Friday, July 07, 2006

Shorts & Bears, isn't AMD warning you?

Take a look at,,51_104_543~110430,00.html: We know that revenues are down 9% sequentially. You are happy so far, right? Your dream come true: AMD warning again after one year of beating and pounding the Wall Street estimations. But keep reading:

Record AMD Opteron™ processor sales were driven by continued strong demand for single-, dual- and multi-socket configurations for servers and workstations. Sales of entry-level and mainstream mobile and desktop processors were down.

That is the company speaking in official capacity. Let's go item per item:

  • Record Opteron sales: The highest profit product line from AMD is having record sales...
  • Sales of medium or high end mobile or desktop processsors?: NO MENTION
So AMD is informing us that the whole earnings cake is smaller, but made with a new recipe that has a much better filling than what we are used to.

Now ask yourselves, how many Semprons sales are needed to make the same profit as an Opteron 186? Could it be that the total revenues are down 9% but the total profits up? Did AMD crossed the absurly high (for its standards, anyway) level of 60% Gross Profit Margin? And think about it again: Only 9% decline in revenues with Intel doing a nasty all-out dumping campaign including 50% in Pentium Ds, their fairly high end products? The time is ticking, not to face Conroe, but to face AMD at 65nm... Did you receive your Woodcrest already? When do you expect it? Hello? it is the Server space we are talking about...