AMD reports $118m loss, says HD 6000 is coming next week

By on October 15, 2010, 3:09 PM
AMD has posted its latest earnings results, showing revenue of $1.62 billion with a $118 million ($0.17 per share) net loss for the third quarter of 2010 -- a stark contrast to its Santa Clara-based rival. Just earlier this week, Intel announced its first $11 billion quarter. AMD's loss comes amid falling average selling prices (ASPs) and weaker-than-expected demand -- which the same for much of the PC industry.

Nonetheless, the world's second largest chipmaker said its performance "was highlighted by solid gross margin and a continued focus on profitability." "Our strategy to deliver platforms with superior visual experiences continues to resonate. We look forward to building on this momentum when we begin shipping our first AMD Fusion Accelerated Processor Units later this quarter," said CEO Dirk Meyer.

  Q3-10 Q2-10 Q3-09
Revenue $1.62B $1.65B $1.40B
Operating income $128M $125M -$77M
Net loss -$118M -$43M -$128M

Revenue for AMD's Computing Solutions segment was flat sequentially and up 13% on-year, while its graphics business revenue fell 11% on-month and rose 33% from last year. The company attributes both the positive and negative fluctuations in GPU sales to notebook shipments and ASP. Processor prices also fell slightly from the previous quarter and increased from the same period in 2009.

Update: AMD has officially confirmed its second-gen DirectX 11 GPUs will debut next week. "We'll be introducing our second-generation of DX11 technology into the market with some launch activities actually next week. We'll be shipping all the family members of that product line I'll call it, by the end of this quarter, and total volume think in terms of several hundred thousand, or hundreds of thousands of units."





User Comments: 15

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KG363 KG363 said:

They need to become profitable again, for everyone's sake

dividebyzero dividebyzero, trainee n00b, said:

AMD's own financial projection for Q4 is stating a "flat" quarter. Between Global Foundries, aggressive Intel marketing (likely to increase with Sandy Bridge's intro), and the elephant in the room that is debt servicing, I wouldn't be expecting AMD to become "profitable" for some time. Unless you're a AMD shareholder looking for a return I wouldn't be too worried that AMD is in the red....I'm sure if AMD starts to suffer a major haemorrhage of red ink, Mubadala will shore them up at a moments notice -albeit via increasing their holdings in AMD stock.

tonylukac said:

Show me some working drivers and I'll show you a profitable company. Did Microsoft make it too difficult to write drivers? Look at the Vista driver fiasco. The ATI All In Wonder TV tuner video card works, but not with VHS tapes. They won't acknowledge the problem. Their USB video card's display sometimes turns to white lines during startup and shutdown, second iteration. Nice devices, if they work. Simplify.

princeton princeton said:

It will probably never ever happen but, what if AMD died and intel controlled basically all of the desktop cpu market? What would happen to prices, products ect.

KG363 KG363 said:

princeton said:

It will probably never ever happen but, what if AMD died and intel controlled basically all of the desktop cpu market? What would happen to prices, products ect.

it would be time for me to return to console gaming

Rage_3K_Moiz Rage_3K_Moiz, Sith Lord, said:

It will probably never ever happen but, what if AMD died and intel controlled basically all of the desktop cpu market? What would happen to prices, products ect.

IIRC, this almost happened once and Intel was forced to pump money into AMD to resuscitate them, due to anti-trust issues that'd crop up if AMD went under.

EDIT: Oh wait, no, that was the money that Intel paid them to settle the anti-trust lawsuit, although it did help AMD finally turn a profit that quarter.

dividebyzero dividebyzero, trainee n00b, said:

It will probably never ever happen but, what if AMD died and intel controlled basically all of the desktop cpu market? What would happen to prices, products ect.

Not going to happen. Intel can't operate as a monopoly in the CPU market. If that were the case then Intel would have bought AMD lock, stock and barrel years ago.

Intel's profits from half a year of operation would exceed AMD's net worth.

Show me some working drivers and I'll show you a profitable company. Did Microsoft make it too difficult to write drivers? Look at the Vista driver fiasco. The ATI All In Wonder TV tuner video card works, but not with VHS tapes. They won't acknowledge the problem. Their USB video card's display sometimes turns to white lines during startup and shutdown, second iteration. Nice devices, if they work. Simplify.

This is probably the more worrying aspect of AMD's future, since their focus is now on "Fusion" CPU+GPU (APU). The main marketing push is to tout the APU as an all-in-one solution for grahics (enthusiast gaming excepted) yet UVD (AMD's Unified Video Decoder) still has substantial issues with MPEG-4 (H.264) playback which don't seem to have been rectified with AMD's latest UVD3 release (HD 6000 series, Bobcat/Llano APU's)

From AMD's Forum moderator on the subject:

[link] .

Not quite as encouraging as it could be.

captaincranky captaincranky, TechSpot Addict, said:

I have a question, "where" does the 100+ million dollars come from, that AMD has claimed to lose"? Did Obama print it for them?

Morgawr said:

AMD has a market cap of 4.8 BILLION. They probably did not loose any paper money. The loss of 100+ million probably comes from deprecation, a non-cash expense.

And I'd like to point out that the previous president printed his fair share of money (and was the one that actually started the 'bail out' of the banks). If your going to attack a politician at least attack them on something based in fact.

captaincranky captaincranky, TechSpot Addict, said:

Oh, You Want you Politics Straight up, Not on the Rocks...

And I'd like to point out that the previous president printed his fair share of money (and was the one that actually started the 'bail out' of the banks). If your going to attack a politician at least attack them on something based in fact.

Obama stated flatly on network TV, in regard to the bailouts, "we can't keep printing money"!

I thought "did Obama print if for them", was fairly, if not totally neutral in demeanor. It seems if this continues, you'll be telling me how to vote. And please don't lecture me about George W. Bush.

The best that could be said about that douche bag is this, "I survived the Carter Presidency also".

It's a sad day when political families can elect a high functioning *****, on the basis of family name. If "dubbya" were a Kennedy, they would have had the good taste to keep him in their attic, which is where he belonged.

That's where your Social Security went, Georgie boy dropped it on Baghdad.

I thought I like to "point those things out" to you as well.

Guest said:

No wonder PC sales are so bad when game developers are ignoring the very platform games are created on. Yes, console games are made on a PC?!?console gaming wouldn't be possible for gaming. The whole gaming industry is cause the PC industry to fail. Less good games=less reason to buy a high-end PC.

Guest said:

@ cranky

remember, they don't want social security, public education or affordable health insurance. not to mention a stable financial system(god forbid!).

captaincranky captaincranky, TechSpot Addict, said:

@ cranky

remember, they don't want social security, public education or affordable health insurance. not to mention a stable financial system(god forbid!).

Actually the public, (which I normally spell without the "L" , has been told that it doesn't want these things, and they really are stupid enough to believe it.

If that's who you meant by "they". If it wasn't, then you lost me.

wizardB wizardB said:

captaincranky said:

It's a sad day when political families can elect a high functioning *****, on the basis of family name. If "dubbya" were a Kennedy, they would have had the good taste to keep him in their attic, which is where he belonged.

Then how the hell do you explain Teddy??

Guest said:

I was talking about the far right, the group you were so obviously bashing

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