|
| UPDATED: 2006-05-19 |
 Dell Adding AMD To Server Line 
By: David Utter 2006-05-19 The days of Dell Computer being an Intel-only shop have ended, as the global PC titan has agreed to place AMD Dual Core Opteron processors in some of its servers.  The multi-processor servers offered by Dell (DELL) should have something very new inside them by the time Santa Claus finishes his yearly nocturnal run.
After disclosing first quarter fiscal 2007 numbers that reflected a predicted profit shortfall, Dell announced it would purchase chips from AMD (AMD) for servers favored by corporate buyers. Those multi-processor systems represent a market segment where Dell has been losing ground to competitors like the newly-resurgent Hewlett-Packard. Dell didn't have much choice but to finally embrace AMD with a deal. The lowered numbers predicted by Dell came in at $14.2 billion in revenue for the period, with net income of $762 million or 33 cents per share. The AMD news appears to have helped investors get past the lackluster numbers. In after hours trading, ECN reported shares of Dell had moved up 1.04 to 23.95. Company chairman Michael Dell had emphasized earlier in May that long-term investors had been rewarded by sticking with the company and should continue to do so. AMD enjoyed both the new business deal, as it gives them another piece of hated rival Intel's market, and the after hours boost to its shares. AMD shares hopped upward by 3.90 to 35.25 according to ECN. "We welcome Dell, and Dell customers, to the world of AMD64," said Marty Seyer, AMD senior vice president, Commercial Business. "Dell is a customer-focused company and we’re pleased to see that they are listening to their customers and providing them the choice of innovative AMD products." Intel took substantial criticism during its recent annual shareholder meeting. Paul Otellini and company probably would have been in for worse had the event taken place after Dell's AMD announcement instead of before it. As it is, Intel moved down 93 cents in after hours trading to 17.72 per ECN's data. Bloomberg carried this analyst quote in a post-Dell announcement report: "Advanced Micro looks like a better-run company right now," said Jim Benham, a fund manager at Benham & Green Capital Management in La Jolla, California. His firm oversees $100 million and recently sold its Intel shares. "Intel has dropped the ball."
--- Tags: Dell, AMD, Intel Add to | DiggThis | Yahoo! My Web | Furl Bookmark IFN - 
About the Author: David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business. |
|
|||||||||||
 |
| InternetFinancialNews
is an iEntry, Inc. ® publication
© 1998-2009
All Rights Reserved. Privacy Policy - Legal - Sitemap - Contact Us - RSS Feeds |
