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AMD "Barcelona" die shot  (Source: AMD)
AMD records a loss for the third straight quarter

Earlier this week, DailyTech reported that were things were looking rosy for the Intel folks in Santa Clara, California. The company reported that its profits were up 43 percent on revenues of $10.1 billion USD.

Today, it was AMD's turn to report its Q3 earnings results. AMD recorded revenue of $1.632 billion USD -- this represented an 18 percent increase from Q2 2007. However, AMD reported an operating loss of $226 million USD and a net loss of $396 million USD -- this compares to a $611 million USD net loss for Q1 and a $600 million USD net loss for Q2.

Part of AMD's losses during Q3 can be attributed to its acquisition of ATI Technologies in 2006. The company is still reeling from the purchase and recorded a $78 million USD charge as a result. The ATI-related charge involved costs related to integration and severance packages. Another $42 million USD charge was recorded in relation to Spansion.

On a more positive note, the introduction of ATI's Radeon HD 2000 series GPUs resulted in a 29 percent increase in graphics revenue to $252 million USD. AMD also noted that its Radeon HD 2000 series GPUs are now featured in desktop and notebook systems from Dell, HP, Lenovo and Toshiba.

During 2007, AMD has racked up enormous debt and experienced losses in every quarter. Former ATI president CEO Dave Orton left in July after successfully leading the charge to integrate the two tech companies. AMD also lost executive vice president and chief sales and marketing officer Henri Richard in late November. The following month, AMD vice president of worldwide sales Rick Hegberg packed his bags and headed for the door.

AMD still has room for improvement in the form of its new quad-core 65nm Barcelona architecture. The company launched its Barcelona-based Opteron server processors in early September with speeds up to 2.0GHz. 2.3GHz models are in the pipeline for Q4 2007.

Quad-core desktop Phenom 2.2GHz (Phenom 9500) and 2.4GHz (Phenom 9600) processors will launch late next month, while a 2.6GHz (Phenom 9700) processor will be ready for December. AMD will later tackle the high-end desktop market with the Phenom FX-82 during the first half of 2008.

AMD also threw a bit of a curve ball with the announcement of a triple-core Phenom processor family. The triple-core processors logically fit between AMD's dual-core and quad-core offerings and will bring "true multi-core technology to a broader audience," according to the company.

The next few months won't be easy for AMD, however. Although it has a new CPU architecture on tap, Intel is not standing still. Intel is always one step ahead of AMD when it comes to process technology and its 45nm Penryn-based Xeon processors will launch November 12, while its Penryn-based desktop processors should be available before the end of the year.

In addition, Intel will refresh its 45nm architecture in the summer of 2008 with Nehalem, while a 32nm refresh called Westmere will be in place for 2009.



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Where the heck is IBM?
By Mitch101 on 10/19/2007 9:55:00 AM , Rating: 3
Intel appears to be the significantly superior to everyone when it comes to cutting edge manufacturing.

This is something I dont understand because IBM should be significantly ahead of Intel in manufacturing as they were playing with arranging atoms a long time ago. Why isnt IBM the leader in die shrink abilities? How is it that Intel who I dont believe has never demonstrated nano technology to the level of IBM gets stuff out the door so fast? Is there still too much beurocratic overhead in IBM that even though they are next gen they are behind because of stupid paperwork? Seriously tell me whats wrong that IBM isnt the leading manufacturer of die shrink in the world?

AMD cant compete with Intels manufacturing ability. The lawsuit will hopefully help put some needed cash into AMD but that wont make the a leading manufacturer for years to follow.

If IBM were seriously a cutting edge company like they have shown they are capable of being scientifically then AMD would have 45nm and 32nm manufacturing by using IBM before Intel would.

We have some IBM people in here and I would love to understand why IBM is cutting edge way beyond what Intel is doing but is not exceeding Intel when it comes to manufacturing?




RE: Where the heck is IBM?
By TomZ on 10/19/2007 10:14:43 AM , Rating: 2
I think it's mostly a question of emphasis and investment. Intel's manufacturing R&D is probably very focused on "next node" manufacturing improvements, whereas IBM seems to be doing more broad technology R&D. And maybe Intel is more focused on solving very specific problems compared to IBM which is looking to advance the technology in a more general way.


RE: Where the heck is IBM?
By niaaa on 10/19/2007 10:26:32 AM , Rating: 2
IBM turned into a service company

Selling boxes doesn't make money !


RE: Where the heck is IBM?
By tmouse on 10/19/2007 11:31:03 AM , Rating: 3
Well IBM has FAR wider research interests they have held the most US patents record for over a decade. These licences make a lot of money with little down side risk.


RE: Where the heck is IBM?
By ajfink on 10/19/2007 12:17:41 PM , Rating: 2
Indeed. IBM is a far more diverse company than Intel. If, for example (and purely hypothetically), IBM were to absorb AMD and dedicate a larger chunk of its R&D to fab and process development, they would probably be putting Intel on the ropes in that area, just out of having more money to throw at it.

But the X86 market isn't profitable enough for IBM to decide to throw in their hat.


RE: Where the heck is IBM?
By TomZ on 10/19/2007 1:40:01 PM , Rating: 2
quote:
But the X86 market isn't profitable enough for IBM to decide to throw in their hat.

Then what are Intel and AMD doing in that market? And what about the $10B+ in revenue that Intel rakes in every quarter?

I think with IBM there must be some realization that they cannot effectively compete with Intel. Just a guess.


RE: Where the heck is IBM?
By calyth on 10/19/2007 3:06:35 PM , Rating: 2
Maybe because they're more interested in selling big iron boxes that has juicy service contract?

We have this Sun box at work that has 96GB of RAM (yes you read it right, RAM), and it has just went out of service contract. Sun wants to ask for $20,000 a year (or some ridiculous amount) for 1 box.

Desktop market is a lot more fickle - if a box breaks, desktop users usually mourn their loss of data quickly and grab another box, probably a sub-$1000 machine. Enterprise user can't exactly afford to lose vital computing resouces.

Just a thought.


RE: Where the heck is IBM?
By afkrotch on 10/19/2007 11:23:57 PM , Rating: 2
And how many of those boxes do you think are out in the world?

I can tell you, there's a hell of a lot more desktop pcs, notebooks, enterprise servers, and whatever else Intel or AMD has their hands in.

Course IBM makes a lot of money cause they are in both hardware and software. It'd be like taking Intel and Microsoft and combining them. IBM could easily annihilate Intel, by focusing all their attention on hardware. Not going to happen though, as IBM essentially got out of that ball game. The desktop/notebook market is oversaturated. I think Gateway will eventually be bought by HP or Dell.


RE: Where the heck is IBM?
By rivalary on 10/19/2007 11:45:12 PM , Rating: 2
Actually, Acer bought Gateway


RE: Where the heck is IBM?
By afkrotch on 10/20/2007 12:34:25 AM , Rating: 1
They did? Missed that announcement. Okay. Acer gets bought by Dell in....umm....2010.


By Laughing all the way 2220 on 10/23/2007 6:43:04 PM , Rating: 2
Intel hasn't always performed this well. It was only this year that they scored a hit with C2D.

http://www.infoworld.com/article/07/01/16/HNintelp...

And everybody knew getting ATI was going to be a struggle so this is no surprise. It's going to take some time to get through it that's for sure. I'm excited for AMD. ATI's and AMD's sales will be able to sustain them for awhile and then lookout. Intel will only be able to compete with AMD for maybe 5 more years. Once Fusion comes out you will see the 800lb. gorilla go down. Intel cannot compete with innovation. The only thing they can compete with is clock speed and die shrink. They've already hit the 3Ghz speed barrier and soon they will hit the die shrink barrier. Intel has no where to go after that. As I said in about 5 years you will see the shift of power. Intel will go the way of the Alpha, and in the same fashion if you remember the history of the Alpha.


RE: Where the heck is IBM?
By paydirt on 10/19/2007 11:55:41 AM , Rating: 2
IBM is not a manufacturing company. Manufacturing requires signficant capital expenditures. What IBM (and Texas Instruments) does is do the research and license it out. IBM's cost is just the research. They lose out on some profit, but it isn't as high margin business as doing the research, patenting, and licensing.

Take the PS3 cell processor. IBM gets paid on every one of them yet they don't make a single one.


RE: Where the heck is IBM?
By dwalton on 10/19/2007 12:17:02 PM , Rating: 2
Actually IBM has manufactured the majority of the Cells packaged in Sony's PS3s. They also manufacture some portion of the Xenons found in the 360.


RE: Where the heck is IBM?
By afkrotch on 10/20/2007 12:49:09 AM , Rating: 2
Let's not leave out the PowerPC and Broadway (Wii processor).


RE: Where the heck is IBM?
By TomZ on 10/22/2007 8:37:24 AM , Rating: 2
In addition to IBM, Texas Instruments also makes their own chips. Do you know what you're talking about?


RE: Where the heck is IBM?
By Khato on 10/19/2007 12:12:48 PM , Rating: 2
Heh heh, and what does 'playing with arranging atoms' have to do with manufacturing semiconductors? I think you hit a key word there, IBM's research tends to 'play' with neat ideas, but without a focus towards driving them to manufacturing. I mean, ever since their 'me too' press release on 45nm earlier this year, they haven't really said much of anything about it - I quite doubt they have high k gate dielectrics working for both p and n gates yet even.

And I can't help but grumble any time that someone 'hopes' that AMD's frivolous lawsuits against Intel will net them any money. I mean, if Intel actually went outside the legal bounds, do you really think AMD would still be around?


RE: Where the heck is IBM?
By 16nm on 10/19/07, Rating: 0
RE: Where the heck is IBM?
By Treckin on 10/19/2007 10:53:17 PM , Rating: 3
Ach, you idiot... AMD co-released that they had discovered their 'own' (IBM's) H-K process about 2 days after the Intel release... to lazy to look it up, find it yourself... The issue was that the leakage was soo unacceptable that there was no way around H-K... It was a BrEaKtHrOuGh!


RE: Where the heck is IBM?
By crystal clear on 10/20/2007 2:51:39 AM , Rating: 2
You ask-

How is it that Intel who I dont believe has never demonstrated nano technology to the level of IBM gets stuff out the door so fast?

Yes thats how bussiness is done today-

# Get the product out into the market really fast & enough for everybody to buy.

# Give it some slick marketing & attractive prices & laugh your way to the bank.

For the above tactics to succeed you need a management team thats dynamic & highly motivated.

You need a Team approach-where R&D + production + marketing work to together as a team in close coordination.

This is the CEOs job to ensure this happens & how efficiently it works.

You ask-

Is there still too much beurocratic overhead in IBM that even though they are next gen they are behind because of stupid paperwork?

Its because the route IBM has taken is- too much emphasis on R&D & less on production & marketing.

The CEO decides the direction & speed the company has to take go in/at.

You ask-

Seriously tell me whats wrong that IBM isnt the leading manufacturer of die shrink in the world?


IBM is concentrating more on SOFTWARE & less on HARWARE.

Again the CEO decides on the priorities & preferences the company should focus on.

To summarize it all-

* IBM has abondoned the Desk top/laptop market completely.
(example-Lenovo with the Thinkpad/Think centre)

* IBM keeps for itself the Server/mainframe market.

* IBM is becoming more a R&D company & licenses its technology/processes to others.
(example- Cell chip for game consoles,leaving the manufacturing of the cell chip to Sony)

* IBM prefers to direct its resources more to Software & less to HARDWARE

* IBM prefers to be a Service company/provider than a manufacturing company.

Where the heck is IBM ? well they are just NOT interested in this market or its potentials.


It's less than....
By the1stkujo on 10/19/2007 9:27:44 AM , Rating: 2
the last 2 quarters and they showed actual profit in more than one market/division so as they say it could be worse.




RE: It's less than....
By Gul Westfale on 10/19/2007 9:31:56 AM , Rating: 2
let's hope they get better soon. they need to invest a lot more in R&D to compete with intel, and if they continue to make losses like this they'll fall behind for sure.


RE: It's less than....
By Screwballl on 10/19/07, Rating: 0
RE: It's less than....
By sweetsauce on 10/19/2007 10:29:49 AM , Rating: 4
I also heard that the tooth fairy left a huge chunk of cash under intel's pillow, which is why they have way more money then amd. Wait thats fantasy, just like every point you just made after your point about amd being ahead for a bit. Im pretty sure history will prove that if anyone has stolen any tech between the two, amd is definately the biggest culprit. Also, last time i checked, my 3.6ghz core2 is quite a bit faster than anything amd has going right now. As far as amd hiding the Penryn killer from us, i hope it ends up being as good as the 8800gtx killer they held up in secret for a year because that turned out to be a "feature rich" beast of a video card didn't it.


RE: It's less than....
By omnicronx on 10/19/2007 11:34:53 AM , Rating: 3
Although the op was talking pure bs, Amd did not steal anything from intel. IBM forced Intel to have a secondary source for chips back in the 086 days. And that chip maker was....? AMD ;)


RE: It's less than....
By Screwballl on 10/20/07, Rating: -1
RE: It's less than....
By Phynaz on 10/19/2007 9:36:53 AM , Rating: 3
That's not what I read. Every division lost money.


RE: It's less than....
By therealnickdanger on 10/19/2007 9:40:44 AM , Rating: 2
quote:
as they say it could be worse

... but for AMD's sake, it better not get worse. While I'm not happy that AMD is struggling, I am glad that Intel is being so aggressive! I love all the new CPUs! Too bad I can only own a couple at a time.


By crystal clear on 10/19/2007 11:50:17 AM , Rating: 1
Some comments made at the conference call that deserve a response.

Ruiz noted that worldwide demand for PCs "is very, very strong." However constraints on plastics, displays and possibly batteries could hamper sales.



This fellow always has some lame excuse to save face,but we can see through these excuses-expect further losses.

About breaking even....

Very ambitious targets/plans but poor executions also vague & unsure projections but they're not going to get to break even until the second half of 2008.

Intel, which brings in more in profit than AMD produces in revenue.


Chief Financial Officer Robert Rivet reiterated his previous comments that getting back into the black will require $2 billion in revenue.

"We'll see in the fourth quarter. That's our goal is to break even. Maybe we have a shot at it," Rivet said.

But AMD's actual guidance for the fourth quarter was somewhat vague, with the company saying only that in the "seasonally up forth quarter, AMD expects revenue to increase in line with seasonality."

Company executives demurred when asked to quantify what seasonal growth in the fourth quarter entails, but noted that Intel -- which has projected a weaker-than-seasonal fourth quarter --- provides a valid view of current market conditions.



The next financial analyst day (Q4)will be on Thursday, December 13th in New York City.

Links-

AMD Q3 2007 Earnings Call Transcript

http://seekingalpha.com/article/50491-amd-q3-2007-...

The official press release-

http://www.amd.com/us-en/Corporate/VirtualPressRoo...




By Ringold on 10/19/2007 3:16:54 PM , Rating: 2
Their goal is to break even.. Wow. Ambitious lot, they are. Glad I'm not a shareholder.

Frankly, I hope they drop the ball, the ball turns out to be an LBO grenade, and some private equity group swoops in, buys them on the cheap, removes the scorched bodies of most of the management and actually turns the boat around. I think the fact that so much of their top brass has left might indicate that insiders agree that the future of their careers may be elsewhere, either from the inside or from without.

I suppose it could also mean they were clearing house but it seems so much more often the case that it's simply the rats fleeing a sinking ship.

As a fan of the underdog AMD though I don't fear for its survival; it's "too big to fail", thankfully. Someone will save her sooner or later.


By clovell on 10/19/2007 4:29:08 PM , Rating: 2
Considering the losses they've been suffering, their focus needs to be on breaking even. Anything more is a fantasy at this point. This isn't a marketing problem, it's a pipeline problem - they take time to get worked out.


By Ringold on 10/21/2007 11:48:44 PM , Rating: 2
Pipeline problems don't evolve overnight. It's an execution problem. A takeover, followed by the installation of competent management (a takeover wouldn't happen unless investors thought they could better manage it), could solve such problems moving forward. And hey, perhaps AMD can try it's very best but just doesn't have access to the kind of capital needed to compete against Intel. If they were brought under the wing of a much larger group they'd have better access to it. I don't know which might be at the core of the problem but the solution is the similar.

I hope they can stick it out, but I also realize that that is also a purely emotional position.

There also should be some accountability, btw. If a submarine surfaces and sinks a Japanese fishing boat, the Captain gets thrown under a bus. Ruiz floods Wall Street with red ink and we should cut him a break?

Well, if someone comes and buys up AMD, the free market will have given its verdict.


By crystal clear on 10/20/2007 5:02:44 AM , Rating: 2
Yes as usual you are right in your analysis.


By crystal clear on 10/20/2007 7:12:29 AM , Rating: 2
AMD Recommends Rejection of Below-Market “Mini-Tender” Offer from TRC Capital Corporation

http://www.amd.com/us-en/Corporate/VirtualPressRoo...


By crystal clear on 10/20/2007 6:20:00 AM , Rating: 1
Heres a quote for AMD-

"Work your way up or rust your way out."


Honestly
By clovell on 10/19/07, Rating: 0
RE: Honestly
By artbronze on 10/19/2007 3:13:43 PM , Rating: 2
I "honestly" can't see how AMD can survive. Amd has cut R+D and fab improvements. AMD says it will break even in the second half of 2008, DUH, this precisely when Intels Nehalem launches and this is supposed to be a chip which has twice the performance improvement of core2 to P4. I see Intels dominence of the cpu industry increasing not decreasing.


RE: Honestly
By clovell on 10/19/2007 4:21:49 PM , Rating: 2
Whatever you're smoking, please pass the pipe. Seriously - double the performance improvement that was seen from P4 to core2? P4 to core2 was 2 entire generations. Penryn to Nehalem would do well to come anywhere close to matching half that performance increase - but double? Shens.

But, you'd have to believe that sort of FUD to actually think AMD is on its deathbed.


RE: Honestly
By artbronze on 10/20/2007 10:51:40 PM , Rating: 2
The only thing being smoked here is amd being "SMOKED" by Intel. Heres your link, you should stay better informed instead of being a blind Amd cheerleader:
http://www.theinquirer.net/gb/inquirer/news/2007/1...
Here are the reasons Nehalem could possibly be the "END" of Amd.
1. Onboard memory controller
2. Quick path- similar to hypertranport but faster and
higher bandwidth.
3. Smaller 32 um process-means higher processor frequency.
4. The reamergence of hyperthreading will also bring a
performance boost.
All these things together combined with many other tweaks will bring forth a chip with devastating performance. I really don't think Amd has anything to counter this monster.


RE: Honestly
By raven3x7 on 10/21/2007 4:39:47 PM , Rating: 1
Nehalem is still on 45nm and AMD is supposed to start 45nm in H108. Hyperthreadin in its original form was a marketing tool and not much more. I sincerely hope Nehalems SMT is better implemented. It remains to be seen hw AMDs 45nm will compare to Intels. The use of SGOI (Silicon-Germanium-On-Insulator) and ultra-low-k film should provide a good improvement and it remains to be seen how much the lack of high-k and metal gates will cost them. Intel quickpath and memory controller have to prove themselves and Intel will also have to improve its thermals or Nehalem might actually be slower for desktop apps compared to Penryn. None of the improvements you mentioned can improve IPC much in a meaningful way and since little is known of the core itself any remarks about performance are pure speculation.


RE: Honestly
By artbronze on 10/21/2007 7:45:21 PM , Rating: 2
How laughable, you are living in a world of total denial, I know I remember quite well how hyperthreading helped the P4 in several benchmarks, video editing being the strongest. It just depended on the software and if it could handle two threads. I also remember 3d aps like lightwave also benefiting from hyperthreading. So yes it will yeild tangible improvements in performance. And surely you must be joking about an onboard memory controller. This is the one improvement that gave the Athlon64 its greatest performance increase. You chearleaders can fool yourselves but you will not fool many others, you can wish for the best but all the writing on the wall tells us this chip will be a performance champion. If you have Amd stock sell it now before its too late.


RE: Honestly
By crystal clear on 10/20/2007 5:26:57 AM , Rating: 2
quote:
you covered more of Intel's future lineup than AMD's.


Its because you can depend on Intel to deliver the products on time-so it worth the mention.

Its becuase Intel through its press releases & IDF events have given enough material evidence for websites to write on & discuss.
Whilst AMD is secretive & vague on its progress report.

Its because these line up has delivery dates tagged to them,that makes it worth discussing & quoting.

quote:
think it's also important to note that AMD will close the process-gap to half a gen if they hit this target.


The catch word "if" & "when"- based on the experience of Barcelona, I would say its a long way to closing the "process gap".


Circular reporting
By Justin Case on 10/19/2007 11:45:03 PM , Rating: 2
This article has 17 links to other Dailytech articles and not a single one to AMD's actual press release. Is this a "boost your own Google rankings" thing or something? Or just trying to get people to click on every link, hoping to reach an actual source, while getting more ad impressions?

When you write an article about AMD reporting its results, you don't think a link to the report is perhaps just a little bit relevant?




RE: Circular reporting
By crystal clear on 10/20/2007 5:38:11 AM , Rating: 2
So I gave everybody the links that were missing -

Refer my first comment.

As usual the AMD quote -We are very dissappointed but very encouraged....
By crystal clear on 10/19/07, Rating: 2
By crystal clear on 10/19/2007 11:50:17 AM , Rating: 2

http://www.amd.com/us-en/Corporate/VirtualPressRoo...


RE: Circular reporting
By Justin Case on 10/20/2007 10:36:09 AM , Rating: 1
Great for you. I wasn't complaining that I couldn't find AMD's report, I was complaining about the (lack of) source links in the article.

Unless you're some sort of official "Dailtech article enhancer", your posts (most of which seem to consist on endless quotes from Intel's press releases, plus some pseudo-witty comments about AMD) don't really come into it.


RE: Circular reporting
By crystal clear on 10/20/2007 2:50:37 PM , Rating: 2
"official "Dailytech article enhancer",

Wow what a unique job title indeed-Sorry not conected in anyway to Dailytech.

Yes I frequently add in updates,additional information etc through my comments,which subsequently becomes an article by itself at Dailytech..

Example-

Well get ready for some updating on this-

LOS ANGELES (Reuters) - Apple Inc Chief Executive Steve Jobs said on Wednesday that outside developers will be allowed to create programs for the iPhone, changing a policy that had angered many.


http://www.dailytech.com/Update+Vive+le+Unlocking+...

subsequently this became an article on D.T.-

Apple Changes Mind About Third Party Support

Another example posted on this thread-
AMD Recommends Rejection of Below-Market “Mini-Tender” Offer from TRC Capital Corporation

Now watch in a few days an article will be posted.

As for links I quote plently of them from AMD to Intel to Apple to Reuters to Arstechnica to Informationweek etc etc

I like your creativity-"official Dailytech article enhancer",unique indeed.

Use this creativity in writing unique software-for the iPhone for example or Nokia.....


RE: Circular reporting
By Justin Case on 10/20/2007 7:27:19 PM , Rating: 1
Are your place's walls covered with mirrors, by any chance?


RE: Circular reporting
By crystal clear on 10/21/2007 6:45:02 AM , Rating: 2
Looks like you completely missed the point.

No point carrying on with this type of conversation.

I am sure,I made myself crystal clear on any doubts you have about me.

No offense meant-regret any misunderstanding.

Have a nice day.


And Hector Ruiz ...
By Strunf on 10/20/2007 7:38:21 AM , Rating: 2
can be proud of having a higher salary than Paul Otellini (Intel CEO) and doing far worst.




Was that photo taken...
By drunkenmastermind on 10/20/2007 8:32:11 AM , Rating: 2
before or after the loss?




AMD bankrupt by 2009
By darkfalz on 10/21/2007 6:16:47 AM , Rating: 2
Sucks to be them




Phenom Model clock rates
By coldpower27 on 10/21/2007 5:43:53 PM , Rating: 2
From the earlier article here are DailyTech I thought the Phenom 9500 is 2.2GHZ, 9600 is 2.4GHZ with the 125W TDP 9700 at 2.6GHZ as opposed to the clockrates listed in the present article.




Take over/buy out on the way
By crystal clear on 10/20/2007 7:07:05 AM , Rating: 1
Well its coming-all the talk about buyouts/takeover/private equity etc.

Heres one for a start-

AMD Recommends Rejection of Below-Market “Mini-Tender” Offer from TRC Capital Corporation

SUNNYVALE, Calif. -- October 19, 2007 --AMD (NYSE: AMD) today said it has been notified of a "mini-tender" offer by TRC Capital Corporation to purchase up to 5 million shares of the Company’s common stock, which represents approximately .90 percent of its outstanding shares. AMD cautions its stockholders that TRC's unsolicited “mini-tender” offer of $13.25 per share was more than 5 percent below the $14.02 per share closing price of AMD stock on October 10, 2007, the day before the “mini-tender” offer was commenced and approximately 9 percent below the $14.55 per share closing price of AMD stock on October 18, 2007.

AMD recommends against tendering shares in response to this unsolicited below-market offer. AMD does not in any way recommend or endorse the TRC Capital Corporation “mini-tender” offer, and AMD is in no way associated with TRC Capital Corporation, the “mini-tender” offer or the offer documentation.

TRC Capital has a history of making “mini-tender” offers for the shares of other companies for its profit. These offers are devised to seek less than 5 percent of a company's outstanding shares, thereby avoiding many procedural and disclosure requirements of the Securities and Exchange Commission (“SEC”) because they are below the SEC's threshold to provide such disclosure and procedural protections for investors.

The SEC has issued an investor alert regarding these “mini-tender” offers, noting that "some bidders make “mini-tender” offers at below-market prices, hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price." Investors are urged to consult with their broker or financial advisor on such matters. The SEC's advisory may be found at http://www.sec.gov/investor/pubs/minitend.htm. The Ontario Securities Commission has also issued an advisory titled "Approach mini-tenders with caution!" (http://www.osc.gov.on.ca/Investor/Alert/ia_2004051...

AMD stockholders who have already tendered are advised that they may withdraw their shares by providing the written notice described in the TRC Capital Corporation offering documents prior to the expiration of the offer currently scheduled for 12:01 a.m., New York City time, on Friday, November 9, 2007.

AMD refers broker/dealers and other market participants in the dissemination of TRC Capital's offer to the SEC's recommendations to broker/dealers in these circumstances which can be found at http://www.sec.gov/divisions/marketreg/minitenders... and to Information Memo Number 01-27 issued by the New York Stock Exchange on Sept. 28, 2001, regarding the dissemination of mini-tender offer materials, which can be found under the "Market Professional - Information Memos" tab on the NYSE's website at www.nyse.com.


http://www.amd.com/us-en/Corporate/VirtualPressRoo...

In addition to above-

SUNNYVALE, Calif. – Sept. 24, 2007 – Spansion Inc. (NASDAQ:SPSN), the world’s largest pure-play provider of Flash memory solutions, today announced Donald L. Lucas and Gilles Delfassy were appointed to Spansion’s Board of Directors, effective September 20, 2007.
Lucas will serve as chairman of the board and will hold the Board seat vacated by Hector Ruiz, chairman of the board of AMD.

Don Lucas has been a self-employed venture capitalist since 1967.



http://investor.spansion.com/releasedetail.cfm?Rel...




Ouch
By Homerboy on 10/19/07, Rating: -1
RE: Ouch
By Lonyo on 10/19/2007 9:30:27 AM , Rating: 1
Not so much.
AMD look on track to release 45nm in H108. They also improved revenue by more than expected, and are on track to launch desktop Barcelona based processors at the end of this year, along with an HD2xxx refresh.
All in all, they did better than expected this quarter, which is good news, although the fact that they made a loss isn't great.


RE: Ouch
By helios220 on 10/19/2007 9:43:08 AM , Rating: 4
I agree with everyone the news isn't as bad as it initially sounds, it could be worse comparatively. But then again, comparatively to Intel it's still pretty dismal.

For years I stuck by AMD and still feel a bit guilty for going Quad Core Intel on my last pc, but regardless of individual fanboyism we need AMD to hang in there and do good to bring meaningful competition in terms of both pricing and technology lest we end up with another P4 situation.

The same can pretty much be said for ATI, I was never an ATI fan (Voodoo for life ;) but I don't really trust any major corporation to not try and screw consumers out of a few more bucks without the pressure of competition.


RE: Ouch
By Phynaz on 10/19/2007 9:52:52 AM , Rating: 5
I never understood why people feel quilty about buying the product that best meets their needs.


RE: Ouch
By Brandon Hill (blog) on 10/19/2007 9:55:08 AM , Rating: 3
Probably, because some wankers try to MAKE them feel bad. It's more prevalent with automobiles though.

You know, the domestic lovers saying that buying a Toyota/Honda/Nissan is equal to treason.


RE: Ouch
By omnicronx on 10/19/2007 10:18:50 AM , Rating: 5
OR because he liked supporting the underdog like most of us? To this day i still thank AMD for kicking Intel into action. Otherwise we would all be using a good ol netburst p4, right now...Nothing like rooting for the dog ;)


RE: Ouch
By Polynikes on 10/19/2007 12:51:29 PM , Rating: 2
It is equal to treason. This "global economy" stuff's a big fat lie to screw hard-working Americans out of a decent wage, I tell you!

/sarcasm

(I love my Nissan, but I'd rather have a 1970 Charger.)


RE: Ouch
By Brandon Hill (blog) on 10/19/2007 1:35:15 PM , Rating: 4
"Dey tuk er jerbs!"


RE: Ouch
By helios220 on 10/19/2007 2:57:29 PM , Rating: 4
Dey tuk ur jurbs!

Ok now I'm out of here before the gay orgy starts.


RE: Ouch
By AstroCreep on 10/20/2007 1:55:07 AM , Rating: 3
...Hey, back in the pile!


RE: Ouch
By FangedRabbit on 10/19/2007 9:59:02 PM , Rating: 3
Dey tuk er jerbs!!!


RE: Ouch
By Tsuwamono on 10/19/07, Rating: -1
RE: Ouch
By afkrotch on 10/19/2007 10:17:31 PM , Rating: 2
Like half the ppl who post here, about how Xbox 360 is the greatest or the PS3 is the greatest or the Wii is the greatest or the PC is the greatest. Same thing with Mac vs PC. Domestic cars vs Foreign cars. As long as there is competition, there will be fanboys.

I'll enjoy my 92 Daihatsu Mira J Turbo (Japan), 96 Subaru Impreza (US), and 96 Opel Tigra (Germany). That's right, I own three cars, all of which are in three different countries on three different continents.


RE: Ouch
By helios220 on 10/19/2007 11:00:46 AM , Rating: 5
It's not like I cry myself to sleep at night or anything.

In essence, at this point buying AMD is kind of like doing a fat chick. You probably aren't going to brag to your friends about it but you know at least she'd genuinely appreciate it.

Intel on the other hand, will just 'call you sometime', and I wouldn't lose any sleep waiting by the phone.


RE: Ouch
By Brandon Hill (blog) on 10/19/2007 12:10:14 PM , Rating: 3
quote:
In essence, at this point buying AMD is kind of like doing a fat chick. You probably aren't going to brag to your friends about it but you know at least she'd genuinely appreciate it.


LMAO!


RE: Ouch
By Polynikes on 10/19/2007 12:49:02 PM , Rating: 2
The future looking alright doesn't make the short-term (Q3) looks less bad. Any company posting that large of a net loss is hurting, bad.


RE: Ouch
By Ryanman on 10/20/2007 8:12:56 PM , Rating: 1
I think it's pretty gay that so much of their losses came from severance packages. Executives suck so much money out of corporations these days.

In any case, I'm hoping for a 5600FX/Netburt Redux to make things a little easier for AMD.


RE: Ouch
By smilingcrow on 10/21/2007 7:42:44 AM , Rating: 2
"I hope they transition to 45nm in a more graceful way than they seem to be managing with 65nm”.

Let’s hope so.


I've been waiting
By psyph3r on 10/19/07, Rating: -1
RE: I've been waiting
By sxr7171 on 10/19/2007 12:27:17 PM , Rating: 2
Yeah your choice of CPU manufacturer changes the "quality" of gaming. Just like I take better sh!ts when I wear certain brands of underwear.


RE: I've been waiting
By psyph3r on 10/19/07, Rating: 0
RE: I've been waiting
By Justin Case on 10/19/2007 11:49:05 PM , Rating: 2
Well, I'm not sure about gaming, but I can tell you that I generally prefer Intel systems for render nodes (faster performance) and AMD systems for workstations (more responsive for interactive tasks). With the P4 the difference was huge, it moved like a truck. Core / Core2 is much better, but Opteron systems still feel more responsive, even if their top speed is lower.


RE: I've been waiting
By Master Kenobi (blog) on 10/19/2007 2:36:34 PM , Rating: 3
I think your crazy actually. There is no advantage to AMD except in your head. Performance of AMD chips lags behind Intel by a fair margin.

Your "difference in gaming quality" likely has more to do with your choice of graphics card, memory, and motherboard than your CPU.


RE: I've been waiting
By psyph3r on 10/19/07, Rating: -1
RE: I've been waiting
By Accord99 on 10/19/2007 9:21:30 PM , Rating: 2
quote:
Has intel matched power consumption and clock rate vs performance?

The C2D is well ahead in both counts, the 4MB C2Ds match up well with 25% higher clocked A64s and use less power then a similar clocked A64.


RE: I've been waiting
By bangmal on 10/20/07, Rating: 0
RE: I've been waiting
By Strunf on 10/20/2007 8:43:47 PM , Rating: 3
Blame AMD not Intel for its 3 years old architecture...


RE: I've been waiting
By Accord99 on 10/21/2007 4:50:13 AM , Rating: 2
25% is how much faster an A64 X2 must be clocked to match the performance of a C2D in typical applications. The C2D in specialized code is much faster than 25% compared to the A64.

As for power, the superior power consumption of the C2D means its easier to keep cool and quiet, enables better battery life in notebooks or better components for the same thermal envelop.


AMD Doomed
By knipfty on 10/19/07, Rating: -1
RE: AMD Doomed
By Justin Case on 10/19/2007 1:55:04 PM , Rating: 3
The top end is not where most of the sales are. It might be relevant for gamers and few other specific groups, but companies ordering thousands of PCs for their offices couldn't care less about who has the fastest CPU; they'll buy the cheapest system that is "good enough". And defining that "good enough" concept is the job of the marketing departments (which is one of AMD's biggests weaknesses, IMO).

As to "RIP AMD", well... they have a bigger market share now than they had in the K7 days, they have deals with lots of major OEMs which were Intel-only until not very long ago, they have a decent share of the desktop market and a very significant share in the server and HPC market (up from approximately 0% not too long ago). Oh, and they now have a high-end GPU and chipset division. They are struggling to pay for their own expansion (buying ATI, fab upgrades, etc.), but news of their death are greatly exaggerated.


RE: AMD Doomed
By knipfty on 10/19/2007 2:56:17 PM , Rating: 1
Expect that the top end determines the price of the entire line up. As long as Intel in the drivers seat, AMD will continue to lose money.

They are bleeding cash; Intel is making money. How long can AMD hang on and still be a viable concern? A year from now, you will have your answer...


RE: AMD Doomed
By xti on 10/19/2007 4:03:19 PM , Rating: 2
quote:
Expect that the top end determines the price of the entire line up


no...there is a price war that helps determine the prices of their models/lines with their obvious competitor and vice versa.

its not like they say "ok - top of the line is $1,000, and we have 6 models, lets take off $100 per model".


RE: AMD Doomed
By afkrotch on 10/20/2007 2:30:48 AM , Rating: 2
High-end gpu and chipset division. When has ATI ever made a good or decent chipset?

Bigger market share doesn't necessarily mean bigger profit margins, especially if Intel keeps prices low. AMD needs to shift all their procs over to 65nm and then to 45nm at the same time Intel does to be able to generate decent profits.


RE: AMD Doomed
By Justin Case on 10/20/2007 10:51:38 AM , Rating: 2
quote:
High-end gpu and chipset division. When has ATI ever made a good or decent chipset?


Well, until not too long ago they made the best chipsets for Intel platforms, for a start. And what exactly is wrong with the RD580 + SB600 chipset, for example...?

quote:
Bigger market share doesn't necessarily mean bigger profit margins


I think you're missing the point. Bigger market share means they can afford to have lower margins and still have more profits. And, typically, a smaller process also means bigger margins. When was the last time Intel was behind in process technology...?

Saying that "AMD needs to move to 45 nm at the same time as Intel" is easy. Actually doing it is a bit harder. You might as well say that Transmeta "needs a x86 CPU that's competitive with the K8 and Core2". That takes time and costs money. And when you start at a disadvantage, the only way to catch up to to take chances. Which is exactly what AMD is doing right now.

Personally, I don't care much about AMD's (or Intel's) stock price. I buy the platform that gives me best value for money. Right now that means AMD for 2S servers and above, Intel for high-end 1S systems and laptops, and either one for mid-range desktops (if you compare systems at the same price level, they're very even, regardless of what fanbois on either camp will have you believe).


RE: AMD Doomed
By crystal clear on 10/20/2007 4:44:35 AM , Rating: 2
Track record of Intel for this quater-

Intel shipped more than 2 million quad core processors during the quarter and now offers
more than 20 quad-core processor designs.
(Note the quantities & choices offered)

• Intel introduced the industry's first quad-core processors specifically designed for multiprocessor
(MP) servers, delivering twice the performance and three times the performanceper-
watt of the company's previous-generation products. The introduction completes the
company’s transition to the energy-efficient Intel® Core™ microprocessor architecture.


http://media.corporate-ir.net/media_files/irol/10/...

Now compare the above with AMD-All ever changing road maps/All announcements & paper launches/Always delayed new product releases.

Severe shortages of Barcelonaa, not due to heavy demand rather slow manufacturing & bad market distribution policies.

Refer to my comments on this -

http://www.dailytech.com/AMD+Sheds+Additional+Phen...

The technological lead plus the market share lead puts Intel 1 year ahead of AMD in all segments of the market.

AMD plays the catching up role whilst Intel plays the catch me if you can role -good luck

The momemt Intel releases the 45nm series all other previous versions in the high end catergories become mainstream & the current mainstream becomes the low end

The current low end is cleared out in massive price cuts/deals with OEMs or dumped into India/China markets that absorb them greedily due to HUGE DEMAND for their high end CPUs which by the way is your low end.

At the Intel Developer Forum (IDF), the company announced that the world’s first 45nm
microprocessors, based on Intel’s breakthrough 45nm Hi-k metal gate chip technology, will
be introduced Nov. 12. The company demonstrated its second-generation 45nm
microprocessor architecture, code-named Nehalem, which is on track for production in the
second half of next year. Intel also announced the production of test chips based on the
company’s next-generation, 32nm process technology, scheduled for 2009.


Link- same as above.

If all the above it not enough for AMD,you have the price wars that leave no profit margins on their CPUs.

AMD is preoccupied with inventory clearance/inventory sales-
gainig marketshare but no profitshare.

quote:
defining that "good enough" concept is the job of the marketing departments (which is one of AMD's biggests weaknesses, IMO).


The good enough concept means -

Technology+Quality+PRICES+Delivery schedules etc

Intels high end Cpus are fast becomoing their(Intel) low end Cpus-(Prices + quality + quantity)

Marketing depts can sell what they have in hand & not what they DONT have.
Marketing depts can sell provided the production dept can deliver in time & in quantities.

Intel outpaces AMD in your concept of good enough.

The facts speak for themselves.


RE: AMD Doomed
By Justin Case on 10/20/2007 10:27:59 AM , Rating: 2
quote:
Intel outpaces AMD in your concept of good enough.


Looks like you completely missed the point.


RE: AMD Doomed
By clovell on 10/19/2007 4:25:37 PM , Rating: 2
You're holding AMD in place at Q407 and comparing them to where Intel will be Q208. Intel's not the only one working on a new design.


RE: AMD Doomed
By knipfty on 10/19/07, Rating: 0
RE: AMD Doomed
By crystal clear on 10/20/2007 3:11:23 AM , Rating: 1
"A combination of great products, strong and growing worldwide demand, and operational efficiency from our ongoing restructuring efforts led to record third-quarter revenue and a 64-percent year-over-year gain in operating income," said Intel President and CEO Paul Otellini. "Looking forward, we see each of these elements continuing to improve into the fourth quarter. We are very pleased with the results and optimistic about our business."



http://www.intel.com/pressroom/archive/releases/20...


RE: AMD Doomed
By Justin Case on 10/20/2007 10:28:43 AM , Rating: 2
Do you get paid for each link you post to Intel's press releases?


RE: AMD Doomed
By crystal clear on 10/20/2007 2:12:05 PM , Rating: 1
No I dont get paid by anybody.

I pay myself via my business ventures.

If I was paid I would admit it without any hesitations.
No crime commited !

Neither am I involved with Intel directly or indirectly.

I use their press releases or any other company as a matter of fact,to back up my views on the subject under discussion.

I frequently quote Reuters as my source of information.

Just..in..case if you did not know I like your user name.

Have a nice day.


RE: AMD Doomed
By Justin Case on 10/20/2007 2:24:54 PM , Rating: 1
If your views match a(ny) company's press releases, you must be very naive...


RE: AMD Doomed
By crystal clear on 10/20/2007 3:01:26 PM , Rating: 2
No not really as you see it.

Looks like you completely missed the point
(sorry I used your comment)


"I modded down, down, down, and the flames went higher." -- Sven Olsen

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