14 DAY TRIAL // AMD reported its financial results for the quarter that ended on 30th of July. While the company's revenues rose well over a billion dollars, which is 13% higher than revenues from the same period last year, its total financial balance is negative, as AMD lost $600 million.
This loss includes the sum of $130 million charge that AMD took in order to buy the graphics cards and chipsets producing company ATI. An additional $78 million went into the integration of former ATI employees into the existing AMD structure. Robert J. Rivet, AMD's Chief Financial Officer said and he was cited by the Web based news site TGDaily, "While we made solid progress in the second quarter across a number of fronts, we must improve our financial results."
All is not lost for the merged companies, as the processor producer gained the system integrator Toshiba as a customer and at the same time took an increasing role in supplying an already existing customer companies like Dell. Probably the AMD's weakest sector from the very beginning, shipments of notebook chips went up with 82 percent compared to last year. The company seems to have stopped cold the erosion of its market share and it thinks that the second half of the year will finally bring the much needed profits.
During the fierce price war with Intel, AMD had to cut prices from its entire line of products and while Intel did the same and was not too disturbed by the income lost, for AMD that has no native quad core capable processor meant almost disaster as the company struggled to fight against better products than its own. Barcelona and Phenom, the AMD's answer to Intel's already on the market quad core processors, will not be ready for launch for a few months yet because they "required a bit more design work than we anticipated," said Dirk Meyer, president and chief operating officer at AMD and was cited by News.com.