14 DAY TRIAL // Once upon a time, there was this company that had many followers, but a big bad wolf came and stole their ideas, modified them and put their name on them, sold them as something else and buried the company into the ground. Even though the company made a desperate move to stay on top of their game, the situation was grim, at best.
AMD posted their financial results for the first quarter of 2007, and the influence of Intel Core microarchitecture and NVIDIA's G8x series of graphics cards has taken its toll. Their revenue was of $1.233 billion, with an operating loss of $504 million and a net loss of $611 million. To make a little comparison, the fourth quarter of 2006 brought AMD a revenue of $1.773 billion and an operating loss of $529 million. Much of the "blame" also has to do with the acquisition of ATI, but they cannot be held entirely responsible for the situation.
Robert J. Rivet, AMD's chief financial officer said in a statement: "After more than three years of successfully executing our customer expansion strategy and significantly growing our unit and revenue base, our first quarter performance is disappointing and unacceptable. We are aggressively addressing the issues that led to our significant revenue decline. We are aligning our business model, capital expenditures and cost structure with the goal of accelerating our return to profitability. Lastly, our customer relationships remain solid, reflecting their confidence in our strategic direction, current and new products, and technology roadmaps."
Now all the cards that AMD has left rely on the success or the failure of the products they are about to showcase three days from now. Everybody is holding their breath, and I sure hope they pull through this "gray" period, because if they don't, Intel will have a monopole on the x86 processor market for desktops, and a lot of the server market as well. And they all say this is democracy we are living in; yeah, right.