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AMD spins off flash memory

i thought that was how they made money (not from cpus)

now they'll lose money on cpu and not have anything to make money on ? uh, ok
 
Originally posted by: nourdmrolNMT1
thats a huge swing in terms of financials. 45 profit to 17 loss?

MIKE
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$17 million loss is nothing to them. AMD had many straight years of quarterly losses which were bigger than that. In fact, having a profit is quite a recent thing. When you have $1.2 billion in revenue and $1.2 billion in costs, then the profit will appear to swing wildly even if things don't change much. For example if one quarter the revenue is $1.21 billion it is a $10 million profit; on the other hand if the revenue is $1.19 billion then it is a $10 million loss. A wild swing with less than a 2% change on one statistic.
 
Originally posted by: dullard
Originally posted by: nourdmrolNMT1
thats a huge swing in terms of financials. 45 profit to 17 loss?

MIKE
Click to expand...

$17 million loss is nothing to them. AMD had many straight years of quarterly losses which were bigger than that. In fact, having a profit is quite a recent thing. When you have $1.2 billion in revenue and $1.2 billion in costs, then the profit will appear to swing wildly even if things don't change much. For example if one quarter the revenue is $1.21 billion it is a $10 million profit; on the other hand if the revenue is $1.19 billion then it is a $10 million loss. A wild swing with less than a 2% change on one statistic.
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good point. hopefully they can concentrate on whooping intel in cpu's and start turning serious profit.
 
Originally posted by: FoBoT
i thought that was how they made money (not from cpus)

now they'll lose money on cpu and not have anything to make money on ? uh, ok
Click to expand...
They make money from CPUs at times too, but there were periods where Flash sales were the only thing keeping AMD's books from being redder than Soviet Russia.
 
Originally posted by: ViRGE
Originally posted by: FoBoT
i thought that was how they made money (not from cpus)

now they'll lose money on cpu and not have anything to make money on ? uh, ok
Click to expand...
They make money from CPUs at times too, but there were periods where Flash sales were the only thing keeping AMD's books from being redder than Soviet Russia.
Click to expand...

that is what i thought i had read


so what is the strategy to dump flash? do they think the profit is gone and flash will no longer make any money?
 
Wow...

I thought it was Flash that kept them going more or less, through the hard times...
 
Originally posted by: FoBoT
Originally posted by: ViRGE
Originally posted by: FoBoT
i thought that was how they made money (not from cpus)

now they'll lose money on cpu and not have anything to make money on ? uh, ok
Click to expand...
They make money from CPUs at times too, but there were periods where Flash sales were the only thing keeping AMD's books from being redder than Soviet Russia.
Click to expand...

that is what i thought i had read


so what is the strategy to dump flash? do they think the profit is gone and flash will no longer make any money?
Click to expand...

The strategy is to divert resources away from flash to CPU, where they can make more money and innovate further. AMD's problem has always been that once they get ahead of Intel, Intel can put the screws on them (in this case, cutting prices on flash) and reduce their profitability. By spinning off their flash division they cut away their vulnerable sides. Obviously, you could argue that this makes them MORE vulnerable, but who knows...

 
Originally posted by: deftron
Originally posted by: mwmorph
didnt know amd even made flash memory. hmm... shows how good their marketing is.
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Click to expand...
That's not the way it is.

AMD isn't like Lexmark or Sandisk as far as Flash goes. They don't market their flash memory directly. They sell to OEMs.
 
Originally posted by: Eli
Originally posted by: deftron
Originally posted by: mwmorph
didnt know amd even made flash memory. hmm... shows how good their marketing is.
Click to expand...
Click to expand...
That's not the way it is.

AMD isn't like Lexmark or Sandisk as far as Flash goes. They don't market their flash memory directly. They sell to OEMs.
Click to expand...
Plus they're only in the NOR business as far as I know of, and NOR isn't used in removable consumer Flash, NAND is. NOR is for special cases where you need to execute code right off of the Flash device.
 
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