AMD's Profitable Streak Ends With Net Loss in Q2

Advanced Micro Devices on Thursday reported a net loss during the second quarter of fiscal 2010, breaking a streak of two consecutive quarters of profitability.

On a GAAP (generally accepted accounting principles) basis, AMD reported a net loss of US$43 million, or $0.06 per share, for the second quarter of 2010 that ended on June 26. That is an improvement from the $330 million loss it reported in the second quarter last year.

As part of the results, AMD reported a $120 million equity loss related to its manufacturing spinoff, GlobalFoundries. Excluding that loss and some other items, AMD would have reported a profit on a non-GAAP basis of $83 million.

The chip designer reported revenue of $1.65 billion, up from $1.18 billion in the year-ago quarter. Analysts polled by Thomson Reuters estimated revenue to be $1.55 billion for the most recent quarter.

There was "robust demand" for mobile products, said Dirk Meyer, AMD's CEO, in a statement. The company added Sony as a customer for its microprocessors, and other customers expanded their lineups of PCs with AMD processors.

PC makers such as Hewlett-Packard, Acer and Lenovo incorporated a larger mix of AMD chips into laptops and desktops during this quarter. AMD announced new chips during the quarter, including its first triple-core and quad-core laptop processors as part of a new Phenom II line. The company also announced new low-voltage Athlon II Neo and Turion II Neo processors for ultrathin laptops.

AMD also introduced low-priced chips as it tries to gain share from Intel in the server space. During the quarter AMD announced a new family of Opteron 4100 microprocessors for cloud computing servers, including a chip priced at $99.

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