AMD releases yet another set of dreadful numbers. It's doing really badly at its bread'n'butter -- selling CPUs and GPUs. Its custom SoC business is the only highlight in a dark, dark story.
Look, I want to root for the underdog, I really do. $DEITY knows, we need competition for Intel and nVidia. But OM$D, this is a disaster.
In IT Blogwatch, bloggers break out the last rites. Not to mention: Travel away from Earth -- what would you hear on the radio?...
Your humble blogwatcher curated these bloggy bits for your entertainment.
Ryan Smith forges the story: [You're fired -Ed.]
[It was] an important and unfortunately painful quarter for AMD. ... This marks the first time in quite a number of years that AMD’s quarterly revenue has dipped below $1 billion. [It] dropped 8% compared to Q1, and on a year-over-year basis it has dropped 35%. ... On a GAAP basis operating income was a $137 million loss. ... On a year-over-year basis [there was] a significant increase in losses.
The company is still working on bringing their expenses under control and better aligning them with revenue, a task that becomes harder after quarters like these. ... Restructuring to further cut expenses is not off the table. MORE
And Neil McAllister gets down on one knee:
AMD's second-quarter results were...a shocking bloodbath [missing] analysts' estimates...even lower than the chipmaker's own revised guidance. [It] lost $0.17 per diluted share, which was in line with Wall Street's estimates.
AMD's Computing and Graphics division [is] 2,350 per cent deeper into the red. ... At least the Enterprise, Embedded, and Semi-Custom chips segment is still making money, mostly from sales of semi-custom...SoCs [but with] a 72.2 per cent smaller operating profit.
But hope springs eternal for Su [who] brought in a new fall guy boss to run AMD's tattered Computing and Graphics business...Jim Anderson...poached from Intel. ... Su said, "He is the ideal leader to return CG to a positive trajectory." ... We'll believe that one when we see it.. MORE
At which, Meyo eyerolls furiously:
Comments from the CEO are basically out of a college text book. Nothing relevant said. MORE
Never one to mince words, Mark "mincemeat" Hachman calls it "potentially catastrophic":
AMD said the year-over-year decline was due to weaker than expected PC demand. Intel also warned of slowing PC demand, although the news it generated had to do with...“Kaby Lake.”
Now, market watchers have to begin to wonder—again—how viable AMD is. ... While Intel can tolerate a declining market, banking on revenue from servers and other enterprise parts, AMD cannot. MORE
Here's Natalie Gagliordi, who runs the numbers for us:
Following a profit warning earlier...AMD lost almost 20 percent of its stock value --- and it could be in for more rough waters.
In after hours trading, AMD's stock price fell almost 5 percent. MORE
Meanwhile, Chrispy_ has nothing good to say about AMD's CPU execution:
Regardless of the work AMD has done, there are very few new products to show for it.
AMD have been flogging the Bulldozer/Piledriver/Steamroller/Excavator into the ground with catastrophic consequences. The architecture is a total failure. ... Work on Piledriver should have been work on Zen.
The market is definitely moving...towards a market AMD isn't very strong at - power efficiency! ... When you've used a sub-2lb ultraportable with an 8W CoreM, and run demanding games on it, you have to wonder what all the other products are actually for! MORE
Travel away from Earth -- what would you hear on the radio?
[hat tip: Andy Baio]
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