Advanced Micro Devices Inc (AMD)

[HailMary]

Revenue

AMD just came within $1M of all time record revenue (back in Q3 2000). The comparison isn't exactly fair as they now count all of the memory revenue where before they only accounted for 50%.

At first glance, the increase in revenue for the memory group implies that they should have made a profit. Memory went from $424 to $566 in revenue with only a $46M in loss reduction. This looks like a terrible margin (32%), but the memory group is reported differently than expected. They report all of revenue, but only 60% of profit/loss. So in reality the loss went from $77M to $5M. This implies margins of 51% rather than the 32% that you would calculate just by looking at the numbers without knowing this. Still not spectacular. They must have sold a lot more low end parts this quarter.