AMD Reports Quarterly Loss in wake of ATI Acquisition

AMD reported its first loss since the first quarter of 2005, losing $574 million or $1.08 per share, during the fourth quarter. Most of AMD's loss can be attributed to the acquisition of ATI; AMD said that it took $550 million in charges related to the purchase of the graphics company, which works out to about $1.04 per share. Another 5¢ per share of charges, or $27 million, came from stock-based compensation expenses. Another cause of this loss can be blamed on the price war between AMD and Intel.

Nevertheless, the Sunnyvale-based company set a record for total CPU shipments last quarter, a growth of 26%, although it wouldn't reveal the exact numbers. Another blow to AMD came early this year when Sun decided to forego its exclusive x86 supplier arrangement with AMD in favor of a new partnership with Intel. AMD expects to see some savings from the ongoing transition to the 65nm chip form factor and expects Barcelona, which arrives in the second half of 2007, to do be particularly competitive with Intel's offerings.

News source: Ars Technica

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Just after AMD actually tweaks their 65nm process enough to crank out products, Intel will be right behind them with 45nm process technology on product. They are an entire generation behind Intel!

I doubt that. I have a feeling that AMD has something up their sleeve. I think AMD is just trying to find their footing right now. By the end of 2007 or 2008, Intel and AMD will be even probably.

Hurmoth said,
I doubt that. I have a feeling that AMD has something up their sleeve. I think AMD is just trying to find their footing right now. By the end of 2007 or 2008, Intel and AMD will be even probably.

I agree. I pray AMD has something up their sleeve; it would be bad to lose AMD and let Intel release CPUs when ever they feel like it.

Hurmoth said,
I doubt that. I have a feeling that AMD has something up their sleeve. I think AMD is just trying to find their footing right now. By the end of 2007 or 2008, Intel and AMD will be even probably.

Even if AMD has something up their sleeve, it has been well known in the industry that they have been strugging to get good yields on their 65nm process technology. All of this while Intel has been running successfuly for at least a year now on 65nm not to mention it was their best yielding and fastest ramp to date than any other process technology in the past. Intel has at least a 1 1/2 year lead in process technology. Now remember, I'm strictly talking about process technology and not the actual product lines. That can vary greatly but of course the process technology plays a big role in that.