Wednesday, April 12, 2006

AMD CEO confident on technology leadership

During AMD's 1Q06 earnings conference call, CEO Hector Ruiz was asked how AMD can continue to gain share as Intel becomes more competitive in 2H06, Dr. Ruiz responded:

"[W]e expected, we had planned that our competitor would eventually have to follow and react to what we have done and get better. It will be interesting to see the things that we're going to do later, which will again continue to force them(Intel) to react and figure out what else to do next. We don't intend to in any shape or form give any leeway in our leadership relative to product and technology."

On a similar question, Dirk Meyer, former lead architect of DEC Alpha, AMD Athlon, AMD Opteron, now AMD's President & COO, stated that AMD will introduce "high capability" products later this year.

AMD plans to reveal more of its technology roadmap on June 1, 2006.

AMD reported a 1Q06 EPS of $0.38, beating concensus estimate ($0.29) by 30%. This is an 80% sequential increase from the GAAP EPS of $0.21 for 4Q05.

More importantly, AMD improved it balance sheet dramatically from 4Q05 in just one quarter: Cash went up to $2.63 billion from $1.8 billion, debt was reduced to $0.616 billion down from $1.33 billion. Stock holder equity increased to $4.71 billion, up from $3.35 billion. In comparison, DELL has a lesser stock holder equity of $4.2 billion, Broadcom has a stock holder equity of $3.1 billion. AMD has a current ratio of 2.1, DELL's current ratio is 1.1 .

10 Comments:

Blogger Eddie said...

(todospara1 here)

Why do you say that $0.38 is 24% up from consensus? Consensus was $0.29, up over 30%

5:14 PM, April 12, 2006  
Anonymous Anonymous said...

AMD's revenue is less than what you predict, but it is still a good one. Profit margin is getting high.

It would be interesting to see Intel's report next week.

5:21 PM, April 12, 2006  
Blogger Sharikou, Ph. D said...

On Yahoo, it shows 1Q06 EPS avg at $0.30.

AMD only shipped from FAB36 at the end of March. I hope it can ramp up faster. But, yes, it was a great result. The balance sheet looks much much more secure.

5:32 PM, April 12, 2006  
Anonymous Anonymous said...

Richard said. "I'm seeing drastic price cuts on products people don't want to buy,". Too bad intel.

as it stands, the processor race is amd's to lose. i just hope they dont screw it up.

5:50 PM, April 12, 2006  
Anonymous Anonymous said...

Does AMD Q2 end exactly on 6/30/06? I am having a hard time understanding this whole 14 week Q2 bit. Q1 started on 12/16/05. Why does everyone think Q2 is an extra week longer?

For that matter, why is the stock down in AH on a possible 1% drop in revenue guidance? Shouldn't the street be focused on the fact that they can earn more with that revenue than predicted? Or does everyone think the Q1 EPS surprise was a 1 time gimic?

8:50 PM, April 12, 2006  
Anonymous Anonymous said...

AMD revenues up significantly in 2006

www.techspot.com/news/21251-amd-revenues-up-significantly-in-2006.html

Chip maker AMD's profit soars; analysts credit gains against Intel

www.mercurynews.com/mld/mercurynews/news/columnists/14327363.htm

AMD beats expectations with $185M Q1 profit

www.bizjournals.com/sanjose/stories/2006/04/10/daily48.html?surround=lfn


Gains in chip market boost AMD to profit for quarter

www.startribune.com/535/story/367873.html

9:38 PM, April 12, 2006  
Anonymous Anonymous said...

What was the revenue and profil amounts for the quarter .. I can't see either of those figures listed?

10:53 PM, April 12, 2006  
Anonymous Anonymous said...

Q1 2006 sales is $1.33 billion and Q4 2005 sales is $1.35 billion. Very good sales figure because 1Q suppose to be a slow quarter and this year PC sales suppose to be slowing down.

11:27 PM, April 12, 2006  
Anonymous Anonymous said...

Geez I bet those Intel scumbags (baggies) will be pissing blood from the beatings their gonna get from those disolusioned Intel share holders

3:00 AM, April 13, 2006  
Anonymous Anonymous said...

Investors didn't think much of AMD's quaterly results: http://www.theinquirer.net/?article=30983

Even so, these results are pretty impressive for a company, who just back in 2003 was trading at ~$3 a share. The Athlon XP had really reached the end of it's life, and the Athlon 64 archiecture really put AMD back in the game.

When Intel releases it's 'Core' architecture sometime in Q3 2006, it's obviously going to impressive in performance. I wouldn't really trust any of the early Conroe benchmarks, not until the processors available to buy and proper benchmarks have been done.

10:22 AM, April 13, 2006  

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