Holy Moly! I wonder if this also has to do with the recent acquisition of ATi..
Declining microprocessor sales as well as dropping average selling prices for its microprocessors have pushed AMD deeper into the red. The company reported a net loss of $611 million on revenues of $1.233 billion, which is more than 20% below the guidance the company expected at the end of Q4 2006.
The loss includes charges related to the ATI acquisition in the amount of $113 million, but is mainly a result of the increasing competition with Intel in the microprocessor market. The company said that its Q1 margins were 31%, down from 40% in Q4 2006 and down from 59% in Q1 2006. "The decrease from the prior quarter was largely due to significantly lower microprocessor unit shipments, lower microprocessor average selling prices (ASPs), and the inclusion of the former ATI operations, which generally have lower-margin products, for the entire quarter, AMD said.
AMD had revenues of $1.332 billion and a profit of $259 million in Q1 of 2006; in Q4 2006, the company reported revenues of $1.773 billion and an operating loss of $529 million.
News source: Full Article @ Toms Hardware
Link: Neowin Forum Discussion | Cheers Al
Declining microprocessor sales as well as dropping average selling prices for its microprocessors have pushed AMD deeper into the red. The company reported a net loss of $611 million on revenues of $1.233 billion, which is more than 20% below the guidance the company expected at the end of Q4 2006.
The loss includes charges related to the ATI acquisition in the amount of $113 million, but is mainly a result of the increasing competition with Intel in the microprocessor market. The company said that its Q1 margins were 31%, down from 40% in Q4 2006 and down from 59% in Q1 2006. "The decrease from the prior quarter was largely due to significantly lower microprocessor unit shipments, lower microprocessor average selling prices (ASPs), and the inclusion of the former ATI operations, which generally have lower-margin products, for the entire quarter, AMD said.
AMD had revenues of $1.332 billion and a profit of $259 million in Q1 of 2006; in Q4 2006, the company reported revenues of $1.773 billion and an operating loss of $529 million.
News source: Full Article @ Toms Hardware Link: Neowin Forum Discussion | Cheers Al
BTW, can you list any of AMD's new "bells and whistles?"
Last edited by raskren on 20 Apr 2007 - 18:41
BTW, can you list any of AMD's new "bells and whistles?"
Here is a Bell.
AMD is well on its way to releasing the chip it has dubbed the "Core 2 Duo killer", probably Q3-4 2007, and now has decided to reveal exactly how its K10 "Barcelona" chip plans to make that kill.
The first point AMD stress is that moving to the new K10 using Socket F will only need update the BIOS while both desktop and notebook Barcelona versions will be released.
Technically, Barcelona will be able to deliver 4 Floating Points per clock cycle and will feature an increased buffer while all four cores will carry 512 KB of L1 and an L2 cache and all cores will share the 2 MBs of the L3 cache. According to AMD's European technical director, Guiseppe Amato, the main advantage of the new microprocessor compared to Intel's design is AMD's memory connect design.
This information comes from AMD as Intel prepares the ground for its Developer Forum in Beijing next week. If AMD stick to their usual strategy expect more Barcelona information to be unveiled as the Intel event approaches.
http://server1.megagames.com/news/html/har...nadetails.shtml
Note the irony there?
That said, Intel have lowered their prices over the last few years, not to mention Apple's move to Intel, and my respect for NVIDIA is growing. So this isn't that that surprising. It's a shame really.
AMD's cash supply is dwindling. They have stated that they're going to reduce capital expenditures to help improve cash flow but that means they can't renovate enough of their fabs to 60 and 45nm. Without die shrinks AMD cannot compete with Intel in the desktop CPU segment.
Numerous websites have outlined the bad business decisions AMD management has made.
Hector Ruiz got them into this position. He ought to be ousted.
They killed of 939. Why? They basically put every 939 owner who wanted a cheap CPU upgrade in the position where they now have to buy a new motherboard, memory, etc.
Lets say for example I built a PC and picked up a 3200+ with the intention to upgrade some time in the near future. Some time passes, I've saved a few bucks and I want to pick up an X2 4600. I can't. I need to buy a new motherboard and ram because AMD killed 939 and released the exact same proccessors (performance-wise) on AM2. Why would I buy AMD? Why wouldn't I go to Intel, who's chips are currently performing much better? It made sense to stay with AMD when all I needed to upgrade was my CPU and the superior Intels required me to update my cpu, mobo and ram. But now, for no logical reason AMD, is telling me I need to update my mobo and ram with them as well. So again, why would I stay with AMD? The intels perform better, and intel hasn't totally ****ed me off recently.
Heck Intel is even thinking of doing the GPU on the processor also.
AMD needs something huge . Just a great gpu wont cut it because you will have competion from nvidia and intel themselves.
It's a surprise, and not what people would expect to read.
While it's great having all these rapid advancements in processor technology, If AMD goes under, Intel is going to have the same problems with a perceived processor monopoly as Microsoft has with its perceived OS monopoly. Multi-billion-dollar EC fines won't be far behind, and processor prices will skyrocket.
And of course we all know how Intel likes to poke along when it thinks it has no real competition; doling out new technology to the masses at whatever speed it sees fit. Without AMD, we'd probably all still be using 32-bit single-core processors.
However, there is still such a thing as going too fast.
Intel, Slow Down! We'd all rather see you spending your money on R&D instead of on EC speeding tickets!
The answer for that is in the 2nd paragraph of the news post hehe
Intel is once again king, thank everything.
Last edited by TRC on 20 Apr 2007 - 20:32
I still prefer AMD over Intel. If its wasn't for AMD, your Intel cpu's would be costing 4x or more than what you paid.
YES YES..!!! Intel's gonna give away their money so another company can force them to sell their products cheaper!! Oh Yea! Intel will be the last CPU company, a full monopoly, and no one else will make processors... IBM won't compete, Motorola will just say screw it, and all the other CPU manufacturers will just close their doors and bow to the awesome might of intel ~> CPU Manufacturers
Think ..... before you type.
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