AMD Posts 1Q Net Income of $185 Million
Apr 13, 2006
Advanced Micro Devices Posts First-Quarter Net Income of $185 Million; Sales Rise 8.6 Percent
Advanced Micro Devices Inc. said it swung to a first-quarter profit that exceeded Wall Street expectations, as Intel Corp.'s smaller rival benefited from market-share gains and the spinoff of its unprofitable flash memory subsidiary.
The Sunnyvale-based company posted net income of $185 million, or 38 cents a share, for the quarter ended March 26, compared to a net loss of $17.4 million, or 4 cents a share, in the same period last year. AMD's profit easily exceeded analysts' consensus estimates of 30 cents a share.
First-quarter sales grew 8.6 percent to $1.33 billion from $1.23 billion. Last year's results included $446 million worth of sales from memory products that are no longer counted on AMD's books. Excluding that revenue, which is now included as part of Spansion Inc.'s business, AMD's revenue gain was 70.5 percent.
"Any way you slice it this company did what they said they would do, and their major competitor, Intel, struggles vastly," said Doug Freedman, an analyst with American Technology Research.
AMD executives credited sales of more expensive chips and demand for its microprocessors, which act as the main engine in computers, across its server, desktop and mobile processor lines. Demand was particularly strong in China, Latin America, Russia and South Asia, the company said.