Of course it will be a loss, the only thing that is really selling well for AMD is the PS4 & xbox1 CPU & chipsets.
They are going to be taking a bath in red ink for their gfx division, and their CPU division hasn't made a profit in many years.
Highly doubt they will file for bankruptcy as well, they can't swallow that pill just yet.
Well, that's the most obvious thought. The earnings report is going to be bad... real bad, which is why Rory was forced out. The idea that anyone might believe this has been planned is confusing to me. The writings on the wall, this was not planned as it was exectuted. Look at the SEC filings. It doens't add up.
As for PS4 and Xbox, I'm curious to see their profit margin on those products. Does anyone have that information? Is it even public?
Don't count on it yet. They still have some breathing room in the form of the revolver credit line, they still have GPU IP to sell, plus they can securitize the console contracts receivables... I think the question hanging is whether Lisa Su will pursue Rory's strategy and try to diversify the company or if she will transform AMD into an embedded company.
This is a good point, they do have funds available to them, however, I don't think it would come in the form of traditional credit. Their debts to revenue margins are too poor. But, I might see external investors pumping the bottom line to continue operations.
I do however believe your last comment is correct, personally I expect AMD will desolve the vast majority of it's current product operations and focus specifically on one thing. Maybe APU, maybe GPU, maybe custom IP for very specific clients needs, who knows.
But I expect they will do that under the cover of bankruptcy protection.
AMD won't file for bankruptcy because they would lose the x86 license. If (when) it gets to that point they would be selling off their assets and shutting down the company.
Well, I don't know about that. I'm pretty certain they could build a recovery strategy around a future without x86 licensing.
Plus, I'm certain this has already been discussed, but:
http://news.synopsys.com/AMD-and-Synopsys-Expand-IP-Partnership
They don't really have IP value to sell off, theres no reason for anyone to shell out large amounts to buy it. Obviously they still have incredible value, they must, but will it be enough to continue trust with the investment community. That's the real key. A few years back they were given a rope to save themselves with, on the promise it would give them enough slack to turn it around. Now it's put up or shut up time and all it appears is that rope has become a noose.