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AMD doubles chip sales in Q2

Splits stock - my how things change

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Chip challenger AMD turned in revenues of $1.17 billion with net profits of $207.1 million for its second quarter, attributing its good results to a combination of increased microprocessor revenues along with strong sales of flash memory.

Year on year, and quarter on quarter, revenues doubled, but this time last year AMD's Athlon Powers was only a twinkle in CEO Jerry Sanders III's eye, while the low cost Duron part wasn't even a twinkle.

However, compared to its last quarter, sales of Athlons jumped by 52 per cent, with AMD managing to ship over 1.8 million units. Hector Ruiz, the company's chief operating officer, said that it will double those shipments in the next quarter, and double them again the quarter after, due to increased production at its Dresden fabrication plant.

AMD has taken advantages of serious logistical problems Intel has had delivering microprocessors to its customers during the first half of this year. It has also had the benefit of being able to intro faster speed CPUs at lower prices and in far greater volume.

Although revenues from its Athlon chips were not as high as some expected, this is because AMD made the deliberate policy, which we reported at the end of last year, to take the pricing war to Sanders' bitter foe, the Intel Corporation.

Chimpzilla will Carry on Cutting prices of its high end microprocessors during the rest of the year, hoping that it will wrong-foot Chipzilla. At the same time, it plans to extend its reach into the corporate market - an area where previously AMD has never had much success in penetrating.

Ruiz also announced that AMD's shares will be split two ways - a far cry from the position its stocks held on the New York Stock Exchange (NYSE) this time last year, when the price of a Chimzilla Share rumbled along at $16 or so for months.

AMD's shares closed at $90.25 on Wall Street before its Q2 earnings were disclosed. ®

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