2010, Rory Read said the company would leverage its PC chip technology to attack the fast-growing tablet segment as well as emerging markets but stay away from the smartphone market.
"We're going to double down on client and mobility ... I'm not suggesting we dive into smartphones, a heavily crowded space with low margins ... I'm going to focus on client mobility, thin and light," Read said.
Much of AMD's focus recently has been on selling chips for laptops.
Read took a shot at larger rival Intel's historic dominance of the PC chip market and said the rise of tablets and other mobile gadgets, where Intel so far has been weak, open new opportunities for companies including AMD to innovate.
"You'll see a breakdown of proprietary control points, those control points that have dominated our industry for years and years," Read said. "The status quo will break down."
Read took the chipmaker's helm in August, ending a long search after CEO Dirk Meyer left over differences with AMD's board about the company's lack of progress making chips for increasingly popular mobile devices like smartphones and tablets.
Gesturing with his hands and delivering a presentation with the energy of a motivational speaker, and even jumping down from the two-foot-high stage when he finished, Read said AMD would focus on opportunities in cloud computing and growing demand from developing countries like China for entry level PCs and other devices.
Facing problems manufacturing a newly launched 32 nanometer PC chip, Read in November announced he was slashing 10 percent of AMD's workforce to save about $200 million in annual operating costs.
AMD this year will concentrate on improving its execution rather than pushing the envelope with new technology, he said.
Apple CEO Tim Cook is not netting a near-$400m annual salary, despite reports supposedly detailing the chief exec’s bulging paycheck, as the top-tier benefits are contingent on him staying with the company for a decade. Speculation as to Cook’s financial position began yesterday, with an AP report citing the restricted Apple stock the company’s board approved as part of his taking the role Steve Jobs vacated last year. However, subsequent reports failed to recognize when, exactly, Cook could expect to see any cash.
CRISIL has assigned its ‘CRISIL A+/Stable’ rating to the long-term debt of ONGC Tripura Power Company Ltd (OTPC).
The rating reflects the financial and managerial support that OTPC gets from its largest shareholder, Oil and Natural Gas Corporation Ltd (ONGC; rated ‘CRISIL AAA/Stable/CRISIL A1+’), and competitive advantages that OTPC is likely to have because of gas supply from ONGC on a firm-price basis. The rating also reflects the progress made by OTPC so far in its ongoing project. These rating strengths are partially offset by OTPC’s exposure to implementation-related risks in its ongoing project, including synchronisation of transmission project and risks related to weak counter parties post implementation.
OTPC is an initiative of ONGC for monetisation of its unutilised gas reserves in Tripura. Besides being the gas supplier to the project, ONGC is also the largest shareholder in OTPC, with current shareholding of 50 per cent. OTPC’s board of directors consists of four representatives of ONGC, including the Chairman. ONGC is also implementing an upstream project, which includes laying pipeline infrastructure for gas supply to the power plant. CRISIL believes that ONGC’s majority control of OTPC, and OTPC’s strategic importance to ONGC, underscore ONGC’s moral obligation and economic rationale to support OTPC. OTPC has already signed a Gas Sale and Purchase Agreement (GSPA) with ONGC, which meets the fuel requirement for the project for 15 years with provision for extension by two additional five-year terms. The supply of gas at a firm price would ensure a competitive tariff for the project over the long term. Furthermore, other contractual arrangements such as Engineering, Procurement And Construction (EPC) contract with Bharat Heavy Electricals Ltd (BHEL; rated ‘CRISIL AAA/Stable/CRISIL A1+’), Power Purchase Agreements (PPAs) with north-eastern states, and funding tie-ups, also help mitigate development and commercial risks associated with the project. OTPC has obtained approvals and clearances, including environment clearance, for the project.
OTPC, however, remains exposed to residual risks related to timely implementation of the project. The project is exposed to the risk of unavailability of transmission infrastructure which is critical for power evacuation and supply. Heavy rains and rough terrain delayed the transport of gas turbine and steam turbine on the site. Both the units have, however, reached the site now. OTPC expects commercial production at the first unit to commence by March, 2012, against earlier planned in December, 2011; the second unit is expected to commence operations by July 2012.
After completion of the ongoing project, OTPC would sell around 87 per cent (about 628 megawatt [MW]) of its total power production to various north-eastern State Power Utilities (SPUs), which have weak credit risk profiles. Although OTPC is assured of complete recovery of fixed costs because of the take-or-pay nature of its PPAs, the company will remain exposed to risks of delay in payments by the north-eastern SPUs. Nevertheless, OTPC’s receivables will be secured by a revolving letter of credit mechanism, and it also has an option of open access in case of default of payment.
Outlook: Stable
CRISIL believes that while a significant proportion of the implementation has been achieved, OTPC will continue to receive support from ONGC in case of any exigencies emanating from the residual implementation risk. The outlook maybe revised to ‘Positive’ if OTPC completes its project without significant time or cost overrun and stabilises its operations. Conversely, the outlook may be revised to ‘Negative’ or the rating may be downgraded if OTPC faces delays in the project, resulting in lower-than-expected revenues and profitability.
About the Company
OTPC, which is a joint venture of ONGC, IL&FS Energy Development Company Ltd (IEDCL), and the Government of Tripura (GoT), is implementing a 726.6-MW combined cycle gas turbine (CCGT) power project in Palatana (Tripura). The proposed shareholding structure envisages ownership by ONGC of 50 per cent of OTPC’s equity shares, with IEDCL owning 26 per cent, and GoT owning 0.5 per cent. IEDCL has also undertaken for the placement of the remaining equity stake of 23.5 per cent through a public offering or with strategic investors.
The original project cost was at Rs.34.2 billion, to be funded in a debt-equity mix of 75:25. OTPC has already signed PPAs with the north-eastern state governments for supply of 87 per cent of power; the rest would be sold through the merchant power route.
The transmission system connecting Palatana and Bongaigaon (Assam), a distance of around 650 kilometers, for evacuation of power is being implemented by North East Transmission Company Ltd (NETCL) at a cost of Rs.17.70 billion (funded in a debt-equity mix of 80:20). NETCL is a joint venture of OTPC (proposed shareholding of 26 per cent), Power Grid Corporation of India Ltd (rated ‘CRISIL AAA/Stable/CRISIL A1+’; proposed shareholding of 26 per cent), and the north-eastern state governments (proposed shareholding of 48 per cent). The construction of transmission line from project site to Bongaigaon is delayed mainly because environment clearance has not yet been obtained from Assam and Meghalaya governments. However, the transmission line established till Silchar will be used for the evacuation of power generated from the first unit. OTPC expects the transmission line to be commissioned by July 2012 for power evacuation for the second unit.
ONGC is India’s largest exploration and production company; it explores, develops, and produces crude oil and natural gas in India and internationally. The Government of India (GoI) is ONGC’s majority shareholder, owning 74.14 per cent of the company’s equity capital. ONGC functions under the administrative control of the Ministry of Petroleum and Natural Gas, GoI. For 2010-11 (refers to financial year, April 1 to March 31), ONGC, on a consolidated basis, reported a profit after tax (PAT) of Rs.228 billion on net sales of Rs.1.17 trillion, against a PAT of Rs.197 billion on net sales of Rs.1.02 trillion for the previous year. For the six months ended September 30, 2011, ONGC (standalone) reported, on provisional basis, a net profit of Rs.127 billion on net sales of Rs.388 billion, against a net profit of Rs.90 billion on net sales of Rs.319 billion for the corresponding period of the previous year.
A day after the first set of rumors on the issue, HP announced post-Market close that it has named former eBay CEO and board member Meg Whitman president and CEO, replacing Leo Apotheker. Apotheker had taken over following the resignation of Mark Hurd, after allegations of sexual harassment, which were never borne out.
Apotheker was CEO for less than 11 months. In addition, HP said Ray Lane will become executive chairman of the company's board of directors; he had previously served as non-executive chairman.
Lane said, "We are fortunate to have someone of Meg Whitman’s caliber and experience step up to lead HP. We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead. Meg is a technology visionary with a proven track record of execution. She is a strong communicator who is customer focused with deep leadership capabilities. Furthermore, as a member of HP’s board of directors for the past eight months, Meg has a solid understanding of our products and markets."
Although the rumors of Leo Apotheker's firing and Meg Whitman's appointment only arose yesterday, later information pointed to the change happening Thursday, after the close of the markets, which it did.
Earlier, it was believed that because of Meg Whitman's lack of experience with the enterprise market, the appointment would be interim. However, HP did not use that term in its press release, and AllThingsD, which first broke the rumors, did not believe the appointment would be temporary, either.
In fact, several anonymous sources with "knowledge of the situation" told them that Whitman will be taking over HP's leadership position on a long-term basis. Things could change, as HP has had seven CEOs since 1999, with Mark Hurd perhaps the most successfully, although he left in relative disgrace.
In a way, the company's results sound like what you get when you pair an NFL QB with seven diffeent offensive coordinators in his career: a big mess (Alex Smith of the San Francisco 49ers comes to mind). So we'd expect that HP would want to stay with Meg Whitman for as long as possible, if possible.
Meg Whitman had a 10-year stint as CEO at eBay, followed by an unsuccessful run as the Republican nominee for governor of California last year. Since then, she has been a part-time consultant at venture firm Kleiner Perkins.
It remains to be seen if any changes to HP's recent moves come from her rise to the top, but since she was already on the Board, one would assume that she was on-board with the recent proposals and moves (spin-off personal computers, kill webOS hardware, for example).
A day after the first set of rumors on the issue, HP announced post-Market close that it has named former eBay CEO and board member Meg Whitman president and CEO, replacing Leo Apotheker. Apotheker had taken over following the resignation of Mark Hurd, after allegations of sexual harassment, which were never borne out.
Apotheker was CEO for less than 11 months. In addition, HP said Ray Lane will become executive chairman of the company's board of directors; he had previously served as non-executive chairman.
Lane said, "We are fortunate to have someone of Meg Whitman’s caliber and experience step up to lead HP. We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead. Meg is a technology visionary with a proven track record of execution. She is a strong communicator who is customer focused with deep leadership capabilities. Furthermore, as a member of HP’s board of directors for the past eight months, Meg has a solid understanding of our products and markets."
Although the rumors of Leo Apotheker's firing and Meg Whitman's appointment only arose yesterday, later information pointed to the change happening Thursday, after the close of the markets, which it did.
Earlier, it was believed that because of Meg Whitman's lack of experience with the enterprise market, the appointment would be interim. However, HP did not use that term in its press release, and AllThingsD, which first broke the rumors, did not believe the appointment would be temporary, either.
In fact, several anonymous sources with "knowledge of the situation" told them that Whitman will be taking over HP's leadership position on a long-term basis. Things could change, as HP has had seven CEOs since 1999, with Mark Hurd perhaps the most successfully, although he left in relative disgrace.
In a way, the company's results sound like what you get when you pair an NFL QB with seven diffeent offensive coordinators in his career: a big mess (Alex Smith of the San Francisco 49ers comes to mind). So we'd expect that HP would want to stay with Meg Whitman for as long as possible, if possible.
Meg Whitman had a 10-year stint as CEO at eBay, followed by an unsuccessful run as the Republican nominee for governor of California last year. Since then, she has been a part-time consultant at venture firm Kleiner Perkins.
It remains to be seen if any changes to HP's recent moves come from her rise to the top, but since she was already on the Board, one would assume that she was on-board with the recent proposals and moves (spin-off personal computers, kill webOS hardware, for example).
Could webOS be saved after all? Possibly not, but at the very least, there may be a fresh set of eyes at CEO, if reports from multiple sources on Wednesday pan out. Leo Apotheker may be on the way out, to be possibly replaced by current HP director and former eBay CEO Meg Whitman.
AllThingsD said, "a significant contingent on the board is keen to remove Apotheker after what some directors consider a series of management mishaps." Lending credence to that rumor is a separate report from Bloomberg, which said, that HP "is considering replacing Chief Executive Officer Leo Apotheker," possibly with Whitman, though Whitman may only be an interim CEO, due to her lack of enterprise experience.
Investors seemed to like the idea, as HP stock rose $1.51 to $23.98 (+6.72% percent). Prior to today, HP stock had dropped 47 percent during the Apotheker era.
The HP board settled on Apotheker after former CEO Mark Hurd left over sexual harassment allegations. HP later said it found no evidence to support the sexual harassment claim.
It's been said that since Apotheker was never a hardware or gadget guy, and that the moves he's announced already, dumping webOS hardware development, and possibly spinning off the PC division, all make sense when viewed from that point of view.
Don't expect any major changes in HP direction, even if Apotheker is replaced. Jayson Noland, an analyst at Robert W. Baird & Co. in San Francisco said that HP's board and shareholders are "mostly looking for a surer hand." Baird said,
“The board is directionally behind the plan Apotheker’s put in place. It’s just the execution of that plan that has investors wound up.”
If you are wondering if Apple has confidence in its new CEO, Tim Cook, the answer is a $383 million yes.
Apple has filed a form 8-K with the SEC. A form 8-K is "used to notify investors of any material event that is important to shareholders or the United States Securities and Exchange Commission." In other words, the 8-K is used when significant events take place that shareholders should be aware of, such as the change in leadership at Apple.
This particular form 8-K, naturally, informs investors that Steve Jobs resigned as CEO (as if they needed to be told since it was the top story on mainstream media all Wednesday night); that Jobs was appointed as Chairman of the Board; that COO Tim Cook was promoted to CEO; and that Cook was appointed to Apple's Board of Directors.
In addition, it notes that the Board of Directors have awarded Cook 1,000,000 restricted stock units, fifty percent of which are scheduled to vest on August 24, 2016, with the remaining fifty percent to vest on August 24, 2021.
At current prices, the stock award is worth a total of just over $383 million.
That's a hefty sum to make sure Jobs' successor sticks around, and that's not all: in 2010, as COO, Tim Cook received $58 million in salary, bonus and other stock awards.
It's been confirmed by the Metropolitan Transportation Authority (MTA) has confirmed that Apple will have a 10-year-lease. Rent will be more than 2 1/2 times the rent the outgoing tenant, Metrazur (a restaurant) had been paying, $800,000 vs. $300,000.
Although a deal has been signed, it still needs to be finalized. The MTA will ask its financial committee to approve the deal on Monday. Assuming it passes as expected, the agreement will go to the MTA's board of directors on Wednesday for a final confirmation.
Apple's store will take up Grand Central Terminal's north and southeast balconies, occupying 23,000-square-feet. Apple will pay to refurbish the space; rent will spike to above $1,000,000 after the 10 year lease is up.
If you wonder just how angry Apple CEO Steve Jobs was when Google added pinch-to-zoom (PTZ) to Android, which already competed directly with Apple's iOS, wonder no longer. According to a new book, "In The Plex: How Google Thinks, Works, and Shapes Our Lives," Steve Jobs was furious, and withheld information about iPad development from Eric Schmidt, despite the fact that then-Google CEO Schmidt was still on Apple's board at the time.
The timeline, however, seems murky. The first Android device, the T-Mobile G1, went on sale in September 2008 sans pinch-to-zoom. The Motorola Droid, with Android 2.0, launched with pinch-to-zoom support, but only at the system level, not at the apps level. The then so-called Google phone, the Nexus One, launched in January 2010, sans pinch-to-zoom. Pinch-to-zoom was finally added to the Nexus One in a February 2010 software update.
The iPad was launched in April 2010, and Schmidt was off of the board in August of 2009. So when did Jobs see an Android device with pinch-to-zoom? According to the book, the first builds of Android had pinch-to-zoom, and Jobs saw it and blew up.
Since the G1 was launched without PTZ, did Google remove it after Jobs became angry? Once again, that's what the book says.
Whether or not Steve Jobs was angry about PTZ, he was angry about Android in general. After introducing the iPad, he held a town hall meeting with employees. There, he said,
We did not enter the search business. They entered the phone business. Make no mistake they want to kill the iPhone. We won’t let them.
Either way, Jobs was furious. How he kept iPad development secret from Schmidt is unclear.
In February of 2010, Google announced it was going to be running an experiment with its own fiber optic broadband network with speeds of 1Gbps, and that it was taking applications from localities with at least 50,000 and potentially up to 500,000 people. More than 1,000 towns applied, and Google eventually delayed the decision to 2011. It's now announced the winner: Kansas City, KS, population 150,000.
Google noticing the stunt by Topeka wasn't enough for it to win. The build-out of the network is pending approval from the Kansas City's Board of Commissioners. Assuming that happens, Google plans to offer service beginning in 2012.
All is not lost, however. Google said they will also be looking at ways to bring ultra-high-speed Internet to other cities across the country.
Pricing has not been set, although Google has previously said that prices will be "competitive." It was not clear, however, if they meant competitive with standard broadband pricing, or pricing of other ultra-high-speed broadband services.
You can watch a short video on the announcement below.
Recent Comments