Advanced Micro Devices Inc (AMD)

[sgolds]

Catching up on earnings after traveling, comments and corrections welcome. (I did read the ~200 posts here & the earnings tables on the AMD site.)

1. Intel took a big ASP hit, tanking the market.

2. AMD had a seasonal Q2 in CPUs, was better than seasonal in flash. Overall the revenue pretty much met expectations.

3. Can't complain too much about profitability in the industry's weak quarter, but 9c was a little lower than expected. JackDye has a good explanation -

Upon closer inspection, it looks like Q1 was the beneficiary of $19M in processor sales at 100% margin that had previously been written off. They also recognized a $7M gain in other income/expense that helps explain this quarters reversal in that category. The intergraph settlement was taken in Q1 and offsets the two above items. However, that still nets to a positive $17M in last quarters earnings that apparently were non-repeatable. Does not seem like much, but adds up to 4 cents. If we were starting of a base of $.08 in Q1, it would make this quarters numbers a little more bearable.

4. What's going on with 90nm? I am most confused on this topic, and it worries me. Crossover has gone from Q4/04 to Q2/05, is that correct? Can someone sort out whether we are talking about starts vs. output, and units vs. revenue?

My overall impressions was that Q2 was a solid quarter and positions AMD well going into the fat part of the year. However, 90nm is still the big question mark. Any clarification on that subject would be appreciated.