AMD posts profit on Intel settlement

AMD logoAdvanced Micro Devices posted a fourth-quarter profit of $1.18 billion, its first profit in three years, largely due to a massive settlement with Intel.

The $1.178 billion profit, or $1.52 per share, beat the analyst consensus estimate that had projected AMD to record a loss of 18 cents per share. In the same quarter last year, AMD lost $1.4 billion, or $2.36 per share.

The second largest global supplier of processors for PCs posted revenue of $1.646 billion, an increase of 42 percent compared with the same period a year ago. This beat analyst revenue estimates, which were pegged at $1.5 billion.

Fourth-quarter AMD gross margin, an important indicator of profit, was 45 percent, compared with 42 percent in the prior quarter and 23 percent in the year-earlier period.

AMD stated that the "favorable impacts" on its net income were primarily from a legal settlement with Intel. During the quarter, Intel and AMD announced a comprehensive agreement to end all outstanding legal disputes. As a result of this agreement, Intel paid AMD $1.25 billion.

AMD said it expects revenue to be down seasonally for the first quarter of 2010.

Chief executive Dirk Meyer, who spoke during the company's earnings conference call on Thursday, sees the PC market growing in "low double digits"--between 10 and 12 percent--in 2010.

And in 2010 the erstwhile chipmaker will put more distance between itself and its former manufacturing operation, which was spun off in 2008 and became Globalfoundries. "We have deconsolidated Globalfoundries starting in Q1. Moving forward, you will see us report AMD results only," the company said in a statement. Globalfoundries will appear only as an equity investment in future AMD financial statements.

Notebooks a target as graphics chips surge

Laptops are a big target market for AMD in 2010, according to Meyer. "We're under-penetrated in that category of product," he said. "The broad (notebook) category represents an opportunity for us this year," he said.

AMD laptop processors are expected to become more competitive as the company moves most of its chips to a more advanced 45-nanometer manufacturing process. Intel, meanwhile, is in the process of transitioning to an industry-leading 32-nanometer manufacturing process.

The company shipped a record number of mobile "discrete" (standalone) graphics processing units (GPUs) in the quarter. And overall revenue in the graphics chip segment was $427 million, a 40 percent sequential increase and a 58 percent year-to-year jump.

AMD could have shipped more GPUs but supply from its manufacturing partner Taiwan Semiconductor Manufacturing Company was "heavily constrained," Meyer said. In particular, AMD's new Radeon 5000 series of graphics processors have been well-received in the market.

Source: CNET

Tags: AMD

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)