Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

AMD and Opteron Keep Gaining on Intel

The virtues of the the AMD Opteron microporcessor were amply demonstrated in the recently released 3Q 2005 Advanced Micro Devices Inc. ("AMD") financial statements. The growing market acceptance of the AMD Opteron resulted in a 73% increase in profits and a 23% increase in total revenue. As CEO Hector Ruiz stated to InformationWeek, AMD has a 'Phenomenal Future' ahead, especially with its leadership in 64-bit Opteron processors and the forthcoming divestiture of its flash memory business.

  • According to this AMD press release, AMD posted a 73% jump in 3Q 2005 profit as net income for the period ended September 25, 2005 came to $76 million, or 18 cents a share, compared with $43.8 million, or 12 cents a share a year earlier. Total revenue rose 23% to $1.52 billion from $1.24 in the year prior period. Both of these financial figures exceeded analysts' average estimates, which called for third-quarter earnings of eight cents a share and revenue of $1.38 billion, according to Thomson First Call.
  • The Wall Street Journal reports that AMD forecast that microprocessor sales would rise by an additional 7% to 13% in the fourth quarter when comapred to the third quarter of 2005. That would amount to a 42% to 50% increase in microprocessor sales from the fourth quarter of 2004. The company's momentum has been particularly noticeable in chips for server systems (driven by the 64-bit Opteron microprocessors), noted Adam Parker, an analyst with Sanford Bernstein. On the other hand, Apjit Walia, an analyst with [gns:RBC Capital Markets] noted some of AMD's success is attributable to [gbs:Intel miscues], including a shortage of capacity to manufacture some products. The WSJ article by [gns:Don Clark] concludes with a note that AMD is planning to boost its own microprocessor production capacity starting on October 14th when it formally will open a new fab in Dresden, Germany.

Selected reference material on AMD's progress

Toomre Capital Markets LLC relationship with AMD

  • Toomre Capital Markets LLC ("TCM") is an Enterprise Risk Management domain expert and advisor to AMD's financial services marketing vertical and AMD's high-performance computing ("HPC) area. Recently, TCM completed a commissioned paper tentatively entitled "The Future of Real-Time Enterprise Risk Management." In short, this work focused on methods of reducing latency throughout the three M's of risk -- monitor, measure and manage -- to produce actionable real-time Enterprise Risk Management intelligence. As Sun Microsystems' Andy Bechtolsheim states, AMD Opterons have twice the power efficiency of Intel server microprocessors, so quite naturally AMD Opterons are a key component of the adoption of continuous, real-time Enterprise Risk Management by leading financial service firms.

Google searches to further investigate AMD's Opteron progress

Google searches to further explore AMD in financial services and ERM