http://www.reuters.com/article/2015...20151015?feedType=RSS&feedName=technologyNewsAdvanced Micro Devices Inc said on Thursday it would sell most of its assembly and testing operations in two Asian cities, as the struggling chipmaker looks to cut spending amid weak demand for its processors for personal computer.
AMD said it will sell 85 percent of its ATMP (assembly, test, mark and pack) operations in Suzhou, China and Penang, Malaysia to China's Nantong Fujitsu Microelectronics Co Ltd (NFME) for a net proceeds of $320 million.
The company also said it would create a joint venture with NFME as part of the deal, to which it will contribute 1,700 employees. It said it did not plan to cut any jobs.
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AMD forecast current-quarter revenue to fall 10 percent, give or take 3 percent, sequentially. The midpoint of the range translates to about $955 million, well short of analysts' estimate of $996.3 million.
The company's shares were volatile in trading after market and were last down 0.5 percent at $1.96.
Kind of stunning that AMD still had these kind of operations in house.
It just struck me, this thread's been around since friggin' mid-2007. That's insane.
How long would you guys say AMD has left in it, reasonably, if things keep on the way they are right now? They're losing tons of money every quarter (seems to be getting worse and worse actually), as a result they're eating their own tail with cutbacks to R&D, which will only lead to weaker products and even worse competitiveness, more losses, another round of layoffs, and so on and so forth.
That's assuming status quo from now until the very bitter end. Is that a reasonable expectation though?They can easily go one for another 3 to 4 years the way things are right now.
It just struck me, this thread's been around since friggin' mid-2007. That's insane.
How long would you guys say AMD has left in it, reasonably, if things keep on the way they are right now? They're losing tons of money every quarter (seems to be getting worse and worse actually), as a result they're eating their own tail with cutbacks to R&D, which will only lead to weaker products and even worse competitiveness, more losses, another round of layoffs, and so on and so forth.
There is no need to speculate about the current cash drain: it's all in the disclosures.if Zen isn't good, in no way competitive to Intel, 4 years after Zen's release, that would be optimistic. The current sell off gave them maybe 1.5 quarters extra cash. That 70 million a quarter interest will not change, and in 2017 is that when they have to pay back portions of the principle, I don't remember though, I might be incorrect.
If they have plans to increase R&D, I haven't seen it. (I could have missed it.) But each quarter, they're shouting from the rooftops how their OPEX is reduction all the time: they're very proud about their inability to invest...AFAIK they are increasing R&D and cutting other pieces.
Who knows... One might hope that Zen will get them some new business.That's assuming status quo from now until the very bitter end. Is that a reasonable expectation though?
That is a serious concern indeed. Hard to know about salaries, but just look at stock compensation: $50M/quarter for Nvidia vs $13M for AMD.I would think that as the precipice approaches, we can expect key talent to either bail or get poached. This will delay new products and speed up the company's destruction, causing more rounds of defections and delays.
It just struck me, this thread's been around since friggin' mid-2007. That's insane.
How long would you guys say AMD has left in it, reasonably, if things keep on the way they are right now? They're losing tons of money every quarter (seems to be getting worse and worse actually), as a result they're eating their own tail with cutbacks to R&D, which will only lead to weaker products and even worse competitiveness, more losses, another round of layoffs, and so on and so forth.
If they have plans to increase R&D, I haven't seen it. (I could have missed it.) But each quarter, they're shouting from the rooftops how their OPEX is reduction all the time: they're very proud about their inability to invest...
Just the opposite ...I read somewhere that AMD didn't reduce their R&D in over a year and that they even increased their % of revenue on R&D (because of reduced revenue?).
http://hexus.net/tech/news/industry/85448-amd-quizzed-sharp-drop-off-rd-expenditure/The AMD CTO didn't quibble about the reduction in R&D, and admitted that as the PC market has contracted AMD has put less R&D effort into this part of the business. Instead of supporting its role in the PC market AMD was looking to target R&D in carefully chosen operations, so-called "banking the future of the Company."
Papermaster sketched out the narrower targets of its reduced R&D spend; "So it is on that next generation of CPUs starting with Zen. It is on successive generations of our graphics core next." With particular reference to its APU and GCN designs Papermaster boasted that a lot of investments have paid off in getting its APUs adopted for its game console wins. Furthermore the AMD CTO asserted that "we have a very strong roadmap for that Graphics Core Next IP going forward".
Ok, I went to the source. ( http://phx.corporate-ir.net/Externa...yfFBhcmVudElEPTUyMDY1Mzl8Q2hpbGRJRD01OTgxNTc= )I read somewhere that AMD didn't reduce their R&D in over a year and that they even increased their % of revenue on R&D (because of reduced revenue?).
He was asked about R&D from 5 years ago. I took a quick look at it. Saw their CFO commentary for Q4 2010, Q4 2014 and this Q3 2015. They were guiding 19-22% for R&D on 2011, then they had 19% on 2014 and if I didn't mix up on my mind math they got 22% this quarter.
https://forum.beyond3d.com/posts/1862191/In the last five years AMD’s R&D spending dropped by almost 50 per cent: from $432 million in Q4 2009 to $225 million in Q2 2015 as a result of revenue drops as well as AMD’s attempts to demonstrate profitability.
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In a bid to support its ongoing R&D operations, AMD already increased research and development spending as a percentage of revenue to 23.8 per cent in Q2 compared to 22.5 per cent in Q1. Since the company expects its sales to increase in the third quarter, it will naturally be able to either further increase its R&D expenses, or at least maintain them at the current levels.
