMD is also spinning off some of the company. Revenues for Q4 are expected to decrease an additional 10%, plus or minus 3%, compared to today&rsquo;s numbers. AMD is doing more corporate restructuring in an attempt to reduce expenses further. Perhaps the most troubling aspect of today&rsquo;s results is their gross margin is only 23%. They really need closer to 35% for profitability and are a long way from that today.</p>

<p>Source: AMD Investor Relations</p>
</p><p align="center"><img src='http://dynamic1.anandtech.com/www/delivery/avw.php?zoneid=24&cb=567686551&n=a1f2f01f' border='0' alt='' /></p>

Read more...

Source: AnandTech
This channel features the latest computer hardware related articles.