AMD posts another financial loss for the third quarter of 2009, but the company's executives offer an optimistic outlook for the next few months and into 2010. Specifically, the company says it believes consumers are ready to start buying desktops and notebooks again. AMD's results follow a solid quarterly report from Intel.
Advanced Micro Devices
posted a financial loss in the third quarter, but the
company's executives said they believe that the chip maker is poised for a
turnaround in the coming months.
During an Oct. 15 conference call to discuss AMD's
third-quarter results, CEO Dirk Meyer
offered a positive outlook for the rest of 2009 despite the current loss. Meyer
said he expected consumers
to start buying PCs again in the fourth quarter
and that businesses could
begin refreshing their hardware-
"We are seeing continued recovery in both Europe
and North America," Meyer said. "It also
appears that the commercial IT market is positioned to improve next year."
Click here to read about AMD's Vision Technology program.
In addition, Meyer said AMD has been able
to cut costs. The company is also controlling its expenses by shifting its
processors to newer, 45-nanometer manufacturing, which allows the company to
produce the chips at a much lower cost.
For the financial third quarter of 2009, which ended on Sept. 26, AMD
reported a net loss of $128 million or 18 cents per share. During the third
quarter, AMD collected $1.39 billion in
revenue. Those numbers beat Wall Street expectations. Financial analysts had
predicted a net loss of 42 cents per share for AMD,
with revenue of $1.26 billion.
The numbers were also better than for the third quarter of 2008, when AMD
posted a loss of $134 million or 22 cents per share. The latest numbers are
also an improvement over the second quarter, when AMD
posted a net loss of $330 million or 49 cents a share,
with revenue of
read about the legal battle between Intel and AMD, click here.
AMD, which is the world's second-largest
producer of x86 processors for PCs and servers, posted its numbers just a few
days after rival chip maker Intel reported its own third-quarter results.
During the quarter, Intel
earned almost $1.9 billion in profit on $9.39 billion in revenue,
$10.2 billion in the third quarter of 2008. Still, Intel's positive numbers
seemed to show that consumers and businesses were buying more hardware,
Earlier the week of Oct. 12, Gartner
and IDC reported that global PC shipments were better
than expected in the
third quarter of 2009.
In the coming months, AMD is expected to
release a number of new laptop platforms geared toward the consumer market,
allowing the company to take advantage of the 2009 holiday shopping season.
The "Tigris" platform, which the company originally planned to
release in the third quarter, targets the mainstream notebook market. In
addition, AMD plans to release "Congo,"
a platform design for what the company calls "thin and light" laptops
and a follow-up to the "Yukon"
platform it introduced at the beginning of 2009.
On the graphics side, Meyer said the company expected good results from the
introduction of its ATI Radeon HD 5000
series of graphics processors, which support Microsoft's Directx11 technology
that is used with Windows 7.
In addition to looking to attract consumer spending during the traditional
holiday season, Meyer and his executives are preparing for what they hope will
be a corporate IT refresh cycle in 2010. For that, AMD
is betting on its Opteron processors, including its newer six-core chips,
well as its microprocessors for PCs.
"We are well-positioned relative to the extent that [the] commercial IT
sector regains strength," Meyer said. "That is going to help