AMD reports third quarter profit [Austin American-Statesman]
(Austin American-Statesman (TX) Via Acquire Media NewsEdge) Oct. 17--Advanced Micro Devices Inc. bounced back into profitability in the third quarter based partly on sales of chips to makers of video game consoles, it reported Thursday.
"We continued to successfully execute the strategic transformation plan we outlined a year ago," said CEO Rory Read, who noted that much of the company's 26 percent revenue growth from the second quarter came from "semi-custom products," which are system chips developed for advanced game consoles made by Sony Corp. and Microsoft Corp.
Read said the company is committed to generating 50 percent of its revenue from "high-growth markets" -- game consoles and other custom products and micro-servers. Management's goal is to decrease the company's dependence on chip sales to personal computer makers, where arch-rival Intel has captured a larger share of the since the onset of the PC slump last year.
The company slashed spending and cut jobs a year ago as part of its plan to recapture profitability in the second half of this year.
The company posted a profit of $48 million, or 6 cents a share, on revenue of $1.46 billion, which was up 15 percent from a year ago. Its results were slightly ahead of analyst's expectations. The company said it expects revenue to increase between 2 and 8 percent in the fourth quarter, compared with the third quarter.
It was the chip maker's first profit in five quarters. AMD employs about 1,900 people in Austin and some of its top executives are based here.
The company said its graphics and visual solutions operation saw growth increase 96 percent, due largely to semi-custom business. Its computer solutions segment dropped 15 percent from a year ago as the company saw lower sales to makers of notebook computers, that were partly offset by a increase in chips to desktop computers.
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