Following $110 million loss posted by its flash memory division and record sales of microprocessors for computers in the most recent quarter, Advanced Micro Devices announced plans to form a new division that will concentrate on sales of microprocessors and also said its Memory Group had filed for a $600 million initial public offering.
AMD Forms AMD MSS
AMD's Microprocessor Solutions Sector (MSS) is a new division that consolidates the company's existing microprocessor businesses under a single organization.
揟he realignment strengthens AMD's ability to bring the benefits of AMD64 processor technology to a wider range of customers and markets around the world, and targets the x86 embedded processor and consumer electronics spaces as vital components of the company's business strategy,?the company said in a statement.
The formation of the Microprocessor Solutions Sector is accompanied by two key changes to AMD's executive management team. Dirk Meyer, previously executive vice president of the Computation Products Group (CPG), has been promoted to president and COO of MSS - a role that gives him profit and loss responsibility for all of AMD's microprocessor business. In addition, Henri Richard has been promoted to the position of chief sales and marketing officer of AMD.
Under AMD's new executive leadership structure, Dirk Meyer will oversee all financial, business and technology aspects of AMD's processor business. In addition he will focus all MSS activities ?including processor manufacturing, operations, R&D, hardware and software vendor relations, and product and platform definition ?on near-term roadmaps and long-term innovation. Dirk Meyer will also drive AMD's strategy for extending the benefits of the company's technology to the emerging 揇igital Life?markets, according to the company.
Working in concert with Dirk Meyer, Henri Richard will define and lead AMD's worldwide go-to-market, external branding and communications strategies. This includes leading the company's global, regional, and channel sales and marketing efforts for all AMD products and solutions, and evolving AMD's corporate and products brands to ensure they align with customer requirements and the company's business strategy.
AMD Flash Biz Posts $110 Million Loss
AMD reported sales of $1.227 billion and an operating loss of $46 million for the quarter ended March 27, 2005. The first quarter net loss of $17 million amounted to $0.04 per share.
The losses were mainly generated by poor performance of AMD's Memory Group, which posted sales of $447 million, down 29% annually despite of sequential unit volume growth, and operating loss of $110 million, up from $39 million in the previous quarter. AMD's Computation Products Group (CPG) sales were $750 million, up 31% annually. The CPG generated operating income of $92 million in the first quarter of fiscal 2005.
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