On Jan. 17, processor peddler Advanced Micro Devices
- Back out noncash goodwill impairment charges of $1.61 billion in the fourth quarter and ... well, 2007 still doesn't look good. Sans that massive item, the operating margin for the year was around (21%), and the net margin would be (29.4%).
- A $614 million investment from a Dubai-based investor group helped stabilize the balance sheet, though AMD had to dilute the stock to meet its end of the bargain. And a heavy debt load still hangs over the company like the sword over Damocles.
- On the bright side, AMD had $114 million of positive operating cash flow in the fourth quarter and came within $9 million of breaking even on a non-GAAP operating basis.
(Figures in millions, except per-share data. Data uses the latest reported numbers from Capital IQ, a division of Standard & Poor's.)
Income Statement Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Sales |
$6,013 |
$5,649 |
6.4% |
Net Profit |
($3,379) |
($166) |
(1,935%) |
Earnings Per Share |
($6.06) |
($0.34) |
(1,682%) |
Diluted Shares |
558 |
492 |
13.4% |
Get back to basics with the income statement.
Margin Checkup
FY 2007 |
FY 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
37.6% |
50.0% |
(12.4) |
Operating Margin |
(47.7%) |
7.6% |
(55.3) |
Net Margin |
(56.2%) |
(2.9%) |
(53.3) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Cash Plus Short-Term Investments |
$1,889 |
$1,541 |
22.6% |
Accounts Receivable |
$640 |
$1,140 |
(43.9%) |
Inventory |
$821 |
$814 |
0.9% |
Liabilities |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Accounts Payable |
$1,009 |
$1,338 |
(24.6%) |
Long-Term Debt |
$5,031 |
$3,672 |
37.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Cash From Operations |
($257) |
$1,287 |
N/A |
Capital Expenditures |
$1,686 |
$1,856 |
(9.2%) |
Free Cash Flow |
($1,943) |
($569) |
(241.5%) |
($2,356) |
($1,231) |
(91.4%) |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Intel |
$113,490 |
16.5 |
|
Texas
Instruments |
$41,470 |
17.0 |
|
NVIDIA |
$13,780 |
21.6 |
|
Broadcom |
$12,770 |
81.70 |
|
AMD |
$3,910 |
NA |
Keep your partners close and the competition in your vest pocket.
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