Advanced Micro Devices is a semiconductor manufacturer with manufacturing facilities in the United States, Europe and Asia. The company provides microprocessors, Flash memory devices and silicon-based solutions to customers worldwide. Its products include industry-standard digital integrated circuits used in personal computers, workstations, servers, communications equipment and automotive and consumer electronics. Popular products include the AMD Athlon and AMD Duron microprocessors.
AMD rallies, reverses course to post profit in second quarter
Advanced Micro Devices (AMD) (NYSE:AMD) announced Friday it pulled out of a loss in its second quarter as shipments from its new accelerated processor unit (APU) chip offering improved, prompting the company to announce a better-than-expected third quarter sales outlook.
For the three months ending June 30, the semiconductor manufacturer, whose products are used in computers and gaming consoles, posted a net income of $61 million, or $0.08 per share, compared to a net loss of $43 million, from a 6 cent loss per share, a year ago.
Adjusted for one-time items, like legal settlements and payments to the company's former manufacturing facility, earnings were $70 million, or $0.09 per share, beating analyst estimates by one cent.
However, revenues slipped 4.8% to $1.6 billion, from $1.7 billion a year ago.
Still, the company said it expects its third quarter revenues to increase between 8% and 12% from the second quarter, translating to a range of roughly $1.7 to $1.76 billion. Analysts had expected the company to report sales of $1.7 billion.
The positive outlook caused AMD's shares on the New York Stock Exchange to jump 16.62%, trading at $7.58 per share as of 1:22 pm EDT.
"In the first half of 2011, AMD brought to market the most competitive client offerings in our history, reinforcing our position as a design and innovation powerhouse," said CFO Thomas Seifert.
Revenues from AMD's computing solutions business remained relatively flat, at $1.21 billion, as higher mobile microprocessor revenues were offset by lower desktop and server revenues.
Still, the Sunnyvale, California-based company launched its A-Series APU for client personal computers (PCs), and noted over 150 notebook and desktop design wins, across manufacturers like Acer, Dell, Samsung and Toshiba.
From its graphics segment, AMD posted $367 million in revenues, down from $440 million a year ago. The unit also posted a $7 million operating loss for the quarter, driven by lower discrete mobile shipments and seasonal impacts.
Gross margins for the quarter rose 100 basis points to 46%.