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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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By Homerboy on 10/19/2007 9:24:01 AM , 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 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!


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

RE: Ouch
By Brandon Hill 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 on 10/19/2007 12:10:14 PM , Rating: 3
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.


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.

"Folks that want porn can buy an Android phone." -- Steve Jobs
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