AMD posts Q3 loss

October 15, 2010 // 5:15 p.m.

Tags: #amd-earnings #apu #financial #llano #slate #tablet #zacate

Companies: #amd #ati

Chip maker AMD has released its third-quarter earnings, along with a surprise announcement: it's working on processors for tablet devices.

Despite denials that the company had any plans in the direction of the iPad-dominated tablet market, chief executive Dirk Meyer announced to investors that the company will be launching AMD-powered tablet devices - just not quite yet.

During the quarterly earnings call with investors, Meyer stated: 'A tablet would optimally have power dissipation of two to three watts, which is a little more than half of what a fanless netbook would tolerate. I expect customers will take components designed with netbooks in mind and put them in tablets, and I think you'll see AMD solutions in tablets in the next couple of years for that reason.'

Meyer also promised: 'Production shipments of Llano, our 32nm APU, are planned to occur in the first half of next year,' bringing hope to those who believe that the firm's application processors will be enough to compete with industry giant Intel over the coming years.

Sadly, the financials didn't look so good. Far from matching Intel's record-busting quarter, AMD suffered a definite droop from where investors had hoped it would be - albeit less severe than the company predicted. Revenue for the quarter stood at $1.62 billion - not quite as impressive as rival Intel's $11 billion - which translates to a quarterly net loss for the company of $118 million, up from the $43 million it lost last quarter.

With Intel leaping from strength to strength, it's clear that something will have to change for AMD. Only time will tell if its new APU products will make the difference.

Are you disappointed to see AMD continuing to make a loss, or hopeful that the launch of Llano and Zacate will spell a reversal of the company's fortunes? Share your thoughts over in the forums.
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