AMD narrows its losses in the fourth quarter of 2015

AMD has turned in its financial results for the fourth quarter of 2015. The company posted an operating loss of $49 million and a net loss of $102 million on $958 million in revenue. Those losses are smaller than those in both the last quarter and the year-ago quarter, even as revenue shrank.

  Q4 2015 Q4 2014 Change
Revenue $958 million $1.24 billion down 22.7%
Operating income -$49 million -$330 million
Net income -$102 million -$364 million
Gross margin 27% 33% down 6%

$470 million of that revenue came from the company's Computing and Graphics segment, down 29% from Q4 2014. The company says that decrease is mostly because of lower client processor sales. The Computing and Graphics segment did report sequential and year-over-year increases in the average selling price of its graphics cards, though. Overall, the division posted a $99 million operating loss in the fourth quarter.

The Enterprise, Embedded, and Semi-Custom segment took in $488 million, a 15% drop from the year-ago quarter. The company says that's because of a decrease in game console royalties, along with lower revenue from its server and embedded products. The division still took in $59 million in operating income. 

Those results close out a rough year for the company. For 2015, AMD took in $3.99 billion, down 28% from 2014. It lost $481 million over the course of the year, compared to a $155 million loss the year before.

We're expecting big moves from AMD in 2016. The company will be releasing graphics cards built on its Polaris architecture around the middle of the year, and we also expect to see Zen CPUs sometime this year. Both of those products will be built with next-generation FinFET silicon. If the company's claims regarding Zen and Polaris hold, those products might help turn the tide.

For now, though, AMD projects a 14% sequential decrease in revenue, plus or minus 3%, in the 13-week first quarter of this year.

Comments closed
    • Peter.Parker
    • 4 years ago

    This title comes to show, really, that people measure success in different ways.
    And don’t get me wrong, I’m actually an AMD fan.
    My game rig is rocking an FX-6300 (which I really recommend to all my friends).
    I really hope that can pull this together anytime soon.

    • Fonbu
    • 4 years ago

    Captain goes down with the ship… but its not over until Lisa Su sings!!!

    • WaltC
    • 4 years ago

    If AMD can execute on Zen & Polaris as planned this year, it should be the best year for AMD in many years and 2017 should break records for the company. I firmly support the underdog and the little guy and want to see them make it! Go AMD! (Go Scott!–I keep forgetting that he has joined the side of the angels…;))

    • Geonerd
    • 4 years ago

    I bet the salaries of the Top Dawgs would cover most of that $100M deficit.

    Lisa gets $1M cash and another ~$11M in stock.

    I say, give the bastards 100K a year + huge performance rewards that kick in only when the company makes a profit.

      • NeoForever
      • 4 years ago

      Alas, you forget how this thing they call “capitalism” works.

      Edit: Sorry, I forgot to turn my sarcasm down to 10.
      I agree with the replies.

        • chΒ΅ck
        • 4 years ago

        Capitalism is exactly “huge performance rewards that kick in only when the company makes a profit”.
        The problem here is shareholders getting the shaft while chairman mao and co take their money.

          • NeoForever
          • 4 years ago

          I agree. Although, I’m more concerned about the engineers and scientists than the shareholders. Just personal preference.

        • Geonerd
        • 4 years ago

        No, that’s how business culture currently rolls. This has little to do with ‘capitalism,’ and more to do with incompetent / corrupt boards of directors. Are you seriously going to argue that Su and her predecessors are truly worthy of the absurd salaries they were paid?

        Name one Genius-Level decision she’s made that no one else could.
        Just one.

        I’d like to think Lisa’s not as incompetent as Hector, but remain FAR from convinced that she’s anything special.

      • MathMan
      • 4 years ago

      [quote<]I say, give the bastards 100K a year + huge performance rewards that kick in only when the company makes a profit.[/quote<] I don't think you have any idea how much it costs to live in the Bay Area. Your $100k after taxes wouldn't even be enough to pay one year's rent for a modest house on a modest plot of land in a modest neighborhood. If you want quality executives, you have to pay them quality money or they go somewhere else. It's very easy to make a company short-term profitable: just slash all R&D beyond the point of return and watch profits soar. For a while...

        • Geonerd
        • 4 years ago

        OK, make it $200K. We wouldn’t want those poor executives to live in a lowly apartment or be forced to (gasp!) prepare their own food every once in a while. That would be inhumane!

        Top Quality? WHERE?
        As you point out, you don’t need to be a financial genius to hack and chop…

          • MathMan
          • 4 years ago

          $200K/year would put her at the level of a senior individual contributor engineer.

            • Geonerd
            • 4 years ago

            Cool!

            I’ll take a good engineer over Yet Another Pointy Haired Idiot Manager any day!

            • wimpishsundew
            • 4 years ago

            $200k? I can make that much just doing analytical work as a contractor. I can make $100k a year looking at spreadsheets and writing reports. A cashier at Costco makes $50k.

            Your typical investment banker, analyst level makes $150K + $150k bonus just starting out. The following year they’ll make something like $200k + $220k bonus.

            AMD is still over $1B company. $1M or higher is pretty typical. Her $11M compensation package is incentive for her to do well. If she wants it to be worth anything, then she has to turn a profit to raise the stock price. If the company tanks, that $11M will be worth next to nothing.

            I don’t know if people online are just always outraged by wealthier individuals or have no idea what people are supposed to be paid. I also tend to see the same people complaining about how salaries are so low. Well, they won’t pay you more if you demand market value for your skills.

      • Meadows
      • 4 years ago

      For what it’s worth, stock would reward just that.

        • Geonerd
        • 4 years ago

        Sure, that’s fine. If the stock goes up, they make $20M rather than $11M.
        It’s the guaranteed $11M that the company can’t afford.

    • puppetworx
    • 4 years ago

    This is truly dire. Zen will be too little too late.

    • sparkman
    • 4 years ago

    [quote<]AMD narrows its losses in the fourth quarter of 2015[/quote<] I have been reading "AMD plans return to profitability" headlines for at least a decade.

      • tbone8ty
      • 4 years ago

      You’re right its been a decade of them staying afloat. It amazes me they’re still around and kicking. Good show AMD! I hope Zen pans out or its back to ATI they go

      • wimpishsundew
      • 4 years ago

      Technically, they did return to profitability each time. It’s just that they’ll spend 7 quarters in the red just to have 1 profitable quarter. Then CEO leaves, new one comes in with a new “return to profitability” plan and takes 12 quarters to get there. Rinse and repeat.

    • mFvwv0zduc
    • 4 years ago

    I am holding breath for AMD. Good luck!

      • chuckula
      • 4 years ago

      Where are you??!?

      We need to know where to sent the ambulance with the O2 tank.

      • Redocbew
      • 4 years ago

      Neat trick. You must get a lot of free drinks with that one.

    • HisDivineOrder
    • 4 years ago

    I can’t see how this is a huge surprise. When you cut your R&D down to shreds and you don’t release new products for years at a time and you’re sitting on products that are already way behind their competition’s constantly renewed products…

    …you’re not going to be talking about anything but reduced losses.

    Then when AMD shows up with new products, they’ll have a very long established history of being the lower-priced, lower-performance alternative to the “big boys” and that history will mean they can’t get away with pricing higher like they perhaps ought to otherwise given their product’s capabilities.

    That’s when they’ll either price themselves out of the discussion or they’ll drop prices on products they could have otherwise established as worth the extra money.

    AMD really should have cut money away from executives rather than R&D and engineers. Going with a couple of high profile hires instead of entire teams of great-if-lesser-known individuals is a great way to boost your stock for about a day, but it’s not great product development strategy for the long-term.

      • TheMonkeyKing
      • 4 years ago

      You can’t lose anything if you have nothing else to lose. So I guess that’s freedom (cue ‘Me and Bobby McGee’).

      And we know that freedom = winning! So AMD is winning!

      Huzzah!

    • ludi
    • 4 years ago

    Once Lisa Su goes [url=http://i.imgur.com/lMwQn.jpg<]past the curve[/url<], I fully expect her to emerge as a female incarnation of Professor Farnsworth. "Good news, everyone! We narrowed our losses in the fourth quarter!"

      • Kretschmer
      • 4 years ago

      Wow, racist AND irrelevant.

        • ludi
        • 4 years ago

        Not a Futurama fan, I see. It is getting a bit old I guess.

          • Kretschmer
          • 4 years ago

          I love Futurama, but do you have to bring up her ethnicity?

            • Meadows
            • 4 years ago

            Yes, otherwise the linked image makes no sense.

            • ludi
            • 4 years ago

            FWIW, all the Asians I know think that cartoon is both true and high-larious. Take note of the fact that Ms. Su used to wear her hair longer!

            So, to explain a joke: age her by another 10-15 years, and swap her fashion rims with cokebottle bottoms, and there’s a real possibility of looking a bit like Farnsworth. Now add in all the practice she’s been getting at AMD’s helm for tossing out Buzzword Bingo gobbledygook as a means to obscure and spin a downward spiral of financial woes into “Good news, everyone!”, and the transformation is complete.

            A parting note: “racism” isn’t a catch-all description for any observational humor which may be risque or in bad taste. It refers to a belief that one race is inferior to another, and I have [b<]never[/b<] held such a position.

            • ronch
            • 4 years ago

            Why are people everywhere socsensitive about racism and political correctness these days? The SLIGHTEST comment or hint sets them off. Good grief.

            • TopHatKiller
            • 4 years ago

            i think ‘cos people are confused about what ‘soc’, the acronym, means.
            [quote: “everywhere socsensitive about racism”]

            Also… many people in attacked prejudiced groups are kind of sick of it in 2016. Yeah, we might be over sensitive, and sometimes it is excessive and silly, but sometimes, we are just standing up for our dignity. When someone takes that dignity from you, spits on you, threatens you, takes away your chances in life…. you can get over-sensitive.

            I would never want anyone to censor their comments, but, think for a moment what others might think…. then post it, if you’re happy with it. If you’re happy with your comment damn anyone else.
            Free expression is more important then hurting someone’s feelings.

            • Meadows
            • 4 years ago

            What a bunch of soccers.

            • mcarson09
            • 4 years ago

            Simple the Liberal media has created a SJW army that if you are not making fun of whites and won’t let muslims overrun your country you get labeled a racist or a bigot and are shouted down.

            The Liberals have turned into modern-day Nazis. The only free speech they believe in is their own.

            Look what they are doing to scifi authors they HATE:

            [url<]http://www.breitbart.com/tech/2016/01/21/sjws-politically-incorrect-purge-sci-fi/[/url<]

        • MEATLOAF2
        • 4 years ago

        It may be racist, but if my “race” had the stereotype of looking very young until the age of 50, followed by a rapid change, I would hardly call that offensive, possibly even preferable.

        Add to that the fact that it’s grounded in humor, and clearly an exaggeration which plays on Asian people tending to be less tall on average, combined with all elderly people “shrinking” as they age. I think we can all agree it is not malicious racism (which makes you calling it racism irrelevant, since at that point you are just pointing out an example of one definition of the word, while implying only the negative).

        • moose17145
        • 4 years ago

        obligatory….

        [url<]https://www.youtube.com/watch?v=suLImHCKfNM[/url<] but i only serve in one of the most diverse organization in the entire united states... so what do I know...

    • baobrain
    • 4 years ago

    Here’s to hoping that AMD will be able to turn a profit by 2019.

    By the way, anyone familiar with the cross licensing between AMD and Intel? As in if AMD goes out of business, will Intel still be able to use AMD IP or will the likely transfer to a shell company void it?

      • chuckula
      • 4 years ago

      There is nothing in AMD’s power to invalidate Intel’s license. Anybody who inherits anything from a potential AMD buyout will have to play by the rules too.

      Intel would have to take some sort of action to breech on its own part for the license to dissolve in a way that could be used against Intel.

      • gamerk2
      • 4 years ago

      Intel retains the right to license the use of AMD64 should AMD go out of business.

    • ronch
    • 4 years ago

    Crazy how a company that boasts about making CPUs, GPUs, chipsets, embedded, rebranded SSDs and RAM, supplies the guts of all three current-gen consoles, and plush toys keeps losing money.

      • guardianl
      • 4 years ago

      ARM has 1/3 the employees and ‘makes’ all of that minus the rebrands and plush toys.

      So 6000 extra employees is about ~$800 million year in costs, or $200M per quarter. i.e. the difference between making a $100M profit or losing a $100M.

      Sadly, AMD needs to go private and do a one-time reorg like no other.

        • ronch
        • 4 years ago

        Just wondering.. How many employees did AMD have before spinning off GF? Are those fab guys still in their payroll?

      • SomeOtherGeek
      • 4 years ago

      AMD needs to realize that consumers are not stupid and just buy anything that is AMD. It just doesn’t work that way.

        • Kretschmer
        • 4 years ago

        Some consumers do; you see them on tech sites and forums.

        That said, it’s silly to see AMD purposely not delivering good products; the markets they compete in are too cutthroat. AMD has been resource-constrained for almost a decade compared to their peers; less R&D translates into weaker products. Intel’s fab advantage automagically puts them a tier above.

        With the terrible strategic plan (APUs…yay) and management of the 201X era, it’s amazing that they haven’t been liquidated yet.

      • travbrad
      • 4 years ago

      Not that crazy when you consider they don’t have a lot of resources (compared to Intel anyway) for R&D and their most recent big architecture change has basically been a total flop for mainstream users. They also don’t own their own fabs anymore to fully integrate designs with the manufacturing process.

      They have very few design wins in pre-built systems beyond the very low-end (low margin) systems, and the majority of people are buying laptops where power consumption is important.

      They are probably making virtually no money on the consoles, and that’s why they got those contracts in the first place.

      Their GPUs are good but their marketing is still horrible and Nvidia wins lot of mindshare just by having the fastest “halo” product. Power consumption is a bit of an issue with GPUs too, so Nvidia has a lot more design wins in laptops or pre-built desktops with weak power supplies. There is still the perception (whether it’s true or not) that AMD drivers have more issues too and aren’t updated as often.

      I really hope they can somehow turn things around with Zen, but I’m not sure it’s a realistic hope. 5-10% performance increases every year from Intel is getting pretty boring.

    • just brew it!
    • 4 years ago

    Hmm… revenue down 23%, but losses were reduced by 72%. So I guess they have gotten more efficient at not turning a profit?

    Here’s hoping Polaris and Zen can turn the ship around. Or at least plug the leak in the hull.

    • ronch
    • 4 years ago

    Yawn…

    • NoOne ButMe
    • 4 years ago

    On licensing, from Seeking Alpha transcript:
    Lisa:
    “We also have near term opportunities to strategically monetize our valuable IP in 2016 through licensing and partnerships that are complementary for our product development effort.

    I look forward to sharing the initial results of our IP monetization strategy in the coming quarters.”
    [url<]http://Www.seekingalpha.com[/url<]

      • NoOne ButMe
      • 4 years ago

      And in The Q&A:
      [EDITED TO MEET SEEKING ALPHA T&C]
      Transcript from [url<]http://www.seekingalpha.com[/url<] Textin brackets from this point forward is my summarizing while trying to remove no substance. Srini ... last quarter you told us that you're looking to monetize some of the IP properties that you have. Can you give us an update...? Lisa: So on the IP monetization strategy, ... [quarterly updates incoming, discussions of viability had already] I think there are several different avenues that we believe our IP will be valuable, ... straight patent side, ... we have 10,000 patents that are over a substantive number of technical areas ...[GPU/CPU/semiconductor]. Those can certainly be licensed or in some cases there maybe sales,... a lot of potential is the areas of technology licensing where we can help partners accomplish their objectives with patents and knowhow.

    • Unknown-Error
    • 4 years ago

    Right now we can only hope Zen and Polaris won’t be stillbirths.

      • ultima_trev
      • 4 years ago

      Hmm, what will happen to the console makers if there are no more chips?

        • NoOne ButMe
        • 4 years ago

        Either Sony and Microsoft are e trembly sure AMD won’t fail, or the contract has a solution.

        I’m better on the latter. Right now AMD could go another 6 or so quarters like this if their deal closes for packaging spin off while keeping to their cash flow. So M$ony could have believed AMD would be around long enough to secure enough SoCs for sales through the whole generation of consoles.

        • tipoo
        • 4 years ago

        For the current generation, the chips are likely licenced like the last gen AMD chips, so Sony and Microsoft are fine and can keep ordering them from fabs and getting shrinks if they want.

        It’s just development of the next generation that’s in question.

        • chuckula
        • 4 years ago

        They go out and license technology from somebody else.

        AMD’s console domination (100% of pretty much all newer consoles) gives them a few theoretical advantages in PC ports, but it hasn’t actually made them much money. That’s why many other potential players didn’t exactly give AMD the fight of its life to win the market.

        There are other technological players out there that live by IP Licensing and could certainly provide designs for future consoles even if AMD doesn’t do it. [For example: Amped up ARM cores with amped-up PowerVR graphics.]

    • albundy
    • 4 years ago

    goes to show you how huge their market share was when they made CPU’s back in the day. what was really strange was the fact that they did little to boost the performance of their APUs…at least to some reasonable degree…and did little to improve their chipsets with more updated tech.

    • anotherengineer
    • 4 years ago

    Well hopefully they get both CPU, GPU and APU, out and working good without issue. Outside the states though not sure how they will sell. Our dollar has dropped so much here due to the dropping prices of raw materials that a GTX 950 is about $270 after shipping and taxes

    [url<]http://www.newegg.ca/Product/Product.aspx?Item=N82E16814487158&cm_re=gtx950-_-14-487-158-_-Product[/url<] And a 4GB GTX 960 is about $370 after taxes and shipping [url<]http://www.newegg.ca/Product/Product.aspx?Item=N82E16814487155&cm_re=gtx960-_-14-487-155-_-Product[/url<] With a working PC, albeit 6+ yrs old, I can't see myself shelling out an additional 40% + $$ for parts over the US$ price because I 'want' to upgrade. My CPU/GPU limits are about 235 each, half that for ram and about 150 ish for a motherboard, if that kind of money can't give me at least a 4x jump from current gear I will wait until it dies, or our dollar is back to par with the greenback.

      • f0d
      • 4 years ago

      yeah computer and computer parts sales in australia have hit rock bottom because of the strong us dollar also

      prices are similar here also
      950
      [url<]https://www.pccasegear.com/products/33064/msi-geforce-gtx-950-gaming-2gb[/url<] 960 [url<]https://www.pccasegear.com/products/31380/msi-geforce-gtx-960-gaming-4gb[/url<] i dont think intel/amd or nvidia will be selling well outside the US until something happens to that super strong US dollar

        • Prestige Worldwide
        • 4 years ago

        The Canadian dollar has dropped 30 cents relative to the US dollar in the last year or two so you can bet it won’t be good for us igloo dwellers.

          • f0d
          • 4 years ago

          about the same for us aussies
          heck in 2011/2012/2013 our dollar was worth something like $1.10 us dollars

          we are now down to $0.69 πŸ™

      • maxxcool
      • 4 years ago

      ? NV 960-4gb evga overclock… 220$. same specs.
      [url<]http://www.newegg.com/Product/Product.aspx?Item=N82E16814487155[/url<]

        • anotherengineer
        • 4 years ago

        Yep. That’s how much everyone else’s currency is dropping against the US greenback.

          • maxxcool
          • 4 years ago

          jebus!

    • Welch
    • 4 years ago

    Not good, but at this point it is par for the course with AMD. I’d like to think Q4 2016 is where we will see the upturn (if there is one) but more realistically to account for Zen it is likely Q1/Q2 2017. Here to hoping for a hole in one from AMD for all our sakes.

    • BoBzeBuilder
    • 4 years ago

    Thanks!!! Scott!!! smh…

    • Tristan
    • 4 years ago

    Finally realized why AMD still exist.
    there are not enough money for golden parachutes !!!

      • baobrain
      • 4 years ago

      Try typing coherent sentences before you try making a point.

    • Tristan
    • 4 years ago

    SUCCESS !!!
    Any losses below 100mln$ are success for AMD.

      • Meadows
      • 4 years ago

      Thanks, Scott!

    • NoOne ButMe
    • 4 years ago

    quite impressive given they lost less money with far fewer sales. Also about 50 million semi-customer APUs shipped in 2015. So if you want Xbox One sales it’s pretty easy to figure out now. Now I’m wondering what all their semi-custom are. PS4 estimate for 2015 are in the 15-20 million range. Xbox One is 10 million probably. Huh.

    Their dept restructuring again could lead to them being able to cling to life past 2017 even if Zen flops.

    Seems like AMD might be licensing GCN based on what was just said on the call.

    We’ll know 3Q2016 or 4Q2016* if AMD will just keep slowly dying for another 5-10 years or actually get some life.

      • chuckula
      • 4 years ago

      Ok, wait, Intel just made $3.6 Billion in profits, *beat expectations*, and did it all when the economy is in the crapper.

      Here’s what you said:
      [quote<]So about 700-800 million less income before they cut capital spending on fabs. Intel has had trouble competing with ARM in mobile 2 nodes up. Their fab lead will be gone soon for most metrics. Better hope AMD's year delay of Seattle defines how the ARM server players will operate forever? [followed by more drivel] [/quote<] [url<]https://techreport.com/news/29606/modest-server-growth-stands-out-in-a-flat-q4-2015-for-intel?post=960658[/url<] AMD just *missed* expectations by losing $0.13/share instead of $0.12/share and issued pretty dismal guidance for Q1 2016... and you go on about how things are great and how middle-managers rearranging deck chairs means that Zen can flop but AMD will do just fine. Reality: Try living in it.

        • maxxcool
        • 4 years ago

        +100 for the chair reference πŸ˜‰

        • NoOne ButMe
        • 4 years ago

        The impressive part is they sold less products and lost less money. Normally when you have fixed cost as a large part of your costs and you sell less products you lose more money. That’s all that is impressive.
        Intel’s is not impressive because they did it by massively cutting CapEx. AMD has indeed cut R&D a bit. Not hing close to the reduction in loss.

        And if you read on through my “drivel”
        [quote<]Should never have tried to enter mobile. Burns billions of dollars that could have gone towards keeping fab lead, or taking on less debt. But, Intel had to try. If only they had let Steve Jobs bully them into making an x86 CPU that worked for the iPhone. They'll make plenty of money, and I think survive. Just will eventually sell off or shutter most of their fabs. And downsize.[/quote<] Intel will survive. AMD might limp along and die in the 2020s instead of the late 2010s unless Zen is good.

          • ozzuneoj
          • 4 years ago

          I lose less money than AMD and I also sell less. Does that make me more successful?

            • Anovoca
            • 4 years ago

            you aren’t homeless, so……yes

            • wimpishsundew
            • 4 years ago

            I’m wealthier than the US government since I have no debt.

        • DancinJack
        • 4 years ago

        I think it might be time to stop trying to inform this guy. A number of people at TR have tried and tried and the result continues to be the same. It doesn’t seem to be getting through.

          • Redocbew
          • 4 years ago

          You sir, are a frikken genius!

          • f0d
          • 4 years ago

          yeah
          i dont even bother because he is so single minded that i dont think anything could change his ways

          he is good at spinning things to make it look like he is right though (to the uninformed)
          Nvidia/Intel BAD, EVIL, UNFAIR
          AMD saves kittens, stops wars, sends mankind to the stars.!

          • NoOne ButMe
          • 4 years ago

          What is being informed here?
          I was negative about HOW Intel got to beating their numbers, Over 1.2 billion dollars of their profit in 4Q2015 was from cutting CapEx.
          I am positive Intel will survive.

          I am positive solely on the fact that AMD, where a large portion of their costs are fixed, sold 10% less stuff and lost about 60 million [i<]less[/i<] dollars. That's unusual. Cutting fixed costs only accounts for about 10 million dollars of that. Intel I am at best tepid that AMD will survive unless Zen is competitive. At least as the AMD we know today. If you believe or read my comments as saying AMD is doing good, or well. Or AMD is in a good position you're reading it wrong. Or I wrote it wrong. I'm saying AMD in one area is impressive.

            • Redocbew
            • 4 years ago

            “impressive” the way a sucking chest wound is impressive, maybe. Nobody here wants to see that either.

            • chuckula
            • 4 years ago

            [quote<] I was negative about HOW Intel got to beating their numbers, [/quote<] Once again, you want it both ways: 1. OMG! INTEL LOST ELEVENTY BILLION DOLLARS BECAUSE MOBILE!! Ok, wonderful, they still made $3.6Billion in PROFIT on top of those losses. Sounds like they are playing with house money even if in your personal opinion they aren't spending it wisely. 2. OMG! INTEL'S CAPEX!! OMG!!! Name one other company with a real 14nm fab anywhere on this planet called Earth. And, no, what Samsung/TSMC refer to as "14" or "16" nanometers ain't it. You probably haven't noticed but there are major macroeconomic issues nailing Asia and Europe right now, which is only compounded by the strength of the U.S. dollar. Intel has already built its 14nm fabs and they are turning out a pretty massive range of products right now. They've been in commercial production since 2014 too. Meanwhile, literally every other so-called "14nm" fab in existence is churning out smartphone chips. Oh but they hope that they will churn out bigger and badder chips 6 months from now. In other words, it damn well makes sense that Intel has cut CAPEX since it intelligently didn't overbuild for absolutely no reason other than your deluded ego. Meanwhile, TSMC/Samsung *have* to jack up CAPEX since they had literally done nothing for OVER FIVE YEARS at 28nm. Of *course* they need to spend more to catch up. I mean, a fourth grader could get this logic, why can't you? Look, I get that you are a fanboy. It's OK to be like: AMD isn't doing great now but Polaris & Zen are awesome and things will get better. It's even OK to be like: Intel is boring! However, you go into long-winded factually wrong nonsense and you think that typing the same wrong things over & over again makes you smarter than everyone else. No, it just makes it repetitive.

            • bhappy
            • 4 years ago

            Well said!

        • peaceandflowers
        • 4 years ago

        Loss was $0.10 a share actually, so they beat expectations as well.

        [url<]http://seekingalpha.com/article/3820126-advanced-micro-devices-amd-ceo-lisa-su-q4-2015-results-earnings-call-transcript[/url<] [url<]http://venturebeat.com/2016/01/19/despite-pc-doldrums-amd-slightly-beats-wall-streets-expectations-for-q4/[/url<]

          • gamerk2
          • 4 years ago

          But the fact Revenue continues to fall indicates falling sales, and with nothing new out for at least two more quarters, you would expect losses to continue to get worse until at least Q3.

          AMD can survive until 2018, as that’s when they have $600 Million in debt turning over, plus an additional $400 Million in 2019. That’s when I expect AMD to start to break up.

            • peaceandflowers
            • 4 years ago

            Well sure, and their margins are a bit low too. Was just correcting Chuckula, hoping to prevent some wrong info from being spread πŸ™‚

            To be honest I’m quite surprised they managed to hold on this long, with so much loss. My guess is that, if they’re in better shape by 2018, they’ll manage some debt restructuring deal that gives them some more room to breathe and sort things out. That’s *if* they’re in a good shape. If not, well, then they’ll have some more assets they could sell off – RTG, at worst.

            AMD going down altogether would be a disaster, also for the likes of Intel (and maybe nVidia). I feel that, if push comes to shove, the industry will keep them standing one way or another… Maybe they already have?

            • gamerk2
            • 4 years ago

            AMD ALREADY restructured that 2018 debt; it was originally due a year or two ago. AMD accepted more debt to move the payments in the future. At some point, those debt holders are going to want their money, and if AMD STILL isn’t turning a profit even after the Zen release, their stock price will decline rapidly and the company could very well quickly collapse. AMD investors are very well aware of their coming debt situation, and are banking on Zen raising revenue. Should that not occur, they WILL start to sell the company, and AMD will be in deep ****.

            • Geonerd
            • 4 years ago

            Just in time for the $2B in bonds to come due in 2019. πŸ™

            Zen, and AMD’s oft-flaky execution, needs to hit the ball clear out of the park…

      • maxxcool
      • 4 years ago

      [quote<]Seems like AMD might be licensing GCN based on what was just said on the call.[/quote<] Care to share a bit more on that ?

        • NoOne ButMe
        • 4 years ago

        Lisa said something about Licensing their IP and we’ll see it this year.

        Possibly NX maybe? I think GCN is unsuited for phones and tablets.

          • maxxcool
          • 4 years ago

          Yeah that is a fair bet, makes sense to but the main core from the same people your buying the gpu from if the price is good. Less to design ..

            • NoOne ButMe
            • 4 years ago

            Hopefully the transcript that will appear is going to have it with more detail.

            Sec, question on monopolization of IP, paraphrased:
            “we’ll see updates quarterly, of their patents license and sales [of patents?], technology licensing, believed to be significant going forward.”
            Hope this doesn’t mean we’ll see patent trolling. Everyone in the industry needs to band together and stop. Apple, Samsung, Microsoft, Nvidia and Google are the names that come to mind who have done it or are doing it.

          • derFunkenstein
          • 4 years ago

          If they mean Nintendo, they’ve been “licensing” GCN for quite a while. That would be the same kind of semi-custom work as Microsoft and Sony have in their current-gen consoles. Nothing new.

            • Theolendras
            • 4 years ago

            Well, from what I got, they are licensing AMD, but a HD4000 derived one, which mean it’s not even GCN.

            • NoOne ButMe
            • 4 years ago

            The IP is claimed as license and possible sale. With licensing going a few routes. Posting of abbreviated specifics posted from Seeking Alpha transcript. Which has downvotes Because, uh. Hell if I know. Maybe it’s because I posted an url as required under the Terms of quoting the transcript?

      • oldog
      • 4 years ago

      No. They “they lost less money” BECAUSE far fewer sales.

      • ronch
      • 4 years ago

      What’s really, REALLY, REALLY, REALLY impressive is how AMD is STILL in business today.

      Kinda ironic how a REALLY impressive company keeps putting out not-so-impressive products.

      • Kougar
      • 4 years ago

      It’s good to see that AMD lost significantly less despite selling less product. But it’s not unusual when the company has done nothing but sell the same products it was selling a year ago. With the exception of Fury and maybe an extra APU or two nothing has changed except model names. That requires extremely little cost to do, and they laid off another large chunk of workforce in the interim.

      • swaaye
      • 4 years ago

      Look at the vast profits AMD enjoys by selling 35+ million console processors for 3 consoles. Heh.

      • Kretschmer
      • 4 years ago

      “[losing] less money with far fewer sales” is probably indicative of cutting expenses past the fat and reducing areas like R&D and marketing that are needed for future success.

      Cutting costs so much in such a short time (excluding AMD’s notorious one-time items) could very well mean no good products 2-3 years down the line. Unless a business is truly unprofitable/distracting, you rarely want to shrink revenue.

Pin It on Pinterest

Share This