Feeds

AMD delivers on promise of Q2 disappointment

Server up, desktop down

Boost IT visibility and business value

AMD did everything it promised during the second quarter. The company underwhelmed investors, while posting healthier results than rival Intel.

AMD reported revenue of $1.22bn and a profit of $89m for the second quarter. Those figures compare to revenue of $797m and a profit of $11m in the same period last year, excluding the memory business that AMD has spun-off as Spansion.

On the one hand, the results reflect AMD's tremendous year-on-year growth. The company, however disappointed investors by not beating out the results from its first quarter. AMD warned earlier this month that the second quarter numbers would likely come in 9 per cent below the first quarter revenue of $1.33bn. True to forecast, AMD's Q2 revenue rolled in 8.7 per cent below the Q1 mark.

Still, AMD's year-over-year growth proved more impressive than Intel's 60 per cent profit slide reported yesterday.

Both companies are locked in a fierce price-war on the desktop and server processor fronts. AMD hopes to keep the momentum around its processors, while Intel is betting that a new line of processors will blunt AMD's prospects.

"While we achieved 53 per cent year-over-year sales growth and recorded our twelfth consecutive quarter of greater than 20 per cent year-over-year microprocessor sales growth, we are dissatisfied by not reaching our second quarter sales target," said AMD's CFO Robert Rivet.

Sales of the Opteron chip rose 26 per cent when compared to the first quarter, but AMD was hurt by slower than expected desktop processor sales. Overall, AMD's processor shipments dipped 4 per cent from the first quarter.

Investors hammered AMD shares in the after-hours markets. AMD dropped more than 6 per cent to $20.30 per share at the time of this report. The company once enjoyed a 52-week high of $42.70. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
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.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.