AMD’s fortunes could finally see an important shift later this year after ten consecutive quarterly losses and the restructuring of its business. According to CEO Dirk Meyer, the company anticipates its core business to make a net profit by the end of the year, with a potentially-stronger personal computer market expected in the second half of 2009. The catch, of course, lies in his “core business” wording.
While AMD only has a 34% stake in the GlobalFoundries spinoff, it consolidates its results with those of the foundry firm for financial reporting – and according to a spokesperson for the company they “will not show a profit.” AMD badly needs to return to profitability as continued losses affect the company’s ability to invest into new technologies and hence deliver competitive products; which they claim will be easier over time now that the European Commission has slammed Intel with a hefty fine for its anti-competitive behavior.
On a bright note, Meyer also said that with the recession-plagued industry showing signs of stability, AMD was done with restructuring and job cuts.