AMD lay offs

As I had predicted, AMD has laid off 430 people or as they say 2.6% of their workforce.

Link

However, this is probably not enough and they will need to bring their employee base down closer to 15k people from the 16.5k they had post the ATI merger very quickly.

AMD also filed their 10Q today. While we already calculated the true loss to the CPU biz, it also reveals a 10% decline in ASPs.

Link

AMD management is handing out some blatant horse's manure. At the analyst call they said inadequate supply to channel and that the Q1 inventory build up was desired. Huh - if they had inadequate supply, why is it Q406 inventory was stable at the same level compared to the period when AMD was selling out and make solid profits. You can read more about my assessment on the inventory:

here...

Essentially, AMD is seeing soft demand because they have non competitive parts and by pulling the Pentium brand down the pricing stack Intel has made it difficult for them to sell even when they are almost giving the product away for free.

What baffles me is how the Wall Street hucksters continue to prop the stock up at 13.50+. But I guess the guys who bought at 40 have no choice but to pour good money after bad to try and keep their investments afloat for as long as possible.

Q2 - expect AMD to lose a big dollop of change again. Not as much as Q1 but probably half or a little more than half of their Q1 loss.