AMD Reports Fourth Quarter and Annual Results

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News Posted: Fri, Jan 23 2009 10:18 AM

AMD Cuts Phenom II PricesAMD Reports Fourth Quarter and Annual Results



SUNNYVALE, Calif. -- January 22, 2009 --AMD (NYSE:AMD) today reported fourth quarter 2008 revenue from continuing operations1 of $1.162 billion. Fourth quarter 2008 revenue decreased 35 percent compared to the third quarter of 2008 and 33 percent compared to the fourth quarter of 2007. Fourth quarter 2008 revenue was down 28 percent sequentially, excluding third quarter 2008 process technology license revenue of $191 million.
In the fourth quarter of 2008, AMD reported a net loss of $1.424 billion, or $2.34 per share. For continuing operations, fourth quarter 2008 loss was $1.414 billion, or $2.32 per share, and the operating loss was $1.274 billion. The results for continuing operations include an unfavorable impact of $996 million, or $1.64 per share as described in the table below. Loss from discontinued operations was $10 million, or $0.02 a share.

For the year ended December 27, 2008, AMD achieved revenue of $5.808 billion. Fiscal 2008 net loss was $3.098 billion. AMD reported revenue of $5.858 billion and a net loss of $3.379 billion for fiscal 2007.

In the third quarter of 2008, AMD had revenue from continuing operations of $1.797 billion, including process technology license revenue of $191 million, a net loss of $127 million, income from continuing operations of $23 million and operating income of $122 million. In the fourth quarter of 2007, AMD had revenue from continuing operations of $1.737 billion, a net loss of $1.772 billion, a loss from continuing operations of $1.298 billion and an operating loss of $1.187 billion.

“Although industry visibility is poor, our priorities remain clear and achievable,” said Dirk Meyer, AMD’s president and CEO. “We remain focused on further reducing our breakeven point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps. We made significant progress toward the creation of ‘The Foundry Company’ in the quarter, and anticipate closing the transaction in February. We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery.”

Fourth quarter 2008 gross margin was 23 percent, including a negative impact of 20 percentage points due to a $227 million incremental write down of inventory due to weak market conditions. Third quarter 2008 gross margin was 51 percent, 45 percent excluding process technology license revenue.

Current Outlook
AMD’s outlook statements are based on current expectations of its continuing operations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

In light of the current macroeconomic conditions, very limited visibility and continued corrections in the supply chain, AMD expects first quarter 2009 revenue to decrease from the fourth quarter 2008.




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3vi1 replied on Fri, Jan 23 2009 12:18 PM

"The following statements are forward looking, and actual results could differ materially: OH MY GOD NO SCRREEEEECHHHH BOOOOOOMM! *CRASH* RATATAT-TATA-TAT-TAT KABLOOOIE! AUUUGGGHHH!!!!"

This sucks. I hope they find a way to turn things around; we need the competition.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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rapid1 replied on Fri, Jan 23 2009 2:27 PM

     Actually, the results are pretty encouraging. There are differences in losses and operating costs that look positive although not to a very great ratio they are better. You also have to consider that there strategy didn’t work for almost 3 years now on the commercial end. However, there corporate and server market end has remained stable. Plus with ATI starting with the release of the 3870 they have had a cost/performance performance level over Nvidia for two years straight now. The thing you have to take in context is these companies are huge so the financial systems move slowly. With their operating costs down there losses lighter than last year versus those costs and the outlook from here out it is positive. The other thing is there loss ratio was so huge that any positive movement, especially at the levels it looks like from this article is good. I also applaud there strategy of addressing energy usage and other factors in there platforms. With energy costs becoming a more weighted issue, that is also a positive on AMD/ATI's side, this should turn out as a positive effect financially.

     Hopefully next year it will be more positive and maybe the following they will be out of the whole completely and on stable ground. One thing I don't understand with both them and INTEL is some focus points. Why work for 45nm size and benefits while also working on 32nm at the same time. I think that now that 45nm is here for both they should try a lower point and stability platform than 1 step down, if you see what I mean why not just go for 2 steps down then you outperform current offerings to a substantial point. But with AMD the combination platforms look to be a major positive. We always have to remember the people on these forums, while growing in numbers are at least somewhat more comfortable and understanding of Computer hardware and what it means than the general public. The general public wants the simplest solution to the problem. The general public is also 8/10ths of the commercial market. We are a relatively small 2/10ths of it, but we are the ones who they depend on to advance technology in a real sense. They forecast future usage, combination, and acceptable inclusion levels on us.

     We buy the higher end of the market we do more with our hardware. From that and different scenarios of equipment usage they can predict future usage ratios and market coverage for components. They can also look further and see what that 8/10's of the commercial market will want in a couple years. So we are vital in a way to the progression of technology. Where do you think multimedia operating systems, netbooks, notebook advancement, home servers, games, internet shopping, moblie GPS, smart phones and many other inovations came from. That would be us and those product either have a foothold on the market or are gaining one. They to a pretty great ratio were first bought used and advanced by us! Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;}

 

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3vi1 replied on Fri, Jan 23 2009 4:26 PM

>> Actually, the results are pretty encouraging.

Yeah, they would encourage me to sell their stock.

In the last few years the value of their stock has dropped from $40ish to $2ish. I see delisting in the future.

>> Hopefully next year it will be more positive.

"AMD expects first quarter 2009 revenue to decrease from the fourth quarter 2008".

With all the scurrying to restructure (http://www.zdnetasia.com/news/hardware/0,39042972,62046915,00.htm) I would expect bankruptcy sometime before mid 2010, unless the entire economy turns around.

>> Plus with ATI starting with the release of the 3870 they have had a cost/performance performance level over Nvidia for two years straight now

nVidia's been destroying them for that entire period: http://www.i4u.com/article17119.html

>> The general public wants the simplest solution to the problem.

The public wants the cheapest solution. Intel really messed up AMD's price/performance ratio a generation back.

>> Where do you think multimedia operating systems, netbooks, notebook advancement, home servers, games, internet shopping, moblie GPS, smart phones and many other inovations came from.

The Commodore-Amiga, Palm/ARM, everywhere, everywhere, no specific company, etc. etc. ? I'm not sure what that has to do with anything because I don't see any predominantly-AMD association with any of those things.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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