AMD remains silent on company's future

Posted on Friday, May 09 2008 @ 21:07 CEST by Thomas De Maesschalck
AP writes AMD remained tightlipped on its future. Last year AMD's CEO Hector Ruiz hinted the firm may sell some of its manufacturing capacity to third parties but no new information was made public about this strategy on the firm's annual shareholders meeting.
A year ago Ruiz began hinting that AMD is thinking about offloading some of its manufacturing duties to third parties to save money, but he has been tightlipped about details since then.

"Our plans are bold, and progress is ongoing," Ruiz said Thursday in prepared remarks about the so-called "asset smart" manufacturing strategy. "And I hope to communicate additional details of this complex undertaking in the very near future."

AMD has racked up more than $4 billion in losses over the last year and a half as intensifying competition from Intel and expenses from AMD's $5.6 billion acquisition of graphics chip maker ATI Technologies have taken their toll.

The company said last month it plans to jettison 10 percent of its global work force, or about 1,600 workers, by September in an aggressive cost-cutting move.

Ruiz reiterated Thursday that the company expects to reach operational profitability in the second half of this year.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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