AMD narrows loss in Q3 on improved chip sales
- — 15 October, 2010 08:06
Advanced Micro Devices on Thursday posted a net loss for the third quarter, but reported a boost in microprocessor and graphics products sales as it inches its way back to profitability.
The company reported a net loss of US$118 million for the quarter ending Sept. 25, an improvement from the net loss of $128 million it reported in the third quarter last year.
As part of the results, AMD reported a $186 million equity loss related to its manufacturing spinoff, GlobalFoundries. Excluding that loss and other items, AMD would have reported a profit of $108 million.
The company reported revenue of $1.62 billion, which grew from $1.4 billion in the year-ago quarter. Analysts polled by Thomson Reuters expected revenue for the quarter to be $1.61 billion.
Revenue for the Computing Solutions segment, which includes revenue from microprocessor sales, was $1.23 billion, growing 13 percent compared to the year-ago quarter. Revenue for the graphics segment was $390 million, growing by 33 percent.
Ahead of the earnings, AMD lowered its revenue forecast for the third quarter, citing weak demand for laptops in western Europe and North America.
Despite weakness in the consumer segment, the company continues to focus on new products, said Dirk Meyer, AMD's president and CEO, in a statement.
The company hopes to receive a boost later this quarter when it starts shipping its much-delayed Fusion family of chips, which could appear in PCs starting early next year. The chip integrates a graphics processor inside the CPU, which could save battery life on laptops and provide better graphics capabilities.