Subject: Editorial | October 28, 2011 - 09:27 PM | Josh Walrath
Tagged: Q3 2011, ontario, llano, GLOBALFOUNDRIES, bulldozer, brazos, amd
Unlike Intel, AMD was unable to report record revenues. What they were able to report was a small profit. They also were able to show some growth above that expected by most analysts, and even those in AMD. Earlier this quarter AMD warned that revenues might not be as high as expected, but in the end AMD seemed to have done ok.
The company had a gross revenue of $1.69 billion, which is well above the expected $1.66 billion many analysts were predicting. Net profit for the quarter came in at a reasonable $97 million. This is a big improvement from Q3 2010, which had a net income of -$118 million. Being positive for a quarter is a big accomplishment for AMD. Controlling costs as a fabless semiconductor company is a lot easier as compared to running multiple Fabs and researching and implementing next generation process nodes. Margins increased to 45%, but are still a far cry from the 60% plus that Intel achieves. ASPs are also down due to the large amount of low priced, 45 nm parts that AMD still sells.
The primary movers for the positive results for AMD are their lineup of APUs. The “Bobcat” based APUs have been a success for quite a few months, and with their superior performance and features as compared to the competing Intel Atom series, AMD is making a tidy sum off of them. The big winner in the APU sector is of course Llano. The uptake on this processor in the mobile space has been tremendous. AMD has seen a 35% increase in mobile sales, and when combined with the already strong Brazos/Ontario platform, AMD is finally a factor in the mobile market. The only real issue in this market that AMD is facing is that of continued poor yields on Llano processors.
Subject: Editorial | October 19, 2011 - 09:29 PM | Josh Walrath
Tagged: sandy bridge, Q3 2011, Intel, earnings, bulldozer, atom, amd
This should come as a shock to no one. Intel made a lot of money this past quarter. We again have seen new records in both gross revenue and net income. GAAP revenue for the quarter came in at an astounding $14.2 billion. Essentially that is the net revenue for AMD during a three year span. Net income is again impressive at $3.5 billion. In AMD terms that would be gross revenue for three quarters. Truly there is a tremendous disparity between the two companies who are very bitter rivals. It is no wonder AMD is starting to really fall behind.
All of the internal groups, except for one, have shown tremendous growth over the past year. Notebooks have really lead the charge as of late, but both desktop and server markets have shown very favorable growth for the company. Even the McAfee and Intel Communications divisions provided upwards of $1 billion to the bottom line. The only area that Intel is lagging in is the Atom line.
When we look at the product offerings of Intel in server, desktop, and notebook markets we see they have a sizeable advantage in both process technology and performance per watt. Intel has been shipping 32 nm chips for well over a year and a half. On the desktop this has translated to modestly priced processors that have a much smaller die size yet comparable (and even superior) performance to the AMD products which are much larger in size and more expensive to produce. On the server side we really have not seen AMD make any inroads since Intel took over that market in a big way once they released the QPI based designs which took away AMD’s last architectural advantages; HyperTransport and integrated memory controllers.