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Friday, 20 July 2007 09:05

AMD lost 600 million dollars in Q2

Written by Fuad Abazovic

Image

Fudzilla was right


As we predicted
on Monday, AMD has indeed lost a lot of money. We predicted 540 to 570 million and AMD ended up losing 600 million, the original number we predicted back at Computex.

For some reason Wall Street upgraded AMD's share price as it has been going up in the sky in the past few days, all the way to the current 15.76 and we are certain that the situation is going to change in the next few days. It will be fun to see what happens at the NY stock exchange today when the bell rings.

The price of AMD shares went up due the large CPU sales in Q2, but this doesn’t make much sense as AMD did sell more, but at toilet prices and therefore it failed to make any margins.

AMD sold more processors for a total of $1.38 billion in this quarter compared to $1.22 billion last year, but it failed to make any profit due to the very low price of the processors. In Q2 2006 AMD made 88 million dollars profit and this time they are losing big time.

Many people will accuse the acquisition of ATI, but we know that ATI is meeting its goals since Q4 2006 and this includes Q2 2007 and the lack of a real processor that can dethrone Intel is the key reason why AMD lost in this price war.

As AMD now expects capital spending to total $1.8 billion this year or some $200m less than previous estimates the prices of AMD shares went up in after trading hours. We still don't make a lot of sense out from it, as AMD can easily run out of cash in next two to three quarters. .

Also read

AMD to lose more than expected, 540 to $570 million (must read)

Intel Q2 profits jumps 44 percent
 

 

 

 

 

 

 

 

Last modified on Friday, 20 July 2007 09:23
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