Advanced Micro Devices Inc (AMD)

[HailMary]

Me: This is why I am looking for at least $.15/share today on flat revenue.
You: The reason I think the earnings growth will be more modest than that

Looks like you were right, but I will say I would have been dead on if marketing expenses had not jumped $20 million. I wasn't expecting that much of an increase. That was $.04 right there.

It is pretty clear to me if AMD can grow revenue just a little more, these nitpick details to the earnings report will be less important to overall profit. At that point AMD will be making $.30 or $.40/quarter.

I think Q4 will be quite good, assuming flash can hold the line.

Overall I would say the report was quite good. I like that gross margin was up significantly (Revenue - Cost of Sales). The increases in R&D and MG&A, however, drove down operating income to be lower than Q2. I hope that they don't start spending like crazy capping net income going forward.