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Advanced Micro Devices, Inc. Message Board

  • dr_max_facts dr_max_facts Jul 19, 2007 8:09 PM Flag

    WTF! AMD's Number's SUCK ! Who's Buying this POS!?!?!?

    This is nothing but a A/H pump and DUMP, AMD number's SUCK, the big boys are beating AMD like drum Pump Dump Pump Dump as the Amdroid Lemmings leap of the cliff into the margin less abyss. Debt laden AMD's Spew Crew are spin masters burning tons of cash before the CRASH. Buying into AMD is not investing it's gambling.

    The Facts,

    Advanced Micro Devices Inc. [AMD] said it lost $1.09/share (-$600 million) in Q2, reversing an $0.18/share ($89M) profit a year ago, but shares surged 4.7% AH on a surprising revenue increase. Excluding a $0.24/share one-time charge related to its $5.6 billion acquisition of graphics chipmaker ATI, it lost $0.85/share -- worse than the $0.82 loss analysts were expecting. Revenue of $1.38B was up 13.5% and 10% higher than the $1.25B analysts forecast. After picking up substantial market share from archrival Intel in 2005 and part of 2006, AMD's chips have since fallen out of favor after Intel introduced more powerful new processors and slashed prices. The ensuing price war has hurt both companies' bottom lines. Tuesday, Intel posted a 44% gain in Q2 profits, but shares fell 5% after the company said a decline in AMD 20 07 2007 EarningsChartmicroprocessor prices hurt its profit margins (see full story). "While we made solid progress in the second quarter across a number of fronts, we must improve our financial results," said CFO Robert Rivet. He said the number-two PC and server chipmaker was focused on streamlining its operations. In August, AMD begins shipping its much-anticipated quad-core Barcelona server processor. Its quad-core Phenom desktop chip is scheduled to ship at a later date. AMD hopes the new chips will help renew its waning favor. In a July 11 note, Citigroup wrote: "AMD targets to regain market share but the prospects remain lackluster. We think current competitive conditions continue to favor Intel given the latter's success in regaining market share." AMD has scheduled a 5:00 ET earnings call (see AMD's Earnings Call Transcript later today). Shares are down 22.5% YTD. Intel shares have gained almost 25% over the same period.

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    • It is unbelievable.

    • Unreal

      The Fools are still buying this POS. AMD's Spew Crew's propaganda runs rampant drawing the blinded by BS moths into the fire.

    • 12 million shares AH. Better cover quick. This is for real. Shorts, admit it, you lost. Cut your loss before you got margin calls.

    • Well...atleast I'm the fool whose going to be up big time tomorrow. Sucks to be you eh?

    • Investmentbanker you're a fraud. You claimed that AMD had better margins than INTC, not that AMD beat expectations. Expectations is something an analyst pulls out of his/her arsehole. If AMD had only lost 75 cents you'd have claimed their EPS was better than Intel's. You're clearly a fool.

    • >>No. 1 chipmaker, fell nearly 4 percent after the bell as it missed expectations for its gross margin, coming in at 46.9 percent, short of its forecast of 48 percent<<

      AMD beat exp on gross margins.

    • The ones that are buying are trying to fry the Shorts. That's who's buying. You might want to cover because with all the short interest, we might see 18 - 19 by next week.

    • It's easy to manipulate after hours market action. It may go up tomorrow, but don't trust after hours action. I see that long-term debt BALLOONED from $3.6 to $5.3 billion in ONE QUARTER. As someone said, they can't continue to sell $10 bills for $9 (actually I think they're selling them for a buck is a better analogy for AMD's situation). AMD bought higher revenue this quarter by selling product at much lower ASPs than is sustainable. At some point in the not too distant future that reality has to be priced into the stock.

    • July 19, 2007 4:43 PM PDT
      AMD's mixed bag of financial results
      Posted by Tom Krazit

      This quarter was all over the map for Advanced Micro Devices.

      It was just too hard to come up with an quick summary of AMD's fortunes. Overall revenue was up, but AMD didn't have a graphics division this time last year. Profits were horrific, but gross margins improved. Chip revenue was down compared to last year, but chip shipments were up 38 percent compared to the first quarter of this year (usually, second-quarter shipments are flat or down compared to the first quarter).

      So, rather than glaze over everything in trying to present a comprehensive narrative, here's the good, the bad, and the ugly from AMD's second-quarter earnings release and conference call.

      THE GOOD: Chip shipments soared as AMD gained Toshiba as a customer and took a broader role inside customers such as Dell. Shipments of notebook chips--arguably AMD's weakest sector--were up 82 percent compared to last year, and 21 percent compared to the first quarter. The company appears to have stopped the erosion of its market share, and it thinks the PC market is healthy going into the second half of the year. It also stabilized the average-selling prices of both its notebook and server chips, perhaps a sign that the year-long price war between Intel and AMD is easing.

      THE BAD: Barcelona and Phenom, two chips that AMD desperately needs to improve its fortunes, won't arrive for quite a while. Barcelona, AMD's long-awaited quad-core server processor, is later than expected because it was "complicated" and "required a bit more design work than we anticipated," said Dirk Meyer, president and chief operating officer at AMD.

      Barcelona isn't expected to contribute meaningful revenue until the fourth quarter, and Phenom will launch too late in December to help AMD in the desktop market until 2008. As a result, the company is merely hopeful that it will reach break-even status by the fourth quarter. It will probably need to do $2 billion in revenue and have a gross margin of at least 40 percent to hit that target, said Bob Rivet, AMD's chief financial officer.

      THE UGLY: AMD's chip division recorded more revenue in the second quarter of last year than during this year's second quarter--and spent almost twice as much money to even get that much business this time around. That means AMD lost money simply operating its core business, not even taking into account the other expenses required to run a corporation such as marketing, research, and electricity.

      The company wrote off $30 million in inventory that it gave up trying to sell. In order to cut short-term expenses, it will have to slow the ramp of Fab 38, its project to convert an existing facility in Germany to a more modern plant so it can reduce manufacturing costs in the long term. And it's holding a chip manufacturing bake sale--of sorts--hoping to raise cash by selling off old tools.

      Hector Ruiz, AMD's chairman and CEO, declined to specify any other changes that might be coming, but it sounds like this isn't the end of the cost-cutting. AMD is working on a strategy called "asset-light," which it hasn't exactly spelled out and can't do so yet for "competitive reasons," Ruiz said.

      Next week, AMD will hold an analyst day that in the past has provided a pretty detailed look at AMD's future processor road map and strategies. That should also produce many questions about how AMD plans to shore up its profits in the second half of the year without huge contributions from its new products.

3.52-0.09(-2.49%)12:03 PMEDT