AMD continues to have financial problems
For the sixth quarter in a row, AMD is ending up with a losing balance. Each quarter, the publication of the financial report is marked by the fact that the leadership of AMD has to admit its mistakes in management and make statements about how exactly the company is going to get out of this difficult situation. However, the first quarter of 2008 ended with a relatively good result: the company was able to slightly reduce the size of financial losses in comparison with the five previous reporting periods.
According to a recently released report for the first quarter of 2008, the company's revenues grew by 22%, to $ 1.51 billion in cash, compared with the data released a year earlier ($ 1.23 billion). At the moment, the company's net losses amounted to $ 358 million, decreasing by 41% compared to the same period last year, and operating losses amounted to $ 264 million. I recall that in the company's operating liabilities $ 50 million is the loss resulting from the acquisition of ATI.
And even despite some emerging tendency to stabilize the financial situation, AMD’s profit for the first quarter of 2008 turned out to be lower than that predicted by Wall Street analysts.
In this connection, Robert Rivet, Chief Financial Officer of AMD, stated that the seasonal factor, the general economic crisis raging in the United States, the unfavorable state of potential buyers, the low demand for the company's products of the previous generation was responsible for the insufficiently high profits etc.
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In general, everything is to blame, except for the company AMD.
Experts and analysts disagree with this point of view. In their opinion, you can indefinitely blame the crisis and bad weather, but you need to look for the cause of the company's not very good financial situation in AMD itself.
AMD is still adversely affected by the acquisition of graphics solutions developer ATI Technologies in 2006, as well as the late introduction of new products to the market. A striking example is the situation when fully working quad-core AMD Opteron processors (with the Barcelona architecture) were released only 7 months after the start of the first shipments. According to analysts, it was the company's punctures that in many ways became the cause of all financial troubles.
Despite official statements, the company's management apparently understands that it is time to take decisive measures for changes within AMD. AMD Chief Executive Officer Hector Ruiz (Hector Ruiz) announced a series of tough actions that should help the company get out of an unenviable position. The first step will be a full-scale restructuring of the company, as well as an aggressive policy to reduce production costs.
And it did not deceive you! Recently, AMD, as the announcement of "aggressive policy to reduce production costs" announced the reduction of staff in the amount of 10% of the total mass of employees. AMD will also scrupulously analyze all the secondary areas of the business, highlight a number of priorities, and say goodbye to the others that are not profitable. Naturally, the production of processors with x86 architecture and the development of graphics chips are priority areas, and AMD will concentrate on them.
If the calculations of AMD specialists are correct, then it will be possible to finish with unprofitable reports after all anti-crisis operations in the second quarter of 2008. The third quarter will be the first profitable for a long enough period, and the situation will finally stabilize. This time, analysts' forecasts coincide with the statements of the company's management, and they also speak of the third quarter of 2008, as a turning point, one of the main reasons they call the new product line, which should compete with the "enemy" Intel Core 2 Duo.
via eeTimes , 3dnews , Cnews
According to a recently released report for the first quarter of 2008, the company's revenues grew by 22%, to $ 1.51 billion in cash, compared with the data released a year earlier ($ 1.23 billion). At the moment, the company's net losses amounted to $ 358 million, decreasing by 41% compared to the same period last year, and operating losses amounted to $ 264 million. I recall that in the company's operating liabilities $ 50 million is the loss resulting from the acquisition of ATI.
And even despite some emerging tendency to stabilize the financial situation, AMD’s profit for the first quarter of 2008 turned out to be lower than that predicted by Wall Street analysts.
In this connection, Robert Rivet, Chief Financial Officer of AMD, stated that the seasonal factor, the general economic crisis raging in the United States, the unfavorable state of potential buyers, the low demand for the company's products of the previous generation was responsible for the insufficiently high profits etc.
')
In general, everything is to blame, except for the company AMD.
Experts and analysts disagree with this point of view. In their opinion, you can indefinitely blame the crisis and bad weather, but you need to look for the cause of the company's not very good financial situation in AMD itself.
AMD is still adversely affected by the acquisition of graphics solutions developer ATI Technologies in 2006, as well as the late introduction of new products to the market. A striking example is the situation when fully working quad-core AMD Opteron processors (with the Barcelona architecture) were released only 7 months after the start of the first shipments. According to analysts, it was the company's punctures that in many ways became the cause of all financial troubles.
Despite official statements, the company's management apparently understands that it is time to take decisive measures for changes within AMD. AMD Chief Executive Officer Hector Ruiz (Hector Ruiz) announced a series of tough actions that should help the company get out of an unenviable position. The first step will be a full-scale restructuring of the company, as well as an aggressive policy to reduce production costs.
And it did not deceive you! Recently, AMD, as the announcement of "aggressive policy to reduce production costs" announced the reduction of staff in the amount of 10% of the total mass of employees. AMD will also scrupulously analyze all the secondary areas of the business, highlight a number of priorities, and say goodbye to the others that are not profitable. Naturally, the production of processors with x86 architecture and the development of graphics chips are priority areas, and AMD will concentrate on them.
If the calculations of AMD specialists are correct, then it will be possible to finish with unprofitable reports after all anti-crisis operations in the second quarter of 2008. The third quarter will be the first profitable for a long enough period, and the situation will finally stabilize. This time, analysts' forecasts coincide with the statements of the company's management, and they also speak of the third quarter of 2008, as a turning point, one of the main reasons they call the new product line, which should compete with the "enemy" Intel Core 2 Duo.
via eeTimes , 3dnews , Cnews
Source: https://habr.com/ru/post/24138/
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