Feeds

AMD loses cash less quickly

Is the bottom in sight?

Boost IT visibility and business value

AMD's CEO Dirk Meyer has fired a shot at his Intel counterpart, Paul Otellini, who recently said that the PC market has hit rock bottom.

In a call on Tuesday revealing his company's 2009 first-quarter results, Meyer said: "I've heard some say we've hit bottom. I don't know how someone could say we've hit bottom in the current economic climate."

For the sake of AMD's investors and employees, let's hope that Otellini is more accurate than Meyer. AMD's net revenue was essentially unchanged from the previous heinous quarter - $1,177m (£802m) in Q1 2009 compared with $1,162 (£792m) in Q4 2008 - but down significantly from the $1,487m (£1,013m) during the same period last year.

There were bright spots to be found, however. Although the company is still losing money, it's losing it more slowly. The net loss for Q1 2009 was $414m (£282m), a vast improvement over the $1,437m loss in Q4 2008 (£979m).

But even the good news had a tinge of badness. For example, even though microprocessor sales were up on a unit basis, the average selling prices (ASPs) for those chips was down.

Meyer put the blame squarely on the enterprise market. "Stand back and look at it," Meyer said, "Our server business was down a little bit quarter-on-quarter, while both the desktop and notebook businesses were up quarter-on-quarter, which affects the overall ASP and moves it down."

On the plus side, Meyer noted that he believes that GPU sales "might see a spike" when Microsoft releases the DirectX 11-enhanced Windows 7 expected later this year. He also has high hopes for the upcoming Congo variant of AMD's Yukon platform, which he said will ship near the end of the current quarter.

But oh, those pesky enterprise customers. After noting that "the outlook is murky at best," Meyer admitted that "The enterprise side of the commercial market is clearly still weak. Wallets are closed."

Which echoes Otellini, who recently said that enterprise customers are "keeping their wallets shut."

And that's one analysis upon which Dirk and Paul have found common ground. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.