More on AMD's Q4: Margin pressure, PC CPU share loss still in focus,


AMD had a Q4 gross margin of 35%. That's in-line with guidance, but down 100 bps Q/Q and 400 bps Y/Y. Moreover, gross margin is expected to remain at 35% in Q1. Investors have been worried for a while about the margin impact of AMD's console design wins.

Computing Solutions sales (PC/server CPUs) fell 9% Q/Q and 13% Y/Y, after falling 15% Y/Y in Q3. By contrast, Intel's PC CPU sales were flat in Q4, and its server CPU sales up 8%. Nonetheless, AMD's CPU ASPs were up Q/Q and Y/Y, aided by a stronger mix of APU (integrated CPU/GPU) sales.

Graphics & Visual Solutions sales, which include the GPU and console businesses (among other things), rose 29% Q/Q and 165% Y/Y thanks to the Xbox One and PS4 wins.

Computing Solutions had an op. loss of $7M, while Graphics & Visual Solutions had an op. profit of $121M. GPU ASPs, boosted by AMD's Hawaii GPU launches, rose Q/Q and Y/Y.

Thanks to job cuts, R&D spend fell 6% Y/Y to $293M, and MG&A fell 12% to $169M. AMD ended Q4 wih $1.2B in cash/investments, and $2.06B in debt.

AMD -9.4% AH. Q4 results, guidance, PR, CFO comments.

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