AMD – A Business in Transition – 5 Year Revenue & Earnings – SIC 3674.

Friday, July 10th, 2015.

AMD has been in the news lately and the news has not been good.  The stock took a hit when their second quarter revenues declined.  The revenue and earnings between 2010 and 2014 has been very erratic.  Just blame the decline in PC market for this.

Figure 1: AMD Revenue and Net Income or Loss – 2010 – 2014.

AMD Revenue Net Income

Table 1: AMD Revenue, Net Income and Earnings Per Share

AMD Revenue and Earnings - 2010 - 2014

AMD Revenue, Net Income or Loss, and Earnings Per Share 2010 – 2014

The shrinking size of the PC market is taking a huge toll on AMD’s business.

Until fiscal 2012, AMD was composed two major business unit:

  • Computing Solutions
    • This unit is composed of desktop and notebook processors.
  • Graphics business segment
    • This unit is composed of graphics processing units and professional graphics.

From 2013 AMD changed the business units under which it reported revenue to reflect its newly found momentum in server market.  It combined computing solutions and graphics into one business unit and the started breaking out revenue from the server market under the Enterprise Embedded and Semi-custom business unit (Please see Table 2).

Since the PC market sales was declining at a rapid rate, AMD abandoned releasing revenue numbers for the PC market (Computing Solutions business segment) separately and combined that with the graphics business segment beginning in 2013.

Table 2: AMD Business Units

AMD Business Segments.

AMD Business Segments.

AMD has new found strength in the enterprise market and in custom chips.  This seems to be good news in the long-term.  Revenue in the enterprise business unit grew by 50% between 2013 and 2014 and that seems to be an encouraging sign for AMD.  Will AMD remain as an independent business in the next year or so?  I don’t know the answer to that, but if they stay independent, they might be a stronger company in the next 3 to 5 years.

You can find information on Intel’s (INTC) revenue and earnings here.

1 thought on “AMD – A Business in Transition – 5 Year Revenue & Earnings – SIC 3674.

  1. Justin Whitehouse

    Nice to see I’m not the only one concerned about this. We in the PC world can’t afford to lose AMD as it will give Intel and Nvidia no competition. I hope Zen turns it around for them.

    Reply

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