Published in News
AMD to scrutinize all business units
by David Stellmack on18 April 2008
Target could be consumer electronics unit
AMD said in its investor conference call today that it will be scrutinizing all business units within the company that were not part of its X86 process and graphics card business for profitability. Of course, this news comes as little surprise, as AMD is looking for every way possible to slash the red ink.
A likely target could be the consumer electronic business unit, as it only accounted for $81 million in revenue during the first quarter. While everything is up in the air at this point, some speculation has indicated that this could be a place where AMD could try to save some money.
As we have written about several times on Fudzilla lately, AMD is in a bit of a spot with a late transition to 45nm and performance issues with its latest round of processors. The GPU business has been a bit kinder to AMD, with a decent save of the R600 technology into some mid-range products at attractive price points. Still, the GPU hopes for the future rest with the R700 technology which, of course, very little is really known about as to what it will offer.
AMD did offer some good news with the fact they have some major design wins for the Puma notebook platform with several major OEMs. AMD also claimed that a couple of big name customers were going to pick up the B3 stepping of the Barcelona processors. Sales of Opteron server processors remained good with steady market acceptance.
AMD confirmed that will be laying off 10% of its work force to help get things back into line. Our sources continue to confirm that most of these cuts will come in Austin, Texas. AMD continues to be optimistic about the future, however, and they expect things to improve over time.