AMD has announced it fourth quarter financial results for 2007 and the entire year. Figures are in billions of dollars.
While losses were more than revenue, these figures are relative because they include
depreciation of goodwill (know-how, the brand’s reputation, and potential) as a result of the buyout of ATI. The amount of this depreciation reached $1.608 billion.
Without this cost, the loss would have been $164 million versus $396 million in the third quarter. Better yet, if we don’t consider the costs related to the acquisition of ATI and we adopt AMD’s way of seeing things, operational loses were only $9 million. Some however will point out that this depreciation only represents half of the value of ATI’s total goodwill and thus there could be more to come. In short, the battle with numbers is potentially not over ; however what is certain is that AMD is currently doing a little better.
AMD’s cost heavy graphic division had deliveries for a total value of $259 million or an increase of 3% from last quarter related to the release of the Radeon HD 3800.
For the entire year, the published 6.4% increase in revenue actually hides a decrease if we consider that ATI’s results in 2006 were only included to AMD accounts on October 25 of this year. According to our estimates with the same amount of activity, revenue would have fallen from 6.5 to 8%.
As for losses, once the depreciation of $1.608 billion is subtracted, it still totals $1.771 milliards and is 10 the amount in 2006.
While in the short term it’s plausible that the Sunnyvale company will be out of the red, we can still ponder the firm’s capacity for future investment. Currently, AMD is trying (for better and worse) to stay in the high end market with the Phenom B3 which will take another 3 months to arrive (if all goes well) and graphic cards equipped with the R
V670. And after?
