Another Big Setback For AMD (AMD)

By Douglas A. McIntyre Updated Apr 6, 6:19PM EDT · Published Dec 6, 8:22AM EST

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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.