AMD Posts Record Quarter, Still Loses Money
posted Saturday Jul 17, 2010 by Nicholas DiMeo
AMD posted its earnings this week to the anticipating masses of investors and the rest of the tech industry. AMD has made great strides in the past twelve months to really make an impact in the market and everyone was hoping that the numbers would show that AMD's effort really were holding water.
Dirk Meyer, AMD President and CEO, attested their success in the second quarter to those efforts:
Robust demand for our latest mobile platforms and solid execution drove record second quarter revenue and a healthy gross margin. Our unmatched combination of microprocessor and graphics capabilities resulted in customers launching a record number of new mobile and desktop platforms. We added Sony as a microprocessor customer and continue to see our existing customers expand their AMD-based platform offerings.
Hit the break to see what the numbers were and how much they lost as a company.
AMD set a record $1.65 billion in revenue for the second quarter, which is a five percent sequential increase and a 40 percent increase year-over-year, with a gross margin of 45 percent! To compare, in 2009, the company lost $330 million net in the same quarter. And for the bad news: AMD still posted a net loss of $43 million, or $0.06 per share.
All hope is not lost however. The company did extremely well in comparison to their past results. The success driving the company into the black in revenue can be chalked up to the graphics hardware, which was up 8 percent over quarter and a whopping 87 percent from last year, largely attributed to the Radeon HD 5000 series graphics cards. To assist, mobile processor sales were also up 18 percent over last quarter.
This could be a sign of good things to come for AMD, and I hope to see more success for them in the future, in order to keep the processing and hardware markets competitive for years to come.
