Published in Graphics

AMD graphics actually losing money

by on25 April 2008

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$135M in year and a half


One of our readers made us aware that ATI is continuously losing money since AMD acquired the company.

It is not much, but it still has to prove that it can make some profit. In Q4 2006, the first quarter when AMD took over, ATI lost $27 million. In Q1 2007 it lost $35 million; Q2 2007 was the worst at ATI as it lost $50 million, and in Q3 2007 it almost made money as it managed to lose only $3 million.

In Q4 2007 it lost $12 million, while in Q1 2008 it lost $11 million. We learned that anything close to $10 million loss is almost like making money, as remember there are some royalties that the company gets for the console games, and this can help to break even.

Overall, it leaves a bitter taste in the mouth as AMD lost $135 million because of the graphics part of the business, but we know that graphic guys stand much better than anyone else in the company. If GPU business doesn’t break even in Q2 2008 we are quite sure that this will happen in Q3 2008.

You can take the calculator and see it for yourself here.

 

Last modified on 25 April 2008
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