Advanced Micro Devices Inc. (AMD, Financial) filed Quarterly Report for the period ended 2010-06-26.
Advanced Micro Devices Inc. has a market cap of $5.06 billion; its shares were traded at around $7.52 with and P/S ratio of 0.9. AMD is in the portfolios of Daniel Loeb of Third Point, LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC.
Computing Solutions operating income was $128 million in the second quarter of 2010 compared to an operating loss of $67 million in the second quarter of 2009. The improvement was primarily due to the increase in net revenue referenced above partially offset by a $69 million increase in research and development expenses, a $19 million increase in cost of sales and a $3 million increase in marketing, general and administrative expenses. Research and development expenses and marketing, general and administrative expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments in the second quarter of 2010 and a one time benefit related to the deconsolidation of GF in the first quarter of 2010.
Computing Solutions operating income was $128 million in the second quarter of 2010 compared to $146 million in the first quarter of 2010. The decline in operating results was primarily due to a $38 million increase in research and development expenses, a $16 million increase in cost of sales and a $14 million increase in marketing, general and administrative expenses. Research and development expenses and marketing, general and administrative expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments.
Computing Solutions operating income was $274 million in the first six months of 2010 compared to an operating loss of $101 million in the first six months of 2009. The improvement was primarily due to the increase in net revenue referenced above and a $17 million decrease in marketing, general and administrative expenses. These improvements were partially offset by a $101 million increase in research and development expenses and a $45 million increase in cost of sales. Marketing, general and administrative expenses decreased and research and development expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments.
All Other operating loss in the second quarter of 2010 of $36 million improved compared to an operating loss of $41 million in the second quarter of 2009 primarily due to a $13 million decrease in cost of sales and a $9 million decrease in research and development expenses. The reduction in customer orders for Handheld products referenced above led to lower manufacturing costs and reduced cost of sales. Research and development expenses decreased for the reasons set forth under Expenses, below. However, the $22 million decrease in net revenue referenced above mitigated the improvement in operating results.
All Other operating loss in the first six months of 2010 was $47 million compared to $165 million in the first six months of 2009. The improvement in operating results was primarily attributable to an absence of $60 million in restructuring charges, a $47 million decrease in cost of sales, a $23 million decrease in research and development expenses and an $18 million decrease in marketing, general and administrative expenses. Cost of sales decreased primarily due to a benefit recognized in first quarter of 2010 related to deconsolidation of GF and lower Handheld product shipments. Research and development expenses and marketing, general and administrative expenses decreased for the reasons set forth under Expenses, below. However, the $34 million decrease in net revenue referenced above tempered the improvement in operating results.
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Advanced Micro Devices Inc. has a market cap of $5.06 billion; its shares were traded at around $7.52 with and P/S ratio of 0.9. AMD is in the portfolios of Daniel Loeb of Third Point, LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
From a financial condition perspective, we ended the second quarter of 2010 with cash, cash equivalents and marketable securities of $1.9 billion. Long-term debt as of the end of the second quarter of 2010 was $2.4 billion. During the first six months of 2010, we repurchased $216 million in aggregate principal amount of our outstanding 6.00% Convertible Senior Notes (the 6.00% Notes) for approximately $209 million in cash. In addition, during the second quarter of 2010, pursuant to funding requests from GF in accordance with the Funding Agreement between us, GF and ATIC dated as of March 2, 2009, ATIC contributed a total of $327 million of cash to GF in exchange for GF securities consisting of 79,272 Class A Preferred shares and 317,091 Class B Preferred shares. We did not participate in these fundings. As a result, our Class A Preferred share ownership interest in GF decreased from approximately 83% as of December 27, 2009, to approximately 79% as of June 26, 2010, and our ownership interest in GF (on a fully diluted basis) decreased to approximately 28%.Computing Solutions operating income was $128 million in the second quarter of 2010 compared to an operating loss of $67 million in the second quarter of 2009. The improvement was primarily due to the increase in net revenue referenced above partially offset by a $69 million increase in research and development expenses, a $19 million increase in cost of sales and a $3 million increase in marketing, general and administrative expenses. Research and development expenses and marketing, general and administrative expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments in the second quarter of 2010 and a one time benefit related to the deconsolidation of GF in the first quarter of 2010.
Computing Solutions operating income was $128 million in the second quarter of 2010 compared to $146 million in the first quarter of 2010. The decline in operating results was primarily due to a $38 million increase in research and development expenses, a $16 million increase in cost of sales and a $14 million increase in marketing, general and administrative expenses. Research and development expenses and marketing, general and administrative expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments.
Computing Solutions operating income was $274 million in the first six months of 2010 compared to an operating loss of $101 million in the first six months of 2009. The improvement was primarily due to the increase in net revenue referenced above and a $17 million decrease in marketing, general and administrative expenses. These improvements were partially offset by a $101 million increase in research and development expenses and a $45 million increase in cost of sales. Marketing, general and administrative expenses decreased and research and development expenses increased for the reasons set forth under Expenses, below. Cost of sales increased primarily due to the increase in unit shipments.
All Other operating loss in the second quarter of 2010 of $36 million improved compared to an operating loss of $41 million in the second quarter of 2009 primarily due to a $13 million decrease in cost of sales and a $9 million decrease in research and development expenses. The reduction in customer orders for Handheld products referenced above led to lower manufacturing costs and reduced cost of sales. Research and development expenses decreased for the reasons set forth under Expenses, below. However, the $22 million decrease in net revenue referenced above mitigated the improvement in operating results.
All Other operating loss in the first six months of 2010 was $47 million compared to $165 million in the first six months of 2009. The improvement in operating results was primarily attributable to an absence of $60 million in restructuring charges, a $47 million decrease in cost of sales, a $23 million decrease in research and development expenses and an $18 million decrease in marketing, general and administrative expenses. Cost of sales decreased primarily due to a benefit recognized in first quarter of 2010 related to deconsolidation of GF and lower Handheld product shipments. Research and development expenses and marketing, general and administrative expenses decreased for the reasons set forth under Expenses, below. However, the $34 million decrease in net revenue referenced above tempered the improvement in operating results.
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