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TechnologyCoordinator
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n°1840425
07-17-2008 at 11:25:19 PM

http://www.examiner.com/a-1492728~ [...] ggles.html

Quote :

AMD CEO steps down as chip maker struggles
Jul 17, 2008 5:14 PM (23 mins ago) AP
» 23 mins ago: AMD CEO steps down as chip maker struggles «
Filed under: SAN FRANCISCO , AMD CEO

SAN FRANCISCO (Map, News) - The CEO of chip maker Advanced Micro Devices Inc. is stepping down.

Hector Ruiz had been just the second person to lead AMD after company founder Jerry Sanders. He'll be replaced by the chip maker's No. 2 executive, Dirk Meyer.

Ruiz has been instrumental in elevating AMD to become a more dangerous rival to Intel Corp. But ultimately he takes the blame for AMD's financial distress. The Silicon Valley company has racked up billions of dollars in losses stemming from an ill-timed acquisition and fierce competition from Intel.

Ruiz will remain on AMD's board of directors, where he had been chairman. His new title will be executive chairman.





http://www.thestreet.com/s/amds-ma [...] &cm_ite=NA


Quote :

SAN FRANCISCO -- Advanced Micro Devices(AMD - Cramer's Take - Stockpickr) reported another massive loss in the second quarter, as hefty charges and sluggish sales weighed the company down.

The results included an $880 billion(sic, probably meant million) writedown to the company's' consumer electronics business, announced last week. AMD said Thursday that it was divesting itself of the business, though it provided no details on whether the business was being sold to another company.

Share of AMD fell more than 6% in recent after-hours trading to $4.95.

The Sunnyvale, Calif., chipmaker posted a loss of $1.19 billion, or $1.96 a share, vs. a loss of $600 million, or $1.09 cents at this time last year.

Analysts were expecting a loss of 52 cents a share, excluding certain charges.

AMD's total revenue in the three months ended June 28 totaled $1.38 billion, up 0.5% year-over-year, and below the average analyst expectation of $1.45 billion.

Despite a "disappointing" financial quarter, AMD CFO Bob Rivet said customer adoption of new microprocessor and graphics chips have been strong and said the company was seeing increasing momentum across its businesses.

"In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point," Rivet said.

AMD said its microprocessor sales were flat year-over-year, and down 8% sequentially.

The second quarter marked the first three months in which AMD fielded its long-delayed Barcelona microprocessor for corporate servers. Earlier this week, AMD rival Intel(INTC - Cramer's Take - Stockpickr) reported a 25% increase in net income, with double-digit increases in sales of PC and server micorprocessors.

The company's graphics revenue, which includes graphics processors as well as video game console royalty revenue, was up 18% year-over-year and down 5% sequentially.

Revenue in the consumer electronics business, which makes chips for cell phones and digital TVs, declined 46% to $37 million, with an operating loss of $42 million.

Excluding the results of the consumer electronics business, AMD said it posted an operating loss of $143 million in the second quarter.

The company's gross margin was 52% excluding the discontinued business operations.

The company said it expects revenue to increase in line with seasonality in the current quarter, but didn't provide specific financial guidance. AMD is scheduled to host a conference post-earnings conference call with analysts Thursday.

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Message edited by TechnologyCoordinator on 07-17-2008 at 11:45:30 PM

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TechnologyCoordinator
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n°1840429
07-17-2008 at 11:30:18 PM

So without the charges it looks like a loss of 310 Million. Please correct me if I'm wrong.


AMD continues to bleed. Seems a lot has to do with its highest binning processors going for $200 dollars.

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fazers_on_stun
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n°1840431
07-17-2008 at 11:34:01 PM

Bears repeating! :) - "Hector Ruiz Quits As CEO of AMD Effective Immediately! Dirk Meyer now CEO. Hector will hang around to fight Intel and do "Asset Light"



Good riddance I say - his 'marketshare at all costs' may have proven to be the death of AMD.


Message edited by fazers_on_stun on 07-17-2008 at 11:43:50 PM
Zorg
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n°1840437
07-17-2008 at 11:52:19 PM

Well let's hope, for the sake of future Intel pricing, they turn it around.

Andrius
Ironhide: Why are we fighting to save the humans?
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n°1840439
07-17-2008 at 11:56:37 PM

Damn ...
I take a week off from reading hardware news and everything goes to hell. :)
It's a good thing NVIDIA pricedrops had no effect on local pricing yet.
I better buy that AMD graphics card fast and keep it unopened for historic sampling ... :D

royalcrown
Reformulated with 20 percent less ahole !
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n°1840440
07-17-2008 at 11:56:45 PM

they seem to have forgotten that performance still sells...not "system balance" karma crap.

Sure they cant match intel, but when they can get beat by chips that cost 200 and win by 25-60 percent, that is too much of a disadvantage to overcome with warm fuzzy talk.

Before you say comment about my amd cpu, my mobo blew up 3 days ago, the day i got my 640 wd..MOTHERf&&&&*R...lol. If ECS doesen't replace it, it's Intelabyte combo 4 me :D


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"Now if the 4870x2 was actually notably faster than the 280 for about the same price, then I might even take a chance on it. However, that won't be the case."
Zorg
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n°1840441
07-18-2008 at 12:02:35 AM

I think I see feeding frenzy coming. :pfff:

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TechnologyCoordinator
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n°1840443
07-18-2008 at 12:04:19 AM

Special thanks to a poster at another website:

http://i136.photobucket.com/albums/q179/tool_462/Ejected.jpg


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TechnologyCoordinator
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n°1840446
07-18-2008 at 12:05:32 AM

Zorg wrote :

I think I see feeding frenzy coming. :pfff:




I don't think even Kassler, Baron, or Thunderman could spin this.

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Zorg
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n°1840450
07-18-2008 at 12:13:24 AM

Nope, we all knew it was coming.

 

Just be nice. :lol:

 

Although they might say, "With Hector gone AMD is in a great position to kick Intel's butt." :lol:

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Message edited by Zorg on 07-18-2008 at 12:50:37 AM
fazers_on_stun
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n°1840452
07-18-2008 at 12:16:24 AM

TechnologyCoordinator wrote :

So without the charges it looks like a loss of 310 Million. Please correct me if I'm wrong.


AMD continues to bleed. Seems a lot has to do with its highest binning processors going for $200 dollars.



From http://www.tgdaily.com/content/view/38457/118/: "AMD posted what the company called yet another “disappointing” quarter. The company reported AMD revenue of $1.309 billion and a loss of $1.189 billion, including an impairment charge relating to the ATI acquisition of $920 million. The loss from continuing operations was $269 million. The result also included $190 million of proceeds from the sale of 200 mm production equipment, indicating that AMD’s loss without these gains would have been closer to $450 million. "

So it doesn't look like the B3 stepping helped much in the 2nd quarter. Of course the 48XX GPUs are too recent but should help in Q3.

Don't think AMD is going to achieve 'operational break-even' this quarter either...

yomamafor1
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n°1840453
07-18-2008 at 12:19:22 AM

TechnologyCoordinator wrote :

I don't think even Kassler, Baron, or Thunderman could spin this.



"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe." - Albert Einstein


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azfj60
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n°1840455
07-18-2008 at 12:26:48 AM

Dirk Meyer = next body by the side of the road...

He really is in an unenviable position, though if things work out he "could" come out smelling like roses...

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royalcrown
Reformulated with 20 percent less ahole !
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n°1840457
07-18-2008 at 12:32:50 AM

azfj60 wrote :

Dirk Meyer = next body by the side of the road...

He really is in an unenviable position, though if things work out he "could" come out smelling like roses...



He may be in a good position actually, it's hard to set the bar lower, so if AMD makes ANY progress, he looks good !


---------------
X2 5400+, Biostar TA780G M2+ MATX, 2 gig mushkin, 8800gts 512 , CM 532, Kingwin 450w ATX 2.2

"Now if the 4870x2 was actually notably faster than the 280 for about the same price, then I might even take a chance on it. However, that won't be the case."
royalcrown
Reformulated with 20 percent less ahole !
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n°1840458
07-18-2008 at 12:34:06 AM

Hey guys...do you think the "telephone" ad he did was a sign, or the straw that screwed him...lol ?


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X2 5400+, Biostar TA780G M2+ MATX, 2 gig mushkin, 8800gts 512 , CM 532, Kingwin 450w ATX 2.2

"Now if the 4870x2 was actually notably faster than the 280 for about the same price, then I might even take a chance on it. However, that won't be the case."
homerdog
Overclocked and Undervolted
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