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AMD +6% AH on Q1 beat, Q2 guidance, GPU strength

  • AMD expects Q2 revenue to be flat to up 6% Q/Q; that's better than a consensus for a 3% decline.
  • Due to desktop weakness, Computing Solutions (PC/server CPU) sales fell 8% Q/Q and 12% Y/Y in Q1; they were down 13% Y/Y in Q4, and 15% in Q3.
  • Graphics & Visual Solutions (GPUs, console/embedded designs) sales fell 15% Q/Q and rose 118% Y/Y. Console-related sales fell Q/Q, but GPU sales rose.
  • CPU ASPs were flat Q/Q and down slightly Y/Y. GPU ASPs rose Q/Q and Y/Y due to Radeon R7/R9 demand (some of it from Litecoin miners).
  • Gross margin (a point of concern lately) was 35%, flat Q/Q, down 600 bps Y/Y, and in-line with guidance. GM is expected to remain at 35% in Q2.
  • R&D spend fell 11% Y/Y to $279M, MG&A spend fell 13% to $156M. AMD ended Q1 with $982M in cash, down from $1.19B at the end of Q4 thanks to a GlobalFoundries payment. Debt fell by $43M to $2.06B.
  • Q1 results, PR, CFO commentary (.pdf)
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Comments (22)
  • Santyapril
    , contributor
    Comments (47) | Send Message
     
    GO AMD...Lets beat that $5 mark this time!
    17 Apr, 04:47 PM Reply Like
  • JYX
    , contributor
    Comments (26) | Send Message
     
    boom boom pow!!
    17 Apr, 05:01 PM Reply Like
  • Van Hyder
    , contributor
    Comments (168) | Send Message
     
    Looks like the turnaround is on track in a meaningful way.
    17 Apr, 05:11 PM Reply Like
  • Nettligent
    , contributor
    Comments (1351) | Send Message
     
    AMD plans to be above $4/share and around $5/share at the end of 2014 while reduce debt and gain more market share. Fair enough.
    17 Apr, 07:44 PM Reply Like
  • 6228371
    , contributor
    Comments (3912) | Send Message
     
    "AMD plans to be above $4/share and around $5/share at the end of 2014"

     

    Where do you get that from????? Some of us expect AMD to be $8+ at the end of 2014.
    18 Apr, 06:11 AM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    Computing solutions down 12% y/y. Talk about major share loss...
    17 Apr, 08:08 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3154) | Send Message
     
    1. YoY looks worse than QoQ as a lot of the share was lost last quarter. It's like looking at PC market declines in YoY vs QoQ - lots of people get confused by the numbers. From Q3 to Q4, PC sales were basically flat, yet down YoY

     

    2. Intel is having a buy one get one free sale on tablet chips which is hurting both companies

     

    3. PC sales are now, and have been since Q4, less than 50% of AMD's total revenue
    17 Apr, 09:29 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1497) | Send Message
     
    GVS gained 118% y/y. Talk about major gain...

     

    I can care less about nitpicking. The point is they made money in the worst quarter of the year. You can't spin that.
    17 Apr, 09:33 PM Reply Like
  • User 12115671
    , contributor
    Comments (697) | Send Message
     
    AMD's conservative management team is seeing gains in computing solutions, where do you see that coming from? Intel's outlook is flat.

     

    This stings: Intel Mobile down 61% year-over-year, revenue down 8% year-over-year, having to set up contra revenue account for the Shenzhen gamble.....not good

     

    Boom....That's game thanks for playing!
    18 Apr, 12:11 AM Reply Like
  • Cincinnatus
    , contributor
    Comments (3653) | Send Message
     
    "YoY looks worse than QoQ as a lot of the share was lost last quarter. It's like looking at PC market declines in YoY vs QoQ - lots of people get confused by the numbers. From Q3 to Q4, PC sales were basically flat, yet down YoY"

     

    No, they were down 9% from Q3 to Q4. YoY looks worse than QoQ because that's how math works when you're in a long sequential decline. Agree that lots of people get confused by numbers (and math).

     

    Intel's tablet efforts have no affect on AMD. You can't lose tablet share when you're already at 0%.

     

    Also agree with your point #3. AMD is exiting the PC/server business and becoming a discrete graphics company.
    18 Apr, 01:51 AM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3154) | Send Message
     
    Q3 PC shipments @ 81.6M units
    http://bit.ly/1eGesaM
    3Q13/3Q12 was -7.6% YoY growth

     

    Q4 PC shipments @ 82.2M units
    http://bit.ly/1eGesYn
    4Q13/4Q12 was -5.6% YoY Growth

     

    So what exactly was down 9% from Q3 to Q4?

     

    PC shipments actually went up from Q3 to Q4, albeit slightly, but most press outlets report PC sales down for the umpteenth straight quarter because they deal in YoY
    http://bit.ly/1eGesYo
    "PC Shipments Down in Q4 2013, Lenovo Gains Ground" Press outlets report PC units down in Q4, despite being relatively flat, without giving the context of sequential or YoY
    18 Apr, 02:02 AM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3154) | Send Message
     
    tablets have impacted PC sales, so Win 8 bay trail tablets are competing with the low end of the notebook space
    18 Apr, 02:06 AM Reply Like
  • geekinasuit
    , contributor
    Comments (1189) | Send Message
     
    @Cincinnatus, AMD is not exiting the PC/Server business, nor is it becoming a specialized discrete graphics company, although graphics in general has been a strength and big growth focus for them. What they are working towards is to be 50% less reliant on the traditional PC market that they used to be mostly in. We can see the results already, the console contracts are giving them a relatively predictable continuous supply of revenue over the course of several years, that's huge and more important from a strategic POV than may be widely understood.
    18 Apr, 02:48 AM Reply Like
  • Arvinpinal
    , contributor
    Comments (232) | Send Message
     
    Good Job, AMD
    Q2 to Q4 earning will even better since the hot season for game console will booth sales and margin.. Strong Graphic card sale will continue to growth !!
    17 Apr, 08:09 PM Reply Like
  • Arvinpinal
    , contributor
    Comments (232) | Send Message
     
    Good Job, AMD
    Q2 to Q4 earning will even better since the hot season for game console will booth sales and margin.. Strong Graphic card sale will continue to growth !!
    17 Apr, 08:09 PM Reply Like
  • joeg1969
    , contributor
    Comments (404) | Send Message
     
    Long $AMD
    17 Apr, 08:45 PM Reply Like
  • jmaj.09@hotmail.com
    , contributor
    Comments (6) | Send Message
     
    Bears on the run, bears on the run !!!
    17 Apr, 08:51 PM Reply Like
  • GameKing13
    , contributor
    Comments (351) | Send Message
     
    Ashraf, when will you stop?
    17 Apr, 09:26 PM Reply Like
  • JBaby
    , contributor
    Comments (9) | Send Message
     
    Glad to see they have a lot of excitement brewing in the dense server market with SEATTLE. What did they say? 12B business? AMD has the only 64 bit 28nm server chip in the market.

     

    Rory said they are looking good for 1 or 2 major wins in 2014.
    17 Apr, 09:38 PM Reply Like
  • sk8rX
    , contributor
    Comments (3) | Send Message
     
    14nm FinFet coming to GloFo & Samsung via a new partnership that will benefit AMD and narrow the gap with Intel. Production can start later this year - perhaps a 14nm version of Carrizo in H1 2015?

     

    http://bit.ly/1eZIwJo
    17 Apr, 09:47 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3154) | Send Message
     
    I doubt it - probably cat cores, and I don't think we'll see anything 14nm anytime soon. If AMD starts at the end of this year/beginning of 2015, it's probably cat cores that we'll see first, just my guess.

     

    Carrizo looks to be at 28nm
    http://bit.ly/1dRYN63
    17 Apr, 09:56 PM Reply Like
  • geekinasuit
    , contributor
    Comments (1189) | Send Message
     
    The the evidence pointing to Carrizo being 28nm seems to be rather circumstantial at best. That engineer could have worked on porting an early design to 28nm, we just don't know where it's going to end up at.

     

    IIRC, during the call conference, Su said, while answering a question, that the next shrink was to 20nm, then to 14nm, when the caller asked for clarification (was it to be CPU or GPU), she said her answer was non-specific, which means she didn't want to say.
    17 Apr, 11:24 PM Reply Like
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