Feeds

AMD CEO vows 'maniacal' chip-baking fix

Customer trust 'eroded', not 'irreversibly damaged'

Secure remote control for conventional and virtual desktops

AMD's newish president and CEO fairly flaggelated himself for his company's failure in execution during its last quarter, a failure that caused Intel's only real competition to do the unthinkable: leave money on the table.

"We saw both 32 and 45 nanometer supply challenges during the third quarter," Rory Read told analysts and reporters during a conference call after AMD announced its better-than-expected financial results on Thursday. "No doubt, we must improve our execution."

Reed attempted to smooth the feathers of investors who are understandably concerned that AMD was not able to meet demand during the quarter. "From an execution standpoint," he said, "you know, and we know, that we faced significant manufacturing challenges in the quarter. Having said that, demand was strong."

But to meet that significant demand, things have to change. "We will continue an aggressive effort with our foundry partner to improve manufacturing performance at this important 32-nanometer technology," he said. "And we are already seeing steady improvement – day after day, week after week. But we are not out of the woods yet."

His promise to investors: "a maniacal focus on execution across the entire company."

One analyst – Glen Yeung from Citi – was concerned that it was possible that the damage had already been done. "Do you sense that there's a longer term impact from that?" Yeung asked Read. "Did you just turn some customers off forever because you screwed it up on the execution side?"

In response, Read insisted that customers were deeply interested in AMD's products, riffing on stats and figures from the company's recent successes in the mobile market.

"Being a customer in my past job," he explained – Read came from Lenovo, where he had been president and COO – "it's about building trust: trust in execution, trust in technology. We have to continue to focus on that – that is 'job one', from my perspective.

"I don't think we've irreversibly damaged that trust at this point," he told the questioner, "but we eroded some of it."

After defending AMD's decision to slow some of its desktop-chip manufacturing in order to support its growing mobile market capacity, he admitted that some customers "felt some of that pain in the third quarter because we weren't able to execute as cleanly as we would like."

After his long, emphatic answer, Read told Yeung: "Sorry, Glen, but I got fired up about that one."

Speaking of "fired" and "execution", one got the clear impression that should AMD again fail to meet its customers' expectations in coming quarters, we might indeed see some firings.

And although Read may not be capable of actual executions, Texas-governor style, should yields not improve he might find himself wishing that such an incentivization tool were available. ®

The essential guide to IT transformation

More from The Register

next story
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Apple to build WORLD'S BIGGEST iStore in Dubai
It's not the size of your shiny-shiny...
Just in case? Unverified 'supersize me' iPhone 6 pics in sneak leak peek
Is bigger necessarily better for the fruity firm's flagship phone?
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
TV transport tech, part 1: From server to sofa at the touch of a button
You won't believe how much goes into today's telly tech
The agony and ecstasy of SteamOS: WHERE ARE MY GAMES?
And yes it does need a fat HDD (or SSD, it's cool with either)
prev story

Whitepapers

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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?