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Intel and AMD: sunshine and the big suck

First, the bad news. We reported last week on news that AMD would take $900M in charges in Q2. That turns out to have undershot the mark a bit

AMD logoIn the second quarter of 2008, AMD reported a net loss of $1.189 billion, or $1.96 per share. For continuing operations, the second quarter loss was $269 million, or $0.44 per share, and the operating loss was $143 million. The results for continuing operations include a net favorable impact of $97 million, or $0.16 per share as described in the table below. Loss from discontinued operations was $920 million, or $1.52 a share, including asset impairment charges of $876 million, or $1.44 a share.

Well, what’s $289M between friends?

In case you’re wondering, that’s on revenues of $1.35B. $876M of this is a (another) write down on ATI, bringing the total write downs on ATI to $2.2B, or almost 41% of the total amount AMD paid for ATI in the first place.

If you’re wondering why the difference between $269M loss and the reported $143M operating loss, AMD sold some old equipment. The same day that AMD announced these performance numbers they fired Hector Ruiz and replaced him with former COO Dirk Meyer

AMD today announced that its board of directors elected President and COO Dirk Meyer as the company’s chief executive officer. Meyer succeeds Hector Ruiz, who will become executive chairman of AMD and chair of the board of directors. As executive chairman, Ruiz will ensure a smooth executive leadership transition, focus on driving the company’s asset smart strategy to completion, and assist with high-level government and strategic partner relations.

AnandTech had this to say about that

Hector’s replacement is Dirk Meyer, AMD’s current president and COO. Dirk is seen as more of a technical man and less of a business man than Hector, which may be what the company needs right now. He’s credited with the success of AMD’s earlier Athlon processors, and interestingly has been with AMD several years longer than Hector has.

Meanwhile, on the other side of the tracks, Intel made a hill of money in Q2 and declared a dividend — take that, AMD

Intel logoIntel Corporation today announced record second-quarter revenue of $9.5 billion, operating income of $2.3 billion, net income of $1.6 billion and earnings per share (EPS) of 28 cents.

…Intel Corporation’s board of directors has declared a 14 cents per share quarterly dividend on the company’s common stock. The dividend will be payable on September 1, 2008 to stockholders of record on August 7, 2008.

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