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Sunnyvale, US (pte037/14.07.2005/15:16) - Advanced Micro Devices - AMD http://www.amd.com , posted a profit of 3 cents a share on Wednesday, and reported a net income of US$11.3 million (9.3m euro) and revenue of $1.26 billion for the second fiscal quarter that ended on 26 June. This compares with a profit of 9 cents a share on revenue of $1.26 billion in the same period last year.
Hector de J. Ruiz, chief executive said, "Our processor business continues not simply to grow but to accelerate." The company had experienced its greatest growth in microprocessors used in servers and notebook computers, according to Ruiz.
Analysts had predicted a loss of 5 cents a share, one company even predicting a loss of 17 cents a share.
AMD, the second-largest producer of microchips after Intel http://www.intel.com , has struggled this year due to pricing pressure in the market for its flash chips, used in DVDs and mobile phones.
AMD and Intel have been competing to develop chips based on dual-core technology.
Intel, which dominates the market, remains far ahead of AMD. Ashok Kumar, an analyst at Raymond James, said that the company's prospects were improving, but may not be good enough to gain a significant market share from Intel, which commands 80 per cent of unit sales and 90 per cent of revenues in the x86 microprocessors market.
"Strategically, the company is in the best position in its history," he said. "But in comparison to a revamped Intel, it doesn't look that good for them. Over all, near term their results were O.K., but longer-term issues remain."
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