AMD's revenue down 10%, workforce down 15%
Subject: General Tech | October 19, 2012 - 02:04 PM | Jeremy Hellstrom
Tagged: quarterly earnings, downer, billions, amd
The hard numbers have arrived and AMDs quarter was every bit as bad as investors had feared, with a non-GAAP net loss of US$150 million and a $0.20 loss per share. The actual income for this quarter was $1.27 billion, the low end of the predictions that were made by analysts and with the sluggish movement in the PC market the choice has been made to lower operating costs as opposed to trying to increase revenue. To do so they will be reducing their global workforce by 15% over the coming quarter and restructuring the company with the goal of reducing operating costs by 25% so that a $1.3 billion dollar quarter would be a break even point, not a loss. The Register details other changes Rory Read is planning on implementing, more of a focus on chips for servers and embedded cores and SoCs for communication and industrial applications. As well AMD's win on the console side, with the Sony PS4 using AMD for both CPU and GPU as well as the WiiU which will use an AMD GPU and the as yet unnamed new XBox, all of which will garner licensing incomes for AMD for years to come. The talk about ultra-low-power chips for tablets and ultrabook like products is hopeful, though it is unlikely to be a major revenue source it would be a good move to attempt to grab more market share in that segment. DigiTimes also weighs in here.
"One week ago, AMD warned investors that its financial results for its third quarter of 2012 were going to be worse than it had previously estimated, with revenues down about 10 per cent from the previous quarter rather than the 1 per cent, plus or minus 3 per cent, that they had forecasted earlier.
They were spot on – not that being correct about such a disappointing result will win them many friends on the Street.
After the markets closed this Thursday, AMD announced that its Q3 2012 revenues were $1.27bn, which hit that prediction of a 10 per cent quarter-to-quarter slippage."
Here is some more Tech News from around the web:
- One year on, SSL servers STILL cower before the BEAST @ The Register
- Multiply Your Encrypted Linux Backups with Horcrux @ Linux.com
- Mozilla launches Firefox marketplace for Android @ The Inquirer
- Arctic Charging Station @ Kitguru
- Motherboard Advertising & DRAM Compatibility @ Benchmark Reviews
- SysAdmin Corner: 7 Network Security F-Ups Small Offices Make @ Techgage
- Good Old Games Adds Mac OS X Support @ Slashdot
Micron goes on a spending spree, picks up Elpida and a big majority of Rexchip shares
Subject: General Tech | July 3, 2012 - 02:07 PM | Jeremy Hellstrom
Tagged: purchase, billions, micron, Elpida, rexchip, powerchip, DRAM, flash
Micron has been very busy lately, spending $2.5 billion USD to purchase Elpida and another $334 million USD to purchase another 24% of DRAM maker Rexchip from Powerchip. The latter of those purchases gives Micron a total of 89% of the existing shares of Rexchip which may not give them outright ownership of Rexchip but gives them such a huge majority that they can determine the outcome of any vote which is presented to shareholders. Rexchip brings a single 300mm Fab working on 30nm process to the table, which gives Micron a bit more manufacturing capability to utilize for what is likely to be a busy season for them.
The Elpida purchase is much bigger for both the industry and Micron, especially as they decided to buy the company outright instead of purchasing a subsidiary or only the IP of Elpida. Instead the company will remain intact for the near future though there will likely be changes to the executive structure as they are integrated with Micron. Not only does this purchase give them access to all property, intellectual or physical, that Elpida currently possesses it give Micron an in at Apple as it was Elpida that supplied much of the chips used by Apple. That would put Micron in the enviable position of supplying both PC and Apple products. DigiTimes breaks down the deal here.
"Micron Technology and Elpida Memory's trustees have signed a definitive sponsor agreement for Micron to acquire Elpida, according to the US memory chipmaker. The agreement has been entered into in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court.
Micron revealed that under the agreement, JPY200 billion (US$2.5 billion) total consideration and less certain reorganization proceeding expenses will be used to satisfy the reorganization claims of Elpida's secured and unsecured creditors. Micron will acquire 100% of the equity of Elpida for JPY60 billion to be paid in cash at closing."
Here is some more Tech News from around the web:
- Users enraged by Cisco's cloudy 'upgrade' to Linksys routers @ The Register
- Mozilla's 'Boot to Gecko' morphs into Firefox OS @ The Register
- The impact of Ivy Bridge on current processor pricing @ eTeknix
- Creating a Bootable DOS Flash Drive the Easy Way @ Techgage
- Kensington Absolute Power Dual USB Wall Charger Review @ NikKTech
- The TR Podcast 114: Gigahertz graphics and high-def tablets
I got your $13.9 Billion over here...
Intel had a record quarter. Are we tired of hearing that yet? I guess that depends on who a person is investing with. Earlier this quarter Intel warned that their results could be negatively affected by the current hard drive shortage that we are experiencing. Apparently, this was a factor, but it did not stop Intel from still having a record quarter.
Q4 2011 turned out to be gangbusters for Intel. They reported gross revenue of $13.9 billion, which is significantly higher than the expected $13.74 billion analysts were predicting. Net income came in at $3.4 billion with an impressive 65.5% gross margin. The overall year was also record setting at $54 billion gross revenue and $12.9 billion net income. For comparison, AMD has a gross revenue of about $6.8 billion and a net income of around $300 million. 2010 was a record year for Intel in that they surpassed $40 billion in revenue for the first time in the company’s history, and this year saw revenue over $10 billion higher. Intel is certainly hitting their stride, and they do not look to slow down anytime soon.
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