Implications
Robert J. Rivet, the AMD CFO, said: “While we had a disappointing quarter financially, customer adoption of our recently introduced microprocessor and graphics products and platform offerings is strong, and we see increasing momentum across our businesses.
"In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point.”
Q2 2008 gross margin was 52 percent. However, not including the sale of 200mm manufacturing equipment, it was 37 percent, compared to 41 percent in the first quarter of 2008 and 34 percent in the second quarter of 2007.
Among other things mentioned were a strategic shift towards "volume" markets, as opposed to high end ones and the expected arrival of the "Shanghai" CPU in early Q4.
Obvioulsy not mentioned were the implications of this top-level power shift for other senior AMD execs. Ruiz was at Motorola for 22 years before AMD. Gustavo Arenas, who was promoted to the role of chief sales officer, was at Motorola for 30 years before he joined AMD a few years later in 2003...we wonder if there's a book open on how long Gustavo will stay?... :)
HEXUS has reported a number of high profile departures and promotions at AMD recently and, in retrospect, you have to wonder how many of these happened with Dirk Meyer's promotion in mind. Presumably (seemingly press-shy) Mr. Meyer would be keen on having the most comfortable shoulders he could find to stand alongside him.
