Dirk Meyer can cite more than ten major achievements Advanced Micro Devices Inc. has racked up over the last one year but none of these can help the company overcome the public relations and supply chain nightmare it has admitted facing due to problems with its Quad Core microprocessor.
Those problems would force AMD to delay until the first quarter of 2008 the shipment of several chip products, including its Barcelona and Phenom processors, according to Meyer, president and chief operating officer of the company, during a presentation to analysts in New York http://cm004.cmpnet.com/iw-cc/formspub/images/btn_repliadd.gifon Thursday.
"We haven't delivered our Quad Core consistent with our plan and the Quad Core issues have overshadowed some of our achievements," Meyer said. "We know exactly what the issues are with the Quad Core. We know how to fix them and we are hell-bent on getting those fixes into the market as soon as possible."
The company admitted that the manufacturing delay with its Quad Core processor products has been disappointing for some of its customers and that it is working on improving its supply chain operations.
So what exactly has AMD achieved during the last year? Meyer has a lengthy list, including gaining market share in the CPU sector, record shipment of mobile processors, the addition of Toshiba Corp. as a major customer, transitioning to 65 nanometer and improved yields on its manufacturing operations.
"Since first quarter, we've done a lot of things really well," Meyer said. "We've acquired and quickly expanded our business with another global tier-1 OEM, we've grown our mobile business faster than the red-hot mobile business overall, we've accelerated our platform design wins, we've regained momentum in the CPU channel, we've fully transitioned our CPU output to 65 nanometer technology where the yields are outstanding and we've established a yields baseline for 45 nanometer technology."
Any more? Absolutely. AMD, he said has "improved our supply chain operations; we've launched our new 600 series of GPU products and are seeing outstanding success as measured by OEM design wins; we've increased our CPU average selling prices, we've increased our gross margins and we've improved our operating margins."
Despite all these laudable achievements, AMD continues to be dogged by the pesky little problem of Quad Core shipment, however, and that's one issue analysts won't let the company forget, complained Meyer.
"The prevailing wisdom is wrong," he added.