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Earnings Calls: 
Advanced Micro Devices Earnings Call, Second Quarter 2008
Author: 123jump.com Staff
123jump.com
Last Update: 12:04 AM ET July 22 2008


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The firm dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions reported revenue of $1.3 billion, up 3%. However, the challenging economic environ resulted in a net loss of $1.2 billion, or $1.96 per share, down from a loss of $600 million or $1.09 a share in 2007. Customer adoption of the recently introduced microprocessor and graphics products and platform offerings is strong, and there is increasing momentum across the businesses.


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Glen Yeung: We might expect that AMD would focus more on what you could do in the volumes market. What are those markets?

Dirk Meyer: The PC, and the traditional desktop PC market.

Glen Yeung: As you see that evolve, do you think that is something AMD is in a position to take advantage of?

Dirk Meyer: Yes. The extent Intel creates opportunity for X86 technology by growing new markets that is good for us over time.

Glen Yeung: Elaborate about pricing and mix in the second quarter? Was that a functionality of pricing environment or is that a functionality of mix?

Robert Rivet: It is a combination of both.

Glen Yeung: Are you thinking forward into your roadmap as the asset smart strategy starts to evolve, does SLY have to be part of that strategy?

Dirk Meyer: We reevaluate the technology choices we make including SLY. Going into 45 nanometer we are confident that the SLY choice made is the right one and we will make that judgment as we go into 32 and beyond.

Glen Yeung: About ATI for the graphics and the chip set business, is that to suggest that consumer business is something you do not want?

Dirk Meyer: We are declaring those businesses discontinued operations and offering them for sale

David Wu: On the ATI side of the house, do you intend to sell the whole thing to one buyer or separate pieces of the discontinued operation to essentially different buyers?

Robert Rivet: We are going to do that one or two separate transactions.

David Wu: The 4800 family is a different track from ATI’s past experience in the last two generations and could you have architectural leadership this time around can you achieve a 4 in front of it?

Robert Rivet: Based on our competitor there are two in the graphics space he who has the good goods gets the better margin. So gross margins north of 30 to the 35-40 is definitely where we desire the business to be operating at.

David Wong: About breaking even without needing asset smart, are you expecting to break even regardless?

Robert Rivet: We will make money in the back half of the year so make sure you are clear on that, and we are not trying to give any indication that asset smart is a 2009 event.
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