Albert:
I have been very busy lately so I have missed a few news stories:
Here is a interesting one. Looks like AMD is dumping its line of Interwave audio chips to focus on its MPU's. Also they are scaling back operations in other areas and the programable logic division may be up for sale. Looks like maybe there going to let all their eggs ride in one basket.
Here is the URL:http://www.techweb.com/search/advsearch.html
Here is the article (I am not sure if this URL is accurate any more.)
November 18, 1996, Issue: 1033
Section: News
AMD Dumps Audio Chips -- Seems Part Of Strategy To
Focus On K6 MPU
By Jim Evans
San Mateo, Calif. - In yet another sign of its shifting corporate strategy,Advanced Micro Devices Inc. has scrapped its line of audio chips, the company confirmed last week. A source inside AMD said the company jettisoned its audio devices,known as the InterWave family, after discovering the chips were not compatible with an early version of Microsoft's Windows operating system. Rather than attempt to fix the problem, AMD opted to abandon the products.
That account was confirmed by an outside source familiar with the InterWave line, who spoke on condition of anonymity. However, an
AMD official said the move simply reflected a change in priorities, not a technical glitch. "There were no issues in that area that I know of," said company spokesman John Wilkinson. The discontinuation of the AMD audio-processor line is yet more proof of just how far the company is willing to go to refocus its operations around the K6 microprocessor, a part AMD hopes will loosen Intel's hold on the microprocessor market. Over the past year, the Sunnyvale, Calif., chip maker has scaled back its investments in flash memory and has quietly put its programmable-logic business up for sale, according to insiders.
Excess inventory and the cost of unused factory capacity have caused
AMD's earnings to drop sharply. Revenue for the most recent quarter fell nearly 25%, while income sank from a $42 million gain to a $38 million loss.
Yet while analysts generally support AMD's emphasis on the K6, they
say its future prospects are far from certain.
"AMD is very aware of how large the processor market is, and they're
making sure that area has the most focus," said Scott Randall, analyst with SoundView Financial Group, Stamford, Conn. "But there is still a healthy degree of skepticism in the financial community, and they've been very careful about keeping expectations low."
While the removal of the InterWave family from the market raises
questions in some circles about AMD's ability to deliver on its core
products, some say the company is doing what it has to do - even if that means it must put all its eggs in one basket. "It's just common sense," said Gerry Kaufhold, analyst at In-Stat Inc., Scottsdale, Ariz. "They're circling the wagons and betting a lot on the K6,
but that's where they should be putting their resources right now.
"They are facing a pretty critical year in 1997, and nobody in the PC
business is counting on AMD," Kaufhold added. Dean Whitehair, AMD public relations manager, Austin, Texas, said he was unaware of any problem with the InterWave family. "We haven't had one of our best years," Whitehair said. "We took a look at some of our core competencies, and we decided we would rather use our talent in audio for our other businesses at AMD, such as microprocessors," he said.
AMD told customers "a month or two ago" that while the company will
no longer have a line of the multimedia audio processors, it will continue to serve customers who have already bought the devices, Whitehair said. |
