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Old 07-17-08, 04:56 PM   #1
Heinz68
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Arrow AMD big change, watch out Intel :)

Hector steps down, the reason: In the second quarter of 2008, AMD reported a net loss of $1.189 billion, or $1.96 per share."

CNNMoney.com
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AMD CEO steps down as chip maker struggles
AMD sends CEO Ruiz to executive chairman post as as chip maker's struggles deepen
July 17, 2008: 05:14 PM EST

NEW YORK (Associated Press) - The CEO of chip maker Advanced Micro Devices Inc. is stepping down.

Hector Ruiz had been just the second person to lead AMD after company founder Jerry Sanders. He'll be replaced by the chip maker's No. 2 executive, Dirk Meyer.

Ruiz has been instrumental in elevating AMD to become a more dangerous rival to Intel Corp. But ultimately he takes the blame for AMD's financial distress. The Silicon Valley company has racked up billions of dollars in losses stemming from an ill-timed acquisition and fierce competition from Intel.

Ruiz will remain on AMD's board of directors, where he had been chairman. His new title will be executive chairman.
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Old 07-17-08, 05:57 PM   #2
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Default Re: AMD big change, watch out Intel :)

Its sad, but AMD is so far behind intel they would need a time machine catch up.
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Old 07-17-08, 06:06 PM   #3
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Default Re: AMD big change, watch out Intel :)

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Its sad, but AMD is so far behind intel they would need a time machine catch up.
That's definitely debatable. The Phenom processors are excellent performers. Their only draw-back is price. They need to be considerably cheaper to sell better. I think AMD needs to do with their processors as ATi did with their GPUs- focus on the mainstream and low-end segments where all the money is at. If AMD shoots to take the performance crown from Intel in the high-end, they'll fail across the board. But if the shoot for parts that'll perform comparable or better than Intel's low-end and mainstream components, while costing less to produce they'll have a winner.
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Old 07-17-08, 06:07 PM   #4
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Default Re: AMD big change, watch out Intel :)

Another disastrous Q2 result that almost got the company folded.

AMD CPU & GPU sales fell in Q2 compared to Q1 2008, K10 had failed and the new Radeon 4000 series hadnt helped boosted the GPU revenue AMD needed and it seemed that either cant turned the company around. Ruiz probably deeply regarded the worst mistake he made acquired ATI that send AMD in deep debt and he got the company now locked in default with $4.955bn debt in Q2 2008. AMD is now technically bankrupted with the capitalisation ratio of 77% in Q2 2008 when the company equity shrinked to $1.474bn, they lost a hell lot of equity compared to $2.990bn 6 months ago.

How much total net losses AMD made since now?

Q4 2006: $576m
Q1 2007: $611m
Q2 2007: $600m
Q3 2007: $396m
Q4 2007: $1,772m
Q1 2008: $358m
Q2 2008: $1,189m

Total net losses $5,502m in 7 quarters, that as much money lost compared to $5.4bn AMD acquired ATI.

AMD dont have much time left, it remain to be seen whether the new CEO Meyer have the magic wand to save AMD and turn the company around in 3 months by boost CPU and GPU sales, can he turn losses into profits and can he stop the equity disappear?
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Old 07-17-08, 06:22 PM   #5
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Default Re: AMD big change, watch out Intel :)

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Originally Posted by AthlonXP1800 View Post
Another disastrous Q2 result that almost got the company folded.

AMD CPU & GPU sales fell in Q2 compared to Q1 2008, K10 had failed and the new Radeon 4000 series hadnt helped boosted the GPU revenue AMD needed and it seemed that either cant turned the company around. Ruiz probably deeply regarded the worst mistake he made acquired ATI that send AMD in deep debt and he got the company now locked in default with $4.955bn debt in Q2 2008. AMD is now technically bankrupted with the capitalisation ratio of 77% in Q2 2008 when the company equity shrinked to $1.474bn, they lost a hell lot of equity compared to $2.990bn 6 months ago.

How much total net losses AMD made since now?

Q4 2006: $576m
Q1 2007: $611m
Q2 2007: $600m
Q3 2007: $396m
Q4 2007: $1,772m
Q1 2008: $358m
Q2 2008: $1,189m

Total net losses $5,502m in 7 quarters, that as much money lost compared to $5.4bn AMD acquired ATI.

AMD dont have much time left, it remain to be seen whether the new CEO Meyer have the magic wand to save AMD and turn the company around in 3 months by boost CPU and GPU sales, can he turn losses into profits and can he stop the equity disappear?
I think it's very doable. Maybe not in just 3 months (if you're referring to making a complete turn-around). They need to focus on profits. High-performance low-cost CPUs is what they need. Why keep trying to ramp up the clock speeds on their current CPUs? Why not, instead, focus on low power consumption and even lower costs? Look at the Phenom9950- to my understanding it's just a 9850 with a 100Mhz over-clock. Instead, why not continue to lower the Phenom's and A64's power consumption and thus lower the cost? You can lower the power consumption by having lower clock speeds and/or less cache. In a sense, I'm suggesting they under-clock their CPUs. Instead of putting everything into a CPU than can be sold retail clocked at 3.x GHz... have that same chip sold at 2.5Ghz and sell it for $100 less or so. Make sense?

They need to just give up trying to take the performance crown from Intel and focus on low-power, low-cost chips that perform well. As is the Phenoms are stellar performers. My current Phenom is 200% more CPU than the average joe will need in a long time. If AMD keeps clocks where they're at while instead figuring out how to lower power-consumption and cost their chips would start selling better.
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Old 07-17-08, 06:33 PM   #6
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Default Re: AMD big change, watch out Intel :)

So, what exactly are they losing money on? I guess I never really understood that.

Where is over a billion dollars going in a few months?
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Old 07-17-08, 06:46 PM   #7
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Default Re: AMD big change, watch out Intel :)

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So, what exactly are they losing money on? I guess I never really understood that.

Where is over a billion dollars going in a few months?
Possibly them trying to pay-off their monumental amount of debt. Last time I looked their debt was nearly as much as their total value (meaning they almost owed more than they're worth).
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Old 07-17-08, 07:26 PM   #8
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Default Re: AMD big change, watch out Intel :)

I think ATI should break off on their own. They always seemed profitable to me.
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Old 07-17-08, 07:51 PM   #9
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Default Re: AMD big change, watch out Intel :)

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Originally Posted by Redeemed View Post
That's definitely debatable. The Phenom processors are excellent performers. Their only draw-back is price. They need to be considerably cheaper to sell better. I think AMD needs to do with their processors as ATi did with their GPUs- focus on the mainstream and low-end segments where all the money is at. If AMD shoots to take the performance crown from Intel in the high-end, they'll fail across the board. But if the shoot for parts that'll perform comparable or better than Intel's low-end and mainstream components, while costing less to produce they'll have a winner.
Not knocking amd, but just stating the obvious fact they will soon be behind intel by two fab processes. The E8400 is not a high end CPU, and I went from amd's fastest dual core to it. If they had a similar one I would have stayed with amd.

I couldn't believe how nice the 45nm's are. Low heat low wattage FTW. Plus if I got an extra 1 mhz out of that X2 I was doing good. If they could somehow match intel's fab process there is no doubt the architecture would be a contender.
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Old 07-17-08, 08:26 PM   #10
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Default Re: AMD big change, watch out Intel :)

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Not knocking amd, but just stating the obvious fact they will soon be behind intel by two fab processes. The E8400 is not a high end CPU, and I went from amd's fastest dual core to it. If they had a similar one I would have stayed with amd.

I couldn't believe how nice the 45nm's are. Low heat low wattage FTW. Plus if I got an extra 1 mhz out of that X2 I was doing good. If they could somehow match intel's fab process there is no doubt the architecture would be a contender.
Precisely my point. Stop ramping up the clock speed, stop throwing more cache on the chips, etc. Focus on shrinking the process, lowering the power consumption and production costs- profit is almost guaranteed then. Think about it, even if they went without releasing any significantly faster processors for a short spell, but the power consumption and costs plummeted their sales would increase. If you could get a Phenom 9950 retail for only $150... wouldn't you? Shrinking the process will lower both power consumption and production costs while making their CPUs all the more attractive.

But instead AMD keeps releasing CPUs with only incremental boosts in clock speed while costing more and more. That's not going to get them anywhere except bankruptcy. Maybe with Ruiz out of the way they'll start focusing on the markets that they can actually compete in, and thus turn a profit for once. You'd think after the success of the HD4000 series they'd take a hint as to what direction their company as a whole needs to go.
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Old 07-18-08, 10:05 PM   #11
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Default Re: AMD big change, watch out Intel :)

samsung shoulda bought out amd back when those rumors were circulating... then there would be more than enough cash to back up r&d in both cpu and gpu departments (while using samsung's own gddr5 in every single graphics card =P) and save amd from this recession
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Old 07-18-08, 10:12 PM   #12
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Default Re: AMD big change, watch out Intel :)

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Originally Posted by Redeemed View Post
That's definitely debatable. The Phenom processors are excellent performers. Their only draw-back is price. They need to be considerably cheaper to sell better. I think AMD needs to do with their processors as ATi did with their GPUs- focus on the mainstream and low-end segments where all the money is at. If AMD shoots to take the performance crown from Intel in the high-end, they'll fail across the board. But if the shoot for parts that'll perform comparable or better than Intel's low-end and mainstream components, while costing less to produce they'll have a winner.
I'd stay away from the Phenoms unless you want the a-clock-interrupt-was-not-received-from-a-secondary-processor-within-the-allocated-time- interval BSOD. Go to AMD processor support forums or google it, and see how many AMD users are being affected by it.
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