Originally Posted by davcc22
AMD has seen some huge improvements in their Q2 2016 financial results, returning to Non-GAAP profitability and increased revenue.
This quarter AMD has seen a 23% increase in revenue compared to Q1 2016 and a 9% increase when compared to this time last year. In terms of operating loss AMD has decreased their GAAP operating loss from 137 million in Q2 2015 to just 8 million in Q2 2016. Source
This wasn't a huge improvement, look at what they actually reported, not just the press release. AMD has been consistently losing money for a long time now; this Q was more of the same. It only looks not as bad as other Qs because they had a one time sale of an asset for 350 million dollars. It really is that simple, honestly.
Looking at the numbers ('m going to round) we see they started the Q with about 700m in cash. They ended the Q with about 950m cash. 350m cash came in from the sale of assets, which leaves a loss of about 100m cash from operations. This is pretty much what they have been doing going on 5 years now, losing tons of cash. Imagine you own a store and you can't pay rent one Q so you have to sell the register, the computer, the fixtures, display cases, etc. Was that a good Q or a bad one? Thats fine if it is one Q but when it is going on 5 years, well, thats scraping the bottom of the barrel as the expression goes.
Looking a little closer at that 100m cash operating loss we see something even more troubling, current liabilities went up 250m or so driven largely by an almost 300m increase in accounts payable. In other words, they haven't paid their suppliers, they borrowed from them. That huge cash loss doesn't even take into account this cost yet.
None of this is good news if you're an owner of AMD, or an employee of AMD, they're losing cash hand over fist just like they have been for going on 5 years now. The only real good news is, if you happen to be an executive at AMD, congrats, your bonuses which had declined to only 34m last year are on schedule to go up this year.