Re:AMD responds to Linux kernel maintainer's rejection of AM...
by peller on Saturday December 10, 2016 @06:48AM
(#13145237)
I had to look it up. And you're right, I didn't know what the accountants think gross profit means. The thing is, gross profit doesn't include operating expenses[0]: "rent, equipment, inventory costs, marketing, payroll, insurance and funds allocated toward research and development."[1] As you can see on the page you linked, for a company like AMD, their operating expenses are huge. And that's not even including expenses from taxes and debts. So the number we really want, and what I imagine most people are thinking you meant, is net income. Which, you'll notice is sadly rather negative.
[0] http://www.investopedia.com/ask/answers/031015/what-differen...
[1] http://www.investopedia.com/terms/o/operating_expense.asp
Re:AMD responds to Linux kernel maintainer's rejection of AM...
by samfisher83 on Saturday December 10, 2016 @09:47AM
(#13145844)
Gross profits don't include things like R&D and Sales just the Revenue - cost of goods sold. They have a negative net profit margin. They are hemorrhaging cash, and have a lot of debt. The have negative share holder equity. They are in a bad financial position. Therefore it is kind of commendable they have some one trying to improve their linux drivers. They can't just "Afford" to just throw more people at the problem because of their financial issues.
Re:AMD responds to Linux kernel maintainer's rejection of AM...
by tankenmate on Saturday December 10, 2016 @05:48AM
(#13145079)
But just because they have a seemingly sufficient gross margin doesn't mean they don't have significant unavoidable costs that can't neatly be attributed to cost of sales.
[1] http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-fundIncomeA