Analysts Forecast Big Q4 Losses for AMD

[malware]

Advanced Micro Devices Inc. will report fourth- quarter results next week with Wall Street projecting bigger losses at the struggling chip giant. Analysts expect AMD to report a loss of 36 cents on revenue of $1.79 billion, compared with a loss of 4 cents, on revenue of 1.77 billion in the year-ago period, according to Thomson Financial. The Sunnyvale, Calif.-based company has been struggling to become profitable over the past year as it faced stiffer competition from archrival Intel and grappled with the cost of a major acquisition. AMD reported a wider-than-expected third-quarter loss of $396 million in October, largely due to a $120 million charge for its merger with ATI Technologies in 2006. The company has also struggled with product roll-out delays and mounting operating costs that some analysts warned were not sustainable. Analyst also foretell that AMD could bounce back as a stronger competitor, especially with the graphics technologies it now has after the ATI acquisition. The company also got a boost recently from an Abu Dhabi firm, which invested $622 million in AMD. Executives vowed last month that AMD will be back on its feet in 2008, and that recent production missteps will not be repeated.

View at TechPowerUp Main Site

 

[moto666]

I Hope they do the right thing!
Customers need Competition on every market on this planet!

So I cross my finger's for you gays!
But you will need a lot lot more, then just luck! I'm afraid!

So Do the right thing, with right prices and stand up and fight! (David vs. Goliath)

 

[WhiteLotus]

i think everybody expects this -no company can turn it around that quickly. still i hope they do it doesn't seem like they can sink any lower financially.

 

[ShadowFold]

If you wish AMD would go out of buissnes and they do... You see how much the QX9550 is now? Just wait and see how much it is with out any competition. I hope AMD stays in the game and gets some new phenoms out!

 

[imperialreign]

the only real sad part about this, is all the poorly informed investors that will start pulling their shares for fear of AMD going under :shadedshu

 

[evil bill]

ouch - look at the drop in their share price in the last year.

Jan 07 - $20.18
Jan 08 - £6.18, with a low in the year of $5.53

http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?username=&ac=&csi=14968

worth a punt at that price if you really believe they can pull it back .

 

[imperialreign]

I've been keeping and eye on AMD's stock, they've dropped near about $2.50 within a week and a half.

If it stays low through early Feb, I'm dumping all my income tax returns into them (should be a little more than $1k). If I win the lottery, I'd put it all on AMD.

 

[WarEagleAU]

Seems like things will turn around. The Gpus are rolling out in ample supply and the roadmap for the Phenoms and other procs are ahead of schedule. Doesnt sound to terrible if you ask me.

 

[WhiteLotus]

i remember that stockholders for Google being pissed so they with drew some because they only made a "very big increase on last years earnings" (cant remember the true figures) and it wasn't as high as they thought.

i hope this news doesn't put any other companies investing in AMD

 

[imperialreign]

the thing is, though - to an uninformed investor: when things look abyssmal, the company starts reporting more losses, share price keeps falling - they pull out; which only hurts the company more . . .

 

[evil bill]

Check out the contrast with Intel and Nvidia over the past year. They have all had a bit of a slump, but Intel and Nvidia never hit the depths that AMD did, and they seem to have bounced back a good bit. Blue and Green seems a safer place than Red though.......

Intel
Jan 07 - $27.98
Jan 08 - $21.99, low in the year of $18.86

http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?username=&ac=&csi=20890

Nvidia
Jan 07 - $39.54
Jan 08 - $27.05, low in the year of $18.90

http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?username=&ac=&csi=21808

 

[WhiteLotus]

how did Nvidia do bad? i thought that the 8*** range was a huge hit. this IS interesting

 

[trog100]

a lot of fanboy talk here.. amd really are in trouble.. they have nothing left in the barrel to pull out.. they bought ati right at the wrong time.. they have no money and little chance of getting any..

they will probably survive the next year.. after that miracles might happen.. anti competition laws are helping them.. intel needs a competitor it has enough folks accusing it of being a monopoly as it is..

i have read of a possible clause in the right to make (license) x86 cpus granted by intel to amd that says if they go bankrupt or are taken over by someone else its all off..

an ideal situation for intel would be amd to survive at the lower end but leave intel in total control of eveything else.. which in essence was how it used to be in the distant past..

trog

 

[evil bill]

how did Nvidia do bad? i thought that the 8*** range was a huge hit. this IS interesting

the share price can be influenced by many factors - it may well be that their high price was inflated by an external factor rather than how they were actually performing in the market place. Or vice versa. Its a funny old game, and not one that can be easily understood which is why those parasites on Wall Street, London etc. make so much money apparently understanding/manipulating it

 

[spacejunky]

the share price can be influenced by many factors - it may well be that their high price was inflated by an external factor rather than how they were actually performing in the market place. Or vice versa. Its a funny old game, and not one that can be easily understood which is why those parasites on Wall Street, London etc. make so much money apparently understanding/manipulating it

Absolutely right about that. The market is a scam.
Too many people in it = too much money = not enough oversight = manipulation/corruption.

 

[spacejunky]

Executives vowed last month that AMD will be back on its feet in 2008, and that recent production missteps will not be repeated.

Source: CNN Money

Executives site production missteps. How about the fact that AMD has no competing server product or high end consumer product. I am an AMD fanboy( 3 AMD pcs and 1 intel) but they surely blew it with Phenom. I'm sure they'll fix the BSOD problem with it but I'm talking about the speed of it. It's barely is on par with the Q6600 which has been out for at least 6 months now. How about the Penryns? They are going to wax a$$ and all we can hope for from AMD is a fixed Phenom with a little faster clock.

Yes, fix the production problems.
Yes, come out with a ball busting product that will put Intel back on the defensive.
Yes, fire the CEO and all his cronies.
Yes, do not buy any more graphics companies as to keep NVIDIA happy so they keep making AMD SLI chipsets.

Simple.

 

[X-TeNDeR]

I feel sad for this, as i really like AMD-ATI. the phenom delays could prove very harmful, if they wont manage to address the problems soon enough.

Well, i'll do my small part at least - i'm building a new rig next week - an all AMD-ATI rig. lets just hope it wont get nostalgic any time soon

 

[panchoman]

this is no suprise to me..

 

[cdawall]

looks like its time to buy some AMD/Ati stock

 

[Tatty_Two]

how did Nvidia do bad? i thought that the 8*** range was a huge hit. this IS interesting

It very much depends on how many of US buy graphics cards, it does not necessarily mean their products were not successful, if less people in 2007 bought a graphics card, all the companies will lose turnover/profits.

 

[Triprift]

I just want to no why Amd in there infinite wisdom a company that is struggeling to get good quality stuff out the door decides to go with another company in the same boat (Ati) strange.

 

[Easy Rhino]

let's face it, amd is run by a bunch of nimrods. if i were a shareholder i would insist the whole board of directors be thrown out. and maybe hire some intel people to straighten things out haha

 

[Ravenas]

I'm getting kinda tired of AMD's new found philosophy: To serve customers the best priced processors, but don't try to beat Intel's higher end line. I could go into ATI as well. AMD-ATI needs to get on the ball.

 

[MilkyWay]

as soon as AMD bought ATi it all went downhill it seemed like a good idea a company that just brought out the fantastic athlon line of chips and then ATi who had a good midrange of cards and a equal performing top end

notice how amd and sti were doing fine on there own but soon as they join forces it complicates things

i think there was some sort of fuck up with the ati and amd merger somewhere someone did somethign to fuck up the merger if i remember back to the merger i think people from ati left coz they didnt want to move and i think amd moved offices and people didnt want to move

if the merger went smoothly then it could have worked

i think AMD would have faired better tho if they didnt merge tho

i think that AMD needs nvidia to do well but that if nvidia do well it hurts AMD
see amd need nvidia to do well so they keep making good chipsets and support there cpu but if nvidia does well it hurts the graphics side of amd

amd need to get out of the motherboard production and graphics production side of things and just make cpus imo they need to sell ati to another company or let it out to another company and let them make graphics and motherboard chipsets


people forget that intel made cpu way before amd did amd used to have a license from intel in the 80s
intels rivals where ibm chips and some of the motorola chips

 

[Tekmuch]

Comeback

When AMD does finally settle and the smoke clears. You all will feel so silly. You beat up on AMD constantly every time it has any news. AMD did not force you to buy a Phenom or a 3800 Series card. If they are failures in your eyes, shut up, sit back and watch the Titanic Intel offerings set sail to your wallet.

Do you not remember what AMD did not less than 2 years ago. Yes they are having difficulties with high-end merchandise. Intel does have the money to get any and every researcher and chip developer in its pockets. I fear the day Intel stands alone.

AMD has made mistakes but who doesn't?