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Advanced Micro Devices

Advanced Micro Devices

Advanced Micro Devices hit a roadblock on its path to profitability during the second fiscal quarter of this year - an ageing inventory of old chips and falling PC prices holds the company hostage, analysts said in July.

Global HQ: Sunnyvale, California, US Website: www.amd.com

Global leader: Dirk Meyer, president and CEO

Local leader: Caleb Leung, country manager, ANZ

Core businesses: Microprocessor, integrated chip, PC motherboard, graphic chip design and manufacturing

Revenue: US$5.8 billion (FY08 ended December 27)

Key customers: Acer, Dell, Hewlett-Packard, Microsoft, Nintendo

Employees: 14,700

Advanced Micro Devices hit a roadblock on its path to profitability during the second fiscal quarter of this year - an ageing inventory of old chips and falling PC prices holds the company hostage, analysts said in July.

At the time, AMD had just narrowed its net loss during the second fiscal quarter of 2009 compared with last year, but the company’s revenue was flat over the first quarter. Analysts said AMD underperformed when compared with archrival Intel, which reported a sequential revenue increase of US$879 million.

Although analysts were disappointed by AMD’s results, they say the company’s future looks positive as it moved to focusing exclusively on chip design.

A full transition to the 45-nanometre process could beef up AMD’s margins, and the new slate of products could put its chips on more desks. The company also needs to get rid of the manufacturing costs associated with GlobalFoundries, analysts say. Teng Fang Yih

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Tags strategic 100 2009

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