AMD loss narrows on sales rise
Slow road to recovery
AMD's first quarter of its current fiscal year yielded sales of $715 million, down 21 per cent on the year-ago quarter and up four per cent on Q4 2002's $686 million.
First quarter 2003 sales were enough to reduce but not eliminate the company's losing streak. AMD lost $146 million during the quarter, rather less than the $855 million loss it posted for Q4 2002 (operationally, it lost $235 million during Q4). But during Q1 2002, it lost just $9 million on sales of $902 million.
PC processor sales were 11 per cent up on the previous quarter, from $420 million to $468 million - good, but nothing like the 60 per cent increase it experienced between Q4 and Q3 2002. Flash sales were up fractionally to $218 million from last quarter's $217 million.
AMD "believes" it increased it market share in both these sectors, the company said, but offered no data to back up this claim. Whatever, it does appear to be on a slow path to recovery, though it has some way to go yet to return to where it was only a year ago.
Looking ahead, the company reckons Q2 2003 will show further increases in Flash and processor sales, but don't expect the growth to be big. Q2 is traditionally a weak one for AMD, but it hopes a better product mix, better inventory management and further cost reductions will compensate for flat or fractional sales growth. ®