Thursday, April 2nd 2015
AMD Faces Securities Fraud Lawsuit
Over-promising and under-delivering with its very first accelerated processing units (APU), codenamed "Llano," is coming back to haunt AMD, with a US District Court ruling that the company must face claims from investors over potential securities fraud. Launched in Q3-2012, AMD's A-series "Llano" APUs went largely unsold due to various factors including lack of product appeal, competition from Intel, forcing AMD to pull in its second-generation "Trinity" APU too soon. The related development first took shape in January 2014.
The swelling unsold "Llano" inventory forced an inventory writedown of $100 million, reducing the company's worth by nearly that much overnight, and tanking the value of the AMD stock. While AMD talked about the concept of an APU for years, Intel was the first to come out with a processor that integrates a graphics processor, with its Core i3 and Core i5 "Clarkdale" processors. The suit claims that AMD misrepresented production of "Llano" chips to its investors despite supply issues from its foundry partner GlobalFoundries, artificially inflating the value of the company in 2011-12. By the time production finally caught up, it ended up overproducing resulting in unsold inventory, and in consequence, the $100 million writeoff.
Source:
Reuters
The swelling unsold "Llano" inventory forced an inventory writedown of $100 million, reducing the company's worth by nearly that much overnight, and tanking the value of the AMD stock. While AMD talked about the concept of an APU for years, Intel was the first to come out with a processor that integrates a graphics processor, with its Core i3 and Core i5 "Clarkdale" processors. The suit claims that AMD misrepresented production of "Llano" chips to its investors despite supply issues from its foundry partner GlobalFoundries, artificially inflating the value of the company in 2011-12. By the time production finally caught up, it ended up overproducing resulting in unsold inventory, and in consequence, the $100 million writeoff.
61 Comments on AMD Faces Securities Fraud Lawsuit
Now 4 years later, the performance CPU is dead in the water with no future plans.
I'm not too happy about it myself..I really loved the phenom II but there's no upgrade.
My computer already heats the house, buying a 220W CPU is not going to happen here.
Also AMD hasn't updated its chipset in 8 years...990 is basically a 790, same HyperTransport and PCI Express 2.0.
Sata III and usb 3.0 are basically a firmware update and a integrated add-on chip.
They lack PCI-E 3.0 support except 1 board that was pulled off the market and the APU boards that have weak CPU's.
It's a dead-end.
www.tweaktown.com/tweakipedia/56/amd-fx-8350-powering-gtx-780-sli-vs-gtx-980-sli-at-4k/index.html
www.tweaktown.com/tweakipedia/58/core-i7-4770k-vs-amd-fx-8350-with-gtx-980-vs-gtx-780-sli-at-4k/index.html
As for the APU's i thought they were doing well when first released, many laptops, OEM's and budget builders used them.
We know what this means. We have heard and seen it before. They will not be continuing their 1=2 FX core setup so its a new beast. The only reason it has ANY legitimacy is because they can say 'but, we have Jim Keller'.
My prediction: it is going to fail. Where on earth are they going to get all this R&D from to get a killer cpu to market? Magical budgets? Also: who thinks that a high end CPU is going to really 'save' AMD? The market for that has dwindled on the consumer side, and the market for server is drastically changing (ARM). Even IF they make a monstrous CPU; how is any volume of sales of that going to 'carry' the company? I don't see it.
Honestly the best thing that could happen to AMD right now is that they get acquired by someone with big pockets like Samsung. A company capable of realigning the whole business and kicking out all of the rotten apples in one go. AMD has done very little these past years to really change course, they are again late to the party and they are going to repeat past mistakes with this new CPU.
R9 390 is going to be the same story - HBM is pricy so the card will have a much lower margin than its competitors or the old R9 inventory - that old R9 inventory that is getting rebranded for the 4th(!!!) time. Again, I struggle to see how AMD is going to really profit from that release.
Really what AMD should have done, but this is in hindsight of course, is bridge the gap between x86 and ARM in terms of performance/power. Think 'Big.Little' in an x86-ARM cluster. If they would have a sensible way of doing THAT on mobile devices on ARM tech, they would have lead a new market that IS viable. Right now Intel is struggling because of the lack of this bridge, and everything points towards the need for synergy between all devices.
The steps themselves aren't the problem for AMD.
AMD's big and everlasting problem is capitalizing on those design wins and great steps forward. From the acquisition of ATI to their pricing schemes, their market positioning, their timing, the public responses/PR, and in the last couple of years they had on top of all that some bad designs and missed bets in the market (FX & APU). And on top of THAT: debt.
A striking example is the timing of their hiring of Jim Keller and the announcement that they would 'get into ARM'. The rest of the tech world is already ALL OVER ARM and Jim Keller is merely there to inspire nostalgia. Where is the tangible info, where are the projections, WHAT are they going to make? Nobody really knows. They showed a roadmap that said exactly nothing new and moved some existing product groups around. The 'new AMD'. You know what I was thinking? 'ouch...'
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Dwelling on the past adds historical context, but it needs to seen as a whole rather than just highlighting the success stories. Past glories also don't automatically translate to future dominance. If they did, IBM, Motorola, RCA, and Texas Instruments would still rule the landscape.
Interestingly I ran performance passmark test a test not endorsed by amd due to its intel bias and scored 4063 beating most intel pcs out there sooo can my bias ass definitely say mines better no but its still not a bad buy a few years ago for 157 £.;-)
I said at the time they were to far ahead of the software curve to show it usefully in products sometimes like mantle and hsa now there's limited actual wares.
I didn't realize that line was such a flop...You'd think that they could have used those chips for education Donations worldwide and come out as a PR hero bringing in some name recognition.
As I see it the only problem here is people looking to make a quick buck are being heard...
Seriously shut the fuck up!
Invest for the long term...it should be law...quick trades, short sales or whatever its called now almost took out all of our economies...giving these people a voice sends the wrong message....which is if you're rich and whine enough you get more money regardless... I know their has been but I haven't seen anything really groundbreaking in software for a loooong time...
www.passmark.com/products/pt.htm ?
This statement describes AMD completely. Instead of being honest and aim at the right market using the "right" word, they go head to head with Intel with nothing to show for it.
Bad advertisement and strategy.
look at mediatek where they can place themself as good alternative after qualcomm