The problems between the two microprocessor companies, Intel and AMD in the courts finally ended. Both agreed to resolve disputes, and Intel will pay AMD U.S. $ 1.25 billion.
Both peace agreement stipulated in a treaty. “If a harmonious relationship between the two companies is unlikely in the past, this agreement will end the legal dispute and allow both companies to concentrate on innovation efforts and product development,” the essence of the agreement between Intel and AMD are.
As part of the agreement, Intel will pay U.S. $ 1.25 billion for AMD. In the meantime, AMD will stop the lawsuit on Intel. In addition, Intel is also required to comply with a set of rules in business practices.
AMD CEO Dirk Meyer considered that this agreement will provide an opportunity for companies to compete fairly.
Previously, AMD accused Intel had committed fraud in business, by offering discounts to computer makers who agreed not to buy chips from AMD. The case was eventually rolled into the court.
AMD semiconductor company reported earnings decline in third quarter by about 22% when compared to the results they achieve in the last year.
But if the measure of each quarter, Intel’s rivals to record a sales increase from quarter II.
As quoted from PC World, Sunday (18/10/2009), AMD recorded a revenue of U.S. $ 1.4 billion in the third quarter of this year. Revenues are reportedly increased by about 18% compared to second quarter.
It’s just that, AMD is projected to suffer loss of income of U.S. $ 128 million at the end of the third quarter that fell on 26 September. That’s because their income is lower than the same quarter the previous year.
Dirk Meyer as CEO and President of AMD, are reluctant to comment further about the decline in business results. “AMD saw a market demand for graphics chips and processors, before the third quarter of this year,” he said. Dirk also mentioned that the shipment was significantly increased compared to II quarter.
Before the quarter II, the price of 65-nanometer chips AMD had experienced price collapse. But AMD’s got a lot of profit from the sale of 45-nanometer processors that actually increased their time.
