AMD ends losing streak with profitable Q2

After two straight losing quarters, AMD is back in the black as its chip sales continue to skyrocket.

Advanced Micro Devices (AMD) swung back to a profit in the second quarter, as the continued strong growth of its processor business was bolstered by slightly better results from its flash memory division, AMD announced Wednesday.

For the period ended June 26, AMD recorded US$1.26 billion (AU$1.68) in revenue, essentially flat compared with revenue from last year's second quarter and in line with analyst expectations as compiled by Thomson First Call. Net income was US$11 million, down from last year's second-quarter net income of US$32 million but substantially better than the US$17 million net loss that AMD posted in the first quarter. AMD also posted a net loss in the fourth quarter of 2004.

Earnings per share were US$0.03 for the quarter, ahead of analyst expectations that AMD would post a loss per share of US$0.05 for the quarter.

AMD's processor business had another excellent quarter, with revenue of US$767 million, a company record. This was a 38 percent increase from last year, and largely attributable to strong growth in sales of the company's 64-bit Opteron and Athlon 64 processors, the company said.

Flash memory revenue was US$462 million, a slight improvement over the first quarter but down 31 percent from last year's second quarter. The group lost US$90 million during the quarter. AMD blamed the poor performance of its Spansion flash memory joint venture for its net loss in the first quarter, and the company is actively pursuing an initial public offering of Spansion's share to rid itself of the business.

The company will hold a conference call later this week to discuss its results. AMD did not mention the antitrust lawsuit it filed against Intel Corp. earlier this month in its press release.

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