Feeds

AMD loses cash less quickly

Is the bottom in sight?

New hybrid storage solutions

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. ®

New hybrid storage solutions

More from The Register

next story
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
EMC has nothing to say on VMware sale plan
Rumour and counter-rumour swirl around Wall Street
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.