AMD reports Q3 results

[exit2dos]

It was a decent quarter for AMD, but investors were very unhappy.

This was a belly laugh to see this thread and look at after hours.

I do, however, think this is an omen to move the rest of my 401K out of the tech stocks.

 

[BaronMatrix]

This is what will hurt AMD big time starting next quarter. As I stated in my other post they will be selling more processors (thanks to Dell) but making less profits. This is a direct consequence of Intel's strategy with Core 2 Duo pricing.

It is an advantage of Intels (due to the manufacturing cost superiority of 65nm vs 90nm and soon 45nm vs 65nm).

Looks like things are going exactly the way Wusy predicted.

What you have to look at is the growth BEFORE Dell. Q1\Q2 was amazing for AMD even with the price war and slow Q2 sales. Opteron made a place for AMD and they will continue to gain share.

If they are stockpiling 65nm chips now, they can possibly release 1 million in Dec. That should cover Dell for a few months combined with 939 and 754 and allow small companies to get their fill.

 

[exit2dos]

Do you think that's enough reason to develop a fear of clowns?

I personally like the clown, but then again I am not really afraid of too many things.

I too, have conquered fear. Now I'm working on uncertainty and doubt. At least I think I am, but I'm not quite sure about the latter. :?


P.S. I hope beerandcandy was joking. 8O

 

[dasickninja]

Yet the investor still weren't impressed. Why are they so fickle?

 

[exit2dos]

Yep --- the good old days of 12-20% growth are gone, and AMD and Intel appear to be in a race to see who can commoditize (new word, lack of better one ) the fastest

:trophy:
Looks like we got our Sniglet of the day.

 

[dasickninja]

:idea: :!:
This just makes me want to make a TGFz dictionary...

 

[ElMoIsEviL]

This is what will hurt AMD big time starting next quarter. As I stated in my other post they will be selling more processors (thanks to Dell) but making less profits. This is a direct consequence of Intel's strategy with Core 2 Duo pricing.

It is an advantage of Intels (due to the manufacturing cost superiority of 65nm vs 90nm and soon 45nm vs 65nm).

Looks like things are going exactly the way Wusy predicted.

What you have to look at is the growth BEFORE Dell. Q1\Q2 was amazing for AMD even with the price war and slow Q2 sales. Opteron made a place for AMD and they will continue to gain share.

If they are stockpiling 65nm chips now, they can possibly release 1 million in Dec. That should cover Dell for a few months combined with 939 and 754 and allow small companies to get their fill.

To be quite honest AMD have had no real competition in all areas save mobile solutions for 3 years (performance, performance/watt, price/performance and performance/clk). Therefore growth is to be expected no? (seeing as AMD's processors were priced accordingly).

Intel comes out with Core 2 Duo, they too capture all the markets.. but what they do is different. They release Core 2 Duo at insanely low prices (comparatively speaking) forcing AMD to pretty much bottom out their prices. You'll start to see the effect of this strategy come next quarter.

AMD still needs to ramp up 65nm production, and just when they will have it producing in volumes, Intel will be ready to drop another bomb... 45nm.

In other words expect AMD sales to increase but profits to dwindle for a while. Intel is using it's might and being overly aggressive. This is forcing prices to drop from both competitors.

 

[dasickninja]

...And the conclusion of the matter, having review all these talking points are that we will have and do have ridiculously cheap processors, and the trend will continue for the next eight or so quaters.



I love these price wars...
Now if only there would be a price war between RAM makers.

 

[exit2dos]

:idea: :!:
This just makes me want to make a TGFz dictionary...

Maybe you should post a Technology Sniglet of the Week to go with your Babe of the Week on your Blog.

I wouldn't make a Sticky in the Forumz with it, however. Did you ever notice that the Official CPU Buyer's Guide sticky hasn't been updated since February, and it's locked so that it can't be updated?
http://forumz.tomshardware.com/hardware/THGC-CPU-Buyers-Guide-24-Feb-2006-ftopict59540.html

 

[dasickninja]

I'm not sure if I can think of the Tech Sniglet of the week, so I'll probably have a contributor post one every week. Up to the job Evil Clown?

BTW it ain't locked, we just can't reply. you know, like a club kinda thing...

 

[exit2dos]

:twisted:

drAMDatize: To present skewed, biased or opinionated information as solid fact.

 

[dasickninja]

Added..... now.

 

[ElMoIsEviL]

BTW.. to those who don't already know Intel will be lowering price on their Pentium D lineup by up to 17% on October 22, 2006 in order to flush out remaining inventory. These processors are actually selling quite well.

Just an FYI.

 

[exit2dos]

:lol: 8)

Going for more of a drahm-dah-tize (as in dramatize) pronounciation though.

 

[turpit]

knee jerk response. We'll see what happens tommorrow, but at a completely pulled from my arse guess, Il bet it be mostly stable, very modestly on the gain side.

Anyone care to start a pool? Jack could offer his EE6800 as grand prize.

 

[halfassed]

when does the 5 billion ati show up on amd's books?
is that a 5 billion dollar operations expense?

It will not show up as an operating expense on the income statement at all. Acquisitions for cash will be reported as a reduction in cash and short-term equivalents of about 2.5 billion. They also incurred 2.5 billion in debt from Morgan Stanley for the rest. That debt will show up probably somewhere in long-term liabilities. The offset will be in the equity column in common stock and additional capital over par. I don't know the particulars of ATI or AMD's composition, but their collective assets would be combined, as well as their collective debts, and also their collective equity. Since AMD is making the purchase with mostly cash, only a small part of ATI equity will be added into AMD's equity column. I think its about 1.12-1.16 billion, depending on the share price. The rest of the purchase will show up as added liability (for the loan) and reduced cash.
None of that will be on the income statement except for acquisition related expenses. Next year, however, interest on the new debt WILL show up in their income statements as an expense. I do not think they will consolidate the business units, they will probably keep the companies' earnings separate for a long while, and it will be interesting to see where that interest expense shows up. It should be under AMD's earnings, but there's nothing to stop them from Enronning the whole thing either, and hiding losses and what-not in their new subsidiary....

That's my two cents, you will be billed for the 80 dollar hourly rate it cost me to type all that at a later date.

 

[turpit]

:twisted:

drAMDatize: To present skewed, biased or opinionated information as solid fact.

Exit, now you sound like a

 

[turpit]

knee jerk response. We'll see what happens tommorrow, but at a completely pulled from my arse guess, Il bet it be mostly stable, very modestly on the gain side.

Anyone care to start a pool? Jack could offer his EE6800 as grand prize.

3 words....

In You're Dreams....



:roll: Well it was worth a shot......

 

[qcmadness]

To be quite honest AMD have had no real competition in all areas save mobile solutions for 3 years (performance, performance/watt, price/performance and performance/clk). Therefore growth is to be expected no? (seeing as AMD's processors were priced accordingly).

Intel comes out with Core 2 Duo, they too capture all the markets.. but what they do is different. They release Core 2 Duo at insanely low prices (comparatively speaking) forcing AMD to pretty much bottom out their prices. You'll start to see the effect of this strategy come next quarter.

AMD still needs to ramp up 65nm production, and just when they will have it producing in volumes, Intel will be ready to drop another bomb... 45nm.

In other words expect AMD sales to increase but profits to dwindle for a while. Intel is using it's might and being overly aggressive. This is forcing prices to drop from both competitors.

http://www.tgdaily.com/2006/10/18/amd_turion_sales_q3_2006/

AMD said that shipments and revenues of its mobile Turion 64 processors climbed more than 50% over the previous quarter. "This was more than we anticipated," said Meyer during a conference call.

 

[qcmadness]

One more thing to add:
http://finance.yahoo.com/q?s=AMD

AMD share fell more than 10% as a result of lower Gross Margin.

 

[ElMoIsEviL]

To be quite honest AMD have had no real competition in all areas save mobile solutions for 3 years (performance, performance/watt, price/performance and performance/clk). Therefore growth is to be expected no? (seeing as AMD's processors were priced accordingly).

Intel comes out with Core 2 Duo, they too capture all the markets.. but what they do is different. They release Core 2 Duo at insanely low prices (comparatively speaking) forcing AMD to pretty much bottom out their prices. You'll start to see the effect of this strategy come next quarter.

AMD still needs to ramp up 65nm production, and just when they will have it producing in volumes, Intel will be ready to drop another bomb... 45nm.

In other words expect AMD sales to increase but profits to dwindle for a while. Intel is using it's might and being overly aggressive. This is forcing prices to drop from both competitors.

http://www.tgdaily.com/2006/10/18/amd_turion_sales_q3_2006/

AMD said that shipments and revenues of its mobile Turion 64 processors climbed more than 50% over the previous quarter. "This was more than we anticipated," said Meyer during a conference call.

And you're posting this why? It has little to do with my post. I said that AMD have had little competition in all sectors save for the Mobile sector over the past 3 years (not sales competition as Intel's Marketing Dept was quite strong, but competition from a price/performance, performance, performance/watt etc view).

As for the Mobile Sector, Intel also increased shipments of mobile parts, in fact they've been selling their left over PentiumM stock like crazy at ridiculously low prices ($600CDN for 1.7GHz PentiumM laptop?).

But this is due to a price war.. and as such AMD will suffer more then Intel will by waging a price war. AMD does not have the processor making capacity to wage a price war with Intel. As prices tumble, both need to sell more units to make up for the lower selling prices. AMD simply does not have the ability to even meet DELL's demand without falling prey to a shortage. If prices drop dramatically once more, expect AMD to start posting losses and of course Intel profits to drop once more though remaining profitable (as they have the processor making capacity and the edge on units per wafer and cost advantage of a more robust process technology).
Intel processors are also extremely under clocked. One can figure this out on their own by overclocking the bastards. Thus indicating extremely profitable yields even at 2.93GHz and beyond.

 

[gOJDO]

Aside from the fact Hector didn't even come close to answering the question (I have doubts he actually understood the question) AMD really only delivered two new things in the last year, *ehem* thus far ---

a) A new socket with new memory (AM2)
b) A new socket with new memory (1204, Rev F.)

This is stressing their company???

You are wrong about this Jack!
How can you forget about the hidden feature of all sAM2 CPUs?
The Reverse Hyper Threading!

The inventor of 4x4, allready have proved the existance of RHT in sAM2 K8 Rev. F:
http://forumz.tomshardware.com/hard...sc&highlight=reverse+hyper+threading&start=50

As I said with AMDs "SUPPOSED" Dynamic Threading prefetch, OoO (mem disambig) and the ike are necessary to enable this tech. As I also mentioned and a post from JJ showed a link which talked about "Optimized Slices." I'm not even sure this would need a "patch" or BIOS support in that it's not an exposed algorithm. It may be that the "exposed" component on the mobo may talk to ACPI to "override" the power savings.

http://forumz.tomshardware.com/hard...ic&t=186197&highlight=reverse+hyper+threading

After 8+ weeks of thinking about it I finally figured it out. It's actually kinda simple in a complex sort of way. One way is to mark async calls and run them on a second proc (spell check on Proc A, grammar check on Proc B) or to separate class methods and run some methods on Proc A and some on Proc B ( Class A has Method A, Method B Method C, Method D Method E. Method A calls method B, Method C Calls D which calls E.

By running Method A on Proc A, and Method B on Proc B, if they are independent and synchronous, the process will run faster - an example would be a game where physics code can run on one chip, rendering methods go to another, joystick feedback can run on another, internet connection, (all have entry points). SInce every app has a main thread it would be possible to mark methods with Proc Affinity with a low level header. When programs load paths are computed and affinity is assigned to each entry point with independent results. Of course devs would have to do SOME of the work but it's a good tech for improving the "single threaded" code paradigm.

http://forumz.tomshardware.com/hard...asc&highlight=reverse+hyper+threading&start=0

After reading the latest "unversity research" it will be a boon to any company who uses it.

Assigning for loops would improve game matrix programming in a multithreaded scenario at least 40-50% - especially using optimized time slicing through the partition interface.


Optimization and coordinated scheduling of prefetch (L1-L2, L2-RAM) and the aleady existent (?) parallel decoder/instruction units would allow for multiple instructuion flows in a superscalar fashion.

http://forumz.tomshardware.com/hard...se+hyper+threading&start=25&p=1127371#1127371

It's almost like having a BIOS option for instruction set.

There was a rumor that this disables the "dual master" function and allows one chip to run using the full cache and perhaps execution untis for the other chip. This would save power and give intel their "satisfaction/watt."

 

[dasickninja]

....Wow. That's all I can say. Wow.

 

[dasickninja]

This is a prime example of....
BaronMatrix Logic®

Mere mortals cower from its sheer massitiviousness and drAMDatization.

 

[dasickninja]

This is a prime example of....
BaronMatrix Logic®

Mere mortals cower from its sheer massitiviousness and drAMDatization.

I think it would be more like this
BaronMatrix nLogic®
I've got it:
BaronMatrix nLogic® Go stupid. Go dumb. Go nLogic®


Alright we should stop. This is just mean.