AMD chief says company will return to profitability later this year

By on January 23, 2013, 3:30 PM

AMD held a conference call following yesterday’s earning results in order to clear up any misunderstandings and field questions from analysts and investors. According to reports, CEO Rory Read outlined AMD’s three-phase restructuring plan with the goal of returning to profitability by the second half of this year.

Read said the turnaround is expected to take several quarter and involves a complete restructuring of how the company runs its business. Furthermore, AMD plans to deliver a new set of powerful products this year and will begin transitioning the company to take advantage of high-growth opportunities in other markets where their intellectual property could provide others with a competitive advantage.

Those other markets include things like servers, custom silicon, the embedded space and ultra-low-power products like gaming consoles. Read told investors that AMD has already scored solid design wins for semi-custom APUs and embedded products and that we can expect to see products using those designs later this year. AMD hopes to collect 20 percent of their revenue from these alternate markets by the end of 2013.

The executive also touched on spending cuts related to the company’s research and development efforts. Industry watchers have been concerned that AMD is cutting this segment too deep but as Read noted, they are taking expense management steps at all levels of the business. He said the cuts to R&D are designed to help improve efficiency and productivity by doing things like reusing intellectual property and utilizing fewer process technologies.

If you missed yesterday’s earnings report, AMD posted an operating loss of $422 million and a net loss of $473 million for the fourth quarter when factoring in charges related to ending their wafer supply agreement with Globalfoundries.




User Comments: 6

Got something to say? Post a comment
1 person liked this | Burty117 Burty117, TechSpot Chancellor, said:

Well the PS4 and Xbox 720 have both been rumored (heavily rumored in fact) to contain an 8 core AMD Jaguar based Processor? Surely if the 2 main console competitors are using your processors (or processor designs) that must be one hell of a contract? I'm guessing if these rumors are true, it probably plays a relatively big part in getting AMD profitable again.

Not to mention that their Graphics Card's are also rumored to be in those consoles. (well the PS4 anyway)

veLa veLa said:

I still actively support AMD and eagerly look forward to future success. For example I just can't bring myself to build an i3 machine when I get a Vishera.

dividebyzero dividebyzero, trainee n00b, said:

Well the PS4 and Xbox 720 have both been rumored (heavily rumored in fact) to contain an 8 core AMD Jaguar based Processor? Surely if the 2 main console competitors are using your processors (or processor designs) that must be one hell of a contract? I'm guessing if these rumors are true, it probably plays a relatively big part in getting AMD profitable again.

Sorry to burst your bubble, but margins on console parts are razor thin. The parts will sell in huge numbers, but the parts themselves aren't big ticket items. Microsoft especially drive a hard bargain. If console parts were the promised land, AMD wouldn't be in such a state- they already provide the GPU for Xbox 360 (Xenos), and Wii (Hollywood), and Wii U (Latte)

Anyhow, nice to see Rory add some continuity to AMD's earnings calls - nothing like a little deja vu

Rory Read CEO AMD..."the aim of returning to profitability in the second half of 2013"

Dirk Meyer CEO AMD..." [link] "

Hector Ruiz CEO AMD..." [link] "

Skidmarksdeluxe Skidmarksdeluxe said:

Well the PS4 and Xbox 720 have both been rumored (heavily rumored in fact) to contain an 8 core AMD Jaguar based Processor? Surely if the 2 main console competitors are using your processors (or processor designs) that must be one hell of a contract? I'm guessing if these rumors are true, it probably plays a relatively big part in getting AMD profitable again.

Not to mention that their Graphics Card's are also rumored to be in those consoles. (well the PS4 anyway)

I've also read these rumours (English spelling) & I couldn't agree more. Let's hope it's the rebirth of AMD.

Skidmarksdeluxe Skidmarksdeluxe said:

Well the PS4 and Xbox 720 have both been rumored (heavily rumored in fact) to contain an 8 core AMD Jaguar based Processor? Surely if the 2 main console competitors are using your processors (or processor designs) that must be one hell of a contract? I'm guessing if these rumors are true, it probably plays a relatively big part in getting AMD profitable again.

Not to mention that their Graphics Card's are also rumored to be in those consoles. (well the PS4 anyway)

I've also read these rumours (English spelling) & I couldn't agree more. Let's hope it's the rebirth of AMD.

I really hope AMD can do a turn around & get back to competing against Intel in the high end again. It'll stop Intel making crazy decisions like dropping socketed chips etc.

amstech amstech, TechSpot Enthusiast, said:

AMD's competition is vital for several reasons. Thier chipset architecture is a little behind and thier GPU architecture's choppy/sparatic performance needs to be addressed, but I still have faith in them.

[link]

My 5770's, 5870 and 6970 never felt as smooth or nearly as powerful (even if they benchmarked higher) as my GTX 280, 570 and 670 and I never knew why until I saw this article.

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.