AMD loses half a billion dollars in first quarter

[maroon1]

After posting a worrying revenue warning ten days ago, AMD has finally announced its first-quarter financial results. At $1.233 billion, the company's first-quarter revenue is actually about $5 million higher than the warning stated. Considering AMD had revenue of $1.773 billion in the fourth quarter and initially expected $1.6-1.7 billion for the first quarter, though, that figure represents a dramatic drop indeed. AMD also suffered an operating loss of $504 million—not as bad as its $529 million loss from last quarter, but still not exactly an improvement. AMD says its revenue decline was also due to "significantly lower" processor unit sales and lower average selling prices.

Another of AMD's problems was its shrinking margin, which took a nosedive to 29% in the first quarter. For reference, it was 36% in the fourth quarter of last year and 58% a year before.

Unsurprisingly, AMD's Chief Financial Officer Robert J. Rivet states in the revenue announcement the company's first quarter performance is "disappointing and unacceptable." He adds that AMD is aligning its business model, capital expenditures, and cost structure in order to become profitable again, and that customer relationships remain strong. AMD doesn't expect its income to improve in the short term, though. This quarter, the firm expects revenue will be "flat to slightly up" from last quarter's $1.233 billion.

The Tech Report - AMD loses half a billion dollars in first quarter

Thats one of the best news I ever heard

 

[ZenOswyn]

Thats one of the best news I ever heard

Not really. AMD is a good company, whether you're an Intel fan or not. Their price wars with Intel are what helps to keep consumer prices down to a reasonable level.

I'm an Intel guy myself, but I'm very glad AMD is there.

 

[Inferno]

Yeah, in all honesty, that's bad news. I dont really care, but if AMD goes down, ur gonna pay a metric **** ton for CPUs from here forth.

 

[Norcent]

yeah intel will probably higher there prices a lot oh oops they already did but when amd makes a better cpu the prices on the intels drop.

 

[gurusan]

The Tech Report - AMD loses half a billion dollars in first quarter

Thats one of the best news I ever heard

How is that good news?

 

[Trotter]

Intel/nVidia fanboy... best to just ignore it and hope it goes away...

 

[Nick]

]

Thats one of the best news I ever heard

i have a Athlon 3800+, its brilliant

oh and all athlons are better than ur crummy P4 3.2

 

[Norcent]

yeah its true. My 1st pc was an intel p4 2.8ghz and i wish i would have never bought that thing. It was slow and had agp for graphics and i got the xfx geforce 6600gt for $130.00 which that computer blew up after 1 month so i sold the graphics card to my friend for $20.00 so i got ripped off but i don't care it was a crappy make anyway. Now i am an AMD fan boy.

 

[Vormund]

AMD just needs to top Intel and stay there - many people say they like AMD or Intel, but as soon as one tops the other, they have a new favorite. Whenever I see recommendations (in real-life, non-forum ), all I ever hear is the Intel Duo... poor 'lil AMD.

Everyone should just blame "Robert J. Rivet" - he's the problem.

 

[Snake91839]

I love the X2 series, and I will always be an AMD person, And I also agree that Intel is very good at what they make, and I know that Intel can out perform AMD for the most part, but I really can't afford to buy Intel and still get the same performance I get now... But yes, this is not good news for AMD loyalists or Intel users..... it's a lose lose situation