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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 clovell on 10/19/2007 2:41:11 PM , Rating: 0
You might want to mention, Brandon, that AMD will have 45nm chips hitting the market in H108 - considering that the article is about AMD and you covered more of Intel's future lineup than AMD's.

I think it's also important to note that AMD will close the process-gap to half a gen if they hit this target. AMD took some hard hits, but they're not down for the count yet.

RE: Honestly
By artbronze on 10/19/2007 3:13:43 PM , Rating: 2
I "honestly" can't see how AMD can survive. Amd has cut R+D and fab improvements. AMD says it will break even in the second half of 2008, DUH, this precisely when Intels Nehalem launches and this is supposed to be a chip which has twice the performance improvement of core2 to P4. I see Intels dominence of the cpu industry increasing not decreasing.

RE: Honestly
By clovell on 10/19/2007 4:21:49 PM , Rating: 2
Whatever you're smoking, please pass the pipe. Seriously - double the performance improvement that was seen from P4 to core2? P4 to core2 was 2 entire generations. Penryn to Nehalem would do well to come anywhere close to matching half that performance increase - but double? Shens.

But, you'd have to believe that sort of FUD to actually think AMD is on its deathbed.

RE: Honestly
By artbronze on 10/20/2007 10:51:40 PM , Rating: 2
The only thing being smoked here is amd being "SMOKED" by Intel. Heres your link, you should stay better informed instead of being a blind Amd cheerleader:
Here are the reasons Nehalem could possibly be the "END" of Amd.
1. Onboard memory controller
2. Quick path- similar to hypertranport but faster and
higher bandwidth.
3. Smaller 32 um process-means higher processor frequency.
4. The reamergence of hyperthreading will also bring a
performance boost.
All these things together combined with many other tweaks will bring forth a chip with devastating performance. I really don't think Amd has anything to counter this monster.

RE: Honestly
By raven3x7 on 10/21/2007 4:39:47 PM , Rating: 1
Nehalem is still on 45nm and AMD is supposed to start 45nm in H108. Hyperthreadin in its original form was a marketing tool and not much more. I sincerely hope Nehalems SMT is better implemented. It remains to be seen hw AMDs 45nm will compare to Intels. The use of SGOI (Silicon-Germanium-On-Insulator) and ultra-low-k film should provide a good improvement and it remains to be seen how much the lack of high-k and metal gates will cost them. Intel quickpath and memory controller have to prove themselves and Intel will also have to improve its thermals or Nehalem might actually be slower for desktop apps compared to Penryn. None of the improvements you mentioned can improve IPC much in a meaningful way and since little is known of the core itself any remarks about performance are pure speculation.

RE: Honestly
By artbronze on 10/21/2007 7:45:21 PM , Rating: 2
How laughable, you are living in a world of total denial, I know I remember quite well how hyperthreading helped the P4 in several benchmarks, video editing being the strongest. It just depended on the software and if it could handle two threads. I also remember 3d aps like lightwave also benefiting from hyperthreading. So yes it will yeild tangible improvements in performance. And surely you must be joking about an onboard memory controller. This is the one improvement that gave the Athlon64 its greatest performance increase. You chearleaders can fool yourselves but you will not fool many others, you can wish for the best but all the writing on the wall tells us this chip will be a performance champion. If you have Amd stock sell it now before its too late.

RE: Honestly
By crystal clear on 10/20/2007 5:26:57 AM , Rating: 2
you covered more of Intel's future lineup than AMD's.

Its because you can depend on Intel to deliver the products on time-so it worth the mention.

Its becuase Intel through its press releases & IDF events have given enough material evidence for websites to write on & discuss.
Whilst AMD is secretive & vague on its progress report.

Its because these line up has delivery dates tagged to them,that makes it worth discussing & quoting.

think it's also important to note that AMD will close the process-gap to half a gen if they hit this target.

The catch word "if" & "when"- based on the experience of Barcelona, I would say its a long way to closing the "process gap".

"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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