On Oct. 18, microprocessor maker Advanced Micro Devices
- They weren't pretty but could have been much worse. Gross margins were about 8 percentage points worse last quarter, and the net loss was about 33% lower.
- Operating cash flow is back to the cheery levels of yesteryear already, although hefty capital expenses ensure that the cash balance trickles downward regardless.
- These financial troubles are AMD's alone and not the industry's; note how AMD's prominent competitors remain profitable and get more CAPS respect.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,632 |
$1,328 |
22.9% |
|
Net Profit |
($396) |
$136 |
N/A |
|
EPS |
($0.71) |
$0.27 |
N/A |
|
Diluted Shares |
554 |
497 |
11.5% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.0% |
51.4% |
(10.4) |
|
Operating Margin |
(13.9%) |
9.0% |
(22.8) |
|
Net Margin |
(24.3%) |
10.1% |
(34.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,528 |
$2,357 |
(35.2%) |
|
Accounts Rec. |
$682 |
$688 |
(0.9%) |
|
Inventory |
$839 |
$466 |
80.2% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,064 |
$901 |
18.0% |
|
Long-Term Debt & Capitalized |
$5,117 |
$3,672 |
39.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$223 |
$230 |
(3.0%) |
|
Capital Expenditures |
$419 |
$425 |
(1.4%) |
|
Free Cash Flow |
($196) |
($195) |
(0.7%) |
|
($481) |
($91) |
(428.5%) |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap |
P/E Ratio |
CAPS Rating |
|
|---|---|---|---|
|
AMD |
$8,040 |
N/A |
|
|
Intel |
$157,500 |
27.7 |
|
|
NVIDIA |
$21,700 |
41.0 |
|
|
Sun Microsystems |
$21,230 |
45.8 |
|
|
QUALCOMM |
$69,330 |
25.2 |
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