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back to article AMD posts mediocre numbers, cites 'difficult market environment'

AMD released its financial results for the first quarter of its fiscal year 2013, which bracketed the Wall Street moneymen's predictions with revenues a tad higher than forecast and the all-important earnings per share (EPS) a tad lower.* For the quarter, AMD's EPS number came in at negative $0.19 on revenues of $1.09bn, the …

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Meh

Poor AMD

They have a good product set but their management & marketing is dismal. Since their value is so low anyway I wish they'd just throw yet another CEO at the problem and maybe they'd get something done.

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Devil

Re: Poor AMD

Seconded.

Fusion is way better than anything Intel has on offer. However its supply is abysmal. I had to trawl through 3-4 web shops to get an FM2 Socket CPU yesterday. All had motherboards - none had the CPU. A couple of months back AMD dropped production rates to eliminate glut in the channel. They quite clearly overdid it - instead of glut now there is scarcity.

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Re: Poor AMD

"Fusion is way better than anything Intel has on offer". Really? I read the reviews and it looks like a low-power processor with a built-in so-so graphics part. I went Core i7 - and an AMD graphics card. Is it better for certain markets (enterprise perhaps)? Not flaming, just curious.

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AMD has turn the corner IMO

AMD has lots of good products but they are constantly fighting a perception issue. No they don't have the fastest desktop or server CPU, but few people except PC enthusiasts buy those and they are a tiny percentage of the PC market. AMD's APUs are far superior to Intel's and that is why AMD secured contracts for all three new game consoles - Xbox, Play Station and Wii. These contracts are expected to generate the sale of 5 million APUs for AMD. AMD also just secured sales contracts on ULV APUs to be used in tablets and other portable devices.

If it were not for Intel strong-arming many OEMs, AMD would have better financials even in a devastating economic recession that has existed for five years and is likely to continue another five years. With over a 100 million people unemployed, it's no surprise that most PC makers have had drops in their sales including Intel who's numbers dropped 25% this quarter. AMD will continue to make slow progress over the next few years as the re-organization moves forward.

It's not going to be easy because AMD lacks the fincncial means to promote their products to the general consumer as effectively as Intel who just floods the media with advertising. AMD has to use the push-thru method of sales by getting OEMs to use AMD's best products to build better performing and better value retail products. Most consumers don't buy a PC based on the CPU/APU brand they buy performance and value and AMD delivers this in spades but you'd never know it if you aren't paying attention.

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Anonymous Coward

Re: AMD has turn the corner IMO

Possibly but their 2 weaknesses are TDP and single thread performance and in a shrinking Desktop market this is a big issue for them. It means their Laptop chips just can't touch their intel counterparts except for in the low margin value segment.

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Re: AMD has turn the corner IMO

Actually - NO.

Class leading desktop CPU's is a very small portion of all CPU sales. Mainstream consumers could care less about over-priced, top of the heap CPUs. Mainstream consumers buy value and typically would not have a clue about TDP and single thread performance. In fact AMD's CPUs and APUs deliver a far better user experience for consumers than Intel CPUs. That is precisely why AMD won all three gaming console contracts representing sales of 5 million custom APUs. AMD has also expanded their product line into tablets where they have secured major contracts. The second half of this year AMD should be looking much better financially as Kabini and Richland are in the pipeline and Steamroller will be shipping likely the end of this year. Steamroller will provide a nice performance boost over Vishera which is currently selling reasonable well in a worldwide economic recession that saw Intel's sales drop 25% this quarter. Intel actually missed their projections in the prior quarter so there is no disputing that the PC industry as a whole is suffering like most other industries other than new cars and aircraft/aerospace.

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I really like AMD

I want them to do well. They make great chips. Am thinking of a dual 16 core server motherboard for my next desktop build.

They are overleveraged though, after paying so much to buy ATI and not getting the cash flow they needed after. They need a sugar daddy. Nobody can buy them outright as that destroys the "change of control" licensing for their patent agreements. What can happen is that they borrow a lot of money from somebody and become their gimp for a while until they come right again. They could do that.

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