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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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RE: Where the heck is IBM?
By ajfink on 10/19/2007 12:17:41 PM , Rating: 2
Indeed. IBM is a far more diverse company than Intel. If, for example (and purely hypothetically), IBM were to absorb AMD and dedicate a larger chunk of its R&D to fab and process development, they would probably be putting Intel on the ropes in that area, just out of having more money to throw at it.

But the X86 market isn't profitable enough for IBM to decide to throw in their hat.


RE: Where the heck is IBM?
By TomZ on 10/19/2007 1:40:01 PM , Rating: 2
quote:
But the X86 market isn't profitable enough for IBM to decide to throw in their hat.

Then what are Intel and AMD doing in that market? And what about the $10B+ in revenue that Intel rakes in every quarter?

I think with IBM there must be some realization that they cannot effectively compete with Intel. Just a guess.


RE: Where the heck is IBM?
By calyth on 10/19/2007 3:06:35 PM , Rating: 2
Maybe because they're more interested in selling big iron boxes that has juicy service contract?

We have this Sun box at work that has 96GB of RAM (yes you read it right, RAM), and it has just went out of service contract. Sun wants to ask for $20,000 a year (or some ridiculous amount) for 1 box.

Desktop market is a lot more fickle - if a box breaks, desktop users usually mourn their loss of data quickly and grab another box, probably a sub-$1000 machine. Enterprise user can't exactly afford to lose vital computing resouces.

Just a thought.


RE: Where the heck is IBM?
By afkrotch on 10/19/2007 11:23:57 PM , Rating: 2
And how many of those boxes do you think are out in the world?

I can tell you, there's a hell of a lot more desktop pcs, notebooks, enterprise servers, and whatever else Intel or AMD has their hands in.

Course IBM makes a lot of money cause they are in both hardware and software. It'd be like taking Intel and Microsoft and combining them. IBM could easily annihilate Intel, by focusing all their attention on hardware. Not going to happen though, as IBM essentially got out of that ball game. The desktop/notebook market is oversaturated. I think Gateway will eventually be bought by HP or Dell.


RE: Where the heck is IBM?
By rivalary on 10/19/2007 11:45:12 PM , Rating: 2
Actually, Acer bought Gateway


RE: Where the heck is IBM?
By afkrotch on 10/20/2007 12:34:25 AM , Rating: 1
They did? Missed that announcement. Okay. Acer gets bought by Dell in....umm....2010.


By Laughing all the way 2220 on 10/23/2007 6:43:04 PM , Rating: 2
Intel hasn't always performed this well. It was only this year that they scored a hit with C2D.

http://www.infoworld.com/article/07/01/16/HNintelp...

And everybody knew getting ATI was going to be a struggle so this is no surprise. It's going to take some time to get through it that's for sure. I'm excited for AMD. ATI's and AMD's sales will be able to sustain them for awhile and then lookout. Intel will only be able to compete with AMD for maybe 5 more years. Once Fusion comes out you will see the 800lb. gorilla go down. Intel cannot compete with innovation. The only thing they can compete with is clock speed and die shrink. They've already hit the 3Ghz speed barrier and soon they will hit the die shrink barrier. Intel has no where to go after that. As I said in about 5 years you will see the shift of power. Intel will go the way of the Alpha, and in the same fashion if you remember the history of the Alpha.


"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke

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