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Advanced Micro Devices' (AMD) CEO Lisa T. Su on Q3 2015 Results - Earnings Call Transcript

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Advanced Micro Devices, Inc. (NASDAQ:AMD) Q3 2015 Earnings Conference Call October 15, 2015 5:00 PM ET

Executives

Ruth Cotter - VP of Corporate Communications and IR

Lisa T. Su - President and CEO

Devinder Kumar - SVP and CFO

Analysts

Chris Rolland - FBR & Company

David Wong - Wells Fargo

Hans Mosesmann - Raymond James

Harlan Sur - JPMorgam

Ian Ing - MKM Partners

Steven Chin - UBS

Matt Ramsay - Canaccord

Joe Moore - Morgan Stanley

Sanjay Chaurasia - Nomura

Mark Lipacis - Jefferies

John Pitzer - Credit Suisse

Vijay Rakesh - Mizuho

Operator

Good day, ladies and gentlemen, and thank you for your patience. You have joined the AMD Q3 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder this conference may be recorded. I would now like to turn the call over to your host the Corporate Vice President of Corporate Communications and Investor Relations Ms. Ruth Cotter. Ma'am, you may begin.

Ruth Cotter

Thank you, and welcome to AMD's third quarter 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 Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on amd.com.

I would like to highlight a few dates for you. Lisa Su, will be present at the Wells Fargo Tech Media Telecom Conference on November10th in New York and at the Credit Suisse

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Comments (12)

gofx profile picture
@Vlad,

Intel needs Windows to run on ARM in a market significant manner before they can claim they aren't a monopoly in the Win-x86 market... as everyone knows the software ecosystem is still a huge factor.
Vlad Hristov profile picture
@goofycat. Whaaat??? I think your brain has been shrinking, as the AMD revenue :):)
gofx profile picture
@Vlad,

Relax, I'm not talking about chips... :p
A
Think about these results.
- margin 23%. It means AMD sells chip almost for nothing.
- Computing and Graphics, which includes desktop and notebook processors, chipsets, discrete graphics processing units (GPUs) and professional graphics, generated just 424B$ or ~40% of total income, 60% of which went from Enterprise, Embedded and Semi-Custom (btw, Rory would have been very happy - his goal was reached and even overdone).

In my view it's almost a catastrophe. AMD is on the edge either disintegration or buyout, unfortunately for customers because Intel in that case would be called a monopoly. May be Intel should pour money in AMD e.g. though big stake purchasing? If AMD is profitable, Intel will get surplus in future after Zen success, if AMD not, Intel will at least return some of it back through selloff.
Fiberton profile picture
@Azazel Monopoly`s are not illegal. Many of you do not understand this very concept. Of course Intel wants to be a Monopoly. It is only illegal as a Monopoly to keep others from coming into the space. Other than that it is legal.
Vlad Hristov profile picture
Monopoly argument is useless now. We have ARM PC's. Chromebooks are 40% owned by those type of chips. So AMDx86 architecture is now irrelevant in this type of conversation. They need to be put out of their misery ones it for all. Losing NET of $8B (b= billion) for 17 years is excellent achievement.

"..generated just 424B$" it is not B, it is "..generated just 424M$"
gofx profile picture
@Azaz,

I'm not sure is really fair to use the 23% number without considering the context...

"Gross margin was 23%, down 5 percentage points sequentially, gross margin was impacted in the quarter by a 65 million inventory write down comprising primarily older generation APUs. The impact of the inventory write down was 6 percentage points."

It was down 5 points, after a 6 point drop due to inventory write down. So, it went up marginally before write-down based on higher margin on the newer products by the sound of it.
gofx profile picture
Nothing to do but sit and spin until 2016 and then see what arrives.
User 12115671 profile picture
True....but they are sounding more hawkish and bullish than they have in some time. Long term plans coming to a head...either they work or fail. They can't survive another 2011 product debacle. Good to see Zen arriving in 16 though....big hype can build as revenue will be limited.
ClLockwood profile picture
$AMD is the 8c Write-off means that the company wasn't able to collect an expected income YET, so we can get it on next quarter earnings ?
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