AMD rides memory sales to solid Q2

Flash happy

By Ashlee Vance in Chicago • Get more from this author

Posted in Financial News, 14th July 2004 21:41 GMT

Free whitepaper – Thermal design of Dell PowerEdge server

Strong memory sales helped push AMD to a solid second quarter, the company reported today. AMD pumped out $1.26bn in revenue and $32m in net income for the period ended 27 June. These figures compare to revenue of $645m and a net loss of $140m in the same quarter a year ago.

"We are pleased to report a ninety-six percent year-over-year increase in sales and solid profitability based on record sales of our leading-edge products," said Robert Rivet, AMD's chief financial officer.

Like rival Intel, AMD enjoyed a surge in flash memory sales. AMD's memory business posted sales of $673m - a not too shabby 220 percent rise from the $211m reported in last year's second quarter. "Flash memory sales grew in all major regions and across both the embedded and wireless segments driven by continued strong demand from tier-one customers," AMD said.

Processor sales jumped as well. AMD moved $554m worth of chips and related gear in the quarter - a 36 percent increase over the $406m last year. AMD cited strong interest in its 64-bit Opteron processor as one driver of the growth.

AMD's shares were punished ahead of the earnings announcement, dropping more than five percent to $13.74. This drop was largely influenced by Intel, which upset investors yesterday when it lowered margin expectations for the rest of the year. In the after-hours markets, AMD dropped another 2 percent, at the time of this report. ®