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Although Fusion accelerated processing units (APUs) and Bulldozer micro-architecture are in many ways revolutionary, Advanced Micro Devices has failed to take a major advantage of its latest technologies in 2011, based on the recent annual financial report of the company. AMD's annual sales totaled $6.57 billion, only 1% higher compared to 2010.

But the year 2011 was not a complete failure for the Sunnyvale, California-based chip designer. The company did ship thirty million of its Fusion APUs, which let AMD to seriously enter on the market of netbooks and address notebooks with competitive solutions. The company also finally managed to start mass production of chips powered by Bulldozer micro-architecture and expects to regain market share on the server front. Finally, the firm stabilized its presence on the graphics cards market.

"AMD shipped more than 30 million APU’s in 2011, resulting in record annual notebook revenue. The unmatched combination of computing and graphics capabilities in our low-power ‘Brazos’  platform has made it our fastest ramping platform ever, paving the way for continued growth in key segments and geographies. Our server business has re-gained momentum, delivering two consecutive quarters of strong sequential growth," said Rory Read, AMD president and chief executive officer.

AMD reported Q4 2011 revenue of $1.69 billion, net loss of $177 million, or $0.24 per share, and operating income of $71 million. The company blames poor sales of discrete graphics cards in the fourth quarter as well as restructuring charges in its Q4's loss.

Computing Solutions segment revenue increased 2% sequentially and 7% year-over-year to $1.3 billion. The sequential increase was driven by double digit growth in server and chipset revenue.  The year-over-year increase was driven by higher mobile processor and chipset revenue. In Q4 2011, APUs accounted for nearly 100% of mobile microprocessors shipped, and more than 60% of total client microprocessors shipped. AMD also achieved quarterly record client revenue driven by an increase in supply of Llano APUs. Operating income of CS group was $165 million, compared with $149 million in Q3 2011 and $91 million in Q4 2010.

Graphics segment revenue decreased 5% sequentially and 10% year-over-year to $382 million.  The sequential decrease was driven primarily by a decline in mobile graphics processor unit (GPU) shipments, partially offset by a seasonal increase in game console revenue.  The year-over-year decrease was primarily driven by decreased desktop and add-in board (AIB) graphics revenue. Operating income was $27 million, compared with $12 million in Q3 2011 and $68 million in Q4 2010. GPU ASP increased sequentially and year-over-year.

AMD expects revenue in Q1 2012 to decrease 8%, plus or minus 3%, sequentially for the first quarter of 2012. Operating expenses are expected to be approximately $590 million.

Tags: AMD, ATI, Fusion, Radeon, Llano, Brazos, Souther Islands

Discussion

Comments currently: 19
Discussion started: 01/25/12 02:55:54 PM
Latest comment: 01/30/12 03:18:22 PM
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1. 
how is there double digit growth in server stuff, i thought AMD was already a leader in that place
and how do chipset revenue increase without an increase in CPU sales
also i think mobile GPU shipments decreased because of APUs and so
i think desktop graphics sales declined for the same reason too
but with next-gen xbox using AMD graphics AMD should make huge profits

waiting for 2/2, wish xbitlabs covers AMD financial analysts day
AMD should also release trinity APUs in ~June so I'm really waiting but the really important wait is for Piledriver, i wish it's like trinity and actually shows more than 10-15% performance improvements, 30-50% would be awesome, i won't mind a delay for more performance

a little question why will AMD lose revenue in Q1 2012 while it's doing quite well? i wish this is wrong so AMD can build a fab or two and start being competitive again
0 0 [Posted by: madooo12  | Date: 01/25/12 02:55:54 PM]
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- collapse thread

 
It's difficult to answer all of your questions... but I'll do my best.

AMD had an OK but not great year. GloFo and TSMC's inability to smoothly transition to 32nm and 28nm on time killed AMD sales for the year including the graphics divisions 7900 series GPUs.

AMD still netted a half billion in profit but they probably could have double that if GloFo and TSMC had delivered the goods on time. At the moment both Fabs seem to have resolved a lot of production issues and are delivering almost double the CPUs they were delivering in Oct.

Chipset revenues are based on mobo sales not just CPU sales. AMD did increase CPU/APU sales nicely in 2011 but the graphics division did terrible as they did not have the 7900 series GPUs to sell because of TSMC issues.

AMD is now saying late Q2 on the release of Trinity and Q3-4 for Piledriver/Vishera. It all depends on what GloFo can ramp...

Trinity will deliver a very strong performance bump over Llano in the range of 25%. Don't expect 30-50% from Piledriver as it won't happen. ~15% over FX would be a nice practical performance bump for Vishera/Piledriver.

The world wide economic situation sucks and many folks have acknowledged that we're headed for a double dip hit right now. It's likely that H1 of '12 will be bleak for most companies as 100+ million people have lost their jobs in the past 3 years and the cuts in employment are still coming in.

Unemployment numbers in the U.S. are down because they stop counting people who no longer qualify for unemployment benefits. These people still have no job and are unlikely to find a job for years but by not counting them the administration can convince gullibe voters that the economy is improving.

The fact that AMD made a half billion profit in 2011 with the problems at GloFo / TSMC, the tax write-off of $209 Million for GloFo and the fact that CPU sales increased and AMD sold 30 MILLION APUs, they had a reasonable year and are moving in the right direction and gaining important market share.

There is a lot of work that needs to be done at AMD and I hope Mr. Read doesn't over-react and make things worse instead of better.

I hope the Intel fanbois in denial were able to understand the headline in this story because 30 million is even more than the 20 million APUs sold, as I reported a few weeks ago and was called a liar.

My goal is to provide accurate information in spite of the socially and technically challenged Intel fanbois who like to attack me and AMD. You are wasting you time because hate does not changes reality as this story on AMD's APU sales success should indicate.
5 3 [Posted by: beenthere  | Date: 01/25/12 04:55:30 PM]
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half billion profit for 2011?!? Are you on drugs again? That's gross revenue! It's far from being a profit! They only got less than $500m on net!

http://techreport.com/discussions.x/22367#metal
0 2 [Posted by: PnoyP  | Date: 01/25/12 05:09:09 PM]
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Once again you demonstrate your inability to read a news story and comprehend the information... as I previously pointed out.

Evidently you failed school 101?

Do you realize how foolish you look when you post stuff like this?

2011 REVENUES were $6.57 BILLION

2011 NET PROFIT was $491 Million, aka ~ a half billion dollars

Apparently you do not know what a half-billion dollars actually is do you? How funny. You must be a product of a good education system. /s

http://wiki.answers.com/Q...is_half_billion_in_figure

Same data from Anandtech in case it helps you better understand:

http://www.anandtech.com/...-q4-657b-revenue-for-2011
4 2 [Posted by: beenthere  | Date: 01/26/12 08:34:49 AM]
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show the post
0 3 [Posted by: PnoyP  | Date: 01/27/12 09:14:13 AM]
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STILL in Denial, PnoyP?

Denial is NOT a river in Egypt.
1 1 [Posted by: beenthere  | Date: 01/28/12 10:19:38 AM]
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REally and what do you know?!?? you can't even distinguish profit over revunue!!! what you got kicked out of school?!?
0 2 [Posted by: PnoyP  | Date: 01/29/12 07:46:13 PM]
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WOW, PnoyP you continue to make a FOOL out of yourself!

What part of NET PROFIT = $491 Million aka a HALF BILLION - Don't you understand?

Please find someone to explain to you what NET PROFIT is and what a Half-Billion Dollars is. Evidently your reading comprehension skills are so poor that you could not even understand the links I provided for you!

You are a sad, sad example of what happens to youth who drop out of school at the age of five... No wonder you hate the world and continue with your lies.
1 1 [Posted by: beenthere  | Date: 01/30/12 06:40:38 AM]
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My goal is to provide accurate information in spite of the socially and technically challenged Intel fanbois who like to attack me and AMD.

You greatly overestimate your mission. God blesses you.
3 3 [Posted by: Azazel  | Date: 01/26/12 04:11:24 AM]
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It's a choice I make to provide accurate info. instead of hate and lies.
3 2 [Posted by: beenthere  | Date: 01/26/12 08:28:05 AM]
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you are on a hopeless quest.
leave the fanbois to their delusions.
6 0 [Posted by: wuttz  | Date: 01/26/12 08:51:30 AM]
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I fully understand that you can't fix STUPID.

I'm waiting for the technically and socially challenged fanbois to apologize for their attacks on me and AMD when I stated AMD had already sold 20 Million APUs. Anyone with integrity would man up and apologize and admit they were wrong. That's of course if they actually understand that 30 million is more than 20 million.

I guess when you fail basic math and reading comprehension you can't be expected to have learned any manors either... What a waste of humanity.
2 3 [Posted by: beenthere  | Date: 01/26/12 09:01:26 AM]
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oh now human?!? crap! and you think you own this forum?!? moron!
0 2 [Posted by: dudde  | Date: 01/27/12 09:18:53 AM]
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So you and the other Technically and Socially challenged Intel fanbois show up to confirm your ignorance but you are too immature to apologize for your false allegations and admit that you have no clue what you are talking about and that you are just Spewing HATE and LIES about AMD and me.

That's what I expect from a couple 10 year old kids but at least I gave you two social Misfits a chance to act like adults and once again you FAILED.

No I don't own this forum nor do I care to. I just post accurate info. for those who want truthful information without the Hate and Lies perpetuated by Intel fanbois who can't deal with reality.

Some day when you grow up you'll learn Math, English reading comprehension and that HATE does not change reality.
1 2 [Posted by: beenthere  | Date: 01/27/12 03:37:56 PM]
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show the post
0 3 [Posted by: dudde  | Date: 01/29/12 07:48:30 PM]
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Once again you continue HATING as if that is some how going to change reality. It won't.

I think you and your pal should stop the personal attacks and maybe enroll in an education system starting with reading comprehension and moving on to basic math skills.

The FACTS don't change just because Intel fanbois can't deal with reality.

I know it breaks your heart that AMD sold 30 MILLION APUs, but you'll get over it when you grow up and become an adult.

Until then I guess you two children are just going to have to suffer you own self-inflicted pain.
1 1 [Posted by: beenthere  | Date: 01/30/12 03:18:22 PM]
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after a quick search in your comments

http://www.xbitlabs.com/n...e_Ultra_Thin_Laptops.html

you're right AMD, you did say AMD sold 20M APUs and the other guys said you were a liar

BTW sad you say AMD pile driver won't reach the 30-50% i wished (to reach SB clock performance), bad news for us computer guys, good news for the server guys
2 2 [Posted by: madooo12  | Date: 01/26/12 09:00:38 AM]
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Yup, the delusional Fanbois are on a mission of hate, falsely thinking that hate will some how change reality. It never has and it never will.

Vishera/Piledriver should still be a nice performance bump.
4 4 [Posted by: beenthere  | Date: 01/26/12 09:04:46 AM]
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2. 
AMD does know how to innovate, they only needs a Steve Jobs personality to run the company.
3 0 [Posted by: xybit  | Date: 01/27/12 09:27:17 AM]
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3. 
It's pathetic that PnoyP can't admit he was wrong and apologize for being an arse and spewing hate. He must live a horrible life.

Did I mention AMD sold 30 MILLION APUs and made $491 MILLION aka a half billion in PROFIT in 2011?
1 1 [Posted by: beenthere  | Date: 01/30/12 06:45:32 AM]
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