AMD reports tenth consecutive quarterly loss

By on April 22, 2009, 12:46 PM
Things continue to look dire for AMD as the company reported today its tenth consecutive quarterly plunge into the red. Although still exceeding expectations, AMD lost $416 million during the first three months of the year on revenue of $1.18 billion – processor sales were down 21 percent and graphics chips a full 15 percent. The company blamed the current economic climate for its lackluster performance, and said it expects revenue to drop further in the second quarter, due to a normal sales slump for the time of year.

Chief Executive Dirk Meyer took issue with last week’s declaration by Intel CEO Paul Otellini that the market has “bottomed out,” claiming the current economic conditions make it tough to predict future demand for chips. However, he does seems confident that changes made to AMD’s business will soon start to deliver benefits and believes they have an opportunity to grow in an environment where customers are looking for maximum value. The company also said it has reduced its inventory of unsold chips and revealed plans to introduce a new server processor, dubbed Istanbul, in June rather than much later in the year as originally intended.




User Comments: 8

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phantasm66 said:
That can't go on forever...
aolish said:
Really hope AMD one day gets themselves out of the rut. Without them, prices would be totally out of control. Its bad right now, but it would be far worse if AMD wasn't in the competition.
paulwuzhere said:
AMD will make it through this mess. They have been around for a while and I don't see them disappearing.
captain828 said:
AMD can't die because Intel would be in a shitload of trouble if they remain all-alone in their market.IMHO, they will be bought when things go really sour (Chapter 11 ?). It's actually a pity to see AMD struggle this hard even though the HD4000 series were, and still are, very popular.Unfortunately, it's their CPU's that are dragging them down... not that they're not good, but as we all know small prices = small profits.While they are on equal footing with nVidia, regarding their GPUs, Intel is totally superior: more fabs, smaller process fabrication deployed earlier, higher performing CPU's (a.k.a. profits), big (and full) wallets and the currently untouchable Nehalem (performance-wise). In order for them to succeed and start posting some "green" quarter results, they need to do well in both segments... or just cut the bad one/sell it since they clearly lack the money to handle both.
jtc2112 said:
I agree with Captain. I want to second that they do need to evaluate what they are good at, how they can market themselves better in those areas and cut out all of the BS products that drag them down.
eafshar said:
i thought they bought AMD so they can bring in the cpu and GPu togather.. seems like that has failed. Price performance wise phenom II seems to be sort of fine. but as one of the guys said b4, the lower the price off their cpu's are the lower the profits they'd have. this would make sense if u realize how much intel charges for their exterme edition cpu's near and sometimes over 1000$. i highly doubt its production cost is even double a 250$ cpu.
gobbybobby said:
I have an AMD processor and it runs great they are just as good (of not better) as Intel and the prices are good, without AMD the market would have no competition and that is one thing we don't need in these economic times.
Grimrocker said:
A company like Intel NEEDS AMD to keep their ego in check... and AMD needs Intel to compete and beat the crap out of. LOLz ;-)
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