AMD Reports $611 Million Loss

mpfife writes "Toms Hardware reports that declining microprocessor sales have pushed AMD deeply into the red. 'The company reported a net loss of $611 million on revenues of $1.233 billion, which is more than 20% below the guidance the company expected at the end of Q4 2006. The loss includes charges related to the ATI acquisition in the amount of $113 million, but is mainly a result of the increasing competition with Intel in the microprocessor market.'"

Comments

However, stock in AMD is rising

[WillAffleckUW]

While it is true that they are in a world of hurt right now, they have taken concrete actions that should deliver another round of highly profitable quarters, and their new quad core processors and power consumption ratings should result in their usage in a lot of boxen.

That plus the breakdown of the MSFT monopoly and the Wintel dictatorship (disclosure - I have owned MSFT before, and own I think 400 shares of Intel) with the low cost push and power push for PCs and laptops using processor chips, should mean they will return to profit in short order.

The market always projects 4-6 months ahead, except in Japan and Europe where it tends to project 6-18 months ahead.

Re:Big AMD Fan here

[Timesprout]

No they were just not sufficiently on top to be able to generate the capital required to upgrade their fabs to the level where they could match Intels volume of production. This has largely precluded them from being able to clinch the big money deals with Dell,HP etc. AMD's chips were excellent, there just weren't enough of them.