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AMD $180 Million net loss, exits dense microserver business.

CoolaxGaming

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Seems like a sad day...

 

Advanced Micro Devices reported its Q1 2015 results, and they are not good. Seems like they have had a $180 Million net loss, their worse in a long time. 

But that is not all the bad news for AMD.

AMD acquired Seamicro for ~330 Million dollars. They wanted to get into the microserver buisness, but sadly, now it has come to an end. AMD has exited the microserver business and have discontinued SeaMicro. Their ARM Processors might have helped the branch, but unfortuneately, it has ended. All R&D has been stopped.

 

 

Today AMD released their Q1 FY 2015 financial results, and the company reported revenue of $1.03 billion for the quarter. This is a 16.9% decrease as compared to Q4 2014, and a 26.4% decrease from the $1.40 billion recorded in Q1 2014. Operating income based on GAAP numbers was an operating loss of $137 million, which is a substantial decrease in loss as compared to Q4 2014, where they had an operating loss of $330 million, however in Q1 2014 they had a small operating income of $49 million, so although they have improved quarter-over-quarter, that is a significant reduction year-over-year. Net loss for the quarter was $180 million, or $0.23 per share, which once again is better than Q4 2014 where there was a $364 million ($0.47/share) loss, but much worse than the $20 million ($0.03/share) loss in Q1 2014.

 

 

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SeaMicro going away -

 

At the corporate level, we continue aligning larger portions of our R&D investments to take advantage of long-term growth opportunities across our EESC segment. As we prioritize our R&D investments and simplify our business, we made the decision in the first quarter to exit the dense server systems business as we increase investments in our server processor development. We retain the fabric technology as a part of our overall IP portfolio. We see very strong opportunities for next-generation, high-performance x86 and ARM processors for the enterprise, datacenter, and infrastructure markets and we will continue to invest strongly in these areas.

 

 

 

Seems like a really bad time for AMD. They really need a new series launch.

 

Article source from Anandtech.com

 

All AMD fanboys, lets take off our hats. We need a moment of silence

Lets all ripperoni in pepperoni

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Hopefully Pirate Islands and Zen helps them out.

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Well I don't really like AMD, but if they die, everyone that uses a computer will take a massive hit.

 

Both Nvidia and Intel would have a monopoly on Gpus and Cpus respectively, causes prices to skyrocket, support and drivers, etc. would not be well done.

 

There would be no one to challenge them. They would set the prices to their liking. If you don't like those prices, theres absolutly nothing you could do.

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Why didn't they just sell SeaMicro?

If it is not doing well then it is much harder to sell.

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Well I don't really like AMD, but if they die, everyone that uses a computer will take a massive hit.

 

Both Nvidia and Intel would have a monopoly on Gpus and Cpus respectively, causes prices to skyrocket, support and drivers, etc. would not be well done.

 

There would be no one to challenge them. They would set the prices to their liking. If you don't like those prices, theres absolutly nothing you could do.

Prices would not likely go up. R&D would fall massively though. People are used to a price so they will pay it but they will buy less at a higher price. So Intel and Nvidia would just slow releasing new products. 

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Well I don't really like AMD, but if they die, everyone that uses a computer will take a massive hit.

 

Both Nvidia and Intel would have a monopoly on Gpus and Cpus respectively, causes prices to skyrocket, support and drivers, etc. would not be well done.

 

There would be no one to challenge them. They would set the prices to their liking. If you don't like those prices, theres absolutly nothing you could do.

I don't think we'll see AMD die anytime soon. :) 

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Damn, hopefully they bounce back.

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RIP.

Just remember: Random people on the internet ALWAYS know more than professionals, when someone's lying, AND can predict the future.

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Need to make more stronger cores not more cores RAWR.

AMD made a bet with excavator and they lost and with ZEN coming I would say there IPC would increase.


If they are selling it then what about their hybrid CPU that's coming ?? Will it still be made or what ??

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AMD made a bet with excavator and they lost and with ZEN coming I would say there IPC would increase.


If they are selling it then what about their hybrid CPU that's coming ?? Will it still be made or what ??

No idea....

I dont think AMD can ever get up now...

Lets all ripperoni in pepperoni

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This is why I plan on switching to Intel. :/

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No idea....

I dont think AMD can ever get up now...

I hope the Samsung deal is true I really hope it is.

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NOOOO! Competition is good for the consumers. It will be a sad day if AMD closes it's doors. :(

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Good time to buy AMD stock. When the new series comes out and 16 core CPU the price should jump. Unless it is all refresh and actually 12 core with 4 cores for GPU. Then Nvidia released Pascal and Broadwell comes out and destroys your current gen harder. AMD pls.

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Prices would not likely go up. R&D would fall massively though. People are used to a price so they will pay it but they will buy less at a higher price. So Intel and Nvidia would just slow releasing new products.

The prices will definately go up. Probably between 20-40%.

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I hate to say this but I think AMD need Samsung to save them.

Agreed, When I saw that rumor floating around I hoped to god that it would come to fruition. Samsung can revive AMD and put them into a position to legitimately challenge Nvidia and Intel.

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:(  Poor AMD.   

 

If they die, or I guess go bankrupt.   I wish them the best. 

 

 

*takes of hat and cries*  

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AMD isn't going to get anywhere buying every random tech company and seeing what works. After buying an entire company, investing in R&D, and all the other expenses related to that division, they just throw it all away. 

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I am conducting some polls regarding your opinion of large technology companies. I would appreciate your response. 

Microsoft Apple Valve Google Facebook Oculus HTC AMD Intel Nvidia

I'm using this data to judge this site's biases so people can post in a more objective way.

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Good time to buy AMD stock. When the new series comes out and 16 core CPU the price should jump. Unless it is all refresh and actually 12 core with 4 cores for GPU. Then Nvidia released Pascal and Broadwell comes out and destroys your current gen harder. AMD pls.

 

I wouldn't expect it to skyrocket or anything.

 

Nvidia and Intel have both shown that it doesn't matter how well AMD competes in terms of performance they still struggle to get the market share they deserve.  They don't have the brand recognition that the other companies have, and it really hurts their bottom line.  They only have 1/3 of the GPU market for example despite having great price/performance, feature support and the reigning most powerful single slot GPU (295x2).  

 

I think they can slowly crawl into a better position, but it won't happen overnight or with a single product launch.

4K // R5 3600 // RTX2080Ti

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AMD old CEO Roy Read is much to blame for AMD current state. Under Roy Reed AMD purchased Seamicro and wasted 350 mil, instead of investing the money in GPU and CPU designs. It cost about 100 mil in R&D per cpu or gpu. Roy Reed wasted 3 generations of R&D on buying Seamicro. This is one of the reasons he resigned.   

Test ideas by experiment and observation; build on those ideas that pass the test, reject the ones that fail; follow the evidence wherever it leads and question everything.

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