Entering text into the input field will update the search result below

Advanced Micro Devices' CEO Discusses Q1 2014 Results - Earnings Call Transcript

SA Transcripts profile picture
SA Transcripts
142.79K Followers

Advanced Micro Devices, Inc. (NASDAQ:AMD) Q1 2014 Earnings Conference Call April 17, 2014 5:30 PM ET

Executives

Ruth Cotter – VP, IR

Rory Read – President and CEO

Devinder Kumar – SVP and CFO

Lisa Su – SVP and General Manager of Global Business Units

Analysts

Betsy Van Hees – Wedbush Securities

Vivek Arya – Bank of America Merrill Lynch

Christopher Rolland – FBR Capital Markets

Hans Mosesmann – Raymond James

David Wong – Wells Fargo

Cody Acree – Ascendiant Capital Markets

Joe Moore – Morgan Stanley

Andrew Paik – Credit Suisse

JoAnne Feeney – ABR Investment Strategy

Mark Lipacis – Jefferies & Co.

Kevin Cassidy – Stifel Nicolaus

Operator

Good afternoon. My name is Eric [ph] and I will be your conference operator for today.

At this time I would like to welcome everyone to AMD's First Quarter 2014 Earnings Conference Call.

[Operator Instructions]

I would now like to turn the conference over to Ms. Ruth Cotter, Vice President of Investor Relations for AMD. Please go ahead.

Ruth Cotter

Thank you, and welcome to AMD's first quarter earnings conference call. By now you should have had the opportunity to review a copy of our earnings release and the CFO commentary and slides. If you have not reviewed these documents, they can be found on AMD’s website at ir.amd.com.

Participants on today's conference call are Rory Read, our President and Chief Executive Officer; Devinder Kumar, our Senior Vice President and Chief Financial Officer. For the question-and-answer portion of the call, we will be joined by Lisa Su, our Senior Vice President and General Manager, Global Business Units.

This is a live call and will be replayed via webcast on amd.com.

I’d like to take this opportunity to highlight a few dates for you. Lisa Su will attend the JPMorgan technology, media and

Recommended For You

Comments (9)

s
It's amusing that short seller Sanford C. Bernstein and their ursine analyst Dr. Stacy Rasgon couldn't be bothered by attending AMD's earnings call. I guess the pain of AMD making yet more progress in its turnaround was too much to "bear".

The link below provides background on the short seller and its shill.

http://seekingalpha.co...
k
@Stocks...Stacy Rasgon/Sanford C. Bernstein is just another analyst who's credibility has been destroyed...and their obvious attempts to manipulate the market uncovered.
Justin Jaynes profile picture
@Stocks - just to add after writing that, AMD came in barely above Dr. Rasgon's 2013 estimate, but AMD's Q2 forecasted growth means AMD's full year 2014 guidance is likely to blow completely through Rasgon's 2014 revenue estimate. Keep in mind this link below refers to Rasgon's $3.00 PT, not the $2.50 PT he put on AMD a short time later:

"Bernstein decreased 2013 revenues from $5,347M to $5,248M, 2014 from $5,729M to $5,529M, and 2015 from $5,909M to $5,622M. The analyst's EPS estimates also decreased from -$0.06 to -$0.12 for 2013, from $0.22 to $0.03 in 2014, and $0.36 to $0.07 in 2015."

Read more: http://bit.ly/1fei8f3

$5529M / 4 = $1382M average quarterly revenues for 2014.

Q1 and Q2 are typically weaker, AMD generated $1.4B in revenue in Q1, which is already $20M above his average estimate, and more importantly, forecast sequential revenue growth for Q2. So for AMD's two typically weakest quarters, AMD has already beat that average needed to arrive at Dr. Rasgon's 2014 rev forecast, and has guided at least flat or a few percent points higher for Q2, before the back half of the year which is typically stronger.
s
Thanks for the update Justin.

Bernstein's Rasgon was notably absent the earnings call. You'd think this would be considered a critical quarter for any truly objective analyst to cover. What are the chances Bernstein is unwinding their short?

Maybe they don't want to tip their hand. Any questions and commentary from their analyst in an earnings call might muddy the waters from their point of view. They could be busy getting their ducks lined up before having him officially announce a reversal of sentiment.

Is this the first pebble to move in a landslide?
k
Well, I don't know how anyone else feels, but I think this was a well done ER conference call. At least this time they shut the door on some of the potentialy negative questions asked by these analysts. I think AMD had a great 1st quarter and I look forward to Q2 with renewed enthusiasm. I fully expect AMD to continue their turnaround and deliver on products as assured by Rory Reed and team AMD!

I remain LONG AMD!
geekinasuit profile picture
ER was well done. Did anyone hear Rory slam his fist onto the table while answering a question? It wasn't a (*face palm*) I'm pretty sure it was a (*fist to table slam*).
k
@Geekinasuit...I heard something as well. I had the distinct impression that he was growing a bit impatient with Christopher Rolland from FBR Capital.
s
@SA Transcripts - regarding the quoted transcript section below...

Mark Lipacis - Jefferies & Co.
"Thank you. Last question if I may. The -- according to 8-K filing, it looks [indiscernible] exercise warrants to get to 19% ownership. Are there any implications on steering the direction of the company, or should we read anything into this? How should we think about that? Thank you very much."

The indiscernible portion refers to "Mubadala Development Company" which now has 19% of AMD after exercising warrants held via a wholly owned Cayman Island holding company called West Coast Hitech L.P.

Please fix the transcript to say something like "...it looks like Mubadala exercised warrants to get to 19% ownership." Thanks.

More details about the holding company is at the link below:

http://bit.ly/1eQlkmn
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!

About AMD Stock

SymbolLast Price% Chg
Market Cap
PE
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on AMD

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.