Advanced Micro Devices (NYSE: AMD) released earnings for the 2007 fiscal year, which ended Dec. 29." title="A Year AMD Won't Soon Forget: Fool by Numbers"/>
On Jan. 17, processor peddler Advanced Micro Devices (NYSE: AMD) released earnings for the 2007 fiscal year, which ended Dec. 29.
Back out noncash goodwill impairment charges of $1.61 billion in the fourth quarter and ... well, 2007 still doesn't look good. Sans that massive item, the operating margin for the year was around (21%), and the net margin would be (29.4%).
A $614 million investment from a Dubai-based investor group helped stabilize the balance sheet, though AMD had to dilute the stock to meet its end of the bargain. And a heavy debt load still hangs over the company like the sword over Damocles.
On the bright side, AMD had $114 million of positive operating cash flow in the fourth quarter and came within $9 million of breaking even on a non-GAAP operating basis.
(Figures in millions, except per-share data. Data uses the latest reported numbers from Capital IQ, a division of Standard & Poor's.)
Income Statement Highlights
FY 2007
FY 2006
Change
Sales
$6,013
$5,649
6.4%
Net Profit
($3,379)
($166)
(1,935%)
Earnings Per Share
($6.06)
($0.34)
(1,682%)
Diluted Shares
558
492
13.4%
Get back to basics with the income statement.
Margin Checkup
FY 2007
FY 2006
Change*
Gross Margin
37.6%
50.0%
(12.4)
Operating Margin
(47.7%)
7.6%
(55.3)
Net Margin
(56.2%)
(2.9%)
(53.3)
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
Assets
FY 2007
FY 2006
Change
Cash Plus Short-Term Investments
$1,889
$1,541
22.6%
Accounts Receivable
$640
$1,140
(43.9%)
Inventory
$821
$814
0.9%
Liabilities
FY 2007
FY 2006
Change
Accounts Payable
$1,009
$1,338
(24.6%)
Long-Term Debt
$5,031
$3,672
37.0%
The balance sheet reflects the company's health.
Cash Flow Highlights
FY 2007
FY 2006
Change
Cash From Operations
($257)
$1,287
N/A
Capital Expenditures
$1,686
$1,856
(9.2%)
Free Cash Flow
($1,943)
($569)
(241.5%)
Owner Earnings
($2,356)
($1,231)
(91.4%)
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap
Trailing P/E Ratio
CAPS Rating
Intel (Nasdaq: INTC)
$113,490
16.5
****
Texas Instruments (NYSE: TXN)
$41,470
17.0
****
NVIDIA (Nasdaq: NVDA)
$13,780
21.6
*****
Broadcom (Nasdaq: BRCM)
$12,770
81.70
***
AMD
$3,910
NA
**
Keep your partners close and the competition in your vest pocket.
Disclaimer: The views and investment tips expressed by investment experts on themoneytimes.com are their own, and not that of the website or its management. TheMoneyTimes advises users to check with certified experts before taking any investment decision.
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