AMD posts second consecutive profitable quarter

By on
AMD has posted a net profit of $257 million on $1.57 billion revenue for the first quarter of 2010, and this time it didn't even need that juicy Intel settlement money to get out of the red. It did however saw a one-time, non-cash gain of $325 million related to the deconsolidation of spinoff GlobalFoundries. This was the second quarter in a row in which the chipmaker saw a profit after 12 consecutive losses, also marking a notable improvement over AMD's $416 million net loss in the year-ago period.

Analysts had expected the company to post a loss of 3 cents a share, on revenue of $1.5 billion. In a statement, AMD CEO Dirk Meyer credited new server and graphics chips for boosting their prospects, with the company launching its six-core Istanbul processor as well as seven DirectX 11 graphics cards for desktops and laptops during the quarter.

The executive quoted a whopping 88% jump in year-over-year revenue for AMD's graphics chip unit, while its core PC chip business reported a 23% increase during the same period. Both saw sequential revenue drops compared to Q4 2009 due to seasonal patterns. Looking forward, AMD officials declined to give a specific prediction for the second quarter's revenue, saying only it would come in seasonably down.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.