Monday, April 30th 2007

AMD’s debt piling up

Chip maker AMD is struggling financially at present, largely due to the $5.4 billion acquisition of ATI last year. The company had already reported a net loss of $611 million for the quarter ending March 31st, but it has now been forced to raise finance by offering Convertible Senior Notes to investors. These differ from stocks because AMD will have to pay back the money it has raised once its stocks hit a price of $42.12 (the current price is at $14) which is essentially plunging the firm further into debt. Analysts are now worried that AMD could run out of cash by the forth quarter of this year if it doesn’t borrow more money, with an estimated figure of just $1.1 billion in the bank. Meanwhile, AMD’s closest rival Intel is in it’s strongest market position since 2005, with profits of $1.6 billion in the first quarter of 2007. AMD will be banking on the new Barcelona core and the R600 series of graphics cards to help it back onto its feet.Source: DailyTech
Add your own comment

94 Comments on AMD’s debt piling up

#1
rhythmeister
Poor amd, then again they WILL go and stop supporting a perfectly good socket type, 939, that they told consumers they were going to support for the long run. I guess they got scared of having no ddr2 compatible chips for some reason!
Posted on Reply
#2
1Strive
So nVidia fan boys can loan ATI some money and charge loan shark interest. :roll:

Don't do it, guys, the free market would go to crap. (Yeah Right)

C'mon Intel buy AMD then the US Justice Department can slap you like they did Microsoft.:shadedshu

=============================

I figured that if the article can speculate, then so can I. In that case, what if nVidia decided to give Card Owners Stock Options.

Later,
1STRIVE
Posted on Reply
#3
GJSNeptune
Ugh. C'mon, AMD. Pull through. Intel has good stuff, but we need the competition.
Posted on Reply
#4
ktr
AMD should have never bought ATI...i think both sides would been better off...
Posted on Reply
#5
GJSNeptune
Would be ironic if Intel bought NVIDIA.
Posted on Reply
#6
BXtreme
by: GJSNeptune
Would be ironic if Intel bought NVIDIA.
*crosses fingers if that would happen* j/k
but it would be cool as the two super powers clash :D
Posted on Reply
#7
D007
by: GJSNeptune
Would be ironic if Intel bought NVIDIA.
if they did then nvidia would have more bugs than it has right now..lol.. i think vista is worse than nvidia anyway with the bugs and resource hogging.. thatd be great.. that would pretty much hand them the right to make garbage and force it on everyone, especially if amd and ati go out of business.. I hope that doesn't happen.. Can I go one day without hearing or dealing with the word fan boy? lol. seriously.. it's so gay...
Posted on Reply
#8
bruins004
by: BXtreme
*crosses fingers if that would happen* j/k
but it would be cool as the two super powers clash :D
This will not happen b/c then Intel would fall under a monopoly which is illegal in the US.
So therefore, this cannot happen.
Posted on Reply
#9
GJSNeptune
A monopoly if AMD jumps the shark.
Posted on Reply
#10
overcast
by: bruins004
This will not happen b/c then Intel would fall under a monopoly which is illegal in the US.
So therefore, this cannot happen.
So by your logic, AMD/ATI merger is a monopoly?
Posted on Reply
#11
D007
Amd and Ati are to small to "monopolise" anything..lol.. their net worth is no where near microsoft.. you have to be able to control a certain amount of assets to be considered a monopoly.. amd and ati just don't have enough cumulative assets. If they sold everything right now they wouldn't really make much of anything.. if microsoft sold off they would be insanely rich lol.. not like their not already.. in all honesty i consider microsoft pretty dam close to a monoply.. they need to be knocked down a peg I think.. but thats just my persective.. a merger beteen intel and nvidia has nothing to do with a monoply though.. if intel bought Amd .. that would be a monoply..lol.. u need to control a market to be a monoply.. you either do or you don't..
Posted on Reply
#12
nflesher87
Staff
by: overcast
So by your logic, AMD/ATI merger is a monopoly?
He was probably thinking if AMD/ATI go out of business and intel buy NVIDIA...
Posted on Reply
#13
Jimmy 2004
As far as the Competition Commission cares (in the UK), an 80% market share like Intel's is more than enough to justify calling it a monopoly and preventing mergers with other companies in a similar business. Even as things stand, Intel would not be allowed to by NVIDIA unless it put forward an amazingly good case for it (assuming regulations in the US are similar to the UK).
Posted on Reply
#14
dwax
Maybe a good time to buy some AMD stocks tho... you could make out like a bandit. :)
Posted on Reply
#15
D007
nvidia is making way to much money right now to consider selling..lol.. microsoft is prerry much not allowed to aquisition anything anyway because it's so big.. they were forced to downsize already once.. and If Bill gates had his way im sure he would of completely controlled the world by now..lol.. yes. intel is pretty much a monoply right now and them buying anything else would just push them over the line, i agree with that.. they already have to much i think..
Posted on Reply
#16
D007
by: dwax
Maybe a good time to buy some AMD stocks tho... you could make out like a bandit. :)
or you could loose it all... probiblly a better time to invest in intel..lol
Posted on Reply
#17
Sasqui
It would suck to see ATI run into the ground... all the IP sold off at fire sale prices, like when Nvidia bought what was left of 3DFx. No one wins. The acquisition was really stupid in the first place - corporate America is usually governed by one rule: Figures lie and liars figure. The best power point presentation gets the money.
Posted on Reply
#18
GJSNeptune
Ugh, I hate PowerPoint.

Just like the May 15th DO NOT BUY GAS, we could stage a huge BUY AMD DAY! :D
Posted on Reply
#19
Aguiar
Another GOOGLE money apliccation on sight ????????LOL.
Posted on Reply
#20
WarEagleAU
Bird of Prey
AMD amitted it would take a hit for a few quarters from the merger (acquisition). this isnt big news. They may have slightly miscalculated, but its the delays of the processors and R600 that are hurting them. The impatient are running the redlight and stopping at the green, so to speak.
Posted on Reply
#21
Ketxxx
Heedless Psychic
Now didnt I say AMD buying ATi was a bad thing? *sigh* nobody ever listens :(
Posted on Reply
#22
Benpi
Their debt is rising because they haven't released anything worth buying. Intel releases new procs all-the-flippin' time. AMD is starting to lose people who were holding out for R600 because they're taking their sweet time.
Posted on Reply
#23
Sasqui
by: Ketxxx
Now didnt I say AMD buying ATi was a bad thing? *sigh* nobody ever listens :(
Damn it Ket, you should have dragged your ass to the boardroom and said "NO"!!! ;)
Posted on Reply
#24
Ketxxx
Heedless Psychic
Given enough notice, I just might of :p if AMD dont release something in the next 3 months, their done for.
Posted on Reply
#25
ktr
ati is gonna be easy taking now, amd need money...and ends up selling ati to intel ;)
Posted on Reply
Add your own comment