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back to article AMD loses $1.19bn and CEO Ruiz

AMD today hit Wall Street with a one-two punch. It lost a stunning $1.19bn during the second quarter. And it nudged Hector Ruiz out of the CEO role, replacing him with longtime planned successor Dirk Meyer, who has been President and COO. Already very depressed, AMD's shares dropped close to 10 per cent in after-hours trading as …

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You can't make this stuff up

What more can you say. The numbers tell the story.

No offense to the AMD fans around, but even if Intel was horridly guilty of doing something vaguely bad 5 or so years ago when AMD first whined about it. Don't you think that the mismanagement and all the quarterly loses might have more do do with AMDs plight than Intel ever could?

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Anonymous Coward

That's how the game goes

Better products win. Sure, I'll admit AMD had the superior processors for a while, but if you look at the charts now Intel is at the top on all of 'em. If AMD wants to take a lead again, they simply need to come out with superior processors, and people will flock to them. If they can't beat Intel's stuff, they lose and die. That simple.

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AMD vs Intel

I've been an AMD fan for long, and I think that even Intel fans have to thank them, for the pressure they putted on Intel when they released Athlon processors.

Right now Intel has superior designs, but to be fair, if there were no monopolistic practices when AMD had the tech lead, they would have made much more money and allowed them to hire more and better engineers... Intel has a very favorable situation: when their products are better, they sell more to the buyers, when their products are worse, they bribe the buyers into buying their inferior products...

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Anonymous Coward

Ouch!

'"We will execute, execute and execute," Meyer added, perhaps scaring the hell out of AMD's employees.'

Ex-TERR-minate! Ex-TERRR-minate!

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AMD Can Kick Intel's Ass But Only By Forging a New Market

Replacing Ruiz with Meyer does AMD no good unless Meyer takes the opportunity to point AMD toward a new direction. It is time for AMD to realize that, even though it has the best engineering team in the world, parroting Intel's x86 technology is a losing proposition. Nobody can beat a behemoth like Intel by playing Intel's own game in Intel's own backyard.

Now that the industry is transitioning away from sequential computing toward massive parallelism, AMD has the opportunity of a lifetime to take the bull by the horns and lead the world into the next era of computing. Intel's is making a grave mistake by adopting multithreading as their parallel programming model. AMD must not make the same mistake. There is an infinitely better way to design and program multicore processors that does not involve threads at all. To find out why multithreading is not part of the future of computing, read 'Parallel Computing: Why the Future Is non-Algorithmic':

http://rebelscience.blogspot.com/2008/05/parallel-computing-why-future-is-non.html

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Boffin

Intel to buy ATI?

Heh, it would be interesting if Intel made an offer to AMD for ATI.

:)

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Coat

I hope AMD makes it

Even now, with Intel clearly in the lead, and arguably faster processors out, my AMD powered desktop still "feels" faster than my similar Intel machine at work. (perhaps it isn't in a drag race, but it seems to be faster in the things that count--- like multitasking.) I've always thought their architecture got the most important things right. Of course I suppose I'm one of those folks that likes to root for the underdog. (if Intel was slipping and on verge of failure, I'd be defending them) I do hope AMD stays around, if only to keep Intel in line price-wise and drive further development. Without AMD, Intel doesn't seem to have any reason not to jack up prices and slouch on development.

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Dead Vulture

2 companies ruined

He presided over the wreckage of Motorola's Semiconductor Sector,

and now AMD, too bad he's still on the board.

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Alert

From the Armchair

I note how nice it is to give advice to a business on how to run the show, and have absolutely no responsibility if such advice is a heap of dung.

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Paris Hilton

@louis

@louis did not Intel actually reverse engineer some AMD chip lines due a very fatal basic error and flaw in one particular design line that made it a real dud at street level due to the fact that it was basically incompatible to all that which went before it including their old designs !

As for AMD , there was an obvious trend to the expanding demand for low power mobile chips long before it became obvious given the total numbers sold as either replacements for desktop boxes or the ultra lightweight sub kilo or one and half pound class of small screen units like the sudden hit wonder called the atom powered EEEPC .

The reality is that a very large desktop or notebook provider one should have multiple alternate designs running either AMD or Intel to obviate the current crisis of Intel's inability to either ramp up demand or make adequate numbers of the low power mobile lines in high demand !

Unfortunately the Merchant Wankers and Financial disaster wowsers are only in it for the $ commission with big cuts of the top both ways , told the AMD board that it was a good buy even though the company was a virtual legless turkey on bare minimum life support requiring major capital injection to survive are the real pond scum in this equation , for they were selling a business but were absolutely clueless of how to run it properly in the first place , thus very nice line of work to be in if you can get real cash for free and accept zero responsibility at the time !

With benefit of hindsight , the existing AMD Board should have stopped at the boundary line reviewed all the data noting that the ARM and GPU unlike the CPU line of business is extremely volatile and fully capable burning through advanced research $$$ like there is no real tomorrow ! Further they forgot to ask as to whom was getting the lions share of the easy money from sales commissions to and from and also reviewed what has happened to basic GPU graphics chips within the past decade as to how much faster they become obsolete in real terms in less then six months from release date as the next smarter offspring runs out of the money pit screaming look at me , I will kick bulldust in the face of those puny processors that had escaped from the same looney bin before and now you must pay through your A@%*$ to maintain the current bleeding edge of technology and so on !

The reality is those greedy ones who voted yes on this improbable combination on the AMD Board of management have virtually shot themselves in the heart whilst lopping off all their arms and legs making themselves into a horse that can't walk or run for the next few years and looking up their own posterior at the same time because they chose not to ask the difficult "What ifs !" and let other people run off with the best cream laughing all the way to their banks !

The real shame is , if these silly wankers had even the smallest shred of honesty and integrity they should now directly apologize to all stockholders ,resign immediately without taking any additional compensation as recompense and throw open full vacancies at the annual general meeting for smarter and better more financially savvy directors who will look after all the stockholders interests ahead of their own self interest greed and who refuse to take any crapola served up on a platter to them at face value !

Sadly , that will never happen as both stupidity and greed always exceeds ability , "Idiocracy rules absolutely !" , or a fool playing with stockholders money and capital reserves is easily parted in the current world of financial sharks needing fresh road kill after the current smoke and mirrors fictional secure mortgage debacle they had been running from 2001 through 2007 died a sudden death causing an untold yet to be accounted misery for every Bank , Financial Institutions and Pension funds needing this cash from 2012 , by siphoning off the only real cash leaving trails of valueless paper being held by clueless end users at every opportunity possible and then some !

The polite but evil expression is , if the stockholders had any sort of collective brains they should be not asking for but actually sacking the entire Board , CEO and CFO at AMD and then suing them for full restitution for these and future losses thus incurred to date due to very poor forward planning until the mess is sorted out may be? Thus ending the super dreamland of platinum plus in the land of la la these wankers are currently living in of absolutely no care and zero responsibility of other peoples money as it has become that which can be pointlessly burnt or routinely wasted at every opportunity whilst lining their wallets exclusively and funding an unsupportable unrealistic "Jack did it , why not me too ?" lifestyle !

Choices can be evil and those willing to do the right thing because it is the right thing to do are very thin on the ground in this 21st Century of Propaganda with much smoke and mirrors obscuring the lethal minefields now before us covering the horizon in every direction !

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If AMD wasn't around

Intel would sleep on it's laurels.

Nvidia would charge anything they want for their GPU's. (X280 launch price anyone?)

Thank you AMD!

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Silver badge
Alien

Who's Heading their Processor Creative Arts Department?

"AMD Can Kick Intel's Ass But Only By Forging a New Market " ... By Louis Savain

Posted Thursday 17th July 2008 23:50 GMT

I agree, Louis, and thanks for the non-Algorithmic Future link ... http://rebelscience.blogspot.com/2008/05/parallel-computing-why-future-is-non.html .

If AMD sponsored AI and ITs Great Games Players, would they corner the Futures and Derivatives Markets? Or would that be something which ITs Players would do for AMD..... although of course, they would also be able to do IT for any who would wish to Input Future Benefit with a Permanent Currency Investment to Energised Accounts.

And there are many Tangents to such Games ...... http://forums.xna.com/forums/p/11824/75207.aspx#75207

For Some is the Game Virtualised into Real Life by Virtue of what they Care to Dare and Share with All.

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Anonymous Coward

@Louis Savain

read your link...

You are an idiot if you think that writing cr*p like that will affect the way the computing industry will do things. You may have a good idea - I don't know - but slagging off all and sundry won't get you anywhere. It just pi**ed me off, so I didn't bother to investigate your ideas further, and I am actually interested in new stuff!

Meanwhile, back in the real world, there are 100's of thousands of people writing algorithmic software, most of whom would not be able to change to a completely different programming metaphor, so any change in the way processors work will take years, if not decades to produce anything worthy. Don't get me wrong - something needs to be done to improve productivity and quality, but it will be a slow old process, and may well be possible using multicore/thread techniques.

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Thumb Up

At LAST!!!!

Finally the CEO leaves. I've been calling for this for 2 years. I hope the new guy is good, otherwise you can kiss goodbye to them and ATI.

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Stop

@ amanfrommars

Could you quit using the Twat-O-Tron in your posts please ? Thanks :)

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Flame

I call Gordon Brown for new CEO...

...Its win-win. AMD get someone better (cant get much worse) as CEO, UK get someone better (cant get much worse) as Prime Minister.

Just so long as Hector isnt running for Prime Minister lol.

Flames, for obvious reasons.

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Silver badge
Dead Vulture

Shouldn't have poked the 800lb Gorilla with a stick

You gotta feel sorry and thankful for AMD. Thankful because they gave Intel the kick up the ass they so richly deserved. Sorry because they seem to have spent all their energy delivering that kick and have nothing left to run away from the angry gorilla.

Carcass for obvious reasons

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Silver badge

Ruiz

He sucks. I'm not sure he's had success in anything he ever lead. The only reason he was CEO before was because the company was desperate and couldn't afford a winning CEO.

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Bronze badge

Intel aren't winning in every area.

AMD chips are still pretty cheap and not so far behind in the real world. Even a duopoly is better than a monopoly so lets hope they can keep going.

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@Nuno - Capitalizing on slight advantages

I agree.

I watched this whole saga over the last few years with the entranced interest of standing next to a super slow motion train crash.

Intel was wandering off into tall grass and smoking it with their x64 architecture thinking that all the vendors would just port all their products (hardware AND software) over to the next big thing. Absolute hubris. Microsoft watched it, and from the bad experience of maintaining two code lines and the complexity therein (x86 + alpha) with their NT 4.0 product let the chips fall without getting too involved. AMD saw the writing on the wall that starting from scratch rarely works, and was there waiting with a product as one after the other vendors abandoned Intel's bong-athon pipe dream. AMD's historical problem was always not enough capacity to reliably meet orders, so vendors shied away from them. With the slam dunk on Intel, they had the revenue flowing in that they needed to A. Build another foundry -and- B. buy ATI. They invested wisely with their windfall.

In the end they are at least relevant again, and Intel got the kick in the pants they really needed to bring them down and force them to get real again. AMD has a graphics division whose revenue is growing with the ever increasing requirements for Vista and graphics intensive games, and don't forget...they have a new foundry. This will keep them in the game, but they will not catch Intel with their pants down again in the near future. It is going to be a slog from here on out.

They really got screwed out of ultimate capitalization on their slight advantage by Intel heavily manipulating the market. For that, yes I think Intel should be culpable for monetary losses.

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Adios mr Ruiz!

Hi, AMD is still the best in my books, the Phenom with UT3 gaming engine has the fastest graphics. AMD bought ATI and is coming out with all in one cpu/gpu producted called Fusion! AMD and Intel have a cross licensing agreement. They need each other to prevent a monopoly from forming just like Microsoft and Apple. Microsoft invested in Apple to keep them around. Intel will be 'investing' in AMD when they lose the rest of the antitrust lawsuits. Most of the over sea lawsuits were won by AMD, still waiting on US, EU and Korea.

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@multipharious

What planet do you live on?

Explain please what huge windfall AMD invested when they built their nice new FAB and bought ATI?

AMD has been in a financial hole for years, and had dug and dug, seemingly using every effort to dig deeper. In the last two years, how many profitable quarters did they have? In the last 4 years? In th last 6? How much profit did they make in those profitable quarters? Now, how much of a loss have they made in the remainder? In the last couple of years they've lost nearly as much money as they used to buy ATI. Let's look at it for a moment $4bn on a fab, $5.4bn on ATI. Another $4bn in losses over the last couple of years (approximation). $13.4bn. That my friend is a lot of red ink.

Holy crap man, they lost almost as much in the quarter as they took in revenue! What's their market valuation these days? $0.25

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Execute!

"Employees... You WILL execute or BE EXECUTED!"

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priceless metaphor

[...]virtually shot themselves in the heart whilst lopping off all their arms and legs making themselves into a horse that can't walk or run for the next few years and looking up their own posterior at the same time because they chose not to ask the difficult "What ifs !" and let other people run off with the best cream laughing all the way to their banks !

On the other hand, AMD got their start as an alternate supplier for the 80286, licensed by Intel because Intel couldn't keep up with demand. Later, AMD got a court ruling to say the license covered '386 stuff too. By the Pentium days, AMD had engineered their processors to be sufficiently different, yet compatible. But as Intel pursued ever higher clock rates, AMD focused on efficiency and gained market share. AMD's success had a side effect of making Intel rather irate.

Intel could have, and would have, squashed them long ago but for the strategic need to have a competitor to point at for defusing monopoly and anti-trust issues. I rather hope it is proven that Intel went too far in squelching AMD, because if Intel would stop blocking AMD it might be a very interesting race.

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Happy

@Highlander

No point in arguing with the financials, and since I am smart enough to have no financial interest in them I could care less. In this case it is like watching a street fight from my car at a stoplight. I watched it carefully several years ago, and then elected to NOT invest in them.

AMD has the capability to deliver product now in a more reliable fashion where before they did not. That, my friend, is a complete paradigm shift.

As for what Planet I am on? Are you a failed analyst? Didja lose a bundle after betting on the dark horse?

Try re-reading my original post. It is almost a historical synopsis, and you devoted your comment to this very short sentence, "They invested wisely with their windfall."

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