by Anton Shilov
01/24/2012 | 10:54 PM
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.