AMD has wider loss due to charge on ATI purchase
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Advanced Micro Devices  (AMD), the world's second-largest maker of computer microprocessors, posted a wider quarterly loss on Thursday due to a $1.68 billion charge from its purchase of graphics chipmaker ATI.
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In search of life raft AMD, Intel's on-again, off-again rival, has given another example how it's mostly been off again over the past year, disclosing plans to take a "material" goodwill impairment charge for its $5.6bn acquisition of ATI Technologies.â¦
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The latest losses at chipmaker AMD are not as bad as  expected, thanks to surging sales of laptops.
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Blog: Bad: AMD lost $600 million in the second quarter. Good: Chip shipments surged.
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(InfoWorld) - Advanced Micro Devices' move to cut overhead costs by outsourcing its chip manufacturing business may backfire in the long run, according to several analysts who have downgraded the company's stock. AMD is struggling it keep its head above water after posting losses of $611 million and $574 million for its past two quarters. The company has also drawn criticism for its manufacturing, with recent reports that it will delay the full-volume launch of the "Barcelona" quad-core Opteron server chip from July to October. That would hobble AMD in its effort to compete with surging rival Intel. Although AMD's Opteron has won over many users of Intel's Xeon server chips since its launch in 2003, that trend is now in a sharp reversal, according to a June 13 report from Jon Peddie Research. In the market for workstation processors, AMD had pushed Intel's share down to 87.6 percent in the first quarter of 2006, but Intel has rebounded since then, reaching 92 percent share in the first quarter of 2007. The building pressure recently prompted some analysts to predict that AMD might stop manufacturing any chips at all and convert to a fully outsourced business model as soon as 2008. AMD said that rumor had come from a "speculative" Goldman Sachs report, but confirmed that the company is trying to focus its efforts on developing chips instead of manufacturing them, according to AMD spokesman Drew Prarie. AMD currently has a deal giving it access to IBM's chip fabrication plant in East Fishkill, New York. Under that arrangement, AMD can perform much of its research and development without having to incur the cost of owning its own manufacturing plant, he said. "We're looking to find ways to extend that model beyond research and development to the full range of the manufacturing supply chain," Prarie said Monday. "That could run the range from increasing the amount of processors we send out for chartered manufacturing, and could also include things like establishing partnerships on the manufacturing side." AMD has already taken some steps in this direction. In 2006, AMD announced a plan to give Chartered Semiconductor Manufacturing a heavier load, asking the firm to begin making the new 65-nanometer scale Athlon chips and other processors. And in May, AMD announced that it hadÂ awarded the job of manufacturing its newest graphics chips to Taiwan Semiconductor Manufacturing Company (TSMC). Now the company may be preparing to expand that model, according to a June 17 report from Citigroup analyst Glen Yeung. AMD is on the verge of making a "transformational move" such as outsourcing a larger share of low-end processors to TSMC, selling a share of the manufacturing capacity in its Fab 30 chip-making plant in Dresden, Germany, or even selling a share in its planned $3.2 billion chip plant in Saratoga County, New York, Yeung wrote. Despite AMD's insistence that such an arrangement would simply allow it to stay in the chip business while cutting costs, the uncertainty makes Wall Street analysts nervous. The Citigroup report lowered its estimate of AMD's future revenue from $1.3 billion to $1.1 billion for the second quarter, and from $5.8 billion to $5.6 billion for the full year of 2007. Those figures would represent a flat performance compared to AMD's performance last year, with $1.22 billion of revenue in the second quarter of 2006 and $5.6 billion for the full year. "We are again lowering AMD estimates, this time for 2Q07 (we had previously lowered 2H07), reflecting our field checks suggesting current conditions are weak," Yeung wrote. While Citigroup recognizes that AMD could be moving away from its own manufacturing and that could help the company cut costs, "we remain on hold for the shares given near-term weakness," he wrote. In contrast, Yeung said Intel would continue to enjoy a competitive advantage thanks to theÂ potential delay of AMD's Barcelona chips, the rising popularity of Intel's new Santa Rosa notebook platform, and the continued sales of Core-family chips for desktop PCs.
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(InfoWorld) - The U.S. Department of Justice (DOJ) has subpoenaed Advanced Micro DevicesÂ as part of an antitrust investigation into the market for graphics processors and graphics cards, AMD said Thursday. AMD recently entered the graphics chip business with itsÂ acquisition of ATI Technologies, which was finalized last month. The DOJ has not made any allegations against AMD or ATI, and AMD intends to cooperate with the investigation, it said. While the DOJ hasn't said specifically what it is investigating, one industry analyst speculated that the case could be about price fixing. The DOJ has alreadyÂ charged a number of chip companiesÂ in the DRAMÂ memory chip market for price fixing, and isÂ investigating severalÂ in the SRAM (Static RAM) chip market. "If the DOJ wanted to, it could just go down every line in the semiconductor industry and find the same issue," said Gartner analyst Richard Gordon. That's because there are a relatively few number of suppliers in the chip industry and an open flow of communication between competitors and customers, who may not define price fixing the same way the DOJ does, he said. The investigations are unlikely to benefit end users, according to Gordon. Historically, prices in the chip industry have gone up and down based on supply and demand and he doubts that such investigations will result in lower pricing. A spokeswoman for AMD in Europe, Hollis Krym, said she did not know if the investigation has a broad scope and includes other graphics chip companies or if it is in the context of the ATI acquisition. U.S. antitrust authorities have already approved AMD's merger with ATI. In the DRAM market, the DOJ has charged Samsung Electronics, Hynix Semiconductor America, Elpida Memory, and Infineon TechnologiesÂ with price fixing and sentenced the companies to pay multi-million dollar fines. Sony, Cypress Semiconductor, and the U.S. arms of Mitsubishi Electric, Samsung Electronics, and Toshiba have all been asked to turn over information to the DOJ for an investigation into SRAM price fixing.
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Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) on Thursday reported a $44 million third-quarter profit from a loss a year earlier, and predicted
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Cheap as chips Yesterday, on the 6th September, AMD announced the launch of the latest member of its dual-core Athlon 64 X2 family however information about the 5200+ was limited to the tray price â US$403 per 1,000 â with no mention of the clock speed, TDP, cache, Socket and so on.â¦
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AMD&#39;s 64-bit processor line has carried the company from red to black ink in the third quarter. AMD today posted $1.2bn in revenue and income of $44m for the period.
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Once more, with feeling: Why is AMD on the lam, and how can it get back up?
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The chipmaker Advanced Micro Devices posted its third consecutive quarterly loss after cutting prices to compete with Intel.
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The acquisition by Advanced Micro Devices put ATI directly in competition with one of its major partners, Intel Corp., analysts say, which is the main reason ATI's market share dropped.
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Computer Associates International Ltd. , a business software maker, on Wednesday posted a wider quarterly net loss, including charges for job cuts and a &#36;225 million payment to settle a long-running accounting probe.
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Advanced Micro Devices on Thursday reported a heavy loss for its fourth quarter, due mostly to charges connected to its acquisition of graphics chip maker ATI.
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Still carrying the weight of costs related to last year's acquisition of graphics vendor ATI, Advanced Micro Devices Inc. recorded its fourth straight quarter of net losses Thursday.
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WASHINGTON  - AT&T Corp. on Thursday reported a $7.1 billion third-quarter loss due to an $11.4 billion writedown of its assets after its retreat from consumer services and other restructuring charges.
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AT&amp;T Corp. swung to a third-quarter loss of $7.12 billion due to huge charges from the company&#39;s retreat from traditional telephone services, which included at least 7,500 more job cuts and a writedown in the value of the company&#39;s long-distance network.