Source: Financial Times Online ( http://www.ft.com ) Date Published: 1/18/08 Word Count: 447 AMD Upbeat Despite Losses This article is about the company AMD (Advanced Micro Devices). This is the second largest microprocessor company behind Intel. AMD has had 5 consecutive quarterly losses, the total of which is around $1.77 billion. Bob Rivet, the chief financial officer of AMD, has said that they plan to return to profitability by the second quarter of this year. This article is an example of an oligopoly operating at a loss. AMD is one of a very small number of manufacturers in the microprocessor industry. Due to Intel (the number 1 microprocessor manufacturer) securing several governmental contracts, along with several million spent on advertising, AMD is falling behind. After 5 quarterly losses, the company is remaining open, and remaining optimistic about the future. Economically, it is in the company’s best interest to continue operating at this point, even with such a seemingly devastating loss.
This is the end of the preview. Sign up
access the rest of the document.