BLUF (bottom line up front) 1. Revenue of $1.03 billion, down 17 percent sequentially and 26 percent year-over year. The company lost $330 million last quarter and only $137 million this quarter. 2. CEO Lisa Su isn't confident about the PC market for the remainder of the year but the release of Windows 10 will substantially help the company (somehow). 3. Graphics revenue decreased 20 percent and 38 percent compared with 1Q 2014.
Like it or not, the company absolutely must get a win out of the Carrizo line-up. It will take a lot to pay down the its $2.2 billion in debt. More to follow (an updated road map) on its financial analyst day.
i think they spent a lot of money, but it will pay off in the end. Remember they didn't release anything new, but nvidia did.
i'll be editing this post as i listen.
Good question from JP Morgan guy, AMD's new cpu will be shipped and they expect to have higher prices for it when windows 10 comes around (AMD will have less stock, so prices will rise I understand in Q2). He also pointed a question about their other proprietary hardware, and noticed that amd is getting in fact bigger than what they present - he asked if they plan to expand and spend more money for investments; and amd guy didn't really answer that question by instead stated it doesn't look bright.
German bank Asked for the same thing, and asked how they plan manage and how they should look at their 2015, AMD stated that they want to expand.
AMD states again they invest in the future, but revenue is down because of it.
Someone brings that AMD seems to be hiding their revenue from consoles. and amd states it was unsatisfactory, and they expect Q2 will bring more cash. Peak will be expected in Q3, which means they should buy stock now, and sell at peak at Q3.
AMD is optimistic about Windows 10, that will help AMD.
AMD had problem with inventory in 2014 and they are now stocking more inventory in Q1 so they can swarm it in 2015. This should help with revenue, and end up flat at the end of the year.
Bank of America asked about PC Gaming market, AMD believes its growth opportunity market, Carrizo will launch with 300 series in Q2.
Q2 cash burn will be better, there will be mix of revenue.
AMD wants to spend more, more on R&D. Going on and on about R&D.
AMD will grow in x86 server and embedded solutions.
Mobile revenue is Up. Desktop revenue is Down.
AMD suffered a lot by problems in currency in Europe. Eastern europe demand is lower, lower spending.
Carrizo is not going to do well unless it comes to the desktop, which as far as we know it's coming at the end of the year or not at all. No one is bothering with AMD on the mobile side. you have ARM who has dominance on the Tablets / Phone Sectors. Nvidia is trying to jump in with their Tegra X1, and Intel has been doing surprisingly well with providing X86 cores to the small tablets and low end note-books. To keep this charade going. When was the last time you actually had a Laptop or even a tablet with AMD hardware?
I still stand that AMD should of skipped Excavator. they need to stop with that CMT non-sense on their processors. it's not helping in the slightest. and AMD admitting it was proof enough.
This is arguably the toughest year for AMD they are only going to provide graphics cards and ONE re-brand on the Desktop codenamed "Godaveri" to replace Kaveri. 2016 is where they will shine cause they will have brand-new architectures for ALL of their products. Windows 10 will help AMD in the gaming sector because Windows 10 will take advantage of Multiple-Cores. so their ancient FX line will have another year of life squeezed out of it. but for the most part this is arguably the hardest year for AMD.
Completely ignoring your desktop market was a good idea? Right ? So much time with too little to offer. Their customers are migrating off too a different platforms which means in order to get them back its gonna take one hellva ipc/performance advantage to get them back. Nice summary Cyklon