Get Out the Microscope
AMD announced their Q1 2012 earnings last week, which turned out better than the previous numbers suggested. The bad news is that they posted a net loss of $590 million. That does sound pretty bad considering that their gross revenue was $1.59 billion, but there is more to the story than meets the eye. Of course, there are thoughts of “those spendthrift executives are burying AMD again”, but this is not the case. The loss lays squarely on the GLOBALFOUNDRIES equity and wafer agreements that have totally been retooled.
To get a good idea of where AMD stands in Q1, and for the rest of this year, we need to see how all these numbers actually get sorted out. Gross revenue is down 6% from the quarter before, which is expected due to seasonal pressures. This is right in line with Intel’s seasonal downturn, and in ways AMD was affected slightly less than their larger competitor. They are down around 2% from last year’s quarter, and part of that can be attributed to the continuing hard drive shortage that continued to affect the previous quarter.
More MHz for the Masses
AMD has had a rough time of it lately when it comes to CPUs. Early last year when we saw the performance of the low power Bobcat architecture, we thought 2011 would be a breakout year for AMD. Bulldozer was on the horizon and it promised performance a step above what Intel could offer. This harkened back to the heady days of the original Athlon and Athlon 64 where AMD held a performance advantage over all of Intel’s parts. On the graphics side AMD had just released the 6000 series of chips, all of which came close in performance to NVIDIA’s Fermi architecture, but had a decided advantage in terms of die size and power consumption. Then the doubts started to roll in around the April timeframe. Whispers hinted that Bulldozer was delayed, and not only was it delayed it was not meeting performance expectations.
The introduction of the first Llano products did not help things. The “improved” CPU performance was less than expected, even though the GPU portion was class leading. The manufacturing issues we saw with Llano did not bode well for AMD or the upcoming Bulldozer products. GLOBALFOUNDRIES was simply not able to achieve good yields on these new 32 nm products. Then of course the hammer struck. Bulldozer was released, well behind schedule, and with performance that barely rose above that of the previous Phenom II series of chips. The top end FX-8150 was competitive with the previous Phenom II X6 1100T, but it paled in comparison to the Intel i7 2600 which was right around the same price range.
AMD Gives a Glimpse of the Near Future
AMD has released an updated roadmap for these next two years, and the information contained within is quite revealing of where AMD is going and how they are shifting their lineup to be less dependent on a single manufacturer. The Financial Analyst Day has brought a few surprises of where AMD is headed, and how they will get there. Rory Read and Mark Papermaster have brought a new level of energy to the company that seemingly has been either absent or muted. Sometimes a new set of eyes on a problem, or in this case the attitudes and culture of a company, can bring about significant changes for the positive. From what we have seen so far from Rory and company is a new energy and direction for AMD. While AMD is still sticking to their roots, they are looking to further expand upon their expertise in some areas, all the while being flexible enough to license products from other companies that are far enough away from AMD's core competence that it pays to license rather than force engineers to re-invent the wheel.
The roadmaps cover graphics, desktop, mobile, and server products through 2013.
This first slide is a snapshot of the current and upcoming APU lineup. Southern Islands is the codename for the recently released HD 7000 series of desktop parts. This will cover products from the 7700 level on up to the top end 7990. Of great interest are the Brazos 2.0 and Hondo chips. AMD had cancelled the "Krishna" series of chips which would have been based on Bobcat cores up to 4 on 28 nm. Details are still pending, but it seems Brazos 2.0 will still be 40 nm parts but much more refined so they can be clocked higher and still pull less power. Hondo looks to be the basic Brazos core, but for Ultra Low Power (lower clocks, possibly disabled units, etc.) which would presumably scale to 5 watts and possibly lower.
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