Feeds

Analyst sounds AMD cash-flow warning

Chip maker about to be bought?

Beginner's guide to SSL certificates

A US analyst has expressed "increasing concerns" that AMD is heading toward a cash-flow crisis even a shareholders' ears prick to whispers that a private equity company is looking to buy a stake in the chip maker - or even the whole kit and kaboodle.

AMD's cash flow was questioned yesterday by American Technology Research analyst Doug Freeman, who told the firm's investor customers: "We were surprised to see AMD shares rally yesterday given what we believe to be increasing concerns about cash flow at the company... we think management will be forced to come to the capital markets for operating cash before the end of the summer."

AMD's shares yesterday opened at $14.83 and closed at the same price. During the day, the shares peaked at $15

The lift was due to the buyout rumour, Freeman said. "When we polled clients as to the reason behind the strength we were told that private equity rumors were circulating. While we do not doubt that private equity is sitting on cash it needs to put to work, we have a hard time seeing how it would get involved in AMD at the present valuation."

Freeman has AMD stock rated as 'sell'. His prognosis: "We advise investors to limit their exposure to AMD shares until cash is raised and new product benchmarks are made available."

AMD lost $166m in its 2006 fiscal year because it bought ATI. But it ended the year with $1.54bn in cash, down from $1.8bn at the end of FY2005. That's less than AMD's Q4 FY2006 revenue - $1.77bn, down from $1.83bn in the year-ago quarter.

Internet Security Threat Report 2014

More from The Register

next story
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
The IT Crowd's internet in a box gets $240k of crowdcash for a cause
'Outernet' project proposes satellite-fuelled 'Lantern' WiFi library for remote areas
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.