AMD has just released the Q1 quarter earnings not so pleasing, even semi-custom processor business is suffering from decline, always have to continue this transformation in the quest for the transformation of AMD. As one of the SRP 2012, AMD spent $ 334 million to buy the SeaMicro as part of their larger play into being an agile company, aiming to take a big chunk of what was expected to be a fast-growing market micro/dense server market.
AMD to give up with $330 Million acquisition of SeaMrico Company
Former CEO Lorette after taking office said that, the high-Performance business was one the key for us, so in 2012 after spending $334 million to acquire acquisition of the SeaMicro server company, based on the company to launch a low-power Intel Atom and Xeon processor-based servers. In September 2012 after the company launched the SeaMicro SM1500 server, it belongs 10U system, only a quarter of the same level of volume servers, an optional configuration includes piling machine architecture Opteron processors and Intel Xeon Ivy Bridge architecture E3-1265L V2 processor, can be installed up to 64 CPU and 5PB of data storage space.
This is SeaMirco company was acquired after the launch of the first product, but also the last product you can say. AMD does not bring much to the revenue, while maintaining the company’s operations, research and development and other matters still need to continue to throw money at AMD.
Here are the prepared remarks from AMD’s CFO Mr. Kumar regarding SeaMicro:
At the corporate level, we continue aligning larger portions of our R&D investments to take advantage of long-term growth opportunities across our EESC segment. As we prioritize our R&D investments and simplify our business, we made the decision in the first quarter to exit the dense server systems business as we increase investments in our server processor development. We retain the fabric technology as a part of our overall IP portfolio. We see very strong opportunities for next-generation, high-performance x86 and ARM processors for the enterprise, datacenter, and infrastructure markets and we will continue to invest strongly in these areas.
AMD subsequently explained that they do not completely abandoned the SeaMirco, the company will still operate independently, IP rights will be retained, but do not expect AMD to give this part of the business to provide R & D funding, and its SeaMrico website has also been down. (Estimated there will be a follow-up to a lot of people want to leave).
Abandon tasteless SeaMciro company does not mean that AMD will give up the server market, on the contrary, AMD will focus on high-performance server processor market, which includes both the development of a whole new generation AMD X86 architecture Zen, but also developed its own ARM architecture K12.
AMD Q1 earnings in the quarter included $ 75 million in special funds, mainly because of the negative impact of abandonment brought SeaMicro, including $ 7,000,000 in cash payments.