Today AMD released their Q1 FY 2015 financial results, and the company reported revenue of $1.03 billion for the quarter. This is a 16.9% decrease as compared to Q4 2014, and a 26.4% decrease from the $1.40 billion recorded in Q1 2014. Operating income based on GAAP numbers was an operating loss of $137 million, which is a substantial decrease in loss as compared to Q4 2014, where they had an operating loss of $330 million, however in Q1 2014 they had a small operating income of $49 million, so although they have improved quarter-over-quarter, that is a significant reduction year-over-year. Net loss for the quarter was $180 million, or $0.23 per share, which once again is better than Q4 2014 where there was a $364 million ($0.47/share) loss, but much worse than the $20 million ($0.03/share) loss in Q1 2014.

AMD Q1 2015 Financial Results (GAAP)
  Q1'2015 Q4'2014 Q1'2014
Revenue $1.03B $1.24B $1.40B
Gross Margin 32% 29% 35%
Operating Income -$137M -$330M $49M
Net Income -$180M -$364M -$20M
Earnings Per Share -$0.23 -$0.47 -$0.03M

Part of these losses are due to the ongoing restructuring at AMD, which has contributed heavily to these numbers. One of the new restructuring fees is due to the exit from the Seamicro branded dense server business, which has cost them an additional $75 million this quarter, including $7 million in cash. Due to these hits, AMD also provides Non-GAAP results which exclude these numbers. On a Non-GAAP basis, AMD’s operating loss is just $30 million, however that is still down significantly from the $89 million operating income in Q1 2014, and the $52 million operating income from last quarter. Net loss on a Non-GAAP basis is $73 million, or $0.09 per share. This is a decline from Q4 2014 where there was a net income of $18 million ($0.02/share) and Q1 2014 where they were able to achieve a net income of $35 million ($0.05/share).

AMD Q1 2015 Financial Results (Non-GAAP)
  Q1'2015 Q4'2014 Q1'2014
Revenue $1.03B $1.24B $1.40B
Gross Margin 32% 34% 35%
Operating Income -$30M $52M $89M
Net Income -$73M $18M $35M
Earnings Per Share -$0.09 $0.02 $0.05M

AMD has also entered into a fifth amendment of their agreement with GlobalFoundries, and AMD is expecting to purchase about $1 billion in wafers in 2015.

Breaking down their product segments, the Computing and Graphics segment had a 20% decline in revenue quarter-over-quarter, and a 38% decrease year-over-year, with Q1 having net revenues of $532 million. The quarterly decrease was due to lower desktop and notebook processor sales, whereas the yearly decrease was due to lower desktop processor sales and GPU channel sales. The division had an operating loss of $75 million for the quarter, which is a significant change from the $56 million loss last quarter and the $3 million income in Q1 2014. The loss was partially offset by lower operating expenses, but clearly more work is needed. AMD is hoping for better success with their new APU, Carrizo, which they are expecting to deliver double digit performance increases and much better energy efficiency compared to Kaveri, which is the current APU.

AMD Q1 2015 Computing and Graphics
  Q1'2015 Q4'2014 Q1'2014
Revenue $532M $662M $861M
Operating Income -$75M -$56M $3M

The Enterprise, Embedded and Semi-Custom segment had a year-over-year revenue decrease of 7%, and a quarter-over-quarter decrease of 14%, with Q1 2015 coming in at $498 million. The quarterly drop is due to a seasonal decrease in semi-custom SoC sales (read: Consoles had a ramp up for the holidays and are now back to lower sales) and the yearly decrease is due to lower numbers of server processors being sold. However this segment did have an operating income to report of $45 million for the quarter, but this is down from the $109 million in Q4 2014 and $85 million in Q1 2014.

AMD Q1 2015 Enterprise, Embedded and Semi-Custom
  Q1'2015 Q4'2014 Q1'2014
Revenue $498M $577M $536M
Operating Income $45M $109M $85M

The “All Other” segment had an operating loss of $107 million. As compared to Q1 2014, this is $68 million more operating loss, which is primarily due to the $75 million hit for exiting the dense server business. In Q4 2014 this segment had a $383 million loss.

For Q2, AMD is forecasting revenue being down an additional 3%, plus or minus 3%, and non-GAAP Gross Margin to remain flat at 32%.

AMD is certainly not in a great position right now, and the new CEO Dr. Lisa Su has some work to do in order to get AMD back to a financially viable state. Part of that is diversifying revenues, especially with the PC market slowing again. AMD has not had a significant product launch in a few quarters, which has not helped either.

Source: AMD Investor Relations

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  • medi03 - Sunday, April 19, 2015 - link

    Good joke, eh?

    10 years since Athlon 64-s AMD is still in the same problem, manufacturers aren't using it's products "for some reason".

    They have good notebook APUs that wipe the floor with Intel's at gaming (there is hardly anything else that most people do with their notebooks that would touch limits of the system, besides gaming) yet you cannot find AMD notebook with an IPS screen, only shitty TNs and cost savings all over the place.
    Reply
  • Taneli - Monday, April 20, 2015 - link

    For stuff most people do on their laptops single threaded performance is most important for good user experience (besides memory and storage latency). AMD lags behind Intel here. Reply
  • JonnyDough - Tuesday, April 21, 2015 - link

    To be honest neither laptops nor graphics matter. The business segment is the larger market share, and Intel's power draw advantage due to manufacturing process can't be competed with. Businesses don't care about graphics, they want fast low power chips as they go through life-cycle replacements for their workstations. Reply
  • UtilityMax - Friday, April 24, 2015 - link

    AMD wipes Intel at gaming? Please. First, let's clear things about general CPU performance. AMD's quad core FX notebook APU can keep up with Intel's Core i3U only in heavily mulch-threaded benchmarks. But for anything using a single core, the FX APU is 50% slower than Intel's superbudget Core i3U. Now, Core i3U is something you normally find in a sub-$400 notebook. So OEM's are entirely right to put AMD chips at best into superbudget notebooks. Anything costing +$500 in USA has some kind of Core i5 CPU or better.

    Next only the issue of gaming, AMD APUs are faster than Intel discrete graphics but not by as much as you think. You get 15-20% FPS gain, maybe. While APUs look good on paper, in real life they're seriously starved for memory throughput and the slow compute cores can hurt the performance further. I personally don't know why the APUs are viewed as a big asset in gaming. A $50 discrete card like NVidia 840M will literally slaughter any APU or discrete graphics option, and anyone caring about gaming is probably smart enough to configure a laptop with at least an entry level discrete GPU.

    Reply
  • chizow - Thursday, April 16, 2015 - link

    Slaughtered in the marketplace again, now that their recent bellwethers are declining (GPU, console revenue), we really see how dire the situation is for AMD.

    It really is time for them to start planning an exit strategy, otherwise its going to really start getting ugly. Time to ramp up the acquisition talks or someone is going to get what's left for peanuts and pennies on the dollar.
    Reply
  • Black Obsidian - Thursday, April 16, 2015 - link

    It's a bit premature to suggest that AMD's GPU income is declining (at least beyond the short term). It's been 18 months since the last new lineup was released, and even the mighty Apple sees a significant decline in sales for 1-2 quarters before a new iteration is released.

    If AMD releases new product and the first full quarter of it being on the market DOESN'T show a significant increase in income and profitability, that's the point at which a long-term decline is likely.
    Reply
  • HighTech4US - Thursday, April 16, 2015 - link

    No it is not premature. AMD has been losing massive amounts of discrete market share to Nvidia and now only has 24% market share while Nvidia has 76%. AMD has lost 14% in market share (from 38% to 24%) in the second half of 2014.

    https://forum.beyond3d.com/posts/1828480

    With this quarters results that may fall to 20%.
    Reply
  • chizow - Thursday, April 16, 2015 - link

    That's an amazingly informative graph, who compiled that data? Reply
  • HighTech4US - Friday, April 17, 2015 - link

    dbz on the beyond3d forum

    forumDOTbeyond3dDOTcom/posts/1194721

    dbz: I made the graph from aggregated quarterly reports, mainly from Mercury Research with fillers from JPR where Mercury's figures were unavailable.
    This is the link to this most recent post where I used the figures.

    Most should be verifiable via a quick search. Some of the older figures were collected via Business Week and the WSJ (amongst other publications) for 1995-2003 - most of which I've truncated from this graph since most of the graphics vendors from those years are now defunct/no longer making discrete graphics boards.

    The numbers were originally collated for a series of articles that ended up being published at Techspot.
    Reply
  • HighTech4US - Friday, April 17, 2015 - link

    Sorry, this is the proper link: https://forum.beyond3d.com/posts/1194721

    Yahoo financial censors posts that look like web links so I have to change them by removing http. www. and any dots. Forgot that I was posting to a forum that allows links as is
    Reply

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