On yesterday, AMD has released its Q1 2015 quarterly earnings, $ 1.03 billion of revenue, fell by 26% over the same period last year, a net loss of $ 180 million, the financial situation is tight, many investors and analysts are worried about whether AMD can hold cash to Q2 quarter or not, according to many analysts the only possible solution is to sell some assets and back to the blood. Fortunately, AMD financial officer Devinder Kumar, said that in this year’s cash flow they can easily reach to 6-10 billion, temporarily without selling assets.
AMD: We have money, no need to Sell Assets
Q1 quarter of 2015, AMD’s computing, graphics and enterprise, embedded, semi-custom revenues have different degrees of decline, coupled with the AMD decided to give up with SeaMirco high density server business, included a $ 75 million related to losses, and therefore the entire Q1 quarter net loss of $ 180 million, free cash flow is negative $ 195 million.
As of Q1 quarter, AMD’s cash, cash equivalents and marketable collateral valued at $ 906 million, sharply down from $ 1.34 billion in the previous quarter. In addition, AMD was kind enough to Globalfoundries signed a take or pay (take or pay, you cannot buy back) of the wafer supply agreement, the whole year to buy about $ 1 billion of the wafer, the wafer is about spending Q1 quarter $ 161 million.
AMD daily operations as well as a variety of expenses, including tax and the new R & D investment, etc., as well as AMD $ 2.27 billion in debt at the end of the previous quarter, but they also received a $ 500 million credit facility, and that agreement allows AMD in need increase the amount of time.
In 2015 AMD can manage their Cash Flow between 6-10 billion dollars, Said AMD CFO Devinder Kumar
When investors are concerned about the answer that whether AMD can sustain cash for AMD Q2 quarter, AMD CFO Devinder Kumar stressed that in 2015 they can manage their cash flow between 6-10 billion dollars, so there is no problem.
AMD CEO took office after the sale of AMD’s office had to be realized, in 2013 the sale of the office building in Austin, received $ 164 million of cash flow, followed by Singapore subsidiary has sold its office received $ 46 million in revenue.
This time, though tight financial situation, but it looks like AMD is not willing to sell assets, in fact, AMD actually quite confident, because AMD would rather swallow the loss of $ 75 million did not sell SeaMirco company, although the latter is nothing new temporary business, but AMD’s low-power server market is still very bullish, and now they are missing is a new product, CPU and GPU are at rest on our laurels this year, but in 2016 AMD will introduce a new generation of ARM and X86 architecture processors, the second half of the year as well as next-generation graphics cards, AMD believes in high performance server market then there is a strong chance, in next year it is estimated that AMD will take SeaMirco to push K12 architecture ARM server.