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Impossible is possible
The year 2008 was anything but good for AMD, and today the smaller CPU Company announced better than expected Q3 2008 results. Net loss was $67, or 11 cents per share, compared to $396 million loss or 71 cent per share at Q3 2007.
Net revenue ended up at $1.78 billion, much better than Wall Street expected. To our amazement, AMD was profitable in Q3 2008 with $131 million GAAP operating income, while in Q2 2008 it had $143 million loss and in Q3 2007 $181 million loss. AMD said it will have a positive operating income and it did so; kudos for that.
On the other hand, the loss of $(67) in GAAP net loss / EPS compared to its disastrous $1.189 million loss in Q2 2008 looks like a huge turnaround toward progress. We cannot shake the feeling that if you write off many debts in one quarter you look much better in the one to come, but since Wall Street didn’t expect that AMD would be operationally profitable this year, this has been seen as a positive development.
Dirk Meyer, President and CEO of AMD, said: "We achieved a significant milestone with the recent announcement of our Asset Smart strategy, which will transform both AMD and the industry through the creation of ‘The Foundry Company’. AMD will be assured access to leading-edge manufacturing processes without the obligation to make the capital investment required to maintain a world-class manufacturing operation. We look forward to the successful closing of this joint venture early in 2009.” We still have to see how this Foundry Co. thing will work.
In case AMD starts making some good CPUs they might even make some money in 2009, so watch out. At press time, AMD was up to 5.37 percent to $4.12 per share.
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PC Hardware
AMD posts better than expected Q3 results
Impossible is possible
The year 2008 was anything but good for AMD, and today the smaller CPU Company announced better than expected Q3 2008 results. Net loss was $67, or 11 cents per share, compared to $396 million loss or 71 cent per share at Q3 2007.
Net revenue ended up at $1.78 billion, much better than Wall Street expected. To our amazement, AMD was profitable in Q3 2008 with $131 million GAAP operating income, while in Q2 2008 it had $143 million loss and in Q3 2007 $181 million loss. AMD said it will have a positive operating income and it did so; kudos for that.
On the other hand, the loss of $(67) in GAAP net loss / EPS compared to its disastrous $1.189 million loss in Q2 2008 looks like a huge turnaround toward progress. We cannot shake the feeling that if you write off many debts in one quarter you look much better in the one to come, but since Wall Street didn’t expect that AMD would be operationally profitable this year, this has been seen as a positive development.
Dirk Meyer, President and CEO of AMD, said: "We achieved a significant milestone with the recent announcement of our Asset Smart strategy, which will transform both AMD and the industry through the creation of ‘The Foundry Company’. AMD will be assured access to leading-edge manufacturing processes without the obligation to make the capital investment required to maintain a world-class manufacturing operation. We look forward to the successful closing of this joint venture early in 2009.” We still have to see how this Foundry Co. thing will work.
In case AMD starts making some good CPUs they might even make some money in 2009, so watch out. At press time, AMD was up to 5.37 percent to $4.12 per share.