AMD CPU revenues (Computing Solutions Group) dropped another 9% Q-over-Q...
That means AMD made 9% less in Q1 on APUs and CPUs, whether for servers, notebooks, desktops or gaming consoles.
IDC advised earlier in the week that PC sector revenues were down 6% sequentially. Intel's CPU revenues dipped only slightly, by 2.5%, sequentially. Now we know that the slowdown in demand for CPUs is hitting AMD much harder than Intel. In fact, almost four times harder.
Clearly AMD lost additional CPU marketshare to Intel in the quarter. Ouch. Just ouch. The CC was packed with blathering about gaming this, gaming that, but pretty clearly gaming is a low margin sub-segment of the CPU sector, and AMD is there not by choice but due to surrender of higher margin segments to competitors, and full scale retreat into a less desirable segment. I suggest that fans go read the Q2 2012 CC transcript in which Lisa Su told the investment community with a straight face that Llano was selling well and would remain a major party of the mix throughout 2013. The very next quarter, AMD was crushed with a stack of llanos that no one wanted, forced to take an write-down and from that point forward couldn't give a Llano away much less sell one. So much for management having a clue about what is really happening in the business, eh?
Also, despite a one-time $164 million shot in the arm from sale of real estate, they managed to burn up additional cash and finish the quarter with less than they started with. I should drop 7-15% tomorrow. More shrinkage, feeble non-guidance, and a vague fairy tale about how AMD will go from a rotting carcass to a beautiful princess by giving away chips for gaming and magically pulling a new server chip out of its rear.
lol shorts trying to do "damage" control by putting out one side of the story.
1. cash from sale of real estate was used to pay GF
2. it beat revenue and adjusted EPS, better outlook for Q2.
no need to bother with them, we'll see soon enough,
AMD owe GF money long before it selled its campus. You are therefore makin stuffs up. Typical pumper. But also the facts is der facts. AMD ended der quarter vit less cash den it started der quarter vit, despite der fact dat it got an extra $160 millions by selling real estate dat it won't get in der current quarter.
Dis contradict vat der interim CFO say last quarter vit respect to cash burn und cash flow. Dat iw why AMD is gettin hammered in after hour and vil be vay down tomorrow. No one vil pay der high price fer AMD!