As promised, AMD posts disappointing financial results
And don't get your hopes up for next quarter, either
AMD has released its financial results for its second quarter 2012, and as they had warned earlier this month, revenues dipped by 11 per cent from the previous quarter, hitting $1.41bn.
"Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging," said AMD president and CEO Rory Read when announcing the numbers.
The disappointing results don't merely reflect a quarter-to-quarter decline. Revenues were also down by 10 per cent when compared to the second quarter of 2011, which saw revenues of $1.57bn.
Net income for the just-completed quarter stood at $37m, resulting in a earnings per share of a mere 5¢. That also compares unfavorably with the same quarter of last year, which saw net income of $61m and an EPS of 8¢.
Undaunted – well, that's what he's paid to be – Read put a favorable spin on AMD's prospects. "We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs)," he said. "Our recently launched Trinity APU continues to gain traction with customers."
Don't expect things to turn around for Intel's li'l competitor. As Read warned, "We expect headwinds will continue in the third quarter." ®
No surprise or issues here that I see
Last quarter AMD actually made money but took a large write-off for acquisitions. This quarter the bottom dropped again on world economies and even Intel missed projections. Microsucks just took a $6 Billion write-off for a bad acquisition and had to declare their first ever quarterly LOSS since going public. If you check you'll see that Dull and many other PC purveyors all had double digit losses this quarter so the pain is being felt by many.
For those not paying attention, we're in a world wide economic meltdown that has been ongoing for over five years and there is no end in sight because no one is creating new jobs.
I'm sorry but you are wrong, and here is why: Piledriver is based on the same faildozer design and thus will NOT work right on anything but Windows 8, and as we have seen the backlash on win 8 is gonna be insane. its like designing a chip that works best with WinME, its practically suicide.
The problem is Faildozer was originally envisioned as "The GPU does the FP with a weaker FP shared between cores for when gaming" now we can already see the problem, yes? windows cheduler, thanks to AMD not keeping them in the loop, doesn't have a clue how to treat the "one FP for two cores" design so what you get is a bad hardware assisted HyperThreading. this is why a Thuban, which has a FP per core, stomps the new design in most benches.
While the "GPU does the FP" is an interesting idea in theory, as we all know theory and practice are two different things. For that to work either AMD is gonna have to get everyone to code for it (not likely) or AMD is gonna have to seamlessly offload the FP code to the GPU with enough cache and speed that it doesn't take a penalty. Now as much as i support AMD, in fact every machine I've built for the past 5 years and my own family's machines are ALL AMD, I'm sorry but we haven't seen AMD pull anything that was THAT big a game changer since Athlon64 and since they fired all those guys for computer automated chip layouts I seriously doubt they can pull it off. finally since they kept MSFT out of the loop for so long good luck getting all those businesses who will be staying with win 7 to buy AMD when its crippled by the Win 7 scheduler.
Final verdict? Faildozer is AMD's netburst and without anything in the pipe besides it (they killed Thuban production, killed the next rev of Bobcat, all they have left is Liano and Faildozer) means for the next couple of years AMD is gonna be hurting BAD. Hell Thuban wins in most benches and was 40% cheaper to make than faildozer quad which Windows treats as a dual core with HT! As much as I love AMD when I can't get anymore Thubans and Athlons and Phenom IIs I'll have no choice but go Intel, faildozer is too hot, sucks too much power, and gives too little in return, just like netburst.
Re: No surprise or issues here that I see
Actually AC in the case of AMD they shot themselves in the face. The OEMs were gobbling up the Bobcat chips as fast as they could crank them out, so did they actually LISTEN to the market and boost R&D on the Bobcats? Nope they canceled the successor to Bobcat in favor of faildozer, a chip they knew for over a year before release was too hot, sucked too much power, and because they didn't bother to keep MSFT in the loop won't even have an OS that supports it until Windows 8, because every Windows before that has a scheduler that doesn't know how to allocate for a "half core" design like AMD went for.
So sadly AMD did this to themselves. they could have invested in Bobcat, kept dropping the power with die shrinks and working on even better designs, like better GPUs and more cores, instead they bet the farm on a chip that nobody wanted and they knew was too hot and too underpowered and was expensive to manufacture to boot. At current prices a faildozer quad (which is actually a dual core with hardware HT if you are wanting to use anything but Win 8, because that is how the MSFT Win 7 patch treats a faildozer, as HyperThreaded) costs more than 40% HIGHER than a Thuban which has six actual cores and get on average 50% higher on the benches.
Faildozer is the AMD Netburst, they knew it, but instead of doing the smart thing and investing in Bobcat while working on the next design and using Liano to cover the gap they bet it all on a turkey, now they will pay for that mistake. The only thing AMD had going for it was "bang for the buck" and faildozer crushed that with its high cost to manufacture. Sorry AMD, you brought this on yourselves.