Feeds

AMD shrugs off Intel shackles for ace Q2

Chips up. Flash down

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

Boost IT visibility and business value

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.