Feeds

AMD shrugs off Intel shackles for ace Q2

Chips up. Flash down

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Remote control for virtualized desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.