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AMD thinks things will turn around in the second half of 2009

AMD has posted its financial information for Q2 2009 and has reported yet another loss. The silver lining to the quarterly loss cloud is that the financials showed some improvement over the previous quarter. AMD also remains optimistic about Q3 and the rest of 2009.

AMD will be releasing new platforms before the end of the year that the chipmaker hopes will help turn its fortunes around. The company will be releasing its new Opteron processor servers, a market that AMD is still very competitive in, and will releases new notebook platforms.

According to EWeek, CEO Dirk Meyer notes that AMD worked on controlling costs in the first half of 2009 and that the cost controlling methods are expected to pay dividends in the second half of the year. Perhaps the largest of those cost-controlling methods was the spinoff of AMD's foundry operations into an independent company.

Meyer said during a call with financial analysts, "With a strong flow of new products and a leaner cost structure, coupled with assumption of modest seasonal growth, we are positioned for a stronger financial performance in the second half of this year."

Among the new platforms for notebooks that AMD intends to let loose onto the market in Q3 2009 are the Tigris platform for mainstream notebooks and an unnamed platform that is aimed at thin and light notebooks.

AMD reported a loss of $330 million for Q2 2009 amounting to $0.49 per share with revenue for the quarter of $1.18 billion. Analysts on Wall Street had predicted a loss for AMD of $0.47 per share with revenue of $1.13 billion. Despite the loss for the quarter, the numbers AMD posted looked better compared to a year ago.

Analyst John Spooner told eWeek, "The chip maker, like its rival Intel, showed sequential improvement in revenue," Spooner wrote. "Unit shipments fared reasonably well, with some improvement in the server space. Thus there are signs that point to AMD's business improving and the company marching toward its goal of becoming profitable (at least on a quarterly operating basis) in the second half of the year."

AMD rival Intel did well for the quarter until the massive EU fine was deducted making for $398 million loss.

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RE: Eeep
By omnicronx on 7/22/2009 12:00:16 PM , Rating: 2
Both Intel and AMD are now on the 45nm process (for the Phenom 2 at least), and have been since the beginning of the year.

RE: Eeep
By Sazar on 7/22/2009 1:05:40 PM , Rating: 1
I believe he was referring to the diameter of the wafer's said chips are being procured from. You are correct about the process size but Intel uses larger wafers and therefore is able to get more chips per wafer than AMD, assuming that the yields are similar.

I believe Intel has been using 300mm for a while and is working on a 450mm wafer. I am not sure if AMD has moved to 300mm yet, but I do know they were on the 8" platters before and were planning on making the switch.

RE: Eeep
By ClownPuncher on 7/22/2009 1:17:45 PM , Rating: 1
AMD moved to 300mm wafers somewhere in 2005 iirc.

RE: Eeep
By erikejw on 7/23/2009 10:00:04 AM , Rating: 1
The Anandtech size thingy was about die size and transistors.
Intel get more performance from a same size silicon size or smaller one and therefore have lower productions costs per chip compared to AMD so if the price was the same for the CPUs Intel would still have a higher bottom line.

RE: Eeep
By monomer on 7/22/2009 1:08:00 PM , Rating: 3
The OP is referring to which shows that the Phenom II 940 has a die size of 258 mm2, while the roughly comparable C2Q Q9400 has a die size of 164 mm2. So for processors sitting in the same price/performance bracket, AMD is using over 50% more silicon than Intel, even though both are on the 45 nm process.

The picture is a little better for the Phenom I 955, which has the same die size as the 940 at 258 mm2, while the comparable C2Q Q9550 has a die size of 214 mm2, so AMD is using only about 20% more silicon than Intel.

RE: Eeep
By IlllI on 7/22/2009 4:51:50 PM , Rating: 3
yes, thank you. thats the thing i was referring to. i just couldn't remember which article it was from

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