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[djnewswire]AMD Chief Ruiz Says Changes Afoot At Chip Giant

post #1 of 24
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Quote:
By Benjamin Pimentel

Advanced Micro Devices Inc. (AMD) Chief Hector Ruiz on Thursday admitted to shareholders that the chip giant had a tough year in 2007, but vowed that changes were afoot to make the company "consistently" profitable.

Ruiz didn't offer more details on AMD's plans, despite earlier strong hints of a major change in its manufacturing operations, which has led to speculation that the company may be considering a breakup.

But he reaffirmed his team's vow to make AMD operationally profitable by the second half of 2008, and their goal to get out of businesses that don't seem to be going anywhere.

"Looking back, 2007 was a difficult year of transition for AMD and I speak for every AMD employee when I say that I could not be more disappointed with our financial results," Ruiz said at the company's shareholder meeting in Austin, Texas, according to a transcript of his speech.

"Our long-term goal is to achieve consistent profitability in good times and in bad," he added.

He said the company will "focus on doing fewer things better."

"We are intensely scrutinizing our non-core businesses and revisiting their strategic fit into our plans," he added. "And absent a clear and predictable path to profitable growth, we will exit those businesses."

Ruiz also repeated AMD's stated goal to reorganize its manufacturing operation. Last year, AMD said it was developing a plan to fix its business, referring to the strategy by such names as "asset light," "flex fab" and "asset smart."

Despite repeated prodding by analysts, the company has yet to spell out what the plan means, although some speculate that AMD was planning to turn over more, if not all, of its manufacturing to contractors, similar to the so-called fabless model now followed by other chip companies.

But some analysts have also speculated that AMD may be considering breaking up the company. The company has declined to comment on the speculation.

In his speech, Ruiz promised to release details of the planned manufacturing changes "in the very near future."

He strongly suggested the company may change the way it operates in such a way that it will become less susceptible to the pressures of competing with its bigger rival, Intel Corp. (INTC)

"We are re-architecting the business so that our financial success is not invariably dependent on continuous component performance leadership over a rich and dominant competitor," Ruiz said.

Analyst Roger Kay of Endpoint Technologies Associates said the statement was vague, adding, "I don't know how to parse it."

AMD has long been a smaller, scrappy underdog in the battle with Intel for dominance of the computer chip market.

With its heftier manufacturing capability, Intel has managed to outpace AMD. But AMD has at times put up a brave fight by coming up with what analysts see as better products and designs.

But in a capital intensive industry in which players need to be constantly moving up to the next generation products and manufacturing technologies, AMD has struggled to keep up with its bigger rival.

AMD's financial problems also have been exacerbated by the company's ongoing efforts to digest its 2006 acquisition of ATI Technologies. Last year, the company got a boost when an Abu Dhabi development company pumped in $622 million in new investment.
Things are looking up for AMD I hope
Source:http://research.scottrade.com/public...asp?symbol=AMD
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post #2 of 24
Extremely interesting, for some reason this one has given me confidence AMD will be going nowhere soon.
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post #3 of 24
Quote:
Originally Posted by Licht View Post
Extremely interesting, for some reason this one has given me confidence AMD will be going nowhere soon.
That reads two ways to me - either AMD is going nowhere (a bad thing), or AMD isn't going under (a good thing).
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post #4 of 24
A year too late? Maybe, but at least they are going to try to slim down and regain focus. That, to me, is a good sign.
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post #5 of 24
well lets just see how 2008 goes. im sure that the new tri core cpu's should help them pull up. and that fact that they are now using 45nm is also another step up.

the only problem that i have with my AMD is that even though i push it further and harder my intel still out does it in every aspect.

AMD have been cheaper then intel but still the extra money is worth it. but all we can really do is wait and see. you never know they might just hit the market with some super CPU with 25nm tech and a whole new chipset the will wipe the floor with intell (but thats hopeful dreaming LOL) but you never know
    
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post #6 of 24
Well they said they were going to get out of different parts of businesses that weren't profitable or make it so they wouldn't get their A$$es handed to them if they didn't keep up with intel. Sounds to me like they are going to snake their way slowly out of the cpu market sadly. Intel you win now you can crank up those prices.
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post #7 of 24
Quote:
Originally Posted by hout17 View Post
Well they said they were going to get out of different parts of businesses that weren't profitable or make it so they wouldn't get their A$ handed to them if they didn't keep up with intel. Sounds to me like they are going to snake their way slowly out of the cpu market sadly. Intel you win now you can crank up those prices.
This thing you speak of, is a terrible idea.

Intel fanboys dont realize that AMD is actually what keeps them ahead. Had AMD not been there to keep Intel pacing forward, Intel could have taken their sweet a** time and held off on Dual-cores and Quad-cores until they felt they had milked the single-core pig long enough.
    
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post #8 of 24
Nice Speech Hector, now can we have some results, or at the very least some hard info?

AMD needs to act a little more like... dare I say. Intel...

Release a little more info, tell us what you are going to do. You said nothing about Phenom, trying to keep it mysterious sort of worked, however investors aren't fans of surprises.
    
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post #9 of 24
Someone needs to turn Hector Ruiz over to Zed and Maynard from Pulp Fiction already. He's the reason why AMD is in a downward spiral. Hector Ruiz can't even fix a sandwich much less a multi billion dollar company. If this is his plans to fix AMD then it's going to end in failure. It pains me to think what he's done to this compay from the glory days of K8 to now. I honestly don't think AMD will make it if he's running the show.
post #10 of 24
Quote:
Originally Posted by thejamesman View Post
This thing you speak of, is a terrible idea.

Intel fanboys dont realize that AMD is actually what keeps them ahead. Had AMD not been there to keep Intel pacing forward, Intel could have taken their sweet a** time and held off on Dual-cores and Quad-cores until they felt they had milked the single-core pig long enough.
that is actually because fanboys run on the flock of sheep mentality. they get herded around by whatever they are fanboys about, completely devoid of all rationality, up until they are driven off a cliff. god i hate fanboys.
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