Feeds

AMD shrugs off Intel shackles for ace Q2

Chips up. Flash down

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

AMD shot right past analysts' expectations during the second quarter to post a profit and sparkling processor sales. Not bad for a company alleging that Intel has an illegal stranglehold on the processor market.

Opteron, Opteron, Opteron was the key message from management. Sales of AMD's server chip shot up 89 per cent year-over-year, helping push total revenue to $1.260bn. Strong server and mobile processor sales offset a drop in flash memory revenue. AMD posted net income of $11m - earning 3 cents per share - while analysts were looking for the company to post a loss of 5 cents per share. A year earlier, AMD reported net income of $32m and 9 cents earnings per share.

"Our microprocessor business delivered another record quarter driven by increased demand for AMD server and mobile processors from our largest global OEM customers," said Robert Rivet, AMD's CFO. "Once again we continued to gain momentum with microprocessor sales growth increasing 38 per cent compared to the second quarter of 2004."

Hard-nosed financial analysts couldn't compliment AMD enough during a conference call to go over the results. "Good execution, guys," said one. "Great gross margins there in processors," said another. "Congratulations on your server success in the quarter. You can add UBS to your list of customers," said an analyst from UBS.

True, AMD's processor business performed well, but the analysts seemed to take it pretty easy on the company. As mentioned, its net income fell year-over-year. In addition, total revenue fell slightly from the $1.261bn reported one year ago. AMD is currently looking to IPO its underperforming flash memory unit which weighed down the processor sales.

You may have heard that AMD recently lobbed an antitrust suit at Intel, alleging that unfair business practices have impacted AMD's ability to make the most of superior processor technology. AMD's Opteron processor outperforms Xeon on countless benchmarks and is a dual-core engine, while Xeon still has just one core. AMD's desktop and mobile products also compare favorably with those from Intel, depending on the metric.

One savvy analyst tossed AMD CEO Hector Ruiz a real softball, asking how much of the x86 dual-core server market the company currently owns.

"As far as dual-core processors, we have 100 per cent market share due to the failure of our competitor to execute," Ruiz said.

That's strong talk for a battered underdog.

AMD declined to provide much in the way of guidance for the third quarter, saying only that it expects chip sales to exceed typical, past totals for the period. ®

Related stories

AMD alleges Intel compilers create crash code for its chips
EC officials raid Intel offices
Intel and Dell thrilled to join the dual-core server chip era
AMD wants Intel evidence from 30 firms
AMD Japan sues Intel for $50m damages - and then some
Can anyone compete with Intel? AMD says, 'No!'
AMD files anti-trust suit against Intel

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.