AMD posts its first quarterly profit in 3 years – due to $1.25B Intel payment
AMD’s conference call was at 2 PM Eastern today and the financial results of the fourth quarter of 2009 are made public here. According to today’s report, AMD reported revenue for the fourth quarter of 2009 of $1.646 billion, an increase of 18 percent compared to the previous quarter and 42 percent compared to the fourth quarter of 2008. Specifically this works out as a fourth-quarter profit of $1.18 billion (+$1.52 a share) compared with a loss of $1.44 billion, (-$2.36 a share) for the same quarter a year earlier. However, they acknowledge that this was due to a one-time payment of $1.25 billion by rival Intel Corporation to settle their legal disputes.
AMD admitted that it would have lost money were it not for the massive payment it received from Intel. After adjustment, they actually posted a loss of 8 cents a share and they project a loss for the next quarter although they believe their overall financial picture is improving. They also appeared to benefit from generally improving conditions in the overall PC market. Their revenue was up 42 percent over last year, and unit sales of CPUs and graphics chips grew, even though though their CPU prices generally fell – especially as they have to compete with Intel’s new line of Core i7/i5/i3 CPUs.
AMD’s improving sales give evidence that consumer spending on technology appears to be increasing again. This is good news and a welcome trend as also evidenced by the interest and attendance at Consumer Electronics Show (CES), two weeks ago as we reported on for you here.
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