Advanced Micro Devices' Quarterly Earnings Analysis: By the Numbers

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Hand putting cpu processor Advanced Micro Devices AMD Opteron chip in motherboard
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Advanced Micro Devices (AMD) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique corporate earnings release based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).

This earnings release follows the earnings announcements from the following peers of Advanced Micro Devices: Intel (INTC) and Cypress Semiconductor (CY).

Highlights

  • Summary numbers: Revenues of $1.429 billion, Net Earnings of $17 million and EPS of $0.02. Performance focus more on top-line than bottom-line: same period year-on-year change of revenue of -2.19% vs. change in earnings of -64.58%.

  • Gross margins now 37.79% from 39.22% compared to the same period last year, EBITDA margins now 7.84% from 8.97%

  • Ability to declare a higher earnings number? Year-on-year change in Operating Cash Flow of -14.29% better than change in earnings.

  • Earnings decline from operating margin decreases as well as from unusual items