Another Big Setback For AMD (AMD)

AMD (AMD) told investors and the media that one of its key chip projects is being delayed. The new flagship Barcelona chip will not be ready for use in servers until next year. At one point the product had a release date of last September.

The New York Times writes that “We’re continuing to ship it but only to specific customers,” said John Taylor, spokesman for A.M.D., which is based in Sunnyvale, Calif. As a result, many server manufacturers have not been able to sell the products they expected based on the new chip.

With each passing week, AMD management looks more like the “gang that couldn’t shoot straight.” The company’s shares now make new 52-week lows almost daily, Yesterday the stock dropped to $8.83 down from a period high of $23.

AMD is still saddled by a huge debt load, some of it taken on when it bought chip company ATI. With negative operating income, AMD does not have a long runway to get the ship in the air.

In other words, the company gets into more trouble as time passes.

Douglas A. McIntyre

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