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AMD continues to pile on the losses - $600m in Q2 - but there's hope yet.

by Tarinder Sandhu on 20 July 2007, 10:56

Tags: AMD (NYSE:AMD)

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AMD continues to pile on the losses - $600m in Q2 - but there's hope yet.




AMD lost $600m in Q2 2007, including a one-time write-off of £130m attributed to the acquisition of ATI last year. Compare that with a profit of $89m during the same time last year.

AMD, however, increased quarter-on-quarter revenue (Q2 2006 vs. 2007) from $1.22bn to $1.38bn, stabilised 2007 market share - making up 11.4 per cent of global CPU sales - and has seemingly assuaged analysts that it was not about to hit the wall.

AMD's Opteron continues to sell well and its prominence should be reinforced with the imminent release of the quad-core Barcelona architecture.



HEXUS Forums :: 14 Comments

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Posted by deleted - Fri 20 Jul 2007 11:04
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….
Posted by deleted - Fri 20 Jul 2007 11:38
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.
Posted by deleted - Fri 20 Jul 2007 18:06
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.
Posted by deleted - Sat 21 Jul 2007 09:31
So basically, AMD/ATI is in deep.
Posted by deleted - Sun 22 Jul 2007 17:20
No not really :p

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