Advanced Micro Devices on Thursday reported a third-quarter loss much smaller than expected, thanks to dramatic chip sales increases. AMD reported losses of $31 million, or 9 cents per share, on revenue of $954 million for the quarter, which ended on Sept. 28. During the same period a year ago, AMD lost $254 million, or 74 cents per share, with revenue of $508 million.
Analysts expected the chipmaker to post a 36 cents per share loss and revenue of $858 million, according to First Call. A First Call representative, however, said the analysts' consensus estimate excluded some flash memory revenue that relates to AMD's acquisition of Fujitsu AMD Semiconductor Limited, or FASL, a flash memory joint venture between AMD and Fujitsu. The representative said AMD likely beat estimates, but it is unclear by how much. AMD's dramatically improved results mirror an overall feeling that the PC market is improving. Intel reported better than expected earnings, thanks to higher chip sales, while research firms Gartner and IDC said PC shipments in the third quarter increased 14 percent and 16 percent, respectively, rates that were higher than expected.
AMD said its performance came from higher sales of its PC processors and flash memory chips. The average selling price of both processors and flash memory rose as well, a fairly unusual occurrence.
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News source: news.com