AMD loses over $600 million

[SickBeast]

Originally posted by: madh83
Did any of you check where the 600 million dollar loss comes from? They might have just split their acquisition costs of ATI over a few quarters as creative accountants tend to do, not to mention mergers usually tend to have a lasting negative effect on operating costs for several quarters forward. It's really not as a big a deal as it is being made out to be. With that said, I definitely agree that they probably should not have acquired ATI in the first place. Especially if it was just for integrated graphics.

$150 million of it was from the ATI acquisition.

 

[Phynaz]

Originally posted by: SickBeast

Originally posted by: madh83
Did any of you check where the 600 million dollar loss comes from? They might have just split their acquisition costs of ATI over a few quarters as creative accountants tend to do, not to mention mergers usually tend to have a lasting negative effect on operating costs for several quarters forward. It's really not as a big a deal as it is being made out to be. With that said, I definitely agree that they probably should not have acquired ATI in the first place. Especially if it was just for integrated graphics.

$150 million of it was from the ATI acquisition.

"ATI acquisition related and integration charges, which I call ARC, of $78 million" - Robert Rivet, CFO AMD.

 

[rmed64]

Didn't their revenue actually increase, possibly an increase in market share?

I want AMD to survive because I have an AM2 system already waiting for Quad core chips. They are supposed to break even by 4th quarter.

 

[madh83]

Yea, it did, not sure if that number includes sales of graphics cards though.

 

[bryanW1995]

The stock went up because their total dollar sales were up and market share was up slightly (.5%). Intel had huge profits but their stock went down b/c their gross revenues were flat. Intel has to continue gaining market share and increase gross revenues to get their stock up, amd only has to keep afloat and try not to go out of business to get theirs up.

 

[HopJokey]

Originally posted by: bryanW1995
The stock went up because their total dollar sales were up and market share was up slightly (.5%). Intel had huge profits but their stock went down b/c their gross revenues were flat. Intel has to continue gaining market share and increase gross revenues to get their stock up, amd only has to keep afloat and try not to go out of business to get theirs up.

Actually the stock was down today (from yesterday's close) 1.77%. So all those after hours trading gains were nullified (and then some) in the regular session today. Some people speculated that the AH activity was due to the short sellers needing to cover.

 

[Mana]

The ATI division of AMD isn't doing that bad, despite the fact that they've had some trouble with the 2x000 series of cards. You have to remember that they're selling a ton of cards in the Wii and Xbox360

 

[bryanW1995]

I wouldn't call coming to market 6 months late with a very poor lineup "some trouble". "Some trouble" is what happens when your mom finds out you forgot to take out the trash last night. ATI went straight to ludicrous trouble.

 

[tcsenter]

Originally posted by: SickBeast
If AMD only made $88 million last year during their 'glory days', then this type of loss is monolithic and I can't see them surviving.

2006 was hardly the 'glory days' for AMD. Even before C2D was released in July, Smithfield and Presler dual-cores were selling (and performing) very well - TDP aside - courtesy of better enthusiast chipsets (975X, NF4/SLI, 570/SLI) and some parts that overclocked like mad, Yonah-based mobile Core and Core Duo (Napa) had furthered Intel's already-strong position in the mobile market gained by Sonoma (Dothan), G80's release in November, and price cuts that had already beat-up AMD's revenues half-way through the year.

If being out-classed at every turn on every product segment characterizes AMD's 'glory days', I would hate to see your idea of a bad year.

Why on earth did they buy ATI?

It would have and should have been a formidably fruitful merger had it been executed with some modicum of competence. Still may be, but there is a lot of damage to control for and lost momentum to gain back before that can happen.

 

[JackPack]

Originally posted by: Mana
The ATI division of AMD isn't doing that bad, despite the fact that they've had some trouble with the 2x000 series of cards. You have to remember that they're selling a ton of cards in the Wii and Xbox360

Losses in the graphics segment increased 43% in Q2. From $35m to $50m.

Not that bad? It's bad.

 

[JackPack]

Originally posted by: rmed64
Didn't their revenue actually increase, possibly an increase in market share?

It did, by a marginal amount. When you're willing to price bomb, drag the Athlon name through the mud to Sempron/Celeron levels, and take a $600m hit, anything is possible.

 

[Cybercraig]

Next generation. Quad core with two cores dedicated to program processing, two core available for graphics/PCI interface.

 

[w00t]

Originally posted by: Aflac
I still don't understand why AMD bought ATi. ATI wasn't even winning in the GPU sector. And so far, nothing's come of it...

learn a little about there fusion technology there working on. I heard there was talk about Samsung buying AMD.

 

[lopri]

Maybe MS will do something to save AMD? Can't think of any but I know MS screwed Intel many times in the past so.. But yeah AMD is on life support.

 

[Phynaz]

Originally posted by: w00t

Originally posted by: Aflac
I still don't understand why AMD bought ATi. ATI wasn't even winning in the GPU sector. And so far, nothing's come of it...

learn a little about there fusion technology there working on. I heard there was talk about Samsung buying AMD.

That's the internet for you, one guys says something and it goas all over the place. I beleive that this rumor was started by Viditor pulling something out of his mind.

Samsung has it's own problrms, and is currently focused on fighting off Carl Icahn. They are in no way interested in AMD. Work it backwards, what does AMD have that could be of benefit to Samsung?

 

[nyker96]

I think AMD has 6-- mill lost in 2 consecutive quaters so far. This means AMD is burning through 1.2 billions of reserve cash. Maybe they should just be stopping their CPU sell. That will be cheaper even.

 

[apoppin]

Originally posted by: lopri
Maybe MS will do something to save AMD? Can't think of any but I know MS screwed Intel many times in the past so.. But yeah AMD is on life support.

actually that is what i am starting to believe

MS is pretty pissed at intel right now ... and they have a team working on CPU/GPU also ... for their Xbox3 or 4
:Q

stranger allies have been forged before

MS/AMD vs intel/nvidia ?

why not?

 

[Falloutboy]

Originally posted by: Amaroque
I would assume that they bought ATI because they want to integrate a graphics core.

Verry bad timing though.

yah its a shame they prolly could of greabed ati for quite a bit less if they wated for r600 to tank

 

[apoppin]

Originally posted by: Falloutboy

Originally posted by: Amaroque
I would assume that they bought ATI because they want to integrate a graphics core.

Verry bad timing though.

yah its a shame they prolly could of greabed ati for quite a bit less if they wated for r600 to tank

but r600 didn't tank ... 2900xt competes very well with 8800GTS-640
... and the r600 refresh is due out "shortly" ... HD2950 series

and if ATi had their way, it probably would have been released "on time" - but without the tesselator and HD audio upgrades that AMD likely insisted on ... it would probably also have been a tad slower back in January

more likely its a shame ATi went for the merger ... i think they would have done better by themselves - in the short term - then accepting the acquisition by AMD

 

[aigomorla]

Originally posted by: apoppin

Originally posted by: lopri
Maybe MS will do something to save AMD? Can't think of any but I know MS screwed Intel many times in the past so.. But yeah AMD is on life support.

actually that is what i am starting to believe

MS is pretty pissed at intel right now ... and they have a team working on CPU/GPU also ... for their Xbox3 or 4
:Q

stranger allies have been forged before

MS/AMD vs intel/nvidia ?

why not?

uhhh.. i highly doubt this to ever happen. Reason is because Intel owns such a large amount of the market. Even back when AMD's were pwning P4-D's this was only applicable to the general consumer. Most chip makers can care less about this market. Its considered pocket change compared to the enterprise market.

Now back when most enterprise computers were on intel's and Xeons. Not A64/Opterons.
AMD may have gotten a nice share in the market twords the end, but Intel retook this sector with C2D and AMD doesnt stand a chance even in the enterprise market.

So unless phenom is something outstanding like how the A64's were in comparison to P4-D. AMD is going in the hole unless some large company like samsung can bail them out.

Bah, never thought the day would come when a korean company would buy out a large american company. Its like hyundai buying out ford. If you want to compare AMD/Intel to Ford/GM.

 

[apoppin]

Originally posted by: aigomorla

Originally posted by: apoppin

Originally posted by: lopri
Maybe MS will do something to save AMD? Can't think of any but I know MS screwed Intel many times in the past so.. But yeah AMD is on life support.

actually that is what i am starting to believe

MS is pretty pissed at intel right now ... and they have a team working on CPU/GPU also ... for their Xbox3 or 4
:Q

stranger allies have been forged before

MS/AMD vs intel/nvidia ?

why not?

uhhh.. i highly doubt this to ever happen. Reason is because Intel owns such a large amount of the market. Even back when AMD's were pwning P4-D's this was only applicable to the general consumer. Most chip makers can care less about this market. Its considered pocket change compared to the enterprise market.

Now back when most enterprise computers were on intel's and Xeons. Not A64/Opterons.
AMD may have gotten a nice share in the market twords the end, but Intel retook this sector with C2D and AMD doesnt stand a chance even in the enterprise market.

So unless phenom is something outstanding like how the A64's were in comparison to P4-D. AMD is going in the hole unless some large company like samsung can bail them out.

Bah, never thought the day would come when a korean company would buy out a large american company. Its like hyundai buying out ford. If you want to compare AMD/Intel to Ford/GM.

MS is a strange company ... i don't think they will BUY AMD ... but they might bail them out ... for a big piece of the future action.

Private investors may do with AMD what they did with Chrysler - there is way too much money to be made - if AMD was run right - competing with intel to just let it fall by the wayside and let intel have it all

i see AMD surviving ... but not the way it is run now ... the current AMD management and advertising has GOT to GO!

/my analysis

 

[Special K]

n/m