AMD Posts Profit Thanks To the $1.25B Intel Payment
Advanced Micro Devices Inc. posted its first quarterly profit in three years because it got $1.25 billion in a legal settlement with its archrival. The world’s No. 2 maker of computer microprocessors said Thursday it would have lost money were it not for the payment it received from Intel Corp. to squash a long-running antitrust battle. AMD also appeared to benefit from a lift in the overall computer market. Revenue was up 42 percent over last year, and unit sales of microprocessors and graphics chips grew, even though prices fell.
AMD said after the market closed Thursday that it made $1.2 billion, or $1.52 per share, in the period ended Dec. 26. In the same period last year, it lost $1.4 billion, or $2.36 per share. Excluding the settlement and other items, AMD lost $57 million, or 8 cents per share. Analysts polled by Thomson Reuters were expecting a loss of 18 cents per share, excluding items. AMD’s revenue was $1.6 billion, a 42 percent improvement over the year-ago period. Analysts were expecting $1.5 billion. For the full year, AMD’s net income was $304 million and revenue was $5.4 billion. In 2008, AMD had a net loss of $3.1 billion and revenue of $5.8 billion.
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