AMD Could Be Out of Cash in 6 Months, says analyst

Post by **Apoptosis** » Fri Apr 20, 2007 10:59 am

Following a horrible quarter and market share losses, Advanced Micro Devices Inc. (AMD) is within two quarters of running out of cash, according to an analyst.

''While the company's two preannouncements took away any surprise on the revenue line, margins and profitability were still materially worse than expected,'' said Chris Caso, an analyst with FBR, in a report. ''In addition, AMD lost approximately $883 million in free cash flow in the quarter, worse than expected, and putting the company within two quarters of running out of cash.''

SOURCE

Wow... what do you guys think?

camaroguy1998 · Post by **camaroguy1998** » Fri Apr 20, 2007 12:29 pm

This is not good news but, I dont believe AMD is going anywhere in the near future!

In an Apples & Oranges comparison, look at the Airline Industry.
Most airlines have been operating in the RED for several yrs now and several have filed for bankruptcy, some TWICE!
They are still around and starting to make money again!

These may be hard times for AMD but I believe things will get better!
From what I've read about the new ATI Graphics cards they should be back on top at least for a while!

Me personally, I will always buy AMD!

stopthekilling77 · Post by **stopthekilling77** » Fri Apr 20, 2007 12:36 pm

i'm rooting for AMD even though i'm more of an Intel fanboy, i grew up in an all AMD house (black sheep of the family anyone?)

i hope they can make a comeback!
also wonder how much of a profit they're actually reaping in with those new price drops

Sovereign · Post by **Sovereign** » Sun Apr 22, 2007 9:26 am

If AMD goes under, then Intel is in trouble.
1. They will be a de-facto monopoly IF and only IF AMD's bankruptcy drives them completely out of the CPU business
2. Same applies to graphics cards
3. No competition = no incentive to control costs or innovate in the future
4. You have to question the possibility of Intel using anti-competitive practices. While no judgment can be made until the investigations are complete, Intel is so much larger than AMD that I wouldn't be surprised if there were a few secret deals in the past that hurt AMD.

Kougar · Post by **Kougar** » Sun Apr 22, 2007 10:18 am

I think it is just another analyst to focused on the numbers to notice the rest of the story.

Did ya know ATI hasn't released a high end card since the x1900 series launch back on January 2006, with the sole exception being the x1950XTX refresh? That is a very long time. AMD hasn't released a new CPU design since K8 either.

So R600 and K10 are both set to launch by the middle of this year, just three months, and both ATI and AMD should be regaining the top performance leader in their markets. If their hardware makes a big splash it could very well lead to a large rebound within the company. But even if for some reason this does not happen, there is no way AMD/ATI would run out of cash with both product launches just around the corner, and it is just silly to think they would.

HONkUS · Post by **HONkUS** » Sun Apr 22, 2007 10:28 am

2. Same applies to graphics cards

You forgot that tiny company named Nvidia

slugbug · Post by **slugbug** » Sun Apr 22, 2007 2:50 pm

AMD better get cracking before everyone makes the switch to Intel.

Sovereign · Post by **Sovereign** » Sun Apr 22, 2007 10:26 pm

HONkUS wrote:
2. Same applies to graphics cards
You forgot that tiny company named Nvidia

I meant that a monopoly would exist on nVidia's end if DAAMIT gets kicked out of GPUs

Mad_Goku · Post by **Mad_Goku** » Mon Apr 23, 2007 5:07 am

well I'm sure if worse cames to worse they would consider selling the graphics card unit (ATI).

Zertz · Post by **Zertz** » Mon Apr 23, 2007 12:11 pm

Mad_Goku wrote:well I'm sure if worse cames to worse they would consider selling the graphics card unit (ATI).

...to nVidia?

werewolfdaddy · Post by **werewolfdaddy** » Mon Apr 23, 2007 3:26 pm

If that happend, we would all be in trouble.

Pesto · Post by **Pesto** » Mon Apr 23, 2007 4:04 pm

i wonder what the odds are that they'll bounce back strong...

one of my friends wants to buy amd stock when prices hit rock bottom in hopes of it going back up

Kougar · Post by **Kougar** » Mon Apr 23, 2007 4:05 pm

Mad_Goku wrote:well I'm sure if worse cames to worse they would consider selling the graphics card unit (ATI).

The only reason all of this about AMD's finances is occuring in the first place is because they stretched themselves thin to buy out ATI. This would be pretty self defeating... especially since ATI turned a profit last quarter, even if AMD didn't.

smack323 · Post by **smack323** » Tue Apr 24, 2007 9:05 am

I have a feeling AMD will be just fine, correct me if i am wrong but didnt Ford motors report a loss of $12.7 billion for 2006? Its all how these people crunch the numbers.

Kougar · Post by **Kougar** » Wed Apr 25, 2007 8:58 am

They appear to be far from just fine, I have been waiting for these numbers:

Intel Wipes Out AMD's 2006 Marketshare Gains in One Quarter

T-Shirt · Post by **T-Shirt** » Wed Apr 25, 2007 9:09 am

looks like AMD plans to issue $1.8 billion in new senior bonds.
trying to stay afloat for a while, hopeing for something( intel mistake?, some new chip?, a miracle?) to save them.

Mad_Goku · Post by **Mad_Goku** » Wed Apr 25, 2007 7:00 pm

ah, don't worry about AMD, they will find a way to survive!!

Baddad53 · Post by **Baddad53** » Wed Apr 25, 2007 9:53 pm

NVidia is sneaking into the market also. So if AMD goes south (not likely) other will be there for the consumer nich.

IssE · Post by **IssE** » Sat Apr 28, 2007 1:51 pm

Eee.. that doesn't sound good.. especially since i bought the athlon x2 3800+ two weeks ago.

vicaphit · Post by **vicaphit** » Sat Apr 28, 2007 2:06 pm

Do the chips have warentees or something? That would suck if they went under before your warentee was up and your chip got fried.