AMD CEO says that the company will return to profitability later this year

AMD aren’t doing so well right now, compared to other giants such as Intel or Apple’s latest financial results, but according to the reports, CEO Rory Read has outlined the company’s three-phase restructuring plan to bring the company back to profitability by the second half of this year.

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Read said the turnaround is expected to take several quarter and involves a complete restructuring of how the company runs its business. Furthermore, AMD plans to deliver a new set of powerful products this year and will begin transitioning the company to take advantage of high-growth opportunities in other markets where their intellectual property could provide others with a competitive advantage.

Those ‘other’ markets include things like custom silicon, servers, the embedded space and ultra-low-power products like gaming consoles. Read told investors that AMD has already scored solid design wins for semi-custom APUs and embedded products and that we can expect to see products using those designs later this year. Having won contracts to have their products in every single next-gen gaming console, this is a huge, huge uptick for AMD and they hopes to collect 20 percent of their revenue from these alternate markets by the end of this year.

Read also talked about spending cuts related to the company’s research and development efforts.But this doesn’t sound good at all. Some of the industry watchers have been concerned that AMD is cutting this segment too deep but according to Read, they are taking expense management steps at all levels of the business. He said the cuts to R&D are designed to help improve efficiency and productivity by doing things like reusing intellectual property and utilizing fewer process technologies.
I think it’s to stem huge losses, which might help in the short term, but in the long term? Let’s hope AMD can swing things around.

 

Source: http://www.techspot.com/news/51422-amd-chief-says-company-will-return-to-profitability-later-this-year.html

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