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.
quote: I don't know if it's just 'better product'. Microsoft won a lot of wars without 'better product'
quote: Perhaps if AMD had had more of a chance a few years back, they'd have put a lot more money into R+D and had much more competitive products now?
quote: That said, AMD hasn't made a profit for most of its life, and it seems to be doing OK. I don't get how that works (or why a non-profitable company can keep getting hold of more cash to keep running), but perhaps it'll just continue losing money and raising cash to compensate?
quote: I agree. I buy AMD exclusively, because in MY opinion AMD makes a better product than Intel.
quote: AMD is a public company, so it gets public funding and bank loans. A CEO's job is to court business and funding (hence all the greasy charm) so cash obtained through sales is only part of the incoming flow.
quote: Maybe you prefer AMD processors for whatever reason, but that's not because they make a better product. Even a casual glance at benchmarks proves that.
quote: who cares except someone who needs bragging rights because they feel insecure about themselves
quote: The ATI acquisition, while costly, is turning out to be a good move for them, too. They probably make more money off of GPUs than they do CPUs!
quote: My AMD CPUs are cheaper and use less power than comparative Intel parts