AMD Reports 4Q Loss

[HardOCP News]

Although AMD’s processor shipments grew by 26% over last year, the company reported a 4Q loss citing heavy costs related to its acquisition of ATi.

A brutal price war and Intel's increasingly competitive processors also weighed on AMD's earnings, as the company said overall shipments of its high-margin server chips were essentially flat compared with the third quarter and that selling prices for those chips were down significantly.

 

[Fooshnik]

This bodes poorly for competition. Bigger problem is I don't see a killer chip on the horizon for AMD.

 

[InorganicMatter]

AHAHAHAHAHAHA!!! I love it when Hector Stinking Ruiz gets his arrogant predictions shot right back at him.

You deserve it, AMD. Any company who relies on their fan's brand loyalty instead of their product innovation for a business model needs to rot. Hope this taught them a lesson; even their most loyal fans will leave them if they can't produce a decent chip.

 

[Steve_010]

They reported a loss because they bought ATi...which means they spent more money than they made...which means next quarter they will post a gain because they already bought ATi...thats the way the market works...people are too short sighted with one time fees like buying out another company...

 

[n1ce_hat]

This bodes poorly for competition. Bigger problem is I don't see a killer chip on the horizon for AMD.

Yeah they really don't have anything huge coming up.. Lots of 'meh..'

 

[pxc]

AMD is blaming the loss on the ATI acquistion, but the one time charge was only $550 million. The loss last quarter was $574 million. Intel's pricing pressure is hurting AMD badly (from Ace's):

A month ago AMD was touting margin in the 55% range. Today it now says its margin in Q4 was 36%.

http://biz.yahoo.com/bw/070123/20070123006182.html?.v=1

AMD's MPU profits fell by 77% YoY and 56% sequentially.

Collapsing CPU margins are a terrible sign with no relief in sight.

 

[Hapatingjaky]

Lets see, getting your ass handed to you by Intel with the C2D was the begining, aquiring ATI and then having ATI delay the R600 twice not so good, and add the fact that the delay of the new chipset wasn't expected either. No wonder you lose margins in the 4thQ

 

[Ockie]

They reported a loss because they bought ATi...which means they spent more money than they made...which means next quarter they will post a gain because they already bought ATi...thats the way the market works...people are too short sighted with one time fees like buying out another company...

I don't think many people gets it man. People are going to bash AMD now for the hell of it regardless to the fact that they just spent an immense amount of money acquiring ati.

 

[Lou Ceifer]

Yeah they really don't have anything huge coming up.. Lots of 'meh..'

Hello??? mid 2007??? K8L? Barcelona having 40% performance over Cloverton??? Will outperform AMD's current dual-core Opterons on "floating point" mathematical calculations by a factor of 3.6 at the same clock rate?

Anyone, anyone? Bueller? Bueller?

 

[Manny Calavera]

Hello??? mid 2007??? K8L? Barcelona having 40% performance over Cloverton??? Will outperform AMD's current dual-core Opterons on "floating point" mathematical calculations by a factor of 3.6 at the same clock rate?

Anyone, anyone? Bueller? Bueller?

I will believe those figures,when I see it in a [H]ardOCP review by Kyle

AMD is hurting bad,and will continue to be in the same boat for the forseeable future,and then some.I predict losses for them extending into Q4 2007.

 

[mjz_5]

i find it funny that when intel had a shit CPU for years, they still made tones of money..

 

[pxc]

Hello??? mid 2007??? K8L? Barcelona having 40% performance over Cloverton??? Will outperform AMD's current dual-core Opterons on "floating point" mathematical calculations by a factor of 3.6 at the same clock rate?

Anyone, anyone? Bueller? Bueller?

AMD will probably gain some share in the workstation market, *if* the newly doubled FPU in K8L translates to any real-world improvement. But that's a tiny market to begin with and isn't going to help in the decline of volume servers or desktops.

 

[Lou Ceifer]

AMD will probably gain some share in the workstation market, *if* the newly doubled FPU in K8L translates to any real-world improvement. But that's a tiny market to begin with and isn't going to help in the decline of volume servers or desktops.

I don't see how that's going to be an IF, assuming you've actually read the specs of K8L from the AMD Developer's Conference notes and read up on Core 2's specs. Core 2 will be easily matched if not surpassed and this is not just in FPU or for server segments. SIMD operations will be also greatly improved. I just don't see how Intel loyalists continue to think Core 2 has just caught AMD with it's pants down, they've been knowing it was coming at the least since the Dothan's release and have been working on a answer for thier next gen beyond K8 even before then, thus the K8L and HT 3.0.

All AMD chips will shift to the K8L based architecture after it's introduction first (2Q07) in the server arena, from what I read in 3Q07 (desktop, notebooks). The server market may be tiny in size to you, but it's profit gains are huge. With AMD's K8L and it's already superior Hypertransport bus it won't be hard for AMD to stop any decline or loss in volume of servers or desktop as K8L is a drop in upgrade to socket AM2, as per AMD's announcements concerning K8L. Companies like Sun are already gearing up thier platforms for Barcelona as we speak.

 

[MrSneis]

It's tough being the underdog, AMD is a much smaller company than Intel. If they want to remain a competitor, which they will, they should keep on their toes. IIRC right now they are trying to compete in the mobile market (better power consumption) and server market (8 core) which Intel pretty much has a vice grip on, itll take some time but AMD should continue to grow.