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Posted by on Oct 25, 2012 in Hardware News |

Analysts say AMD is facing liquidity problems

Analysts say AMD is facing liquidity problems

Among all participants in the PC market, there is one in particular that is suffering more than the rest, economically speaking. According to Business Week report on AMD’s problems at their CEO seeking solutions and laying off employees.

For some analysts, the issue turns into something more serious when is currently trying to open up space in other markets. And all within AMD is against time, as its cash reserves are being reduced at an alarming rate, so much so that by the end of 2013 the company might have “only” $ 300 million in cash in his safe .

Several are the reasons that trigger the situation in AMD. For some, it is the lack of “attractive products” that come with the AMD brand, and this is compounded by the decline in PC sales, has happened faster than expected and they are 85% of the company revenues. For the first time since 2001, the total PC market close with a contraction of 1.2%.

Finally, be left behind seem the days when AMD and Intel were the only alternative in the segment. The gradual and progressive entry of other names to market (Qualcomm, NVIDIA) is also a factor, while some analysts say first start the questions about the future of AMD.

The waters do not seem very quiet inside the manufacturer, and is expected retrenchment of about 15%. The task of the senior executives of the company seems quite complicated facing the medium term.

Link: AMD Faces Looming Cash Crunch Amid Quest for New Markets (Business Week)

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