AMD On Track To Report A Profit For Q3

[Guest]

Zelenograd (Russia) - Remember AMD's promise to return to profitability in the third quarter of this year?

AMD On Track To Report A Profit For Q3 : Read more

 

[JeanLuc]

Wolfgang, AMD will report it's sales of it's Dresden asset in its results but it won't effect it trading profit. When AMD releases it's full accounts for the year the sale of the plant will be in it's balance sheet not it's Profit and Loss statement.

A more accurate phrase would be to say 'AMD to receive massive cash injection from the sale of its fabrication plant.' However cash and profit are two completely separate things.

 

[JeanLuc]

I should point out the sale could effect AMD's profits in as much as if the plant was pure overhead and wasn't profitable, profit will be increased by the value of it's overhead (if any).

Why can't you edit your own comments?

 

[jevon]

I was going to say basically the same thing JeanLuc, that the only way I believe this will be impacting 'profitability' is by reducing company overhead created at the fab - assuming a loss/profitability there. Otherwise, this is a cash increase.

 

[Guest]

The cash injection from divesting the chip plant won't increase profitability..but it will surely help to cut fixed costs which will eventually help AMD to breakeven early and increase profits...also layoffs will help AMD to cut costs which will increase its profitability...the only way AMD can increase profits through cutting costs and managing gearing.prices can never be increased in this highly competitive market....must put great emphasis on Lean management and Six Sigma

 

[Guest]

Almost looked like AMD was going to do some KAMIKAZE for a while!

It did some great moves against NVIDIA; but it's basically taking on 2 monster firms namely Intel and Nvidia.
If it's not careful it might get liquidated very soon...

 

[Guest]

Jeanluc - while your comment on profitability is theoretically correct, AMD already used 200Mil in equipment sales in Q2 and recorded it in a way that bumped up their net income and operating margin (which you wouldn't typically do with a one time asset sale). While technically legal, it is obviously very misleading, especially on the gross margin piece - however most analysts recognized this and stripped out the impact of the sales when evaluating the company.

If AMD's 'goal' is SUSTAINED profitability and not just making the numbers work out, one would think they wouldn't play these rather obvious games, but frankly it will work on most of the media in pulling the wool over there eyes.

 

[ravenware]

What was being manufactured on the 200 mm wafer equipment?

 

[V3NOM]

cpu's i would assume...

 

[V3NOM]

what fab are AMD making GPU's? is it some seperate company actually producing them or...