Published in News
AMD faces cash crunch
Just when it needs the dosh
AMD is about to face a cash crunch just as the outfit needs the dosh to push into new markets.
According to Bloomberg AMD is facing yet another crisis. Not only is Chief Executive Officer Rory Read firing workers to cut expenses as the chipmaker’s sales slide, he can’t cut costs fast enough and is seeing his cash reserves shrink faster than an Arctic swimmer's scrotum. AMD's cash supply has fell to $1.5 billion in the third quarter, shedding $279 million from the previous period. If this goes on the company might only have $600 million in the bank by this time next year. AMD has $2.04 billion of debt.
No one has ever worried about AMD's cash flow before, but now there are some serious concerns. Particularly as the PC market, which provides 85 percent of AMD’s sales, has been drying up because of the economic melt down.
Fears are that AMD might run out of money before any transformation to the new technology landscape can happen.