AMD tops estimates with 4Q results

January 21, 2011 By ANDREW VANACORE , AP Business Writer
Advanced Micro Devices (AMD) chip advertisements are displayed on a computer at Micro Center computer store in Santa Clara, Calif., Wednesday, Jan. 19, 2011. Advanced Micro Devices reports quarterly financial earnings Thursday, Jan. 20, 2011, after the market close. (AP Photo/Paul Sakuma)

(AP) -- Advanced Micro Devices Inc. said Thursday that its fourth-quarter profit shrank from a year ago, when a big legal settlement it won from archrival chip maker Intel Corp. pumped up AMD's earnings.

Excluding unusual items, however, AMD's results for the last three months of 2010 topped Wall Street forecasts. And it projects higher revenue for the first quarter of 2011 than analyst do on average, according to FactSet.

Coupled with Intel's better-than-expected results from last week, AMD's suggest the market for personal computers is continuing to improve. Intel and AMD are the world's No. 1 and No. 2 providers of microprocessors, respectively.

AMD shares rose 9 cents Thursday to close at $8.02. They lost 2 cents after hours.

Like other chip makers, AMD hopes to profit from the growing popularity of sophisticated mobile gadgets. Earlier this month the company ousted CEO Dirk Meyer for not getting AMD processors into tablets and other mobile devices faster.

Interim CEO Thomas Seifert, who also serves as the company's chief financial officer, declined to give specifics Thursday about why the company decided to look for a new leader.

The move caught some industry analysts off guard. Meyer had taken charge of AMD 2-1/2 years ago and brought it back from a near collapse, spinning off its expensive factory operations and reviving its share price.

Still, Rick Bergman, who leads AMD's products group, offered a glimpse of the company's strategy in a call with analysts, saying tablet computers represent a "wonderful opportunity."

"We've really struggled to get into the living room," he said. "It's clear that tablets are finding their way into the living room - a real consumer experience."

In the fourth quarter, AMD earned $375 million, or 50 cents per share, down from $1.18 billion, or $1.52 per share, a year ago, when the company booked a $1.24 billion legal claim against .

Stripping out one-time gains, the company said earnings per share rose to 14 cents from 11 cents. On that basis, analysts surveyed by FactSet expected earnings per share to remain at 11 cents.

AMD's revenue came in flat at $1.65 billion, a little better than the $1.63 billion analysts were predicting.

For the full year, earnings totaled $471 million, or 64 cents per share, up 55 percent from $304 million, or 45 cents per share, in 2009. Full-year revenue climbed 20 percent to $6.49 billion from $5.4 billion.

Looking ahead, AMD said it expects revenue will be flat to down 4 percent in the three months ending in March compared with the fourth quarter. That works out to a range of $1.58 billion to $1.65 billion, while analysts expected revenue would dip further, to $1.54 billion.

Explore further: AMD posts a profit, thanks to $1.25B Intel payment

0 shares

Related Stories

AMD whittles 2Q loss as chip sales rebound

July 15, 2010

(AP) -- Advanced Micro Devices Inc. shrank its second-quarter loss on reviving sales of computers that use its chips and a wrenching years-long effort to shed costs.

Intel outlook points to PC industry recovery

January 14, 2010

(AP) -- Intel's fourth-quarter earnings breezed past Wall Street's expectations, and its rosy profit outlook for 2010 was another sign that a lasting recovery for the recession-battered personal computer market is under way.

Recommended for you

Your (social media) votes matter

January 24, 2017

When Tim Weninger conducted two large-scale experiments on Reddit - otherwise known as "the front page of the internet" - back in 2014, the goal was to better understand the ripple effects of malicious voting behavior and ...

Protective wear inspired by fish scales

January 24, 2017

They started with striped bass. Over a two-year period the researchers went through about 50 bass, puncturing or fracturing hundreds of fish scales under the microscope, to try to understand their properties and mechanics ...

'Droneboarding' takes off in Latvia

January 22, 2017

Skirted on all sides by snow-clad pine forests, Latvia's remote Lake Ninieris would be the perfect picture of winter tranquility—were it not for the huge drone buzzing like a swarm of angry bees as it zooms above the solid ...

Singapore 2G switchoff highlights digital divide

January 22, 2017

When Singapore pulls the plug on its 2G mobile phone network this year, thousands of people could be stuck without a signal—digital have-nots left behind by the relentless march of technology.

Making AI systems that see the world as humans do

January 19, 2017

A Northwestern University team developed a new computational model that performs at human levels on a standard intelligence test. This work is an important step toward making artificial intelligence systems that see and understand ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.