Quote:
http://www.zdnet.com/article/amd-beats-q3-expectations-with-strong-soc-gpu-and-mobile-apu-sales/
http://www.zdnet.com/article/amd-beats-q3-expectations-with-strong-soc-gpu-and-mobile-apu-sales/The company's revenues were up 23 percent year-over-year, primarily because of its record semi-custom SoC and higher GPU and mobile APU sales.
The Xbox One S SoC is 16nm, so I believe that's the only foundry that makes sense/could be.
Quote:
http://www.marketwired.com/press-release/amd-reports-2016-third-quarter-results-nasdaq-amd-2168644.htmTotal debt at the end of the quarter was $1,632 million, down $606 million from the prior quarter as a result of the timing and execution of Q3 2016 debt reduction actions and due to bifurcation of the newly issued 2.125 percent Convertible Notes due 2026 into equity and liability components based on GAAP accounting regulations. We plan to further reduce debt by deploying a significant portion of the remaining cash from our capital markets transactions.
The money is payable to the European Union. AMD won't see a penny from that.
when companies go into debt like that they typically issue Bonds to cover it. Bonds usually are 10 year debt mechanisms, which require the company to pay only the interest, until the bond matures, at which point the full face dollar of the bond is required for payment. Often companies will issue new bonds to replace the old.
The income that they added was the net inflow from the sale of the foundry. It is to be treated as an EO item and so is this payment that is a fine (in legalese) for termination of the contract they made with GF. Also, since the inflow and the resulting fine for non-compliance directly affect the product, they chose to have the deductions on the GP rather than other Admin expenses.Originally Posted by Defoler
That adjustment seems kinda weird that they wrote off the WSA payment, which is basically part of the deal why the added a high income a couple of years ago when they sold their last foundries, and also the payment for making the GPUs in the first place.
So overall they are writing that they made money on the SoC and GPUs they sold (most line the new SoCs for the new xbox/PS4 versions), but they don't write down the cost to actually make those SoC and GPUs.
That is not what it means, at all.Originally Posted by huzzug
The income that they added was the net inflow from the sale of the foundry. It is to be treated as an EO item and so is this payment that is a fine (in legalese) for termination of the contract they made with GF. Also, since the inflow and the resulting fine for non-compliance directly affect the product, they chose to have the deductions on the GP rather than other Admin expenses.
The cost for the SoC & GPU should have already been added to direct mat, direct labour etc based on the level of production and what agreement they have with the foundry they are sourcing the chips from.
This sounds so confusing...Originally Posted by Pro3ootector
AMD posted revenue of $1,307 million, up 27% sequentially and 23% year-over-year. This revenue was distributed unevenly through AMD's divisions, though. "Computing and Graphics" segment revenue was $472 million, up 9% from Q2 2016, primarily due to increased GPU sales (where Polaris picked up the grunt of the work, being responsible for 50% of AMD's GPU revenue), offset by lower sales of client desktop processors and chipsets; whereas "Enterprise, Embedded and Semi-Custom" segment revenue was $835 million, up 41% sequentially, primarily due to record semi-custom SoC sales (such as those found in Microsoft's XBOX One and Sony's PS4 and upcoming PS4 Pro).
The company's "Computing and Graphics" division still posted an operating loss, though improved to $66 million, compared to an operating loss of $81 million in Q2 2016, primarily due to higher GPU revenue (with Lisa Su saying it registered the highest GPU growth since 2014). Though the "Enterprise, Embedded and Semi-Custom" division picked up the loss and then some, with an operating income of $136 million, up from $84 million in the prior quarter, primarily due to higher revenue.
But thanks to AMD's Gaming SoC strategy, Sony wen't back to profitability. I wish them all best.