Feeds

Memory woes color AMD's Q1 red

Adios, Spansion. Hello, dual-core Opteron

  • alert
  • submit to reddit

Top three mobile application threats

AMD stumbled back into the red during its first quarter, as sluggish memory sales weighed down robust processor sales.

AMD pulled in $1.23bn during its first quarter and posted a $46m operating loss. These totals compare to $1.24bn in revenue and a $61m profit in the same period last year. AMD's results were impacted by an underperforming flash memory unit, which faced intense pricing pressure, oversupply problems and a seasonal down market.

To distance itself from the memory biz, AMD said its Spansion memory venture would seek an IPO.

Investors ignored the most recent results, deciding to cheer the Spansion IPO instead. They sent shares of AMD close to 2 per cent higher in the after-hours markets. Many shareholders had hoped the company would separate the memory unit from the better performing processor group.

"We saw strong momentum across our microprocessor business ... and we saw continued challenges in the flash memory market," said AMD's CEO Hector Ruiz, during a conference call.

AMD noted that its microprocessor sales surged 31 per cent year-over-year, including the notebook, desktop and server products. Ruiz also confirmed that AMD will release a dual-core version of its Opteron server processor at an event next week. Also at the event, AMD will preview its dual-core desktop and notebook chips. AMD expects to have an all dual-core lineup by year end.

AMD has beat Intel to the punch with dual-core server chips but trails its rival on the PC front.

"We made the decision to put all of our emphasis in the beginning on the server part of the market because that is the one that is ready to jump on the exploitation of the technology," Ruiz said. Adding later that when more threaded PC software was ready, "We believe that over time this technology will find incredibly powerful uses also in the client."

Ruiz would go on to take several more jabs at Intel for being late with a dual-core server product. AMD is hoping that the likes of HP, Sun Microsystems and IBM will help it gain ground against Intel in the server market, since Intel will not have a dual-core x86 server chip until 2006. Dell is the only major vendor to reject Opteron from its hardware lineup.

In total, AMD's processor group pulled in $750m and posted operating income of $92m. "(The) first quarter sales growth was driven by record server and mobile processor sales, and strong overall penetration in high-growth regions, particularly greater China," AMD said.

The memory group reported sales of $447m, which were down 29 per cent from the same quarter last year. This led to an operating loss of $110m. AMD declined to comment about second quarter memory sales due to regulations around the Spansion IPO.

Looking forward, AMD expects processor sales to be flat or slightly down. ®


Related stories

AMD's depressing flash biz set for IPO
Intel offers $10,000 for safe return of missing Moore's Law
Sun's Becky Box four-pack leaks

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.