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Advanced Micro Devices, Inc. (NASDAQ:AMD) Gets Warning of Bankruptcy: M/A-Com Technology Solutions Holdings, Inc. (NASDAQ:MTSI)

http://senecaglobe.com/advanced-micro-devices-inc-nasdaqamd-gets-warning-of-bankruptcy-ma-com-technology-solutions-holdings-inc-nasdaqmtsi/312668/

Quote:
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) [Detail Analytic Report] were gaining momentum with almost 2% on Wednesday premarket session as a private investment manager Kerrisdale Capital cautioned that AMD would go bankrupt by 2020 and with Zen not appearing until the end of this year they were slightly worried that the outfit didn't have enough to survive what will be a dismal year. Kerrisdale cautioned that dependence of AMD on the stagnant PC market, where it has repeatedly been marginalized by Nvidia and Intel, would doom the outfit. While AMD has expanded its business into new markets such as augmented and virtual reality, but has failed to dominate a single market.

However it looks like the firm might be safe for now. The outfit's cash and equivalents plunged just 2.5% annually to $785 million last quarter, and its total debt only rose 2.3% to $2.26 billion. It is unlikely that any new debt should come due until 2019. AMD's non-GAAP free cash flow dropped from $94 million a year ago to $21 million, but at least it remains in positive. Certainly this means that the firm won't go bust before Zen appears although it does mean it can't invest much money on R&D, marketing, or buyouts to remain competitive. This could stuff it up when Zen actually release. So it does mean that Kerrisdale's dire forecast is still on the table.
 

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RIP OCN 2018
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Nooo! I was gonna buy stock and make a fortune of next launch
rolleyes.gif


That aside: we don't need Intel to have a monopoly...

Samsung, just buy AMD already!
 

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What should be here ?
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I was about to poop before this article took it all away from me
tongue.gif
 

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Probably the same private investment manager that's saying the stock market will go to 0 and we'll have our 2nd depression and WWIII....

AMD is gonna surprise alot of people I think this year and next year. If they can get their new process right with 14/16nm we might see a pretty decent comeback. There's a ton of weight on their R&D department and engineers to meet the expectation that they can compete with Intel and Nvidia... The only AMD product I've ever had was an APG X1300 pro graphics card back in like 199* but I would like to see AMD get their game back, just to make things interesting again.
thumb.gif
 

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Kerrisdale Capital should learn their facts before running around saying things like this trying to cause a panic and manipulate the stock market. AMD has SoCs they sell in every major console from all companies, that alone will keep the doors "open" till 2020. It wont keep them profitable and able to be top dog in the marketplace sure, but it brings in quite a good bit of money. And the launch of a new generation of GPUs that seem to be shaping up nicely is going to bring in revenue, and lets not forget the desktop release of the new Excavator APU, that will bring in a little bit too. To say that AMD might not have enough to make it through even this year is absurd. The only time to say AMD could very well be heading to bankruptcy is once Zen launches, and if Zen bombs hard like Bulldozer. But until the end of the year? No one should predict that till we have actual facts of what the future will be.
 

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Quote:
Originally Posted by xioros View Post

Nooo! I was gonna buy stock and make a fortune of next launch
rolleyes.gif


That aside: we don't need Intel to have a monopoly...

Samsung, just buy AMD already!
Lol, no - Really not how it works.

Quote:
Originally Posted by EniGma1987 View Post

Kerrisdale Capital should learn their facts before running around saying things like this trying to cause a panic and manipulate the stock market. AMD has SoCs they sell in every major console from all companies, that alone will keep the doors "open" till 2020. It wont keep them profitable and able to be top dog in the marketplace sure, but it brings in quite a good bit of money. And the launch of a new generation of GPUs that seem to be shaping up nicely is going to bring in revenue, and lets not forget the desktop release of the new Excavator APU, that will bring in a little bit too. To say that AMD might not have enough to make it through even this year is absurd. The only time to say AMD could very well be heading to bankruptcy is once Zen launches, and if Zen bombs hard like Bulldozer. But until the end of the year? No one should predict that till we have actual facts of what the future will be.
You clearly don't know who Kerrisdale is. Kerrisdale is one of the largest investment firms in the nation, they're research oriented which means, they've analyzed this entire situation in the past few weeks, more than you, or I, will in a lifetime.

Their information is based on stats, market history, performance - Yours is simply based on a gut instinct that claims console revenue will keep the doors open when, it won't.

The reality is that Intel made the better play - Even called this when it happened...And now Intel is slamming AMD's head into the ground with an anvil.

New generation GPU's that are launching in the exact same window as Pascal.

Statistically, they don't have enough to make it through the year...That's just basic math.

Again, their predictions are based on math...Not feelings.
 

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pass the lortabs
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FUD of the highest order, some piece of crap firm needs to cover their shorts.
 
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Waiting for 7nm EUV
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Well, he is correct, the thing is that this isn't actually news.

This article will only alarm people that aren't updated on the facts. The rest are just waiting for the new products.

Everybody who this might concern should know by now that AMD is currently selling a lot of old products in a saturated market that is waiting for the new products that won't arrive for a few months (new GPUs, desktop Excavator based APUs) to a year (desktop Zen). They need Zen to be successful and their new GPUs for this year too.

Everybody should know by now that AMD's financials allow them to survive a few more years at their current pace but that they need to make a sustained comeback in the next four years.

Performance desktop CPUs - Piledriver based - being sold right now are from late 2012: check.

Mainstream desktop APUs - Steamroller based - being sold right now are from the beginning of 2014: check.

Laptop APUs are both from 2014 and 2015: check

All of the above are based on the less than stellar Bulldozer architecture, due for replacement later this year.

Current GPUs being sold are less than optimal solutions that use more power compared to the competition; they are either practical rebrands of previous gen GPUs, some dating all the way back to 2012 (R7 370), with the newest ones (Fury) having arguably too little VRAM for their performance segment and being a tad overpriced (Nano and Fury price reductions coming now, which is good news, but a bit too late with the market already saturated and waiting for the new GPUs).

So, yes, until they start renewing their product line with stuff that is new, we're playing the waiting game. But at the same time that presents a great opportunity for them. In the span of a year they will replace both CPUs and GPUs whose base date back to 2011 / 2012.

This is the kind of article that will be useful when revisited in 12 months.
 

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Quote:
Originally Posted by p4inkill3r View Post

FUD of the highest order, some piece of crap firm needs to cover their shorts.
Why do you people pull out 'FUD' at every turn, especially when their claims are legit?

Check the math. Their math is straight on.

Pascal is launching in the exact same time window.

If Zen even breaks even, AMD is done.

Don't you people read the source anymore and double check said information BEFORE posting?
 

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Quote:
Originally Posted by Masked View Post

Quote:
Originally Posted by p4inkill3r View Post

FUD of the highest order, some piece of crap firm needs to cover their shorts.
Why do you people pull out 'FUD' at every turn, especially when their claims are legit?

Check the math. Their math is straight on.

Pascal is launching in the exact same time window.

If Zen even breaks even, AMD is done.

Don't you people read the source anymore and double check said information BEFORE posting?
This has been obvious for a long time.

This article is by one of those Wall Street fraudsters who are trying to rig the market for their own ends. I bet they have bets on this and against in the billions and will make a killing either way.
 

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Quote:
Originally Posted by Masked View Post

Why do you people pull out 'FUD' at every turn, especially when their claims are legit?

Check the math. Their math is straight on.

Pascal is launching in the exact same time window.

If Zen even breaks even, AMD is done.

Don't you people read the source anymore and double check said information BEFORE posting?
No they don't and they probably don't understand much about economics or finance. I TEACH this. I have been PREACHING for 3 years that AMD is in serious trouble and that ONLY Samsung or IBM could pull them out. Folks, Zen has to curbstomp the market in order for AMD to come out of this year without being in serious financial trouble (bankruptcy) their debt to revenue ratio is absurdly high.
 

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Quote:
Originally Posted by Liranan View Post

This has been obvious for a long time.

This article is by one of those Wall Street fraudsters who are trying to rig the market for their own ends. I bet they have bets on this and against in the billions and will make a killing either way.
Of course they do, they're not idiots. That's why they are all millionaires.
 

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Quote:
Originally Posted by Darkpriest667 View Post

No they don't and they probably don't understand much about economics or finance. I TEACH this. I have been PREACHING for 3 years that AMD is in serious trouble and that ONLY Samsung or IBM could pull them out. Folks, Zen has to curbstomp the market in order for AMD to come out of this year without being in serious financial trouble (bankruptcy) their debt to revenue ratio is absurdly high.
I'm not disagreeing that the article is clickbait and somewhat sensationalist.

I am disagreeing with what that user specifically said. - I don't feel it's FUD because they've got the math right.

Even if Zen is somewhat successful, AMD is still done.

Sold my shares short when AMD made the console bid - Writing was already on the walls.
 

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pass the lortabs
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Quote:
Originally Posted by Masked View Post

Why do you people pull out 'FUD' at every turn, especially when their claims are legit?

Check the math. Their math is straight on.

Pascal is launching in the exact same time window.

If Zen even breaks even, AMD is done.

Don't you people read the source anymore and double check said information BEFORE posting?
AMD's situation has been unchanged for a couple of years, that is precariously and uncertainly wavering on the edge of financial viability. The prognostication of an impending bankruptcy, specifically in 2020, can be found in dozens of releases and guidance memos over the last couple of years.
 

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Quote:
Originally Posted by Masked View Post

You clearly don't know who Kerrisdale is. Kerrisdale is one of the largest investment firms in the nation, they're research oriented which means, they've analyzed this entire situation in the past few weeks, more than you, or I, will in a lifetime.

Their information is based on stats, market history, performance - Yours is simply based on a gut instinct that claims console revenue will keep the doors open when, it won't.

The reality is that Intel made the better play - Even called this when it happened...And now Intel is slamming AMD's head into the ground with an anvil.

New generation GPU's that are launching in the exact same window as Pascal.

Statistically, they don't have enough to make it through the year...That's just basic math.

Again, their predictions are based on math...Not feelings.
Everybody thinks he's a huge expert in economics.
Funny when I remember what my division's managers were saying last summer, that we had a very bad year, we are loosing money fast and they are going to close the division.
What happened next? My division recorded it's best performance even by the end of the year and it was all in just 4 months. In just 4 months we recovered everything and made a nice profit on top of that.
Their intention to close the division was based on math and a lot of info that even I didn't have. Well it looks like they were wrong.
 

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pass the lortabs
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Quote:
Originally Posted by Darkpriest667 View Post

No they don't and they probably don't understand much about economics or finance. I TEACH this. I have been PREACHING for 3 years that AMD is in serious trouble and that ONLY Samsung or IBM could pull them out. Folks, Zen has to curbstomp the market in order for AMD to come out of this year without being in serious financial trouble (bankruptcy) their debt to revenue ratio is absurdly high.
You're one out of millions that has been PREACHING it, which is why this particular release is nothing new, special, or noteworthy.
 

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Performance is the bible
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Quote:
Originally Posted by EniGma1987 View Post

Kerrisdale Capital should learn their facts before running around saying things like this trying to cause a panic and manipulate the stock market. AMD has SoCs they sell in every major console from all companies, that alone will keep the doors "open" till 2020. It wont keep them profitable and able to be top dog in the marketplace sure, but it brings in quite a good bit of money. And the launch of a new generation of GPUs that seem to be shaping up nicely is going to bring in revenue, and lets not forget the desktop release of the new Excavator APU, that will bring in a little bit too. To say that AMD might not have enough to make it through even this year is absurd. The only time to say AMD could very well be heading to bankruptcy is once Zen launches, and if Zen bombs hard like Bulldozer. But until the end of the year? No one should predict that till we have actual facts of what the future will be.
Console sales are steadily declining. This means sales of SoC for consoles keeps on going down. And that is the only place right now that is keeping them above water.

Anyway, their numbers are facts to current time.
If AMD's new GPUs really push it well into sales, and zen successes well, than what they say will change.
But if AMD's GPU market doesn't goes up with the new GPUs, and zen doesn't succeed as they expect (either because customers stay local to intel, or performance wise AMD's GPUs still doesn't keep up), then it will be simple math, and AMD will not be able to pull enough revenue.

You need to understand that they are still losing every year in the overall numbers. They had operations lose of 481M$ this year (net loss of 660M$). Even SoC console sales can't save that. That is a massive number for AMD to lose. About 28% less revenue. It's insane.

You also need to understand that what that firm is talking about mainly, is the fact that AMD has a debt they need to pay sometime around 2019 for a few billion $ (if I remember it was 2.9B or something). Unless they start making profits, that debt is going to make them bankrupt for sure. No question about it.

That is why 2016 and 2017 are so crucial right now.
 

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Quote:
Originally Posted by p4inkill3r View Post

AMD's situation has been unchanged for a couple of years, that is precariously and uncertainly wavering on the edge of financial viability. The prognostication of an impending bankruptcy, specifically in 2020, can be found in dozens of releases and guidance memos over the last couple of years.
The prognosis of bankruptcy could've been discerned by a gorilla in a cage with an abacus...Not by 2020, sooner - viability for 2020 went out the window when Pascal was announced.

Since Pascal's announcement, that's what //ALL// of the speculation in the market has been...That's //ALL// investors have been asking.

Even if Zen moderately succeeds, AMD is done within 2 years.

If Zen fails, AMD is done within the year because Pascal will train-wreck what little is left.

Again, considering what Wall Street is currently talking about - The article really is what it is - Doesn't make it FUD when the math is right.
 

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Performance is the bible
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Quote:
Originally Posted by p4inkill3r View Post

AMD's situation has been unchanged for a couple of years, that is precariously and uncertainly wavering on the edge of financial viability. The prognostication of an impending bankruptcy, specifically in 2020, can be found in dozens of releases and guidance memos over the last couple of years.
And the talks about how they are not going to return their debts by the time it is due. So far they are swimming above water because they still have cash available. They also sold last year their last facility, because they needed that cash to stay afloat. They don't have any more facilities to sell. They don't have any more source of instant income.
 
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