AMD has been in worse spots than this... They do need to get thier shtuff together, but all this sillyness about AMD going belly up is just ridiculous!!
Worse? Not financially I am afraid. They have seen consecutive quarters of losses mounting to billions of dollars before, yes. However, not with this amount of debt. All it takes is one creditor to call in the debt and we will be seeing Chapter 11. They have been practically printing money with creative financial tricks like issuing covertible bonds, equivalent to you applying one credit card and run balances on that card to pay off another credit card debt. If they don't start to make any real money the bubble will burst somewhere. So while they are not going to go belly up tomorrow, the threat is very real. Let's not lose sight of that.
Those pathetic Pentium 4's were sucking for 4 long years under the Athlon64 and X2's and nobody ever said Intel would die off.
That's basically the difference between Intel and AMD. AMD is under a mountain of debt. Intel is sitting on fat cash reserves and with momentum to still rake in profits quarter after quarter. When they were sucking so much they are still in the black. AMD has always been treading a fine line between black and red. Intel can basically sit on their cash and just hang on for a while, and that's what they did over the Netbust years. What woke them up? Servers. AMD was finally making some inroads and in the process managed to wake up the beast.
My point is, AMD is a damn good company that is performing extraordinarily well under the circumstances.
That I agree, they manage to stay afloat (or at least create the illusion of "doing well").
I wish I had some money in the bank to buy their stock. A comp that can perform like this will see a damn good increase in their stock value in the long run.
How long? That's the problem. This is the stock market, and most people don't look past a few quarters.
If you will just step of that excited state and try to see past the pretty power points. A company with a ton of debt, and that debt is actually increasing with the continuing losses (if they lose money they have to get it from somewhere right?). No sign of turning a profit. If you are a banker would you lend more money? Be honest, just look at the numbers.
Narrowing losses is a good sign, but the bottomline is that they need to turn some positive cash flow soon. There can only be that much expenses to cut because most of them are interest payments. You think the creditors will be nice and forgive your interest and/or principal? I don't think so. So for DAAMIT's and our sakes they had better deliver at least on the RV670. Phenom I really don't care too much because they don't need to outright beat Intel to stay around. They now have the distribution channels.
But be serious, they are in trouble, and it will probably get worse before it can get better. /cliché
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