Breakdown of the report
AMD Reports Fourth Quarter and Annual Results: Financial News - Yahoo! Finance
CPU / Chipset: $1.4B ($21M Op. Income)
- strong sales (9% increase, in line with 10.5% increase by Intel)
- improved gross margin (finally makes an income)
Graphics: $259M ($12M Op. Loss)
- weak sales (3% increase only)
- weak profit margin (unbelievable too, as RV6x0 should have a cost advantage)
Consumer Product (including xbox and Wii chips): $102M ($12M Op. Income)
- strong sales (12% increase, probably because of good Wii sales)
Other highlights:
- Cash only increased by about $350M. But the cash from Middle-Ease consisted of about $600M. Where did the $250M go?
- Improved profit margin again (44% from 41%), a healthy sign especially for CPU market. Probably due to the complete transition of fabs into 65nm process.
- Excluding the ATi and Spansion impairment, the loss is around $95M, beating analysts estimation.
