AMD

Structure

As of January 2021, AMD's structure includes the following divisions:

• Computing and Graphics (responsible for the development and sale of graphics solutions for consumer and professional PCs, as well as chips for computers and tablets)
• Enterprise, Embedded and Semi-Custom (supervises the activity connected with chips for servers, the built-in systems and video game consoles)

Performance indicators

2024: For 34 years of its history, AMD was able to earn only $1 billion in profit

Until 2018, AMD was unprofitable, from 1990 to 2018 the accumulated net loss amounted to 7.6 billion, and from 2018 to the 2nd quarter of 2024, the accumulated profit was only 8.8 billion, i.e. in the entire history of AMD was able to earn a little more than $1 billion!

2022

Share of business revenues in China - 22%

Revenue growth year-on-year in the first quarter - 71% (up to $5.9 billion)

2020: Revenue growth by 45%, to $9.76 billion

At the end of 2020, AMD raised $9.76 billion, which is 45% more than a year earlier. Moreover, both main divisions of the company demonstrated significant growth: AMD Computing and Graphics Business Group (processors for computers) and AMD Enterprise, Embedded and Semi-Custom (solutions for game consoles, servers and embedded systems).

The first of these divisions in 2020 registered sales at $6.43 billion against $4.71 billion a year earlier. In AMD Enterprise, Embedded and Semi-Custom, revenue during this time increased from $2.02 billion to $3.33 billion.

AMD ended 2020 with a net profit of $2.49 billion, while a year earlier profit was measured at $341 million. Profit at AMD Computing and Graphics Business Group more than doubled to $1.27 billion, while profit at AMD Enterprise, Embedded and Semi-Custom rose from $263 million to $391 million.

According to AMD, shipments of the company's desktop and laptop processors increased at a double-digit pace in 2020. Ryzen mobile solutions have been installed in more than 100 new laptop models.

As noted by AMD CEO Lisa Su, the volume of the global PC market in 2020 grew by 13%, exceeding 300 million units for the first time since 2014. This allowed AMD to increase revenue from the sale of processors in the client segment by one and a half times, this figure in absolute terms reached a record value for the year.

The average cost of AMD processors has decreased due to an increase in the share of cheaper Ryzen mobile solutions. In the graphics market, the average price tag, on the contrary, has grown.

AMD capital expenditures in 2020 amounted to $294 million against $217 million a year earlier. The company's total debts decreased from $486 million to $330 million.^[1]

AMD Partner Program

Основная статья: AMD Partner Program

History

2024

Purchase of server manufacturer ZT Systems for $4.9 billion

On August 19, 2024, AMD announced an agreement to acquire the server manufacturer. ZT Systems The $4.9 billion deal is expected to help strengthen the position of Nvidia the leading GPU-based accelerator developer for systems. artificial intelligence More. here

Big Data Breach: Product Sources, Employee and Customer Data Leaked

On June 18, 2024, it became known that cybercriminals entered IT infrastructure AMD and stole a large array of company data. The stolen information was put up for sale by a visitor with the nickname IntelBroker on the BreachForums forum.

According to the Telegram channel "Information Leaks," attackers hacked AMD servers in June 2024. At their disposal were information about employees and customers of the company. This data can be used to organize personalized phishing attacks and other fraudulent schemes aimed at illegally receiving money. In addition, the source codes of the firmware and BIOS were stolen, as well as closed information about new AMD products. Such information may be of interest to competitors of the company or other attackers.

The leak of firmware and BIOS source codes is very critical, "said Mikhail Sergeyev, a leading CorpSoft24 engineer, in a conversation with TAdviser. - It will help attackers analyze the source code and make it much easier to detect various vulnerabilities there that can already be exploited in compiled code on user servers and PCs. Hackers' knowledge of the internal firmware device and BIOS of modern processors opens up many opportunities for attacks.

The expert believes that hackers, having source codes, can embed various bookmarks on it and distribute firmware under the guise of official ones. For users, the leak is fraught with the fact that new vulnerabilities may be discovered. This can lead to malware installation and data theft. Users will have to monitor the manufacturer's warnings and quickly update microcodes and software as soon as their new versions are released. However, due to sanctions, these updates may not be able to be installed on domestic computers and servers.

The problem with the publication of the firmware source codes is due to the fact that this turns the story for the attacker from a "black box" or "gray box" into a "white box," says Ilya Polyakov, head of code analysis at Angara Security. - An attacker can discover "sewn" secrets, such as tokens, that will allow unauthorized access to the device. It can also perform compositional analysis and identify those open-code components that are used, again, under the "hood." And if they, for example, are already using vulnerable versions, then at the moment a hacker can immediately take advantage of this.

AMD itself, as of June 18, 2024, does not comment on the situation in any way, and therefore it is not clear who is behind the invasion and whether it was possible to get on the trail of criminals.

Cybercriminals infiltrated AMD's IT infrastructure and stole a large array of company data

Earlier it became known that the hacker group RansomHouse stole more than 450 GB of information from AMD servers. This is, in particular, the credentials of employees, including passwords, various system files, etc. According to cybercriminals, the hack was carried out due to the fact that some AMD employees used very simple network passwords like "password." As confirmation of the hacking and data theft, the attackers posted an archive with some information from AMD servers on the Internet.

The era of advanced technology, progress and maximum security... Apparently, these are just beautiful words, since even tech giants like AMD use unreliable passwords to protect their networks from intrusion. This is a shame for AMD employees and security, cybercriminals said[2]"

Chinese officials banned from purchasing PCs with Intel and AMD processors

At the end of March 2024, it became known that China introduced new guidelines in response to sanctions from the United States. The use of Intel and AMD processors in computer systems for government organizations is prohibited. Read more here.

2022: Suspension of processor supplies to Russia

On February 27, 2022, it became known that the supply of Intel and AMD processors to the Russian market was stopped. This can lead to a shortage of servers in the country, as well as an increase in their cost. Read more here.

2020

Record Revenue from PC and Server Processors

In 2019, AMD's revenue reached a record $6.73 billion, an increase of 4% compared to the previous year. This rise was facilitated by the growing sales of Ryzen and Epyc processors. But the US company's revenues could have been higher had it not been for the decline in demand for chips for game consoles.

AMD Computing and Graphics Business Group, which, in particular, is responsible for the production and sale of chips for PCs and tablets, recorded a turnover of $4.71 billion in 2019, which is 14% higher than a year ago. In the structure of Enterprise, Embedded and Semi-Custom, which develops chips for servers, embedded systems and game consoles, annual revenue sank by the same 14% and amounted to $2 billion.

The decline of the division is due to the fact that gamers stop buying game consoles Xbox One from Microsoft and PlayStation 4 from, Sony since both are considered outdated. The new generation consoles are expected to be released in 2020 and will be equipped with AMD chips.

According to AMD CEO Lisa Su, if you exclude components for consoles from the factors affecting revenue growth in 2019, then in all other areas it increased by about 20%.

AMD's net profit in 2019 was $341 million, slightly increasing compared to the previous year ($337 million).

Profit at AMD Computing and Graphics Business Group was $577 million, up 23% from 2018. In Enterprise, Embedded and Semi-Custom, profit increased by 61% to $263 million.

In its financial statements, AMD noted that by the end of 2019, the company had accumulated $1.5 billion in cash - this result was the highest since the third quarter of 2006.^[3]

Purchase of chip manufacturer for Xilinx data centers for $35 billion

On October 27, 2020, AMD announced the purchase of Xilinx for $35 billion to strengthen its position in the data center solutions market. As a result of the merger of companies, a semiconductor manufacturer with a market capitalization of $135 billion will appear. At the same time, the deal turned out to be cash-strapped: the parties simply agreed to exchange shares at the rate of 1,7234 AMD shares per Xilinx share. Read more here.

2019

Among the largest companies in the semiconductor industry by revenue

AMD compared Epyc to Xeon and talked about Intel underperformance

In late March 2019, AMD posted materials on its website on the benefits of its Epyc server processors over Xeon. The company reported that Intel underestimates the performance of its solutions so that customers buy more expensive products. Read more here.

Mubadala Investment sold 34.9 million shares of AMD for $842 million

On February 5, 2019, UAE public investment fund Mubadala Investment announced the sale of 34.9 million ordinary shares of AMD. Based on the rate of quotations at the time of the announcement, the cost of the sold share is $842 million.

Arab investors simultaneously announced their intentions to realize their obligations to buy 75 million ordinary shares of AMD for a total amount of about $448.5 million. The deal will be done at a fixed rate. As a result, the securities sold will not particularly change the structure of the fund's assets. Mubadala will remain one of AMD's largest with a 6.9% share, although it previously reached 12.9%. 

Mubadala first invested in an American chipmaker in 2007, recalls. Reuters As the representative of the fund Brian Lott told the news agency, the sale of AMD shares corresponds to the general investment strategy of Mubadala, aimed at "monetizing mature holdings to achieve attractive commercial profits."

By early February 2019, Mubadala's investment portfolio has assets worth $225 billion, including stakes in General Electric and private equity firm Carlyle Group. The fund is looking for opportunities to invest in developing, fast-growing sectors such as technology to reduce reliance on oil wealth and maximize profits in a competitive environment.

By February 2019, AMD's largest shareholders also include Vanguard Group (9.85%), Fidelity Management & Research Company (5.58%) and BlackRock Institutional Trust Company (4.6%).

On February 5, 2019, when Mubadala's share in AMD was announced to decline, the chipmaker's shares fell 3.4%. Experts believe that Arab investors can take advantage of the drop in quotations and purchase AMD securities at a reduced price.^[4]

2018

Revenue growth by 23% to $6.48 billion

AMD finished 2018 with sales of $6.48 billion, which is 23% more than the previous year.

At AMD Computing and Graphics Business Group, which is responsible for the development and sale of computer central and GPUs , annual sales reached $4.13 billion against $2.98 billion a year earlier. The rise was due to high demand for Ryzen processors and graphics solutions for data center equipment.

AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the release of chips for servers, embedded systems and game consoles, had revenue of $2.35 billion in 2018. In 2017, it was measured at $2.28 billion.

If 2017 turned out to be unprofitable for AMD (in the report for 2018 the financial year includes losses of $33 million, although at the beginning of 2018 it was reported about $43 million in profit in 2017), then a year later the American microprocessor manufacturer made a profit of $337 million.

Profit at AMD Computing and Graphics Business Group in 2018 amounted to $470 million, a significant increase compared to a year ago at $92 million (also profit). Profit at AMD Enterprise, Embedded and Semi-Custom Business Group for the year increased from $132 million to $163 million.

Judging by the financial results, sales of EPYC server processors do not yet generate large revenues for the company, only compensating for the drop in demand for hybrid chips for game consoles.

By December 31, 2018, AMD's own cash and cash equivalents amounted to $1.16 billion, down slightly from the previous year ($1.18 billion). The flow of free cash in 2018 turned out to be negative (- $129 million) due to large stocks of unsold chips^[5]

On the day of publication of the financial statements - January 29, 2019 - AMD quotes jumped by more than 9% in electronic trading after the exchange closed. In 2018, the chipmaker's securities rose 73%, one of the best results in the S&P 500 index.

HPE urges partners to buy server chips from AMD, not Intel

In September 2018, HP Enterprise (HPE) began urging its partners to purchase server processors from AMD instead of Intel so as not to face a shortage of chips. Read more here.

2017

Revenue growth of 25% and return to profit

In 2017, AMD's revenue jumped 25%, reaching $5.33 billion, largely due to strong sales of GPUs for computers and data center equipment.

The American chipmaker ended 2017 with a net profit, recording it at $43 million, while in 2016 there were equal $497 million losses. AMD incurred one-time expenses of $18 million in connection with the tax reform in the United States, which is a fairly small amount compared to the costs of other technology companies.

AMD Computing and Graphics Business Group, responsible for the development and sale of computer central and GPUs , received annual revenue of more than $3 billion against $2 billion in 2016. Losses of $238 million recorded in this structure in 2016 were replaced by a profit of $147 million a year later.

The financial rise of AMD Computing and Graphics Business Group has been helped by a cryptocurrency boom that is spurring graphics sales. In addition, the company noted strong demand for Ryzen desktop processors. At the same time, in 2017, the global PC market again showed a decline.

In 2017, the turnover of AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the production of chips for servers, embedded systems and game consoles, remained practically unchanged at $2.3 billion. At the same time, profit almost halved - from 283 to 154 million dollars.

As part of the financial report, AMD warned that measures to address critical vulnerabilities in the company's processors could be costly or even ineffective. The company acknowledged the existence of a vulnerability called Spectre in its own processors and announced plans to release updates that eliminate these bugs. What costs AMD will cost this incident is not specified.^[6]

AMD has admitted cheating investors and will compensate them

At the end of August 2017, it became known about AMD's desire to pay shareholders almost $30 million for deception over the state of affairs with Llano processors.

In 2014, a class action lawsuit was filed against AMD, accusing the company of knowingly violating the Securities Exchange  Act of 1934.

AMD deliberately misinformed investors about how popular first-generation Llano computer chips would be, the plaintiffs said. According to a group of investors, the company attributed more attractive prospects to APU than it found in practice.

With these manipulations, AMD has created a picture in which, according to the company,  business will grow with desktop processors. As a result of these false statements, the chipmaker's quotes jumped significantly.

However, the release of the Llano platform to the mass market was delayed for about two years: initially the release was scheduled for 2009, but it was repeatedly postponed and eventually took place only in 2011.

In addition, sales of Llano processors were weak, and AMD was forced to write off products worth about $100 million. After that, the company's shares began to rapidly fall in price, and investors suffered large losses.

Among those affected by the decline in AMD quotations, foreign management companies and the Arkansas Teachers' Pension Fund are mentioned.

On August 28, 2017 , The Register reported that AMD had agreed to pay $29.5 million in compensation to affected investors. The court still has to approve this agreement, but this is only a formality that will be implemented in October.

Compensation will be received by shareholders who purchased AMD securities between April 4, 2011 and October 18, 2012.^[7]

2016

Reduce losses by stabilizing the PC market

On January 31, 2017, AMD released its annual financial statement. The company's losses decreased by 25% due to the stabilization of the computer market and strong sales of graphics solutions.

In 2016, AMD raised $4.27 billion, up 7% from a year earlier. Net losses during this time decreased to $497 million from $660 million.

AMD's financial position has improved due to the gradual recovery of the computer industry. According to IDC analysts, in October-December 2016, global shipments of desktops, laptops and workstations decreased by only 1.5%, while three months earlier there was a 3.9% decline. Experts say the market is stabilizing.

Earlier, Intel reported earnings above Wall Street expectations and linked strong results to the stabilization of the computer industry.

In 2016, AMD Computing and Graphics Business Group, responsible for the development and sale of computer central and GPUs, received revenue of almost $2 billion against $1.8 billion a year earlier. Operating losses in this business more than halved, from $502 million to $238 million.

AMD Enterprise, Embedded and Semi-Custom Business Group, which oversees the release of chips for servers, embedded systems and game consoles, recorded revenue of $2.3 billion in 2016. In 2015, the indicator was measured at $2.2 billion. Operating profit in this group increased to $283 million from $215 million.

According to AMD's forecast, in the first quarter of 2017, the company's revenue will fall by about 11% plus or minus 3 percentage points compared to the previous three months, amounting to $954.6 million to $1.02 billion. Analysts polled by Thomson Reuters expect sales at $964 million.

On the day of the publication of the annual report, AMD quotes rose 4.5%. Over the previous 12 months, the company's shares have risen in price by more than 370%.^[8]

AMD is once again becoming a serious competitor to Intel

Zen processors, a licensing strategy for the x86 architecture and world-class GPUs can allow AMD to compete again with, Intel according to IDG News Service, a media company (IDC April 2016).^[9]

The rivalry between AMD and Intel peaked in the first half of the 2000s, when companies constantly challenged each other at the level of innovation. Since then, AMD has lost its way, and today it hardly poses a threat to Intel, the newspaper writes, suggesting that the picture may begin to change as early as 2017.

AMD is once again becoming a serious competitor to Intel

Intel's x86 processors are installed in most PCs and servers, and AMD has been steadily losing market share for years. According to IDG News Service, AMD chip technology lagged behind Intel technology after some ill-conceived architectural changes, takeovers and production problems.

Intel's x86 processor market share reached 87.7% in the fourth quarter of 2015, according to Mercury Research. A year ago, it was 86.3%. In turn, AMD's share over the same period decreased from 13.6% to 12.1%.

AMD decided to reduce its investment in the declining PC market back in 2013: the same thing that Intel realized in April 2016, when it cut 12,000 jobs. AMD also focused on the original chips and achieved the desired result with dedicated processors for the PlayStation 4 and Xbox One.

According to IDG News Service, AMD is in a position at the beginning of 2016 that poses a threat to Intel's market dominance. The company relies on certain technologies and business solutions that are likely to compete more successfully with Intel, the publication suggests.

x86 architecture licensing

Perhaps we will see PCs and servers using AMD-based chips that are not manufactured by this company, since AMD is now licensing its latest processor architecture. The long-running X86 processor race, which previously had only two participants, will now be able to be replenished with new players using AMD technologies under license. That would hurt Intel more than AMD. Licensing is an easy way for AMD to expand the presence of its processor technology while generating revenue from it.

AMD at the end of April 2016 licensed its new chip architecture for a server based on THATIC's Zen processors (Tianjin Haiguang Advanced Technology Investment Co. Ltd.), which is a combination of private and public Chinese companies.^[10]

Schedule Leadership

AMD has technologies that it does not have: Intel world-class GPUs - Radeon and FirePro. GPUs are in demand thanks to the sale of gaming computers, despite the market decline. Intel wants to focus on gaming technologies, but has only good CPUs at its disposal. AMD will still have to compete with in Nvidia graphics processors, but the company has technology for the production of components, thanks to which AMD is in a better position than Intel in the field of virtual reality and games.

Flexibility in CPU manufacturing

If you want an ARM architecture chip for personal computers or servers, AMD can make it. If you want an x86 architecture, AMD can do that too. AMD representatives have emphasized the importance of flexibility in technology development many times over the past two years. AMD's business is based on the x86 architecture, but the company has stocked up on ARM technology, which could shoot into the server and embedded market in the coming years. Intel makes only x86 chips and does not look towards ARM.

Zen CPU

AMD has high hopes for the upcoming Zen x86 CPU - if it fails, it could pull the company behind it. But Zen could be the equalizer AMD needs to compete with Intel and perhaps this could attract some enthusiasts from the Intel camp. AMD claims that Zen will increase performance by 40% in one beat, surpassing the single-bit gain of the last x86 chips. The first Zen chips for personal computers will go on sale at the end of 2016.

Servers

It's time for AMD to grow in the server market, where Intel Xeon chips have destroyed AMD's Opteron processors. AMD once held a two-digit market share, but then there were problems with the unsuccessful and poorly thought out Bulldozer architecture. AMD's server strategy has failed, and it will now depend on Zen chips whether the company returns to the server market. AMD will initially introduce Zen chips for servers and subsequently for other systems.

Chinese market

AMD is taking over the growing Chinese market by licensing its upcoming x86 chip to THATIC. This frees the financially struggling AMD from allocating resources to sell chips in the country. AMD could also use a licensing strategy to sell more personal computer chips in China, where the company has a loyal following among home PC users.

Special processors

AMD will have to find a new niche to sell its processors, due to the fall in the PC market, so the company focuses on products such as gaming consoles, gambling machines, ATMs and cars, as they all need processors. Console manufacturers are already returning to AMD for a large supply of processors. AMD is now only taking large orders for special chips that will generate significant revenue.

2015:28% drop in revenue

On January 19, 2016, AMD released its annual financial statement. The American semiconductor company's revenue fell 28% due to weak sales of computer processors.

In 2015, AMD sales amounted to $3.99 billion against $5.51 billion a year earlier. The net loss during this time increased to $660 million from $430 million. The company's financial downturn is largely due to the fall in the desktop and laptop chip market.

AMD Computing and Graphics, which is responsible for the release of these products, recorded revenue of $1.8 billion in 2015, while in 2014 it was measured at $3.1 billion. Operating loss in this business increased by more than 6.5 times - to $502 million.

The annual revenue of the Enterprise, Embedded and Semi-Custom division, specializing in the production of server processors, single-chip custom systems and chips for embedded solutions, turned out to be $2.2 billion against $2.4 billion in 2014. Operating profit decreased from $399 million to $215 million.

AMD closed 2015 with strong results, thanks to double-digit revenue growth in the Computing and Graphics segment and record annual shipments of custom chips, reports CEO and President Lisa Su. - Although 2015 was a financially troubled year, key R&D investments and an increased focus on innovation will allow us to produce excellent products, improve financial results and increase market shares in 2016.

At the same time, in the first quarter of 2016, AMD predicts a decrease in revenue by 14% plus or minus 3% compared to the previous three months. Wall Street predicts a 3 percent decline in turnover to $899 million. On the day the financial results and forecast were published, the company's shares fell in price by 6%.^[11]

2014

AMD cuts staff by 7%

During the restructuring, AMD plans to reduce its staff by about 7% by the end of 2014. As of the end of the third quarter, the company employed 10,149 people. The layoffs come just a week after AMD's chief operating officer, Liza Su, was replaced as director Rory Read general, who has led the company since 2011. Over the past two years, AMD has only managed to finish with a profit. In the third quarter, sales decreased from last year's 2% to $1.43 billion. At the same time, net income fell from $43 million last year to $17 million.

AMD's main task is to preserve engineering personnel and intellectual property, Su emphasized. The falling demand for personal computers, the processors for which are the main products of AMD, forces the company to pay more attention to graphics processors and specialized circuits. In addition, AMD plans to release server processors with ARM architecture.

AMD managed to get two important contracts for the production of specialized processors for a period of three years, starting in 2016. They owe the company about a billion dollars. AMD will focus on^[12] most profitable destinations, Su said^[13] is cutting^[14] by^[15]

5-fold loss growth

On January 21, 2015, AMD released its 2014 financial statement. It follows from it that the company's losses increased almost 5 times, and sales increased by 4%.^[16]

According to the released data, in 2014, AMD's net loss amounted to $403 million, or 53 cents per security of the company, against cash losses of $83 million, or 11 cents per share, a year earlier. The microprocessor manufacturer's revenue grew from $5.3 billion in 2013 to $5.51 billion a year later.

AMD losses rise 5 times due to PC chips

Operating profit of $103 million, received by AMD in 2013, was replaced by an operating loss of $155 million in 2014. The year-on-year profit rate fell 4 percentage points to 33%.

"Despite the challenges in the computer market in 2014, we made progress in diversifying the business, improving our development and balance sheet," said Lisa Su, President and CEO of AMD.

AMD's report also presents performance indicators of the company's divisions - Computing and Graphics and Enterprise, Embedded and Semi-Custom. The first of them is responsible for the development and sale of graphics solutions for consumer and professional PCs, as well as chips for computers and tablets. Another structure oversees activities related to microcircuits for servers, embedded systems and game consoles.

AMD Computing and Graphics ended 2014 with revenue of $3.1 billion versus $3.7 billion a year earlier. Operating loss slightly decreased - from $101 million to $76 million. According to Lisa Su, the company will do everything possible to return the Computing and Graphics business to growth in the second quarter of 2015.

AMD Enterprise, Embedded and Semi-Custom is already experiencing a tangible financial boost due to strong consumer demand for products using the company's high-performance graphics solutions (primarily gaming consoles). Annual revenue in this division jumped more than 50% to $2.4 billion, and operating profit - from $295 million to $399 million.

2013: Decline in the PC market. AMD cuts staff

The state of the personal computer market remains difficult. According to IDC, PC physical sales fell nearly 14% in the first quarter of 2013. This also affected Intel, although not as much as AMD. Intel's profit fell 25% and sales fell 2.5%.

AMD is trying to boost the business by entering new markets. It acquired the low-power server company SeaMicro and signed a license agreement with ARM, intending to develop a series of 64-bit ARM architecture processors, also focused on low-power consumption. In addition, AMD is carrying out downsizing. The company expects that cost savings will make it possible to eliminate unprofitability by the end of the third quarter of 2013.

2012

AMD fires one in five employees

After years of fighting with, during Intel which AMD has consistently remained in second place, the company is abandoning this fruitless struggle. It does not leave the x86 processor market, but it is no longer focused on competing with Intel.

AMD plans to cut more than 2,340 employees worldwide in the near future as part of cost-cutting efforts. This was announced on October 16, 2012 by Bloomberg, citing a source in the company.

According to the company's plans, about 20% of all employees are subject to reduction. The staff of AMD around the world is more than 11 thousand people.

The reason for the staff cuts is the same as that of many competitors and a partner of the microchip manufacturer - a decrease in demand for computers, the components of which are AMD products. Thus, sales in the third quarter of 2012 decreased by 10% compared to the same indicator in 2011.

Analyst at Wedbush Securities Inc. Betsy Van Hees believes that a 10-20% reduction in staff is a fairly loyal measure in relation to the decline in demand that is now observed in the market.

The company already made massive cuts in 2011. Then about 10% of the staff were laid off. Analysts believe that in 2012, layoffs will affect sales and technical workers.

AMD denies rumors of possible sale of the company

AMD executives deny reports that the company is preparing to sell it. These rumors began to spread on Tuesday with the filing of Reuters, which, citing anonymous sources, reported that AMD had entered into an agreement with JPMorgan Chase with the aim of "studying business options." According to Reuters, AMD is not determined to sell the company itself, but is considering the idea of ​ ​ "unloading" the patent portfolio.

AMD has become increasingly difficult in recent years to compete with Intel and survive the "collapse" of the personal computer industry due to the boom in tablets and smartphones. However, in response to rumors, the company says that it is not planned to sell it. AMD representatives emphasize that "according to the company's directors and top managers, the current strategy aimed at long-term growth due to a wide variety of technology assets is a sure way to benefit shareholders." The company indicates that at the moment they are not pursuing the goal of selling the company or a significant share of assets.

Year-end: Loss of $1.18 billion

AMD's loss in 2012 amounted to $1.18 billion compared to a profit of $491 million in 2011, according to the company's report. The volume of annual revenue decreased by 17% to $5.42 billion.

Revenue for the IV quarter of 2012 decreased by 32% compared to the same period in 2011 to $1.16 billion, the loss amounted to $102 million (against a profit of $138 million a year earlier).

2011

E, C , Z and A Series Hybrid Processors

In January 2011, with the advent of the "true hybrid" E-series processors (for netbooks, nettops and notebooks), C (for compact netbooks) and Z (for tablets) in the AMD VISION family of products, the company began to allocate a new segment of devices in the sales structure. These are completely new products that the market has not seen or understood before. In June 2011, this new segment was joined by the powerful A-series hybrid processors, which have models for both mobile and desktop computers. They allow you to create very inexpensive devices with low power consumption and fast built-in discrete graphics. In addition, the company has chipsets with support for the USB 3.0 specification for these processors, which is very important in many cases. At the same time, AMD does not stop producing traditional processors that do not include graphics solutions. They also have their own market niche and their consumers.

AMD chief Dirk Meyer leaves the company

In January 2011, it became known that AMD was left by Chief Executive Officer Dirk Meyer. The board said it planned to find a person who would deliver higher growth rates. According to unofficial information, Meyer was dismissed due to unimportant results in the server business and the lack of a clear strategy in the field of tablets.

In the first quarter of 2011, AMD itself expects revenue to remain at the level of the previous quarter or its slight reduction. Analysts, for their part, predict a reduction in the company's income to $1.54 billion.

The demand for devices that use AMD processors is already very high. For example, in Russia, according to GfK estimates, at that time in the networks of household appliances and electronics, the share of sold AMD-based system units is approaching 50%. As for laptops, here in 2011 the same parameter is almost 30%. If we talk about the number of desktop processors imported into Russia, then, according to IDC estimates, according to the results of Q2 2011, their share was about 32% of the total supply (in unit terms).

Rory Read is the new head of AMD

In August 2011, it became known that Rory Read was appointed Chief Executive Officer of the company.

2010

Year-end: Revenue + 20%, profit + 55%

AMD's revenue in 2010 amounted to $6.49 billion. Compared to 2009, the indicator increased by 20%. Net profit increased by 55% to $471 million, profit from core activities - by 28% to $848 million. Recall that since the first quarter of 2010, the activities of Globalfoundries have not been taken into account in AMD reports. The company was established in March 2009 and included AMD production assets.

AMD revenue in the IV quarter of 2010 remained at the level of the same period in 2009 and amounted to $1.65 billion. Net profit fell more than 3 times to $375 million against $1.18 billion a year ago. Operating profit (profit from core activities) also decreased by more than 3 times - to $413 million against $1.29 billion in the IV quarter of 2009. According to IDG News Service, AMD's profit was mainly formed by royalties during this period.

AMD's Non-GAAP (non-generally accepted accounting rules) earnings per share in the 4th quarter of 2010 were 14 cents. Analysts polled by Thomson Reuters expected to see 11 cents. Revenue was also above independent forecasts, but slightly (expected value - $1.63 billion).

AMD's graphics business grew by 9% in Q4 compared to Q3, but did not show significant changes year-on-year. Revenue growth of 9% is attributed to an increase in the average selling cost of processors and an increase in seasonal demand for gaming systems.

The first Fusion hybrid processors with integrated graphics

In the IV quarter of 2010, the company began mass deliveries of the first hybrid processors under the Fusion project - chips with a graphics core built into them with DirectX 11 support. The most powerful 2- and 6-core processors Phenom II X2 565 Black Edition and Phenom II X6 1100T were also announced.

2009: Abandonment of chip manufacturing capacity

In 2009, AMD rebuilt the global strategy, abandoned its own chip manufacturing capacity (although it retained some share in their share capital), and concentrated its efforts on developing and promoting high-tech and marketable products. The reorganization of the company gave AMD certain advantages (primarily the flexibility of behavior in the market) and practically unlimited opportunities to expand the volume of products. At this time, more than twelve specialized centers located in different countries are engaged in research and development at AMD.

2008

Fin results of the year: Loss of $3 billion

The share of AMD products in the global processor market in 2008 is 12%. AMD's sales are falling as demand for computer technology has declined as a result of the financial crisis. In this situation, the company is forced to take measures to optimize its costs.

AMD's net loss in 2008 was $3.098 billion versus a net loss of $3.379 billion in 2007. Revenue in 2008 was $5.808 billion versus $5.858 billion in 2007. The fourth quarter of 2008 was the ninth in a row that AMD ended in the red. The losses are mainly due to debt obligations for the acquisition of ATI Technologies in 2006.

Joint venture with UAE The Foundry Company

October 2008 - AMD and Abu Dhabi (UAE) private equity firm ATIC announce a joint venture to produce semiconductors. The new enterprise, which appears under the temporary name The Foundry Company, will inherit two AMD processor factories in Dresden (Germany), assets and intellectual property associated with these plants. After the restructuring, which is scheduled to be completed in early 2009, AMD will focus on developing chips for computers and graphics cards, but will no longer be engaged in the production of chips.

New Turion Phenom and Istanbul processors

In 2008 , AMD introduced the next generation Turion (laptop) and Phenom (desktop) processors.

June 1, 2008 - AMD unveils its first 6-core. processor Istanbul The developers note that the new product is ideal for, virtualizations servers due to greater performance and energy intensity.

2007: Loss of $3.4 billion

In 2007, the company lost $3.4 billion, while revenue amounted to $5.86 billion.

2006: Purchase of Canadian ATI Technologies

After the acquisition in 2006 of the Canadian company ATI Technologies, various graphics solutions appeared in AMD's portfolio.

2004: Increasing Market Presence in Budget Solutions

To attract a more mainstream audience, AMD in 2004 released direct competitors Intel Celeron - AMD Sempron processors, which have quite high performance and low cost. The idea was correct, and AMD is starting to increase its presence in the budget market.

AMD is soon taking another significant step forward, leaving the company's main rival behind. In Intel August 2004, AMD introduced the world's first processor two-core based on the well-known, chip Opteron mass production of which began in 2005. In May 2005, it appeared - AMD Athlon 64 X2 a powerful dual-core processor for home gaming and multimedia. AMD PERSONAL COMPUTER uses 65nm to manufacture its products. technical process 2006 year, the company introduced Athlon 64 FX-60, a powerful processor for gaming enthusiasts and 3D graphics users. Another novelty is the AMD Turion 64 X2 - a dual-core version of the mobile processor that is best suited for use in flat PCs. laptops

The company's prestige is growing before our eyes - AMD is becoming a welcome partner for many world-renowned companies and even countries. At the same time, the financial power of Advanced Micro Devices, based on the successful symbiosis of marketing and technology, is also increasing. With a turnover of billions dollars a year, AMD decided to expand its production with a new segment. In July 2006, AMD bought a Canadian video card manufacturer ATI for $5.4 billion. By merging with ATI, AMD planned to strengthen its position in the computer market, including in the mobile segment, as well as enter the promising component market for digital household appliances, where ATI occupied good positions. ATI Technologies was the second largest manufacturer of discrete GPUs and the main competitor. Nvidia

One of AMD's developments is the Phenom quad-core processor. However, experts met him coldly. Despite the quality and potential of its architecture, it has not surpassed similar Intel products. However, the Phenom is a reliable chip that, given the use of the 45nm process technology, has not yet fully reached its potential.

2003: Agreement with IBM on cooperation in processor development

AMD's successes have helped draw the attention of such an IT industry giant as, IBM which until recently was one of the competitors of Advanced Micro Devices. In January 2003, AMD and IBM signed a cooperation agreement as part of a collaboration to create new generation processors. Thus, the AMD Opteron chip is born. This is the first 64-bit processor in the market, which allows you to significantly expand the framework set by the x86 standard. By the end of the year, Opteron is used servers in companies and. IBM Sun Microsystems Soon Athlon it becomes a 64-bit Windows compatible processor for use in home, work and game computers. Then a 64-bit version of the processor appears, Turion designed for laptops.

Subsequent years, AMD products (in particular Athlon 64 and Opteron) are very popular with both ordinary users and large companies.

In 2003 , the following were introduced: Opteron, Athlon 64, Athlon 64 FX, Athlon 64 X2, Athlon X2, Sempron, Athlon XP-M, Mobile Athlon 64, Turion 64, Turion 64 X2 and Mobile Sempron.

2002: First Processor for Business

In 2002, AMD, in addition to hardware for personal computers, also creates processor for business - Au1100 which almost immediately finds use in mobile technologies and corporate communications. In the same year, the company creates an alliance with the Chinese Educational Campaign, which considers AMD as the main supplier of personal computers to schools and educational institutions in the country. Another success of the company can be considered participation in the creation for the needs of the army, USA supercomputers Cray on which developments and virtual tests of nuclear weapons are carried out.

2001: Flash Release Starts

Since 2000, AMD has been actively financing scientific research and launching new products on the market. A new round in the development of the company has begun. The results were not long in coming. In 2001, AMD began releasing flash memory, which is based on the proprietary MirrorBit architecture, which allows you to increase speed by up to two times compared to regular memory flash. The manufacturers of cell phones and PDAs immediately became interested in the novelty.

In June 2001, AMD introduced the new Athlon MP, the company's first multi-tasking processor. This chip turned out to be especially effective in one bundle with DDR2 memory. At the same time, for gaming computers, AMD introduces the Athlon XP processor, which surpasses Intel's gaming products in both performance and price. Constant competition forces AMD to improve the production process - by 2001, the company mastered the production of processors using 0.17 micron technology.

2000: New Processor Family for Laptops

Revolutionary innovations from AMD are pouring in like a cornucopia. In 2000, the company announced "Mobile AMD-K6-2 +" - a family of processors with AMD PowerNow! Technology for use in laptops, which allows you to increase your computer's performance without recharging. In the same year, the company released the AMD-760 chipset - the first on the market supporting DDR technology (Dual Data Rate, dual bandwidth RAM). In addition, AMD is launching a strategic partnership with Motorola, with which it is developing new flash memory, communications and telecommunications technologies.

1999: The first processor with full Windows support

The turning point for AMD is 1999, when the company released processor with full support OS Windows - AMD Athlon which surpassed Intel Pentium chips in performance and immediately gained great popularity, especially among gamers. Many companies began to produce motherboards and chipsets created specifically for. Athlon

Processors Athlon, Athlon XP, Athlon MP, Athlon 4, Mobile Athlon XP, Duron, Mobile Duron, Sempron, Geode NX, introduced in 1999 , were released until 2005 .

1997: Pentium Processor Competitor Launch

AMD, using reverse engineering technology, continues to work on its own products designed to provide an alternative to Intel's x86 and upcoming Pentium developments. The first step in this direction was the release in 1991 of the Am386 processor, an Intel 80386 clone with an original structure, but with an identical set of commands. In addition, AMD began developing its own processor microcode, which subsequently helped the company when, in 1993, Intel through the courts obtained a ban on the use of 80386 and 80486 microcodes in AMD processors.

Despite this, AMD continued to produce the Am486, considering this processor to be its entire development. It is with this chip that AMD's own path in the IT industry begins. Now the company has acquired the status of a manufacturer of reliable processors that could operate at higher frequencies than Intel chips. Accordingly, AMD has many large customers - for example, Compaq. In addition, the US military is also interested in AMD products, which were regular customers of the company at a time when processors were manufactured at its factories under an Intel license.

However, x86 technology for Intel was no longer so interesting, since in the near future the company planned to launch the Pentium processor on the market. At this time, AMD began developing its own new generation processor, codenamed K5. And in 1997, the company released a AMD-K6, which, due to its low cost, finds its buyer. Then a AMD-K6-2 appears with the technology "3DNow!" That is relevant for the emerging era of video games. The only disadvantage of these processors was incomplete compatibility with Microsoft products.

K6, K6-2, K6-III, K6-III + and K6-2 + processors were produced until 2001.

1991: By court order, Intel pays AMD $1 billion

In the late 1980s, memory chips (DRAM) began to be produced by Asian manufacturers, which quickly took over this market, leaving AMD out of work. Therefore, the company decided to focus on mass production of its own processors compatible with Intel's 386 chip. Understanding the excellent financial perspective of the PC market, Intel is trying to deprive AMD of its license through the courts. But in 1991, Intel itself had to pay AMD more than $1 billion in court .

1980: Increased collaboration with Intel

In the early 80s of the XX century, when personal computers are increasingly entering everyday life, AMD continues to release processors under an Intel license. However, the growing PC market, promising record profits in the future, has forced Intel to compete with AMD. But all attempts by the manufacturer of the x86 family to somehow remove Advanced Micro Devices from the market each time came across a cross-license agreement signed by the companies. It is worth noting that in 1982 the cross-licensing agreement was even expanded. Intel provided AMD with full documentation for the 80186 and 80286 processors, and also confirmed AMD's right to produce all subsequent x86 processors.

Until 1987, AMD noticeably succeeded - it increased capital, opened new factories, expanded staff, and the main activities of the company were the production of memory chips, while the processors made under license were not sold very well, since, in general, little differed from Intel products.

1975: Intel Licensed Processor Agreement

By the beginning of 1975, the company had a staff of 1,500 people, AMD factories worked USA in Malaysia, and sales amounted to 26.5 million. dollars

In the early years of its existence, AMD, in addition to its own products, was engaged in the release of processors under license. For example, in 1975, the company signed a cross-license agreement with Intel and began to release its first processor for personal computers. The analogue of the Intel 8080, which was developed by AMD specialists by reverse engineering, was compatible with the original command set, but was 40% faster.

However, AMD is quickly mastering the release of its own products, the development of which spends a lot of money. Thus, the company took advantage of the release of chips under license in order to start financing its own promising solutions. In 1975, AMD launched the first RAM board - Am1902. In addition, in the same year the company begins production of its own microprocessor Am2900 series. This chip is commercially successful, thanks to progressive technology for its time, which was distinguished by high speed, reduced heat dissipation, programmable instructions for applications and an affordable price. The company spends the proceeds on opening new industries and increasing staff, as well as investing in scientific research.

1969: Founding a company with a capital of $100 thousand

May 1, 1969 - AMD is founded by former Fairchild Semiconductor executives, including Jerry Sanders, Ed Turney, John Carey, Sven Simonsen and Jack Gifford. The starting capital amounted to $100 thousand.

The first office of the company was the apartment of one of the founders of the company. However, AMD's office soon moved to a separate premises in Sunnyvale (California), where the company's headquarters are still located.

Sanders' marketing experience was perhaps crucial in shaping AMD's business idea. Unlike the founders of Intel, who were primarily engineers, Sanders, in addition to developing technology, relied on marketing. He knew how to sell. For example, AMD often resorted to the at-a-loss sales strategy tried by Sanders back at Fairchild Semiconductor. The essence of the marketing move was to sell a high-tech product at a low price. Operating at a loss, the company gradually captured the market. Meanwhile, AMD engineers have been working to make the cost of the technology cheaper.

Already in 1969, AMD introduced the Am9300 chip register and the Am2501 's own processor.

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