AMD Reports Q2 2017 Results

Subject: Editorial | July 25, 2017 - 10:48 PM |
Tagged: Vega, Threadripper, ryzen, RX, Results, quarterly earnings, Q2 2017, EPYC, amd

The big question that has been going through the minds of many is how much marketshare did AMD take back and how would that affect the bottom line?  We know the second half of that question, but it is still up in the air how much AMD has taken from Intel.  We know that they have, primarily due to the amount of money that AMD has made.  Now we just need to find out how much.

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Q2 revenue surpassed the expectations of both the Street and what AMD had predicted.  It was not a mind-blowing quarter, but it was a solid one for what has been a slowly sinking AMD.  The Q2 quarter is of course very important for AMD as it is the first full quarter of revenue from Ryzen parts as well as the introduction of the refreshed RX 500 series of GPUs.

The Ryzen R7 and R5 parts have been well received by press and consumers alike.  While it is not a completely overwhelming product in every aspect as compared to Intel’s product stack, it does introduce an incredibly strong dollar/thread value proposition.  Consumers can purchase an 8 core/16 thread part with competitive clock speeds and performance for around $300 US.  That same price point from Intel will give a user better single threaded and gaming performance, but comes short at 4 cores/8 threads.

The latest RX series of GPUs are slightly faster refreshes of the previous RX 400 series of cards and exist in the same price range of those previous cards.  These have been popular with AMD enthusiasts as they deliver solid performance for the price.  They are also quite popular with the coin miners due to the outstanding hash rate that they offer at their respective price points as compared to NVIDIA GPUs.

AMD ended up reporting GAAP revenue of $1.22B with a net income of -$16M.  Non-GAAP net income came in at a positive $19M.  This is a significant boost from Q1 figures which included a revenue of $984M and a net income of -$73M.  The tail end of Q1 did include some Ryzen sales, but not nearly enough to offset the losses that they accumulated.  These beat out the Street numbers by quite a bit, hence the uptick in AMD’s share price after hours.

The server/semi-custom group did well, but is still down some 5% as compared to last year.  This is primarily due to seasonal weaknesses with the consoles.  Microsoft will be ramping up production of their Xbox One X and AMD will start to receive royalties from that production later this year.  AMD has seen its marketshare in the data and server market tumble from years past to where it is at 1% and below.  AMD expects to change this trend with EPYC and has recorded the initial revenue from EPYC datacenter processor shipments.

We cannot emphasize enough how much the CPU/GPU group has grown over the past year.  Revenue from that group has increased by 51% since last year.  We do need to temper that with the reality that at that time AMD had not released the new RX series of GPUs nor did they have Ryzen.  Instead, it was all R5/R7 3x0 and Fury products as well as the FX CPUs based on Piledriver and Excavator cores.  It would honestly be hard for things to get worse than that point of time  Still, a 51% improvement with Ryzen and the RX 5x0 series of chips is greater than anyone really expected.  We must also consider that Q2 is still one of the slowest quarters in a year.

AMD expects next quarter to grow well beyond expectations.  The company is estimating that revenue will grow by 23%, plus or minus 3%.  If this holds true, AMD will be looking at a $1.5B quarter.  Something that has not been seen for some time (especially post foundry split).  The product stack that they will continue to introduce is quite impressive.  AMD will continue with the Ryzen R7 and R5 parts, but will also introduce the first R3 parts for the budget market.  RX Vega will be introduced next week at Siggraph.  Threadripper will be released to the wild as well as the x399 chipset.  EPYC is already shipping and they expect that product to grow steadily.  Ryzen Pro and then the mobile APUs will follow up later in the 2nd half of the year.  Semi-custom will get a boost when Microsoft starts shipping Xbox One X consoles.

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What a change a year makes.  Lisa Su and the gang have seemingly turned the boat around with a lot of smart moves, a lot of smart people, and a lot of effort.  They are not exactly at Easy Street yet, but they are moving in the right direction.  Ryzen has been a success with press and consumers and sets them on a level plane with Intel in overall performance and power.  The RX series continues to be popular and selling well (especially with miners).  AMD still has not caught up with demand for those parts, but I get the impression that they are being fairly conservative there by not flooding the market with RX chips in case coin mining bottoms out again.  The demand there is at least making miners and retailers happy, though could be causing some hard feelings among AMD enthusiasts who just want a gaming card at a reasonable price.

AMD continues to move forward and has recorded an impressive quarter.  Next quarter, if it falls in line with expectations, should help return AMD to profitability with some real momentum moving forward in selling product to multiple markets where it has not been a power for quite some time.  The company has been able to tread water for the past few years, but has planned far enough ahead to actually release competitive products at good prices to regain marketshare and achieve profitability again.  2017 has been a good year for AMD, and it looks to continue to Q3 and Q4.

Source: AMD

NVIDIA's Third Quarter Up to $2 Billion USD in Revenue

Subject: Graphics Cards | November 10, 2016 - 08:27 PM |
Tagged: quarterly earnings, nvidia

The most recent quarter for NVIDIA, which is the three months ending on October 30th, has just passed $2 Billion USD in revenue, an increase of 54% from last year. All said and done, this leads to $542 million in GAAP net income, which is also up 108% from last quarter (or up 120% from the same quarter last year).

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NVIDIA doesn't attribute this increase to any specific line of products. Instead, CEO Jen-Hsun Huang takes the opportunity to promote the “years of work and billions of dollars” they spent on the Pascal architecture, applying it all over the place. While I'm guessing a lot of the sales are carried over from last quarter's parts, which are now able to keep up with demand, NVIDIA points to laptop SKUs of 10-series GPUs, the launch of Tesla P4 and P40 GPUs, and initial shipments of the DGX-1 as new and notable for this quarter.

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NVIDIA expects to have an even better quarter with the holiday, aimed at $2.1 Billion USD, plus or minus a couple percent. A lot more details are available on NVIDIA's blog, including their Switch announcement with Nintendo, their Drive PX2 platform, and their next-generation Tegra processor, codenamed Xavier.

Source: NVIDIA

AMD Posts Financial Results for Q2 2014

Subject: General Tech | July 17, 2014 - 11:37 PM |
Tagged: quarterly earnings, GCN, financial results, APU, amd

Today, AMD posted financial results for its second quarter of 2014. The company posted quarterly revenue of $1.44 billion, operating income of $63 million, and ultimately a net loss of $36 million (or $0.05 loss per share). The results are an improvement over both the previous quarter and a marked improvement over the same quarter last year. 

The chart below compares the second quarter results to the previous quarter (Q1'14) and the same quarter last year (Q2'13). AMD saw increased revenue and operating income, but a higher net loss versus last quarter. Unfortunately, AMD is still saddled with a great deal of debt, which actually increased from 2.14 billion in Q1 2014 to $2.21 billion at the end of the second quarter. 

  QoQ   YoY  
  Q2 2014 Q1 2014 Q2 2014 Q2 2013
Revenue $1.44 Billion $1.40 Billion $1.44 Billion $1.16 Billion
Operating Income $63 Million $49 Million $63 Million ($29 Million)
Net Profit/(Loss) ($36 Million) ($20 Million) ($36 Million) ($74 Million)

The Computing Solutions division saw increased revenue of 1% over last quarter, but revenue fell 20% year over year due to fewer chips being sold.

On the bright side, the Graphics and Visual Solutions group saw quarterly revenue increase by 5% over last quarter and 141% YoY. The massive YoY increase is due, in part, to AMD's Semi-Custom Business unit and the SoCs that have come out of there (including the chips used in the latest gaming consoles).

Further, the company is currently sourcing 50% of its wafers from Global Foundries.

“Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth.  We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”

-AMD CEO Rory Reed

AMD expects to see third quarter revenue increase by 2% (plus or minus 3%). Following next quarter, AMD will begin production of its Seattle ARM processors. Perhaps even more interesting will be 2016 when AMD is slated to introduce new x86 and GCN processors on a 20nm process. 

The company is working towards being more efficient and profitable, and the end-of-year results will be interesting to see.

Also read: AMD Restructures. Lisa Su Is Now COO @ PC Perspective

Source: AMD

Intel Earnings Report (Q2 2014)

Subject: General Tech, Processors, Mobile | July 16, 2014 - 03:37 AM |
Tagged: quarterly results, quarterly earnings, quarterly, Intel, earnings

Another fiscal quarter brings another Intel earnings report. Once again, they are doing well for themselves as a whole but are struggling to gain a foothold in mobile. In three months, they sold 8.7 billion dollars in PC hardware, of which 3.7 billion was profit. Its mobile division, on the other hand, brought in 51 million USD in revenue, losing 1.1 billion dollars for their efforts. In all, the company is profitable -- by about 3.84 billion USD.

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One interesting metric which Intel adds to their chart, and I have yet to notice another company listing this information so prominently, is their number of employees, compared between quarters. Last year, Intel employed about 106,000 people, which increased to 106,300 two quarters ago. Between two quarters ago and this last quarter, that number dropped by 1400, to 104,900 employees, which was about 1.3% of their total workforce. There does not seem to be a reason for this decline (except for Richard Huddy, we know that he went to AMD).

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Image Credit: Anandtech

As a final note, Anandtech, when reporting on this story, added a few historical trends near the end. One which caught my attention was the process technology vs. quarter graph, demonstrating their smallest transistor size over the last thirteen-and-a-bit years. We are still slowly approaching 0nm, following an exponential curve as it approaches its asymptote. The width, however, is still fairly regular. It looks like it is getting slightly longer, but not drastically (minus the optical illusion caused by the smaller drops).

Source: Intel

The Health of Intel's Many Divisions...

Subject: General Tech, Processors, Mobile | April 16, 2014 - 08:40 PM |
Tagged: Intel, silvermont, arm, quarterly earnings, quarterly results

Sean Hollister at The Verge reported on Intel's recent quarterly report. Their chosen headline focuses on the significant losses incurred from the Mobile and Communications Group, the division responsible for tablet SoCs and 3G/4G modems. Its revenue dropped 52%, since last quarter, and its losses increased about 6%. Intel is still making plenty of money, with $12.291 billion USD in profits for 2013, but that is in spite of Mobile and Communications losing $3.148 billion over the same time.

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Intel did have some wins, however. The Internet of Things Group is quite profitable, with $123 million USD of income from $482 million of revenue. They also had a better March quarter than the prior year, up a few hundred million in both revenue and profits. Also, Mobile and Communications should have a positive impact on the rest of the company. The Silvermont architecture, for instance, will eventually form the basis for 2015's Xeon Phi processors and co-processors.

It is concerning that Internet of Things has over twice the sales of Mobile but I hesitate to make any judgments. From my position, it is very difficult to see whether or not this trend follows Intel's projections. We simply do not know whether the division, time and time again, fails to meet expectations or whether Intel is just intentionally being very aggressive to position itself better in the future. I would shrug off the latter but, obviously, the former would be a serious concern.

The best thing for us to do is to keep an eye on their upcoming roadmaps and compare them to early projections.

Source: The Verge

Intel Reports 2013 Financial Results, Plans to Cut 5% of Workforce

Subject: General Tech | January 18, 2014 - 12:49 AM |
Tagged: quarterly earnings, Intel, financial results, earnings

Intel has released financial results for the full year and fourth quarter of 2013. According to Intel CEO Brian Krzanich, the company had a "solid fourth quarter." Although full year revenue and net income fell, there was a slight increase in Q4 net income and revenue YoY compared to Q4 2012.

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In 2013 Intel had $52.7 billion in total revenue along with $12.3 billion operating and $9.6 billion net income. Compared to the previous year (2012), Intel's revenue fell 1% while operating income and net income fell 13% and 16% respectively. Specifically of interest to the PC Perspective readers, the PC Client Group had 2013 revenue of $33.0 billion which was down 4% versus 2012.

  Quarterly Comparison   Yearly Comparison  
  Q4 2012 Q4 2013 YoY Change 2012 2013 YoY Change
Revenue $13.5 $13.8 +3% $52.7 $53.3 -1%
Operating Income $3.2 $3.5 +12% $12.3 $14.6 -16%
Net Income $2.5 $2.6 +6% $9.6 $11 -13%
Gross Margin 58% 62% +4 62.1% 59.5 -2.3

All $ figures are in billions (USD).

As far as the previous quarter (Q4 2013) alone, Intel made revenue of $13.8 billion which was a 3% increase versus the same quarter in 2012. Quarterly net income also increased 6% YoY to $2.6 billion.

Looking forward into 2014, Intel estimates revenue for the first quarter (Q1 2014) to be $12.8 billion. Unfortunately, Intel plans to cut approximately 5,000 jobs (specifically 5% of its workforce) in 2014 despite the "solid" company performance.

You can find more information in this Intel press release.

Source: Intel

AMD's revenue down 10%, workforce down 15%

Subject: General Tech | October 19, 2012 - 02:04 PM |
Tagged: quarterly earnings, downer, billions, amd

The hard numbers have arrived and AMDs quarter was every bit as bad as investors had feared, with a non-GAAP net loss of US$150 million and a $0.20 loss per share.  The actual income for this quarter was $1.27 billion, the low end of the predictions that were made by analysts and with the sluggish movement in the PC market the choice has been made to lower operating costs as opposed to trying to increase revenue.  To do so they will be reducing their global workforce by 15% over the coming quarter and restructuring the company with the goal of reducing operating costs by 25% so that a $1.3 billion dollar quarter would be a break even point, not a loss.  The Register details other changes Rory Read is planning on implementing, more of a focus on chips for servers and embedded cores and SoCs for communication and industrial applications.  As well AMD's win on the console side, with the Sony PS4 using AMD for both CPU and GPU as well as the WiiU which will use an AMD GPU and the as yet unnamed new XBox, all of which will garner licensing incomes for AMD for years to come.  The talk about ultra-low-power chips for tablets and ultrabook like products is hopeful, though it is unlikely to be a major revenue source it would be a good move to attempt to grab more market share in that segment.  DigiTimes also weighs in here.

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"One week ago, AMD warned investors that its financial results for its third quarter of 2012 were going to be worse than it had previously estimated, with revenues down about 10 per cent from the previous quarter rather than the 1 per cent, plus or minus 3 per cent, that they had forecasted earlier.

They were spot on – not that being correct about such a disappointing result will win them many friends on the Street.

After the markets closed this Thursday, AMD announced that its Q3 2012 revenues were $1.27bn, which hit that prediction of a 10 per cent quarter-to-quarter slippage."

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Tech Talk

Source: The Register

No pleasant financial surprise from AMD this quarter

Subject: General Tech | October 12, 2012 - 07:34 PM |
Tagged: amd, financial results, quarterly earnings

While we do not have the finalized results of AMD's Q3 earnings, The Register did report that they will not be meeting the targets that were set previously. The are lowering both expected revenues as well as their gross margins projections.  While this news is not unexpected it does illustrate the difficulties which AMD is currently experiencing.  With new products already for sale and more scheduled for release before the new year, there is still hope for AMD to make a bit of a recovery.  As we have pointed out many times before, whether you purchase AMD products or not, the continued existence of AMD is crucial to keep the marketplace competitive.

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shamelessly stolen from macgasm

"AMD has announced lowered expectations for its third-quarter financial results, with revenues declining 10 per cent from the previous quarter, down from the 1 per cent – give or take 3 per cent – that it had previously projected."

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Source: The Register

AMD Blames Lackluster Earnings on Weak Economy

Subject: Processors | July 20, 2012 - 11:21 AM |
Tagged: quarterly earnings, loss, APU, amd

AMD recently released its Q2 2012 earnings (as did Intel), and things are continuing to look bleak for the number two x86-64 processor company. The company stated that the lower than expected numbers were the result of a weak economy and during a time of the year when people are not buying computers. The may be some truth to that as the second quarter is in the post-Christmas holiday season lul and before the big back-to-school retail push. On the economy front, it’s harder for me to say but without going political or armchair economist on you, the market seems better than it has been but is really still recovering–At least from a consumer perspective.

AMD reported revenue of $1.41 billion in the second quarter of 2012, which does not seem terrible, but when compared to Intel’s $13.5 billion Q2 revenue, and the fact that AMD’s numbers represent an 11-percent lower value than last quarter and 10-percent decrease versus Q2 2011, it’s easy to say that things are not looking good for the company.

According to Paul Lilly over at MaximumPC, when breaking AMD’s numbers down by business segment it gets even worse. Its Computing Solutions business fell 13-percent versus the previous quarter and Q2 2011. On the other hand, the company has the ever-so-slightly better news that the graphics card division stayed the same versus last year and was down 5-percent versus last quarter. The company was quoted as stating that the respective revenue drops were due to lower desktop sales in China and Europe and a “seasonally down quarter.”

PC Perspective’s Josh Walrath recently wrote up an editorial (note: pre-earnings call) that talks about AMDs new plan to focus on APUs, take on less risk, and push out new products faster. As a future-looking article, it talks about the impact of the company’s upcoming VIshera and Kaveri processors as well as AMD’s increased focus on heterogeneous system architectures. It remains to be seen if that new path for company will help them to make money or if it will hurt them. AMD cautions that Q3 2012 may not see increased revenue, but here’s hoping that they will be able to pull together for a strong Q4 and sell chips during the big holiday shopping season.

I for one am excited about the prospects of Kaveri and believe that HSA could work and is what AMD needs to focus on as it is one advantage that they have over NVIDIA and Intel – NVIDIA does not have an x86-64 license and Intel’s processor graphics leave room for improvement, to put it mildly. AMD may not have the best CPU cores, but it’s not an inherently bad design and where they are moving with the full convergence of the CPU and GPU is much farther ahead of the other big players.

Read more about AMD's Q2 2012 earnings (transcript).

Source: Maximum PC

AMD's second quarter is more than a little off target

Subject: General Tech | July 10, 2012 - 02:18 PM |
Tagged: amd, quarterly earnings

While AMD predicted the second quarter of 2012 to be up 3 per cent, plus or minus 3 per cent compared to last quarter, total revenue instead fell by 11%.  This is blamed on the slowed global economy, not just in North America but in other major markets like China and Europe, as opposed to a loss in market share to competitors.  This is not the news AMD was hoping for but because at least some of the loss is due to a reduction in sales volume across the marketplace there is still hope for AMD to turn a profit because the gross margins may remain the same.  Heavy cost reduction at AMD could make the difference in profitability in this economic downturn but that is not really a long term solution if they want to remain innovative and profitable.  The Register has the acutal numbers handy here.

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"The bean counters at AMD have done a first pass on the company's second quarter, and it is not looking so good.

The company said in a statement after Wall Street called it a day on Monday that revenues in the second quarter ended in June would fall by approximately 11 per cent sequentially from the first quarter."

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Source: The Register