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"AMD Reports Second Quarter Results"

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July 20, 2006 11:16:48 PM

Quote:
SUNNYVALE, Calif. -- July 20, 2006 --AMD (NYSE: AMD) today reported sales of $1.22 billion, operating income of $102 million, and net income of $89 million, or $0.18 per share, for the quarter ended July 2, 2006. These results include $18 million of employee stock-based compensation expense and a net gain of $10 million associated with Spansion LLC.’s repurchase of its 12.75 percent senior subordinated notes.

In the second quarter of 2005, excluding the Memory Products segment1, AMD reported sales of $797 million and operating income of $83 million. In the first quarter of 2006, AMD reported sales of $1.33 billion and operating income of $259 million.

Q2-06
Q1-06
Q2-051
Q2-06 vs Q1-06
Q2-06 vs Q2-05

Net Sales (billions)
$1.22
$1.33
$.80
(8.7)%
52.6%

Operating Income (millions)
$102
$259
$83
(60.6)%
22.9%


“While we achieved 53 percent year-over-year sales growth and recorded our twelfth consecutive quarter of greater than 20 percent year-over-year microprocessor sales growth, we are dissatisfied by not reaching our second quarter sales target,” said Robert J. Rivet, AMD’s chief financial officer.

“We are particularly pleased with the continued adoption of AMD solutions in the commercial segment. In particular, AMD Opteron processor sales grew 26 percent sequentially and we believe we gained server processor market share in the quarter. Sales to our largest global customers grew quarter-over-quarter as we continued to successfully execute our strategy. Sales through the distribution channel were down, primarily because we chose not to participate in certain deeply-discounted opportunities."

“Second quarter manufacturing execution was outstanding, with Fab 36 ramping 300mm capacity aggressively at mature yields. In addition, Chartered Semiconductor is now in production of AMD products.”


Kudos to AMD. :wink:
Too bad that the other "chipmaker" can't fell the sameway. 8)

www.AMD.com
July 20, 2006 11:32:26 PM

Yep, too bad nobody will buy their junk anymore :wink:

Unless of course they lower their prices rediculously, oh wait, that would also lose them money, what a shame.
July 20, 2006 11:58:29 PM

Quote:
Too bad that the other "chipmaker" can't fell the sameway.


You mean make billions?
Related resources
July 21, 2006 12:41:30 AM

I found this jewel on the net:

Quote:

SYMBOL PERIOD EPS ESTIMATE EPS ACTUAL PREV. YEAR ACTUAL DATE/TIME (ET)
AMD Q2 2006 $ 0.22 n/a $ 0.03 20-Jul-06
AMD Q1 2006 $ 0.29 $ 0.38 -$ 0.04 12-Apr-06 AMC
AMD Q4 2005 $ 0.26 $ 0.45 $ 0.05 18-Jan-06 AMC
AMD Q3 2005 $ 0.08 $ 0.18 $ 0.12 11-Oct-05
AMD Q2 2005 -$ 0.05 $ 0.03 $ 0.09 13-Jul-05 AMC
AMD Q1 2005 $ 0.02 -$ 0.04 $ 0.12 13-Apr-05 AMC
AMD Q4 2004 $ 0.08 $ 0.05 $ 0.12 18-Jan-05 AMC
AMD Q3 2004 $ 0.12 $ 0.12 -$ 0.09 7-Oct-04 AMC
AMD Q2 2004 $ 0.09 $ 0.09 -$ 0.40 14-Jul-04 AMC
AMD Q1 2004 $ 0.04 $ 0.12 -$ 0.42 14-Apr-04 AMC
AMD Q4 2003 $ 0.04 $ 0.12 -$ 0.68 20-Jan-04 AMC
AMD Q3 2003 -$ 0.36 -$ 0.09 -$ 0.74 16-Oct-03 AMC
AMD Q2 2003 -$ 0.54 -$ 0.40 -$ 0.54 16-Jul-03 AMC
AMD Q1 2003 -$ 0.48 -$ 0.42 -$ 0.03 16-Apr-03 AMC
AMD Q4 2002 -$ 0.42 -$ 0.68 -$ 0.05 16-Jan-03 AMC
AMD Q3 2002 -$ 0.67 -$ 0.74 -$ 0.28 16-Oct-02 AMC
AMD Q2 2002 -$ 0.45 -$ 0.54 $ 0.05 17-Jul-02 AMC
AMD Q1 2002 -$ 0.06 -$ 0.03 $ 0.37 17-Apr-02 AMC
AMD Q4 2001 -$ 0.18 -$ 0.05 $ 0.53 16-Jan-02 AMC
AMD Q3 2001 -$ 0.28 -$ 0.28 $ 0.64 17-Oct-01 AMC
AMD Q2 2001 $ 0.04 $ 0.05 $ 0.61 12-Jul-01 AMC
AMD Q1 2001 $ 0.33 $ 0.37 $ 0.58 18-Apr-01 AMC
AMD Q4 2000 $ 0.55 $ 0.53 n/a 17-Jan-01 AMC
AMD Q3 2000 $ 0.62 $ 0.64 n/a 11-Oct-00 AMC
AMD Q2 2000 $ 0.57 $ 0.61 n/a 19-Jul-00 AMC
AMD Q1 2000 $ 0.29 $ 0.58 n/a 12-Apr-00 5:15 PM
AMD Q4 1999 n/a n/a n/a 19-Jan-00 AMC
AMD Q3 1999 n/a n/a n/a 6-Oct-99 AMC
AMD Q2 1999 n/a n/a n/a 14-Jul-99 AMC
AMD Q1 1999 n/a n/a n/a 14-Apr-99 AMC


Sorry to say this but this doesn't helps intel. 8)

www.companyboardroom.com
July 21, 2006 12:44:06 AM

I love how with your different sock puppets you always post an emoticon after you link something. Parrot is always the :lol:  and you're always the 8). Thats funny. But seriously why use two different accounts to post the same news?
July 21, 2006 12:50:26 AM

Quote:
But seriously why use two different accounts to post the same news?

Becouse he will be flamed twice if he post the same BS with different topic using 1 acc. With 2 accs the flame is shared between 9nm and one of his sock puppets.
July 21, 2006 1:26:44 AM

Maybe AMD should have taken some of this profit you seem to be gloating about and spent it on improving there product and they wouldn't be sucking hind tit as they are now.
July 21, 2006 1:27:50 AM

Hmm... Intel had a 9% drop in revenue going from Q1 to Q2. AMD had a 9% drop as well (from Q1 to Q2)

I think we should try to keep these numbers in perspective. Sales wise, Intel did no worse than AMD and vice versa.
July 21, 2006 1:31:29 AM

Quote:
Maybe AMD should have taken some of this profit you seem to be gloating about and spent it on improving there product and they wouldn't be sucking hind tit as they are now.


WTF are you talking about?
Tell me, where's your conrunt? Do you have one to play around with? 8)

AMD is using that money to expand/subsidize their upcoming fabs which I see as a good strategy.
July 21, 2006 3:20:17 AM

WTF are you talking about?
Tell me, where's your conrunt? Do you have one to play around with?

As a matter of fact...yes. next question.
July 21, 2006 4:18:20 AM

Quote:
Maybe AMD should have taken some of this profit you seem to be gloating about and spent it on improving there product and they wouldn't be sucking hind tit as they are now.


WTF are you talking about?
Tell me, where's your conrunt? Do you have one to play around with? 8)

AMD is using that money to expand/subsidize their upcoming fabs which I see as a good strategy.

you know as well as everyone else that core 2 isn't being released until next week. your condescending comment makes it sound like it's been delayed or something when it hasn't.

this thread is somewhat funny considering really AMD did no better than intel in terms of profits. in fact, AMD didn't even meet analysts predictions. not saying that I want AMD to do bad, in fact I was a little disapointed to hear they fell short, but really you shouldn't push this crap when it's not so one sided.
July 21, 2006 10:01:53 AM

Quote:
I found this jewel on the net:


SYMBOL PERIOD EPS ESTIMATE EPS ACTUAL PREV. YEAR ACTUAL DATE/TIME (ET)
AMD Q2 2006 $ 0.22 n/a $ 0.03 20-Jul-06
AMD Q1 2006 $ 0.29 $ 0.38 -$ 0.04 12-Apr-06 AMC
AMD Q4 2005 $ 0.26 $ 0.45 $ 0.05 18-Jan-06 AMC
AMD Q3 2005 $ 0.08 $ 0.18 $ 0.12 11-Oct-05
AMD Q2 2005 -$ 0.05 $ 0.03 $ 0.09 13-Jul-05 AMC
AMD Q1 2005 $ 0.02 -$ 0.04 $ 0.12 13-Apr-05 AMC
AMD Q4 2004 $ 0.08 $ 0.05 $ 0.12 18-Jan-05 AMC
AMD Q3 2004 $ 0.12 $ 0.12 -$ 0.09 7-Oct-04 AMC
AMD Q2 2004 $ 0.09 $ 0.09 -$ 0.40 14-Jul-04 AMC
AMD Q1 2004 $ 0.04 $ 0.12 -$ 0.42 14-Apr-04 AMC
AMD Q4 2003 $ 0.04 $ 0.12 -$ 0.68 20-Jan-04 AMC
AMD Q3 2003 -$ 0.36 -$ 0.09 -$ 0.74 16-Oct-03 AMC
AMD Q2 2003 -$ 0.54 -$ 0.40 -$ 0.54 16-Jul-03 AMC
AMD Q1 2003 -$ 0.48 -$ 0.42 -$ 0.03 16-Apr-03 AMC
AMD Q4 2002 -$ 0.42 -$ 0.68 -$ 0.05 16-Jan-03 AMC
AMD Q3 2002 -$ 0.67 -$ 0.74 -$ 0.28 16-Oct-02 AMC
AMD Q2 2002 -$ 0.45 -$ 0.54 $ 0.05 17-Jul-02 AMC
AMD Q1 2002 -$ 0.06 -$ 0.03 $ 0.37 17-Apr-02 AMC
AMD Q4 2001 -$ 0.18 -$ 0.05 $ 0.53 16-Jan-02 AMC
AMD Q3 2001 -$ 0.28 -$ 0.28 $ 0.64 17-Oct-01 AMC
AMD Q2 2001 $ 0.04 $ 0.05 $ 0.61 12-Jul-01 AMC
AMD Q1 2001 $ 0.33 $ 0.37 $ 0.58 18-Apr-01 AMC
AMD Q4 2000 $ 0.55 $ 0.53 n/a 17-Jan-01 AMC
AMD Q3 2000 $ 0.62 $ 0.64 n/a 11-Oct-00 AMC
AMD Q2 2000 $ 0.57 $ 0.61 n/a 19-Jul-00 AMC
AMD Q1 2000 $ 0.29 $ 0.58 n/a 12-Apr-00 5:15 PM
AMD Q4 1999 n/a n/a n/a 19-Jan-00 AMC
AMD Q3 1999 n/a n/a n/a 6-Oct-99 AMC
AMD Q2 1999 n/a n/a n/a 14-Jul-99 AMC
AMD Q1 1999 n/a n/a n/a 14-Apr-99 AMC


Sorry to say this but this doesn't helps intel. 8)

www.companyboardroom.com

Ummmmmm, you are proud of this? More losing quarters than winning quarters.

And the Kudos for a mediocre quarter is odd to.... are you certain you know what you are taking about....

1.22 Bil and can eak out only 89 million profit? This will not pay for the Fab 30 renovations for certain.

Intel had a lousy quarter no doubt, but AMD's was not very good either.
- Sequentually down over 50% be Q o Q
- Down revenue 9%
- Total unit shipment down
- Depreciation low for a new fab (interesting on this one).

Playing up AMD all the time simply draws more attention to a lack-luster performance of the quarter.

While you seem giddy, the street understands
After hours: Down 0.75 (3.46 %).

This was not a good quarter for either.Once again...9-inch owned by his nemesis....JumpingJack. :p 
July 21, 2006 10:31:49 AM

Quote:
SUNNYVALE, Calif. -- July 20, 2006 --AMD (NYSE: AMD) today reported sales of $1.22 billion, operating income of $102 million, and net income of $89 million, or $0.18 per share, for the quarter ended July 2, 2006. These results include $18 million of employee stock-based compensation expense and a net gain of $10 million associated with Spansion LLC.’s repurchase of its 12.75 percent senior subordinated notes.

In the second quarter of 2005, excluding the Memory Products segment1, AMD reported sales of $797 million and operating income of $83 million. In the first quarter of 2006, AMD reported sales of $1.33 billion and operating income of $259 million.

Q2-06
Q1-06
Q2-051
Q2-06 vs Q1-06
Q2-06 vs Q2-05

Net Sales (billions)
$1.22
$1.33
$.80
(8.7)%
52.6%

Operating Income (millions)
$102
$259
$83
(60.6)%
22.9%


“While we achieved 53 percent year-over-year sales growth and recorded our twelfth consecutive quarter of greater than 20 percent year-over-year microprocessor sales growth, we are dissatisfied by not reaching our second quarter sales target,” said Robert J. Rivet, AMD’s chief financial officer.

“We are particularly pleased with the continued adoption of AMD solutions in the commercial segment. In particular, AMD Opteron processor sales grew 26 percent sequentially and we believe we gained server processor market share in the quarter. Sales to our largest global customers grew quarter-over-quarter as we continued to successfully execute our strategy. Sales through the distribution channel were down, primarily because we chose not to participate in certain deeply-discounted opportunities."

“Second quarter manufacturing execution was outstanding, with Fab 36 ramping 300mm capacity aggressively at mature yields. In addition, Chartered Semiconductor is now in production of AMD products.”


Kudos to AMD. :wink:
Too bad that the other "chipmaker" can't fell the sameway. 8)

www.AMD.com



Looks like 9nm didn't read the article again. AMD reported a decline in revenues and operating income. If you're an AMD fanboy, why would you be happy about this? As a matter of fact, why would you even post it here. Oh brother, what a moron.
July 21, 2006 10:37:35 AM

Quote:
Looks like 9nm didn't read the article again. AMD reported a decline in revenues and operating income. If you're an AMD fanboy, why would you be happy about this? As a matter of fact, why would you even post it here. Oh brother, what a moron.
Because he wants to go down in the annals of THG forums history books as the biggest dumb*ss to ever post here. Looks like it might work too. :wink:
July 21, 2006 11:20:18 AM

WOW, quoting AMD for pro-AMD news is something I thought that even you would not do!
July 21, 2006 6:18:25 PM

Holy falling stock price batman! AMD is getting killed today (7/21). Stock price currently down 12% from yesterdays close. I actually thought their numbers were pretty good in light of the intel price cuts. But I digress, the street is fickle.
July 21, 2006 7:38:52 PM

Quote:
Holy falling stock price batman! AMD is getting killed today (7/21). Stock price currently down 12% from yesterdays close. I actually thought their numbers were pretty good in light of the intel price cuts. But I digress, the street is fickle.

It's down 14% now.
July 21, 2006 8:44:26 PM

Quote:
Holy falling stock price batman! AMD is getting killed today (7/21). Stock price currently down 12% from yesterdays close. I actually thought their numbers were pretty good in light of the intel price cuts. But I digress, the street is fickle.

It's down 14% now.


Have we ever had AMD sinking 15% in 24 hours? during k6 maybe?
July 21, 2006 11:30:41 PM

I believe that you must be happy about AMD's stock sudden drop in less than 24 hours 8).
July 21, 2006 11:36:27 PM

it is all part of their master roadmap working perfectly and ahead of schedule!
July 21, 2006 11:39:33 PM

This isn't directed at anyone in particular, but are there car forums where people brag about stock prices as well? Or white goods? Electric pencil sharpeners?

Jeez - take an interest but for god's sake, get a life as well.
July 22, 2006 12:25:34 AM

I just sold 1000 shares of AMD yesterday. It's not that stock hold are fickle, It's the fact they are in major damage control to point of speaking nonsense. That tells me they are either delusional or in deep trouble.
July 22, 2006 12:27:45 AM

Quote:
This isn't directed at anyone in particular, but are there car forums where people brag about stock prices as well? Or white goods? Electric pencil sharpeners?

Jeez - take an interest but for god's sake, get a life as well.



Well, yah, you make a good point
But youve got to admit, with all the propaganda 9 inch spams, he seems to be trying to turn it into the ""AMD rulz the universe" as proclaimed by 9 inch" forum.

His attempts however, typically wind up turning into the "9 inch pwns himself" thread.


Peace
July 22, 2006 2:28:22 AM

The stock was down on the merger rumors moreso than the earnings report.
July 22, 2006 2:38:59 AM

Quote:
The stock was down on the merger rumors moreso than the earnings report.


Possible, even perhaps definite to some extent, however, the entire market seems to be dropping right now due to concerns over the conflict in the middle east.


BTW, please be advised the last comment was not an invitation for anyone to begin another political rant and get the thread locked

Peace
July 22, 2006 2:53:35 AM

Quote:
The stock was down on the merger rumors moreso than the earnings report.


Do you think?? I am not so sure....

I mean the rumors are very strong today, like a flood gate opened, one rumor was merger the other was a buy-out. Quoting 5.4 Billions I believe. AMD's market cap is only 8.8 billion or around there, with less than 2 billion in the bank. Roughly 1/2 of their liquidable worth.

I don't suspect it won't happen, I am just wondering where they get all the funding.... I also question the wisdom of the move now that they will be working to re-take the performance market, trying to expand new fab capacity, and now they are purchasing a company that is runnin negative EPS at the moment.

It just seems like they will be stretching themselves, so yeah, I guess I can understand the negative reaction in that regard.

Jack

Yeah, considering AMDs income and profit, that seems like a LOT of money for AMD to put into ATi. Hard to figure out how they are going to afford that, especially with their price cuts. Dont they still need to depreciate most of their fab? And they also want to build a new fab? It sounds like its going to take quite a lot to afford everything they want.
July 22, 2006 3:07:02 AM

Quote:
Holy falling stock price batman! AMD is getting killed today (7/21). Stock price currently down 12% from yesterdays close. I actually thought their numbers were pretty good in light of the intel price cuts. But I digress, the street is fickle.

wow 12%thats a huge one day drop.intel got what they wanted so far but according to amd's vp 07 is looking great for 65nm,and will compete with conroe.
amd did it to themselves,and intel jus drove it home with conroe,its getting pretty cut throat,now,both of these incredible companies are getting serious,really really serious.

Yeah, I think the recent spat of new products, pull in's and timely delivery is beginning to make Wallstreet think Intel is getting it's act together.... i.e. 65 nm comes in early, Yonah/Macintel was ahead of schedule, Core 2 comes in early, Merom launching early.... quad core early.... Tulsa on track .... This is shaping into a pretty good track record for Intel....

AMD's news has up and down, 65 nm is definitely late and it doesn't appear Fab 36 is ramping quite as agressively as AMD leads them to believe. I think investor confidence is beginning to wane and the drop today is just a culmination of a lot of different factors....

Jack
definitely,but watch for amd to become agressive on that fab and produce,they will do the work now with market flux like it is,expect them to break out the ntro and get ahead of all schedules ,we may see the proverbial ace in the sleaves that i was so skeptical about during the whiny season,amd will pull it out ,the signs are there,they may be a bit behind intel but we will reap the rewards.
its going to be neck and neck.

Its just hard to beleive they can meet a lot of their road maps with what information is available today. Especially with the trouble they are having at 65nm. If they first sample 65nm at Q407, 65nm wont be healthy and fully ramped until atleast Q207. It would be crazy to get 45nm out in 1 year. Intel has a process roadmap of every 2 years, and people were saying they were being aggressive. Also with people thinking they will have K8L out in sometime 2007. That means they would need tape out in before the end of 2006. The chances of this are EXTREMELY small if they plan on taping it out on 65nm, considering 65nm wont even be sampling until Q406.
July 22, 2006 3:15:44 AM

Quote:

they have to merge,point blank!they are developing a platform that requires it,now we are seeing amd move,and this will revive confidence across the board,they released a 60% performance expectation through the video with the vp,are pushing to get ahead of schedule ,and becoming more open about the need to aquire ati,or merge.
this my furry friends is good activity and may save falling shares on stock ,where abottom out will be less devastating,and rebounding will be easier,
its concievable that once ati is firmly embedded and the tech matures ,that intel will loose more market shares on all levels,
so for longterm after the ati aquisition/merger amd will be the stock to get,and short term will continue to be a chip by chip trade off.


I do not see how they will get any short term benefit. ATI is not turning profits as high as Intel or AMD> AMD can not compete chip for chip currently. The only area i can see the company benefitting is if they were to integrate the CPU to Graphics communication in some special way. This could actually hurt AMD because this will give room for Intel to do something with NVidia. Intel has always been very innovative when it comes to driving standards, and they played a big part in PCIx. Im;ess AMD and ATI can do something spectacular, look for Intel and NVidia to jump at a similar opportunity, but without any merger.
July 22, 2006 3:19:36 AM

I really don't think so. They didn't believe that Intel's new core was anything more than hype, like so many times before. They still sound like they don't publicly believe this. Intel however has delivered combination of punches that has left them punch drunk.

The 65nm process will not be able to compete any more so then moving to AM2 and DDR2 a bump that wouldn't be able to noticed with benchmarks
July 22, 2006 3:43:03 AM

Quote:
The stock was down on the merger rumors moreso than the earnings report.


Do you think?? I am not so sure....


More or less 100% sure. Remember, AMD issued an earnings warning a month ago, and the earnings report was in line with what that warning predicted. The stock would have already normalized itself to the earnings warning, and as such this earnings report was no suprise to investors. A small slide could be expected, perhaps, but a 12% drop is out of the question.

Buy outs almost always devalue the buying company, and increase the value of the company being bought. This is because of simple stock market economics. This is why AMD is down and ATI is up on today's trading.
July 22, 2006 6:31:22 AM

Quote:
The stock was down on the merger rumors moreso than the earnings report.


Do you think?? I am not so sure....


More or less 100% sure. Remember, AMD issued an earnings warning a month ago, and the earnings report was in line with what that warning predicted. The stock would have already normalized itself to the earnings warning, and as such this earnings report was no suprise to investors. A small slide could be expected, perhaps, but a 12% drop is out of the question.

Buy outs almost always devalue the buying company, and increase the value of the company being bought. This is because of simple stock market economics. This is why AMD is down and ATI is up on today's trading.
exciting news,hope a press release follows soon.
i wish toms had a real time tech news report ticker,and a trading ticker as well for tech stocks.I wonder how MrsBytch is taking the news. She was so gung-ho to report on Intels stock dropping, i bet she's downing Valium's right now. As far as money for the ATI merger, maybe AMD will go back to IBM with their hand out again. :?
July 22, 2006 7:43:15 AM

Quote:
maybe,but maybe amd had this planned for a few years and prepared for it.the more you look the more you see long term plans are executed,and only news to us when it hits the shelf.
They can't have been just hiding the needed money for this merger though. If it's been planned, then they must have some backers lined up to assist with the financing. :?
July 22, 2006 8:07:26 AM

Quote:
maybe,but maybe amd had this planned for a few years and prepared for it.the more you look the more you see long term plans are executed,and only news to us when it hits the shelf.
They can't have been just hiding the needed money for this merger though. If it's been planned, then they must have some backers lined up to assist with the financing. :?

They are mortgaging the farm, and it looks like it's going to happen:
http://www.dailytech.com/article.aspx?newsid=3453


....Sigh.... Well....that sucks

Wonder how long before Intel and Nvidia announce their partnership.

Peace
July 22, 2006 10:19:56 AM

Quote:

Intel can only do so much AMD must deliver,period.everything is contingent on that.if they deliver,intel cant touch them.


I definitely disagree with this. AMD MUST deliver, but if they do, that does not mean that Intel can't touch them. AMD pretty much just cut everything out from underneath NVidia. If NVidia produces AMD chipsets, it only benefits AMD/ATI. This does NOT help NVidia as it only benefits AMD/ATI. The big advantage that AMD had when it came to graphics was that they already had a SLI chipset. And currently Intel is in the driver seat with Conroe, AMD is NOT currently in the driver seat! They can get back in the driver seat if this thing succeeds, but there is a LOT of room left for NVidia and Intel to make a "leap ahead".

There is no way NVidia will want to keep supporting AMD if AMD is teamed up with ATI. This will only push NVidia out of business.

And the AMD/ATI murger has nothing to do with Intel GPUs. In fact, nothing with ATI/Nvidia has ANYTHING to do with Intel GPUs. Intel's INTEGRATED graphics (NOT GPUs) are only for systems that do not need high power graphics, and Intel has shown no plans to make actual GPUs.
July 22, 2006 10:34:35 AM

Quote:
could explain why intel is going for blood.as they were tying up market resouces to bog amd down and amd took ati from them,intel could have done nvidia.and intel will be licensing gpu tech to upgrade their pos gpus if they need to,nvidia has chips they dont need intels.
amd has position now,and intel had netburst,the stronger company failing and the underdog assailing ,makes interesting bedfellows for 3 yrs,and i am sure that there are some parts of the market that hope for a solution aside from intel.
Intel can only do so much AMD must deliver,period.everything is contingent on that.if they deliver,intel cant touch them.



Yes, AMD is its own greatest enemy right now. If they push themselves too aggressively and drop a product or products on the market prematurely (i.e. flawed) to compete with Conroe, they will lose the credibility they have earned over the past several years.

Better for them to be patient, ride the storm out and insure they come to market with a mature, viable product that will be truly competitive with Conroe. While they do have some momentum, they do not have the resources Intel had to survive netburst. They can ill afford their own "netburst". How the whole ATI thing will play into this will remain to be seen, but I suspect it will be either exceptionally positive or exceptionally negative with no neutral ground.

Peace
July 22, 2006 11:25:53 AM

Quote:
maybe,but maybe amd had this planned for a few years and prepared for it.the more you look the more you see long term plans are executed,and only news to us when it hits the shelf.
They can't have been just hiding the needed money for this merger though. If it's been planned, then they must have some backers lined up to assist with the financing. :?

They are mortgaging the farm, and it looks like it's going to happen:
http://www.dailytech.com/article.aspx?newsid=3453


....Sigh.... Well....that sucks

Wonder how long before Intel and Nvidia announce their partnership.

Peace

It will happen very quickly I suspect, what an interesting dynamic this will produce.

Either this is a brilliant move on AMD's part or it will be the ultimate flop to end all flops --- I speculate ----

- AMD puts together an ATI-AMD platform that competes with Intel based platforms at all levels, interesting. AMD also wants to put chipset woes on Intel by removing their second source for chipsets in the event of another shortage.

- AMD fails to produce GPUs and, as a low margin market to begin with, travels down the losing path the same way they did with flash. Possibly.

- Intel-nVidia actually merge and now compeitition between the the two intensifies 100 fold.... (this will not happen, but I speculate).

- As nVidia's bread and butter was AMD support, and they pretty much 'shunned' Intel with SLI etc. etc. nVidia may go under as this will most likely sour the milk from the mother teat so to speak.

- Man this could get long --- WHAT THE HELL ARE THEY GOING TO DO WITH 4x4 -- nVidia may very well pull support out from this project right from under their nose.

Wowser this is big news.

Jack


While Intel and Nvidia won't "merge," Nvidia will swift their current strategy.

http://tech.sina.com.cn/it/2006-07-04/16001020773.shtml

About 18 days old but still relevent.

A rough translation...

Quote:
July 4 at noon, a person close to the negotiations which side to the author revealed that AMD has reached a purchase agreement with ATI, the news will soon be officially announced.

The source also disclosed that the company is currently ATI acquisition side "a big shake-up" but he refused to disclose more, such as purchasing, pricing details.

In May this year the industry was the acquisition of ATI Intel news, the news was subsequently denied by both sides. In early June, the acquisition ATI again Puchu case, but the acquisition side has become a veteran opponent Intel AMD, but then AMD and ATI is equally denied the news.

There are industry analysis, storage acquisitions ATI graphics chip market will be re-demarcation of the pattern. Intel's market share is highest in the field, the old rival Nvidia and ATI is the main storage partners. Nvidia Corporation founder and CEO Huangrenxun Earlier in accepting media interviews said that if AMD acquires ATI, NVIDIA will adjust their current strategy will no longer focus on AMD market, but part of the Intel market pros


Intel/Nvidia vs. AMD/ATI anyone? As Nvidia swifts away from producing AMD chipsets, the compeition will like you said (and I believe) increase 100 folds.
July 22, 2006 1:27:41 PM

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1.22 Bil and can eak out only 89 million profit? This will not pay for the Fab 30 renovations for certain.


And those numbers would not survive a typical economic profit review. This tells me there is a shared vision at AMD that supercedes profitability. Or maybe they just aren't the smartest businessmen?

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This was not a good quarter for either.


And you don't cheer when you had a quarter as mediocre as your competition. You lament that you were unable to take advantage of an opportunity, then plan how to do so if another such opportunity arises.
July 22, 2006 2:24:17 PM

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they have to merge,point blank!they are developing a platform that requires it,now we are seeing amd move,and this will revive confidence across the board,they released a 60% performance expectation through the video with the vp,are pushing to get ahead of schedule ,and becoming more open about the need to aquire ati,or merge.
this my furry friends is good activity and may save falling shares on stock ,where abottom out will be less devastating,and rebounding will be easier,
its concievable that once ati is firmly embedded and the tech matures ,that intel will loose more market shares on all levels,
so for longterm after the ati aquisition/merger amd will be the stock to get,and short term will continue to be a chip by chip trade off.


I do not see how they will get any short term benefit. ATI is not turning profits as high as Intel or AMD> AMD can not compete chip for chip currently. The only area i can see the company benefitting is if they were to integrate the CPU to Graphics communication in some special way. This could actually hurt AMD because this will give room for Intel to do something with NVidia. Intel has always been very innovative when it comes to driving standards, and they played a big part in PCIx. Im;ess AMD and ATI can do something spectacular, look for Intel and NVidia to jump at a similar opportunity, but without any merger.

well if a hypertransport link was used it would increase bandwith, but we all know that bandwith is not the bottleneck of today's gpus... but it may be of tommorrow's. i think the merger is good in the fact that amd can do what intel does and that is they can produce low level onboard gpus to compete with that market. but it is bad as it would limit chipset choices and or gpu choices on an intel system if amd does not allow ati to sell for intel based systems (would also lower bottom lines for ati which would effect amd if they merged) all of this is ofcourse imo
July 22, 2006 7:09:31 PM

Well, the 5.6 billion for ATI is a misleading figure. Mergers and aquisitions are a very interesting thing.

This is a very simplified and not-at-all accurate explanation, but it does the job. Technically, AMD does lose money in the whole thing, but at the same time, they don't really "lose" money.

When AMD buys out the ATI stock, they are buying a tangible asset that, technically, does not depreciate. A stock remains valuable, assuming the value of the stock remains constant. In other words, they are simply converting money into an asset that never loses its value. Companies constantly invest their cash reserves in short term (and long term) investment opportunities. Microsoft's $40B in cash isn't really "in cash" - it's in short term, tangible investments that can easily be liquidated. They aren't "losing" the money - simply moving it elsewhere.

Mind you, the whole thing is easier when you actually have the cash necessary to buy the company, as you don't have to worry about the fact that you're generating the cash to buy an asset out of nowhere, but corporate finances are a complex beast and stuff like this isn't really all that strange and doesn't really cost the company all that much in terms of loans and whatnot.

Mind you, this isn't to say that this isn't a risky proposition. AMD could still lose their shirt on the deal. If the stock suddenly plummets in the future, for example, the stock that they bought is suddenly not such a great asset and they are now stuck with a load of debt.


Once again, this is an oversimplified explanation of everything, but it serves the purpose, I would think. :) 

PS: IAAE...OATIMII (I Am An Economist... Or At Least I Majored In It)
July 22, 2006 7:31:28 PM

I too see a Intel and nVidia partnership in the near future. Two large companies vs. two small companies? Wow. The competition is going to be insane.
July 22, 2006 7:41:11 PM

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This is true, it isn't like they burn money -- you are obviously more knowledgable than I in this matter -- I'm a chemist not an economist :) .


Haha, well, I'm just glad that I can actually offer some helpful insight into something here.. I have a feeling your PhD's are a bit more relevant to this forum than my degree. :) 

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But the numbers floating around far exceed what I would have expected with a market cap of about 4 billion, and no real assets (i.e. a fab) other than design and IP, engineering talent and such.... it seems like a huge burden to be taking on.


Well, they (as I'm sure you're aware) decided to buy the company out completely, rather than purchase a majority share in the company. This was probably an agreement worked out by both ATI and AMD. A 20-30% premium of the stock price is about what you'd expect, and 5.6 is at the higher end of that premium, so it isn't all that unexpected. The final number may end up being slightly lower, but AMD couldn't have bought out ATI for any cheaper than 5 billion.


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A gamble in my opinion.


Agreed, this is an extremely risky move by AMD, especially in light of an intensive price war and recent aggression by Intel. It does seem opposite to their recent attempts (as you said) to "lean down" the company by spinning off non-CPU parts. But who knows, I'm sure AMD has a good reason for doing it.
July 22, 2006 8:28:38 PM

Do you think this is all about ATI's Cards and chipsets?

As mentioned before, embedded chips may come more to play. ATI would give AMD inroads to HDTV, cell phone, portable video players, etc. Do you think AMD has the capability to design and offer misc. processers in this segment. By the time the NY fab is built and running, Sony/Microsoft/Nintendo should be thinking up a new generation. Do you think AMD could offer an all-in-one service here?

Does anyone know if ATI has any patents on any tech AMD needs for their current roadmap?

Please excuse me if I ramble here, but I see little reason AMD has to purchase ATI now rather than waiting.
July 22, 2006 8:32:27 PM

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Do you think this is all about ATI's Cards and chipsets?

As mentioned before, embedded chips may come more to play. ATI would give AMD inroads to HDTV, cell phone, portable video players, etc. Do you think AMD has the capability to design and offer misc. processers in this segment. By the time the NY fab is built and running, Sony/Microsoft/Nintendo should be thinking up a new generation. Do you think AMD could offer an all-in-one service here?

Does anyone know if ATI has any patents on any tech AMD needs for their current roadmap?

Please excuse me if I ramble here, but I see little reason AMD has to purchase ATI now rather than waiting.
Well BaronMatrix and I especially hate the thought of AMD buying ATi. If AMD does buy ATi, business will likely run as usual except they will support each other.
July 22, 2006 8:37:32 PM

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and all i can reply with is a question,are you sure you are not overly attached to names here?
because in the long term amd will be able to compete fully with intel.
I am sure amd has put alot of consideration into ati's role in their own market,and that if Ati remains strong and competitive it will serve them very well in the end.
Oh be sure, I just don't like the thought of AMD buying ATi. Not quite sure why...
July 22, 2006 8:40:36 PM

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I am sure amd has put alot of consideration into ati's role in their own market,and that if Ati remains strong and competitive it will serve them very well in the end.


I hope you're right. I hope AMD isn't taking a gamble on buying ATI just to make sure that Intel doesn't.
July 22, 2006 8:42:36 PM

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it just resembles alot of corporate guzzling for now,its what youd expect from intel,and it takes a mystique away from ATI as a standalone company,and we are nostalgic in that regard,it was our ATI,but i am confident ATI AMD will bring about a brand new mystique,and quite potentially ,a noteworthy one.
Thats it right there, you hit it right on the mark. Good one! :wink:
July 22, 2006 8:45:48 PM

My question now is, will Intel buy nVidia? I'm sure they are thinking about it. If AMD buys ATi, all hell will break loose in the hardware market.
July 22, 2006 9:00:37 PM

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My question now is, will Intel buy nVidia? I'm sure they are thinking about it. If AMD buys ATi, all hell will break loose in the hardware market.

I doubt if Intel would buy them outright. Nvidia has alot more business with chipsets than ATI. Likely enough so that the FTC probably wouldn't allow this, unless Nvidia spun it off as a seperate company.
I think if AMD/ATI becomes reality, Intel & Nvidia will form an alliance. Intel has motherboard patents and processes that Nvidia would love to use, and the other way around for graphics.
July 22, 2006 11:41:09 PM

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I too see a Intel and nVidia partnership in the near future. Two large companies vs. two small companies? Wow. The competition is going to be insane.


It would be interesting to see stats on video card application - nvidia vs. ATI on AMD game boxes, nvidia vs. ATI on Intel game boxes and the same comparison for non-gaming PCs, workstations, etc. Pre-Conroe, you'd think that partnering with Intel could have cost nvidia in the gaming arena but now, it may represent growth potential.
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