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AMD Reports First Quarter Net Loss of $358 Million

Discussion in 'News' started by Jimmy 2004, Apr 18, 2008.

  1. Jimmy 2004

    Jimmy 2004 New Member

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    AMD today reported first quarter 2008 revenue of $1.505 billion, a net loss of $358 million, or $0.59 per share, and an operating loss of $264 million. These results include an impact of $50 million, or $0.08 per share, from ATI acquisition-related charges. First quarter revenue decreased 15 percent compared to the fourth quarter of 2007 and increased 22 percent compared to the first quarter of 2007. In the fourth quarter of 2007, AMD reported revenue of $1.770 billion, a net loss of $1.772 billion, and an operating loss of $1.678 billion. In the first quarter of 2007, AMD reported revenue of $1.233 billion, a net loss $611 million, and an operating loss of $504 million.

    [​IMG]

    “A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments. However, we are encouraged by the market acceptance of our Quad-Core AMD Opteron server processors as well as our new chipset and graphics offerings,” said Robert J. Rivet, AMD’s Chief Financial officer. “We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs.”

    First quarter 2008 gross margin was 42 percent compared to 44 percent in the fourth quarter of 2007 and 28 percent in the first quarter of 2007. The decrease from the prior quarter was primarily due to decreased microprocessor unit shipments.

    [​IMG]

    Current Outlook
    AMD’s outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

    In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008.

    Additional Quarterly Highlights
    • AMD began volume shipments of Quad-Core AMD Opteron processors. Initial systems are available now from several customers including Dell and HP and more platforms expected to be available in the coming weeks from our largest global customers.
    • AMD launched seven new AMD Phenom processors, including:
      - AMD Phenom X4 9100e, the industry’s first energy-efficient desktop quad-core processor;
      - AMD Phenom X4 9850 Black Edition processor; and
      - AMD Phenom X3 8000 series, the world’s first triple-core processor.
    • AMD introduced the 780 Series chipset, the industry’s most advanced motherboard GPU and the first product capable of combining the graphics power of integrated motherboard and discrete graphics to deliver a better visual experience.
    • AMD introduced the ATI Radeon HD 3870 X2 graphics card delivering leading performance for the enthusiast user and the ATI Radeon HD 3400 and ATI Radeon HD 3600 series to provide outstanding performance and unmatched value for the mainstream user. AMD also announced software updates to enable the world’s first quad-GPU support.
    • AMD demonstrated its first 45nm quad-core processors for servers and desktops.
    • AMD announced its first application processor for feature-rich multimedia mobile phones, strengthened its portfolio of discrete media processors, and expanded its handheld graphics IP offerings.
    • AMD introduced the ATI FireGL V7700, the first commercially available 3D workstation graphics card with DisplayPort support, and a new 2D workstation graphics card which delivers exceptional energy efficiency and longevity.
    Source: AMD
     
    10 Year Member at TPU
  2. patton45

    patton45

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    So AMD is working them selves out of the black abyss of chapter 11 but barley they better keep turning things around and cut operating costs. i like the new ati/amd cards but till i see a better processor im sticking with intel
     
  3. tkpenalty New Member

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    Ouch is all I can say...
     
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  4. Triprift

    Triprift

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    Work harder Amd since the c2d's have come out uve been lagging behind by a mile.
     
  5. Gambit_ZA New Member

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    We (that includes even the biggest Nvidia fanboy) should be praying that AMD/ATI stay in the market because if they go NVidia will have free reign to do whatever they want with hardware prices, development and invasion will also slow down dramatically seeing as though there will be no competition.
     
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  6. [I.R.A]_FBi

    [I.R.A]_FBi

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    R&D will fall off.
     
  7. newtekie1

    newtekie1 Semi-Retired Folder

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    It isn't just nVidia, it is Intel also. If AMD goes under there will be virtually no competition in the processor front, or the video card front. Which is a VERY bad thing for consumers.
     
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  8. Gambit_ZA New Member

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    QFT
     
  9. paybackdaman

    paybackdaman New Member

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    well if they do start to go under, Intel and/or nVidia might pull a Microsoft (has stocks in Apple) and buy some of their stocks so that they will not become a monopolistic company. EU and US's anti-trust laws are something for both companies to fear.:D
     
  10. Gambit_ZA New Member

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    There was talk about IBM a while back. I know they are in a strategic partnership of sorts:

    "AMD also formed a strategic partnership with IBM, under which AMD gained silicon on insulator (SOI) manufacturing technology, and detailed advice on 90 nm implementation, the partnership was announced by AMD to be extended to 2011 for 32 nm and 22 nm fabrication related technologies."

    http://en.wikipedia.org/wiki/AMD#Partnerships
     
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  11. laszlo

    laszlo

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    all i see is loss and loss.... they need more arab sheikhs for capital infusion otherwise i don't see the light at the end of the tunnel only a black hole and this is sucking all amd in.

    even so i'll buy amd; next week i have a brand new x2 4200 s939 (100USD!!!!!) and is enough for a while again
     
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  12. WarEagleAU

    WarEagleAU Bird of Prey

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    Still not as bad as it could be. I think they are doing fine with what they got but I feel these 45 nm quads will really be something special.
     
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  13. Dangle New Member

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    would BE AWESOME if INTEL bought out AMD. Since NVid is joinig the CPU game, there'll be some GOOD competition!
     
  14. Weer New Member

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    :laugh: :laugh: :laugh: :laugh: :laugh:






    No but seriously, we're all doomed
     
  15. Morgoth

    Morgoth

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    if amd dies nvidia wil take there place... or via or ibm or another cpu company
     
  16. Mandown

    Mandown New Member

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    I get the feeling AMD is going to bring out something serious very soon. Their new chipsets seem to have great potential, not to mention ATi has put out some good stuff. I can't see why AMD would fall. All they need is for their cpu's to be even slightly better than Intel to sway the market share and gain back all their losses and have extra $$$ for making a higher L2 cache.:)
     
  17. suraswami

    suraswami

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    So you think if AMD brings out a wonder Intel Inside(Id.... Ou.....) fans/average Joe will buy AMD?:mad:
     
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  18. thoughtdisorder

    thoughtdisorder New Member

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    Actually, AMD is coming out with some 45 nm quads according to a posting today here on TPU in the news section. Could be the "saving grace" for AMD. Competition is healthy and necessary for the good of all, especially we the consumers.;)
     
  19. imperialreign

    imperialreign New Member

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    I've heard their true-quads are going over quite well in the business market, I wonder how they'll hold up on the mass consumer end.

    Even still though, as much as this news seems abyssmal for AMD, it still looks to me like they're stabilizing themselves and paying off any debt's they may owe. This year, IMO, will be a rough and rocky road for them, but I see next year as them starting to pick back up quite well.



    If it does go all to hell, though, I at least hope the cut ATI free or consolodate the AMD/ATI into ATI and continue along the graphics course. AMD's technology would continue to proven heaven-sent for the graphics division.
     
  20. Cold Storm

    Cold Storm Battosai

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    I don't think that AMD is going to be going under. If there was say 3 different type chip makers out there for us, then AMD would be sold to ether of the two. But, since there is still only 2 chip makers, and 2 GPU makers, then I think AMD/ATI will be around for longer then we expect.. This isn't from a fanboi person, but from a person that would like to see everyone do good!

    Like Thoughtdisorder said, if the true quads can do good, then everything will be peachy... IMO
     
  21. imperialreign

    imperialreign New Member

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    I truly don't think they'll go under either - not considering how much branching out AMD has done over the last 6 months.
     
  22. Kreij

    Kreij Senior Monkey Moderator Staff Member

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    Yes. It has happened before.
    Gamers are all fanboi's, but they blow with the wind because they want the best, not a brand name.

    Intel : Core 2 Quad 3.0 Ghz for $1000
    Gamer : Intel Rocks, Intel Rocks.
    AMD : Try this 8 core 8.0GHz CPU for $400 that Intel can't touch.
    Gamer : AMD Rocks, AMD Rocks.
    Intel : Core 2, 32 Cores at 16GHz for $1000 that is brand new.
    Gamer : Intel Rocks, Intel Rocks.

    Enough said.
     
  23. Triprift

    Triprift

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    Good too see theres alot of amd optimists around.
     
  24. eidairaman1

    eidairaman1

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