Poor AMD. :(

I hope things turn up for them. Maybe IBM will merge with them and keep the market going.

The reason for the positive stock action was that the number wern't bad at all:
1. Sales in terms of dollars and units were up over the first quarter. Usuall second quarter is down.
2. There were 100 megabucks of writeoffs added to the bottom line.
3. The channel inventory was lower.
4. Yields at fab 36 are good enough that AMD can slow down CAPEX at fab 38.
and ........
5. AMD has 1 gigabuck of assets to be sold including Spansion stock and 200mm wafer equipment.

With the delay of CAPEX they expect to make money in the 4th quarter. That's not bad really.

I don't really know how much to believe and how much Hector and company are on the joy juice but its quite concevable without the $100 megabuck writeoff, the $295 megabuck CAPEX, and improving ASPs from Barcelona, AMD could make money by the end of the year.

Gross margins are up over last quarter, unit shipments are up, marketshare versus Intel was gained not lost, R600 sales had barely begun before the quarter ended, and even with all of the paper losses accumulated thus far AMD has 1.62 billion dollars in the bank and another 892 million in longer-term cash assets. Capping it all off, of course, is that all of this has been accomplished pre-Barcelona, which, btw, is still on track for Q3 shipping. Phenom, the desktop variant of Barcelona, will ship late in Q4, and achieve volume in Q1 '08. AMD's targets are the server, desktop, and mobile markets, in that specific order.

It's amusing how people see only "600 million net loss" and simply stop reading all of the other information contained in the report--as if the current loss is all she wrote...;) These people are the same people who never fathomed why AMD didn't go broke years ago prior to shipping Opteron, the same people who don't know why AMD stock is going up and not down, and they will be the same people who scratch their heads is confusion when in a couple of quarters or less AMD is back in the black and stronger than ever.

AMD managed to close up 32 cents, or 2.1 percent with today's news.

Guess that means I will buy both AMD processor and graphics next time around.

Hey guys.

The news is that AMD increased cpu unit's shipped nearly 40% - that's why the share price rocketed. They also increased gross margins at the same time. AMD got $350M from Dresden gov't today to fund additional fab expansion, so whoever said they never seem to run out of money is dead on.

AMD is loosely forecasting a sales increase to $2B/quarter by Q4, with margins in the 40% range. AMD is in this for the long haul, and the street believes they will pull it off.

Looks like the competition is here to stay. Intel can't be happy.

How can a smaller company like AMD fight off a giant like Intel, especially since its outresourced and financed. That K10 core better had deliver a "miracle" to the computing world or AMD may be no more. :(

Holy crap. Them's some biggish numbers; sounds like AMD may need to work on overhead and payroll cost to reduce those losses. All I can say is ouch.

well, their loss is reminiscent of the processors in their showcase. The consumer thinking is "why would I buy this if intel makes a better one for about the same cost?" same concept on their graphics cards.

I've always found it fascinating how AMD loses money year over year and never runs out.

I remember they turned a profit once.

I blame the aggressive price wars, R&D costs and K10's delays for this quarter's losses.

C2D only has allow Intel to seize the enthusiast market which is small fries in the grant scheme of things.

ICM-based Xeons only help Intel stop hemorrhaging its marketshare in the enterprise market. Where the Opterons were utterly humiliating the Netburst-based Xeons.

I know it sounds unfair and quite capitalistic, but AMD needs to reduce it's headcount. While the ATi acquisition means a lot of new people I do not think it justifies the ~6000 increase in headcount from the past year.

It is not surprising that management, who are getting paid big bucks for what I don't know, would find the positive in such horrendous cumulative losses, not to mention the decimation of the balance sheet. "Another Month's Delay" shareholders should fire Ruiz already.