Author:
Subject: Editorial
Manufacturer: AMD

Q4-2012 In a Nutshell

Tis the reporting season.  Yes, that time of year when some of the major players in the computing world get together and tell us all how well they did this past quarter.  Ok, so they do not necessarily get together to announce results, but they sure time them that way.  Today was AMD’s turn (and Apple’s), and the results were not nearly as positive as what Intel had to offer a few days ago.

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Q4 2011 was flat in terms of revenue as compared to Q3.  The company had gross revenue of $1.69 billion and had a net income loss of $177 million.  That net income is not necessarily a bad result, but more on that later.  Margins rose to 46%, which is still a far cry from Intel’s 65% for the past quarter.  Gross revenue was up 2% from last year, which considering the marketplace and Intel’s dominance, is a solid win for AMD.

When we start talking about non-GAAP results, AMD had a net income of $138 million.  The difference between those two numbers (a loss vs. a nice profit) is that the loss came from one time writeoffs.  AMD has lowered its stake in GLOBALFOUNDRIES to 8.8%, and in so doing incurred a hefty charge.  This is not so much money lost as it is lost value in the company.

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