AMD Restructures. Lisa Su Is Now COO.
Subject: Editorial, General Tech, Graphics Cards, Processors, Chipsets | June 13, 2014 - 06:45 PM | Scott Michaud
Tagged: x86, restructure, gpu, arm, APU, amd
According to VR-Zone, AMD has reworked their business, last Thursday, sorting each of their projects into two divisions and moving some executives around. The company is now segmented into the "Enterprise, Embedded, and Semi-Custom Business Group", and the "Computing and Graphics Business Group". The company used to be divided between "Computing Solutions", which handled CPUs, APUs, chipsets, and so forth, "Graphics and Visual Solutions", which is best known for GPUs but also contains console royalties, and "All Other", which was... everything else.
Lisa Su, former general manger of global business, has moved up to Chief Operating Officer (COO), along with other changes.
This restructure makes sense for a couple of reasons. First, it pairs some unprofitable ventures with other, highly profitable ones. AMD's graphics division has been steadily adding profitability to the company while its CPU division has been mostly losing money. Secondly, "All Other" is about a nebulous as a name can get. Instead of having three unbalanced divisions, one of which makes no sense to someone glancing at AMD's quarterly earnings reports, they should now have two, roughly equal segments.
At the very least, it should look better to an uninformed investor. Someone who does not know the company might look at the sheet and assume that, if AMD divested from everything except graphics, that the company would be profitable. If, you know, they did not know that console contracts came into their graphics division because their compute division had x86 APUs, and so forth. This setup is now more aligned to customers, not products.