reported on Intel's
Q2 earnings. The company posted Q2 revenue of $8.7 billion USD, operating
income of $1.35 billion USD and net income of $1.3 billion USD.
Today, it's archrival AMD's turn with regards to financial
performance for the quarter. AMD recorded revenue of $1.378 billion USD, an
operating list of $457 million USD and a net loss of $600 million USD.
This compares with revenue of $1.216 billion USD and
operating income of $102 million USD for Q2 2006.
"While we made solid progress in the second quarter
across a number of fronts, we must improve our financial results," said
AMD CFO Robert J. Rivet. "We achieved a 12 percent sequential revenue
increase, improved the gross margin and won back microprocessor unit and
revenue market share."
AMD appears to have worked out problems that it had in late
2006 with OEM/channel
processor distribution and attributes 38 percent sequential increase in
microprocessor unit shipments to orders from Toshiba, an increased adoption of
AMD-based platforms and strong initial sales of the ATI Radeon HD 2000
"We continue to focus on realigning our business model
and reducing our capital expenditures and cost structure in the second half of
the year," said Rivet.
quote: if AMD doesn't have enough cash to pay interest payments, let alone paychecks, they will be going into bankruptcy
quote: AMD cannot compete against Intel. Not in the Long Term
quote: I think you are confusing losses with cash burn rate...they are NOT the same thing. AMD still has plenty of money. Look closer at what some of those numbers!
quote: However, current results show that their cash increased only by about $400M (1594-1167). Which means that $900M just dissapeared....
quote: They wrote off the rest of the 90nm inventory (they are now on 65nm only) for another $30 Million
quote: Aren't GPUs and Itaniums (albeit Intel) also being produced using 90nm?
quote: Can a fab change from a CPU manufacturer to a GPU manufacturer?
quote: I therefore find it confusing as to why people would be suggesting that the fab is worthless
quote: They are still producing 90nm chips on 200mm wafers
quote: The cross license x86 agreement between AMD and Intel prevent AMD from getting bought out by a third party or going to a fab light. If either one happen AMD will lose the x86 license which means they can't produce chip using the x86 architecture. In other words they would be out of the CPU market
quote: Read the license
quote: The agreement does indeed allow Intel to cancel a 3rd party's access to x86, however you are forgetting that this is a CROSS-licensing agreement. Intel use just as much of AMD's IP as AMD uses of Intel's in their chips. What that means is that if Intel chose to cancel the agreement, they would ALSO have to stop selling their OWN chips as the 3rd party would own a good portion of those rights.
quote: True, but we aren't talking about Intel cancelling the agreement. We are talking about situation where the agreement is cancelled automatically if AMD is purchased by another company
quote: Intel retains all rights to use ex-AMD's IP, but company that purchased AMD will not get rights to use Intel's IP
quote: You're making stuff up again
quote: Having sold a company I founded, I can tell you there is no such case law
quote: If you think there is please post a link
quote: Never said anything about it
quote: I said it would be perfectly fine to write a contract in which conditions could be set in which party A would lose the rights to party B's IP without it affecting the rights of party B