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On Sun, 19 Sep 2004 23:02:35 +0100, Paul Hopwood <paul@hopwood.org.uk>
wrote:
>
>Tony Hill <hilla_nospam_20@yahoo.ca> wrote:
>
>>>Actually AMD is taking more of the market than past quarters
>>>and are in the black now.
>
>>AMD's profit/loss always seems to be more determined by how their
>>flash business is doing anyway. The CPU line has pretty much always
>>been hovering right around the break-even point, never making much
>>money but never losing much.
>
>Probably true a while ago but their earnings from CPU operations have
>been performing better than memory sales for a while now, making
>significantly better profits (or lower losses) against marginally
>lower revenues.
AMD's CPUs have been making profit for the past while, but not much
(at least if even remotely compare their profits to what Intel makes),
as I mentioned, hovering right around break even. If you look back
they have tended to do this a fair bit, except for a few bad quarters
when CPUs lost a lot of money. However flash has been all over the
place. Some quarters it lost money hand over fist while other times
it's made a fair bit of money. Here are the results for the past few
quarters.
Q4 '03 Q1 '04 Q2 '04
CPU revenue $581 M $571 M $554 M
CPU profit $63 M $67 M $58 M
Flash revenue $566 M $628 M $673 M
Flash profit ($3 M) $14 M $45 M
Total profit $46 M $61 M $72 M
As you can see, CPU sales have been fairly stable while flash has gone
up quite noticeably. Going back further tends to continue this trend,
though late 2002/early 2003 was a rather bad time for AMD's CPU sales
as well.
>>Flash, on the other hand, sometimes lost AMD boatloads of money, but
>>at times like right now it is very profitable. This current quarter
>>should probably see very decent profits for AMD because their flash
>>business has been doing really well for the past few months.
>
>It's probably true to say the flash market is more volatile so has a
>more severe effect on AMDs financial performance than the (relatively)
>stable CPU market.
That's pretty much all that I was getting at.
> AMD seems to be doing rather well in both markets
>at the moment and reporting healthy profits as a result. Their
>exposure to both markets is such that a relatively small shift in
>either market can make or break the company.
Indeed, when flash sales severely tanked back in 2001 or thereabouts,
it damn near killed the company. Now they have recovered strongly and
AMD has been very well positioned to take advantage of this recovery,
passing all their competitors to become the largest flash supplier in
the world.
-------------
Tony Hill
hilla <underscore> 20 <at> yahoo <dot> ca
On Sun, 19 Sep 2004 23:02:35 +0100, Paul Hopwood <paul@hopwood.org.uk>
wrote:
>
>Tony Hill <hilla_nospam_20@yahoo.ca> wrote:
>
>>>Actually AMD is taking more of the market than past quarters
>>>and are in the black now.
>
>>AMD's profit/loss always seems to be more determined by how their
>>flash business is doing anyway. The CPU line has pretty much always
>>been hovering right around the break-even point, never making much
>>money but never losing much.
>
>Probably true a while ago but their earnings from CPU operations have
>been performing better than memory sales for a while now, making
>significantly better profits (or lower losses) against marginally
>lower revenues.
AMD's CPUs have been making profit for the past while, but not much
(at least if even remotely compare their profits to what Intel makes),
as I mentioned, hovering right around break even. If you look back
they have tended to do this a fair bit, except for a few bad quarters
when CPUs lost a lot of money. However flash has been all over the
place. Some quarters it lost money hand over fist while other times
it's made a fair bit of money. Here are the results for the past few
quarters.
Q4 '03 Q1 '04 Q2 '04
CPU revenue $581 M $571 M $554 M
CPU profit $63 M $67 M $58 M
Flash revenue $566 M $628 M $673 M
Flash profit ($3 M) $14 M $45 M
Total profit $46 M $61 M $72 M
As you can see, CPU sales have been fairly stable while flash has gone
up quite noticeably. Going back further tends to continue this trend,
though late 2002/early 2003 was a rather bad time for AMD's CPU sales
as well.
>>Flash, on the other hand, sometimes lost AMD boatloads of money, but
>>at times like right now it is very profitable. This current quarter
>>should probably see very decent profits for AMD because their flash
>>business has been doing really well for the past few months.
>
>It's probably true to say the flash market is more volatile so has a
>more severe effect on AMDs financial performance than the (relatively)
>stable CPU market.
That's pretty much all that I was getting at.
> AMD seems to be doing rather well in both markets
>at the moment and reporting healthy profits as a result. Their
>exposure to both markets is such that a relatively small shift in
>either market can make or break the company.
Indeed, when flash sales severely tanked back in 2001 or thereabouts,
it damn near killed the company. Now they have recovered strongly and
AMD has been very well positioned to take advantage of this recovery,
passing all their competitors to become the largest flash supplier in
the world.
-------------
Tony Hill
hilla <underscore> 20 <at> yahoo <dot> ca
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