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Thread: Another $600m gone!

  1. #1
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    Another $600m gone!

    AMD continues to pile on the losses - $600m in Q2 - but there's hope yet.
    http://www.hexus.net/content/item.php?item=9384

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    Got to be said - ATI when it was at its height was getting $400 - $600M Quarters, reading the numbers though it appears last quarter they only brought in 195***

    Seems painful times for AMD - they claim they will be in the black in Q4 - but how far in the black and how long until they have repaid the bank...?

    Also the constant re-investment for the discrete graphics arm - surely is expensive....

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    Banhammer in peace PeterB kalniel's Avatar
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    Very interesting to note that inventory write off was a major part of these losses. When asked for more detail they mentioned how the low price of DDR2 and high price of DDR1 effectively forced their hands on that one.. doesn't really tally with Hexus users experiences though, as a lot of us wish they had continued production of 939 chips for longer.

    Also news about phenom being Q4.. and towards the end at that - not early enough to have an impact. As for getting back in the black, they didn't even expect Q4 to be in the black overall, just that they'd head to the black somepoint during it.

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    as long as AMD can report some Q4 profits the investors may still back them up. its important to remember that even if a company's stock goes up they don't intrinsically gain anything really, except for the confidence of more investors - creating an environment where they can release more shares for sale and then realize a gain.

    in light of the recent management shift, most notably Orton's removal/resignation, AMD may be able to survive dependent on the success of barcelona and phenom but AMD won't see a real recovery until they can create a significant distinguishing competence that intel cannot or chooses not to pursue. ideally for AMD they take over (or atleast compete in more effectively) the lowend market as they integrate CPU and GPU on die creating low-power, low-price, mid-performance parts suitable for the masses. ethusiasts will most likely shift to intel based systems for customization, upgrade paths, and all the other extras we've come to expect - but the fact is that the enthusiast market does not even come close to the general population and business market (small business atleast, i figure they are more likely to shift away from Intel on a price basis).

    this might be a bunch of hogwash and BS ramblings, but it seems like a reaonsable course of events, given the realities of the situation.

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    So basically, AMD/ATI is in deep.

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    Banhammer in peace PeterB kalniel's Avatar
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    No not really

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    Banhammer in peace PeterB kalniel's Avatar
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    Anyway, it's no-where near MS's Entertainment division (responsible for xbox) - losses of $1.89 billion this year!

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    The King of Vague Steve B's Avatar
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    doesn't that take into account the $1.15b set aside for warranty replacements?

  10. #9
    Banhammer in peace PeterB kalniel's Avatar
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    Yup, just as AMDs takes into account one off costs as well

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    But MS can afford to lose $1.89B from one division because the company makes a huge overall profit.

    Does anyone know if the latest figures are just for the CPU / Memory business or do they also include the ATI Graphics part too? If they are also including the ATI business then they could be much worse than they look because the CPU sales could have gone down significantly but this would be masked by the extra income from graphics chips.

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    That US$600mil loss (net) is for the second quarter, while Intel, posted a net profit of $1.28 billion.
    AMD’s revenue for the second quarter is $1.378 billion.

    Operating loss - $457 million
    Net loss of - $600 million

    This included the following:
    $130 million - ATI acquisition
    $78 million - Integration charges
    $31 million - Employee stock-based compensation expenses
    $16 million - Severance charges
    $5 million - Bad debt

    I also heard that AMD had to write-off some £30million on older processors

    I am no accountant but it seems to me that this can’t be good for the company, even if you are AMD.

    I’ve heard a rumor that Samsung could be looking at buying AMD!

    As anyone heard this?
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    yeah i heard that, but almost certainly from the same sources as you soooo... umm.. we'll wait and see on that one!

    would be nice though, sammy make good stuff and pretty much a whole PC could be assembled from the two CO's products.
    Quote Originally Posted by Ephesians
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    its bad but there come back just as intel did, swings and roundabouts.

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    I'm not so confident they will come back fighting. I think they are on the back foot at the moment. Time will tell but at the moment it is looking like AMD will need perfect execution on the next couple of CPU cycles just to keep up with Intel and this is looking more and more unlikely.

    I'm also a little concerned about the GPU business. At the moment this is also suffering from poor execution. It almost seems to be mirroring the CPU business.

    I hope the Samsung buyout rumours are true because I believe that really would create a very credible business with the ability to execute new products very well indeed.

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