AMD loses $590 million; still says it had "solid results"

How does a company spin the fact that it lost a whopping $590 million in its last fiscal quarter as "solid results"? It's actually pretty easy if you have AMD's latest financial results. The PC CPU and GPU processor company said this week that the loss for the first quarter of 2012 was due in part to a one time accounting charge of $703 million.

That number was because of a previously announced restructuring of AMD's business deal with the chip manufacturing company Globalfoundries. It also had a number of other one time charges, including $6 million related to AMD's recent acquisition of the server maker SeaMicro. If all of these charges are factored out, AMD would have had a profitable quarter.

AMD also said it recorded revenues of $1.59 billion for the quarter that ended on March 31, which was higher than analysts' expectations. The company predicted growth of three percent in revenues for the current second quarter time period.

With the PC business starting to pick up again after a very slow 2011, combined with the launch of Windows 8 later in the year, AMD could see better times ahead as it continues to battle its main rival Intel.

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I don't like this . Although I'm not very big fan of AMD, cutting down the competition will make prices go really high by those of Intel and NVidia

Jose_49 said,
I don't like this . Although I'm not very big fan of AMD, cutting down the competition will make prices go really high by those of Intel and NVidia

AMD is doing well, there's no reason to worry. I think the author of this piece chose the wrong wording for the title, thats all.

Most of the "loss" comes for buying SeaMicro and paying off GloFo. 2nd quarter results should be a lot better, as they released Trinity APUs yesterday and those are said to sell well enough.

alwaysonacoffebreak said,

AMD is doing well, there's no reason to worry. I think the author of this piece chose the wrong wording for the title, thats all.

Most of the "loss" comes for buying SeaMicro and paying off GloFo. 2nd quarter results should be a lot better, as they released Trinity APUs yesterday and those are said to sell well enough.


Thanks

korupt_one said,
Nokia loss was only a bit more than this, so should AMD be doing the dance of death too now

AMD has been struggling financially for years on and off.

So AMD losing 590m $ in a year is news, while Nokia losing over 1000m $ in 3 months is not? Not a single word on Nokia's bad financial results...

vacs said,
So AMD losing 590m $ in a year is news, while Nokia losing over 1000m $ in 3 months is not? Not a single word on Nokia's bad financial results...

Nokia's bad result is actually good news to everyone here, as it increases the chances of MS swallowing them whole.

vacs said,
So AMD losing 590m $ in a year is news, while Nokia losing over 1000m $ in 3 months is not? Not a single word on Nokia's bad financial results...

A thousand million? Really? Please don't ever talk about finance again, never-ever.

Also the "590m loss" is also for the first quarter of 2012, where did you get the whole physical year is out of my understanding.

alwaysonacoffebreak said,

A thousand million? Really? Please don't ever talk about finance again, never-ever.

Also the "590m loss" is also for the first quarter of 2012, where did you get the whole physical year is out of my understanding.

Relax, he's my accountant. That's why I'm bankrupt today.

I really wish AMD make some good money so that the competition exist..
its good for consumers. but over all its a solid number.

xendrome said,
Well they had "results" alright... I wouldn't call them "solid"....

$119 million profit (if you discount the mentioned one-off charges) seems pretty solid to me, and with possible deals to make alot of the new Xbox and Playstation hardware next year, things will only get better.

It's just a shame bulldozer was so disappointing.

TCLN Ryster said,

$119 million profit (if you discount the mentioned one-off charges) seems pretty solid to me, and with possible deals to make alot of the new Xbox and Playstation hardware next year, things will only get better.

It's just a shame bulldozer was so disappointing.

Yes, disappointing when running not optimal codepaths. Only now with GCC 4.7 I'm seeing bulldozer performance increase by a nice amount,
here's the 4-module/8-core $200~$250 Bulldozer beating the 6-core/12-Thread ~$900 Intel Core i7-3960X in C-Ray:
(different links due to two different articles)
http://www.phoronix.com/scan.p..._fx8150_compilers&num=4
http://www.phoronix.com/scan.p...x_compilers_sandy&num=4

It's disappointing only to the Intel-fans and people expecting to get a sudden 100FPS increase in games.

Looking forward to the Piledriver cores, it's an interesting architecture and I feel like it's just a diamond in the rough, AMD needs to work out some kinks.

Coolicer said,

Yes, disappointing when running not optimal codepaths. Only now with GCC 4.7 I'm seeing bulldozer performance increase by a nice amount,
here's the 4-module/8-core $200~$250 Bulldozer beating the 6-core/12-Thread ~$900 Intel Core i7-3960X in C-Ray:
(different links due to two different articles)
http://www.phoronix.com/scan.p..._fx8150_compilers&num=4
http://www.phoronix.com/scan.p...x_compilers_sandy&num=4

It's disappointing only to the Intel-fans and people expecting to get a sudden 100FPS increase in games.

Looking forward to the Piledriver cores, it's an interesting architecture and I feel like it's just a diamond in the rough, AMD needs to work out some kinks.

Those are not facts, those are linux benchmarks therfor usless. /s

Adamb10 said,
So AMD would have turned a profit if it wasn't for that account charge. Thats good.

Yup. Iirc they still have around $250 million to pay to GlobalFoundries during next fiscal year so it'll be much better in the future.

Adamb10 said,
So AMD would have turned a profit if it wasn't for that account charge. Thats good.

They said same thing last quarter and a quarter ago, they are bleeding money