AMD yesterday released this year's Q1 quarter earnings, when the quarter loss of $9 billion, has been a net loss for the 6 consecutive quarter. The earnings amd announced a major news, they and China Sea light company reached licensing agreement, received a $293 million in licensing fees. At the same time, the two sides set up a joint venture company providing server processor to the Chinese market, analysts said AMD's latest Zen architecture license to the Chinese manufacturers. CEO AMD said authorized X86 technology to Chinese manufacturers will not cause Intel rebound, in addition, she also mentioned that the Zen processor in the quarter will be to give priority to customers out of the sample.
About X86 authorized AMD technology to the China Sea light company one thing we did yesterday, the analysis, the details of the X86 betrayed AMD technology to China's back: to the Zen technology? Intel will oppose it? We consider two key problems in cooperation with the sea of light, first amd accredit to Chinese companies in the end is what technology and if it broke the news that is Zen architecture processor, AMD is really sincere. Second key issue is the attitude of Intel, after all, X86 Intel is also authorized by the Intel, AMD if against this transaction, AMD is likely to have trouble.
For these problems, CEO AMD Lisa (Su) in the earnings conference also answered questions from analysts, she said the cooperation with the Tianjin sea light company is very important, the two sides will focus on cooperation in the Chinese server market. She stressed that AMD is authorized to the sea light company is a processor and SoC technology, all technologies are AMD R & D, so there will be no property burden. (AMD is saying that this technology has nothing to do with Intel, it's AMD's own technology).
Su Zifeng on both sides of the transaction has been completed, has now started the execution of the transaction process, amd won $293 million licensing fee is a multi-year agreement, in the first quarter of this year has received the first pen is about $50 million in licensing fees, Q1 has been included in the profit of $700 million. AMD is expected to receive half of the licensing fees in the first two years of cooperation.
Taking into account the sea light company's parent company is dawn of the division, they is very important in China's high performance server and super computer market, amd emphasize the deal not only for their brought licensing fees, but also a key partners, the Chinese market to promote data center business going forward is very, very important.
From this point of view, AMD's position as we analyzed before, the U.S. government banned the Intel to China's exports of ultra high performance chips, AMD is likely to borrow in the Department of dawn in the Chinese market share a slice.
Finally is about the progress of the Zen processor, it is also one of the problems that analysts have to mention in each earnings conference. Su Zifeng represents a new generation of Zen processors have managed to survive a few milestones, Zen processor running their laboratory is reached the design requirements, the quarter preferred customers will received amd Zen sample processor, but system integrators launched formal products but also by 2017.