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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 hyvonen on 7/22/2009 11:20:38 PM , Rating: 2
I'd say market share is almost a pointless metric, since either party can manipulate it simply by changing prices. But, whoever has the best product, as measured by performance/cost (NOT performance/price), controls the game.

Right now it's Intel, and has been since Conroe was released. This, together with very high volumes, has given Intel enough cash to extend its performance/cost lead (through more design and technology R&D). I don't see how AMD could possibly break this vicious cycle.


RE: Eeep
By Operandi on 7/23/2009 12:55:59 AM , Rating: 3
Intel would have to make a mistake (like the P4), become complacent, or AMD would have to have a major break through to have a chance at really breaking that cycle. Most likely they would need a combination of both.

Athlon and Athlon64 were great but AMD missed their chance and failed to answer Core2. Only now with the PhenII do we really have a strong competitor but much of the damage has already been done and AMD has a lot of catching up to do.

Hopefully they can do it, PhenII is a great CPU but AMD needs to consistently and continually improve. they don't have the resources to pull of PhenI and easily recover from it.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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