Situation reverts
By Cher Price: Tuesday 18 January 2005, 22:30
CHIP FIRM Advanced Micro Devices (AMD) made a loss in its financial fourth quarter, and as it predicted last week, flash memory bit it in its Achilles' Heel.
The firm made a loss of $30 million while in its same financial period last year it reported a profit of $43.2 million.
The firm is notorious for its wavering results - sometimes up, sometimes down - but its Intel-like Architecture unit contributed quite a lot to sales, the firm said.
Sales of chips using its AMD64 instruction set were up by a quarter - not enough to offset the cash cow flash.
Memory sales fell by something close to 10 per cent - and the firm's chief beancounter Robert Rivet attributed that to what he called an aggressive environment, by which we presume he meant Intel.
But AMD can't blame Intel for all of the weakness, because Rivet also said his firm was late to qualify products in the wireless segments.
However, even though AMD has apparently done well selling CPUs, with sales up by 29 per cent, it warns the next quarter won't be a bed of roses. And flash sales aren't expected to rebound soon either, Rivet and AMD warned.
On a wave of Wall St sentiment, AMD shares had soared to surpass its big brother Intel at the end of last year. But at close of trading today, its share price was around about the same it was when it declared a profit warning last week.
Jerry Sanders III, founder of AMD, warned years ago that things weren't going to be easy. His predictions have always been somewhat better than ebullient Wall St analysts, in our humble experience. µ
This may be the wrong forum for this, but still. Is anybody else surprised?
By Cher Price: Tuesday 18 January 2005, 22:30
CHIP FIRM Advanced Micro Devices (AMD) made a loss in its financial fourth quarter, and as it predicted last week, flash memory bit it in its Achilles' Heel.
The firm made a loss of $30 million while in its same financial period last year it reported a profit of $43.2 million.
The firm is notorious for its wavering results - sometimes up, sometimes down - but its Intel-like Architecture unit contributed quite a lot to sales, the firm said.
Sales of chips using its AMD64 instruction set were up by a quarter - not enough to offset the cash cow flash.
Memory sales fell by something close to 10 per cent - and the firm's chief beancounter Robert Rivet attributed that to what he called an aggressive environment, by which we presume he meant Intel.
But AMD can't blame Intel for all of the weakness, because Rivet also said his firm was late to qualify products in the wireless segments.
However, even though AMD has apparently done well selling CPUs, with sales up by 29 per cent, it warns the next quarter won't be a bed of roses. And flash sales aren't expected to rebound soon either, Rivet and AMD warned.
On a wave of Wall St sentiment, AMD shares had soared to surpass its big brother Intel at the end of last year. But at close of trading today, its share price was around about the same it was when it declared a profit warning last week.
Jerry Sanders III, founder of AMD, warned years ago that things weren't going to be easy. His predictions have always been somewhat better than ebullient Wall St analysts, in our humble experience. µ
This may be the wrong forum for this, but still. Is anybody else surprised?
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