AMD beats Q3 forecast with $128m net loss
updated 05:25 pm EDT, Thu October 15, 2009
Demand for components beginning to increase
AMD on Thursday reported its third-quarter financial results, indicating an 18 percent revenue increase from the previous quarter. Although the performance exceeded expectations, the company still reported a net loss of $128 million and a 22 percent revenue drop compared to the same quarter last year.
AMD CEO Dirk Meyer claims the company performed better than expected due to growth in microprocessor and graphics product shipments. Gross margin increased from 37 percent to 42 percent, as ASPs and sales of 45nm products were both up from last quarter.
A recent IDC report suggests the overall market grew by approximately 2 percent over last year, while Gartner also saw a slight increase. Mikako Kitagawa, Gartner's principal analyst, claims that consumers were "relentlessly looking for bargains." Despite the growth in sales, the falling ASPs have resulted in lower revenues for computer makers.
Intel reported a strong surge in sales, establishing one of the best fiscal quarters for the company in the past 30 years. Shipments of netbook components, specifically the Atom chips, lead to a 19 percent growth in the company's mobility group.
AMD remains optimistic for the next quarter, with expectations for revenue to be "up modestly."
