Is anyone else concerned regarding AMD's business practices? They lost around 850 million dollars last quarter (supposidly limiting cash to around 200 million left - although who really knows, right?). Intel doubled their profits last quarter as compared to 4th qtr 2001. Sun lost around 2 billion dollars. Microsoft actually had enough profits to pay a dividend (instead of just dumping the extra profits back into the company via retained earnings). Are we seeing a Microsoft-Intel completely dominated future? This doesn't look good for anyone except the employees of the two giants (which, by the way, are STILL hiring people during the economic flatline). Any thoughts?
600 million come from a extrodinarie expense so that just a 200 million lost.
Intel have layoff 7% of they work force most come from the fact that intel need less staff dor 300 mm wafer reducing expende to reach a 51% groos profit margin many are hiring like Rambus.All DRAM make big lose exception to Samsung because it produce GDRAM and RDRAM
I think you have to wait until the economy turns north before fully evaluating the situation. I personally think AMD will do just fine. They need to break into the OEM market, like Intel has, to fully realize their potential though.
But my point is, the economic upswing may still be a year away (or more). Can AMD really loose this much money for much longer (and they say now that the 64 bit chips won't come onto the market until christmas of this year at earliest -- so no huge profitable products soon, right?).
So question to ask you is this. Do you think companys will not buy Amd 64 just for it after christmas. Thing is Everyone trying to save money so there going to try for the cheaper chips. So That going to be aiming right at Amd.
>They lost around 850 million dollars last quarter
>(supposidly limiting cash to around 200 million left -
>although who really knows, right?).
There is a difference in posting a loss, and burning cash. Many of these losses, dont affect your cash position. From what I heard, AMD would still have around 1 billion in the bank, thanks to slower repayments of FAB30 and external financing. They should be able to survive 3 or 4 more bad quarters..
= The views stated herein are my personal views, and not necessarily the views of my wife. =
i wouldnt worry about amd they had some 1 time charges and like others already said really lost less im sure this year i bleieve amd was targeting marketshare like General Motors has done in the auto industry.
Well, unless they are really long or very costly (in terms of human life). Then it can kind of slow the economy. But this should be speedy (man, of the what 120-150k known soldiers in the middle east, about 65,000 of them are marines!).
Actually, if it gets much worse (since IBM and UMC are really supporting AMD's production), IBM might just decide to buy AMD, lol (or let them die -- that's possible too). Kind of cheap for IBM to do a huge stock buyout-takeover (get 51% of the company through stock and put specific people on the board of directors). Let's see, it's about 6 bucks a share (and will probably go lower, but we'll keep it at 6) and based upon the 850 mill loss at 2.50 a share, that's 340 million shares in existance (approx), so 340 * 6.50 (cuz that's a good average - cuz when IBM starts buying stock, the price will go up) is about 2.2 billion dollars. Hmm, i don't know if that's worth it to IBM to have controlling interest in AMD (for a buyout or other means). We'll see...