AMD Grabs First Quarterly Profit In Three Years (Thanks To Intel)

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News Posted: Fri, Jan 22 2010 1:43 PM
Mark this one down--it hasn't happened in a long, long time. Butfrankly, we're hoping it's a sign of things to come, and the realturnaround that AMD needs to seriously rival Intel and drive pricesdown as a whole in the microchip sector. Competition is always great,so we'd encourage you to put your fanboy suit aside and actuallyconsider just how remarkable this is for every PC enthusiast.

AMD has just posted a profit for the quarter, which is its first inthree years. Now, we should point out that the most likely reason thatsaid profit was posted is Intel. We know you're probably scratchingyour head, but we should probably remind you that Intel shelled out awhopping $1.25 billion to AMD earlier in the quarter in order to settlesome long-standing disputes.



The huge paycheck wasn't the only good news for AMD, however. It alsobenefitted from an overall lift in the PC market, no doubt helped bythe holiday buying season. Revenue for the company was up 42% year overyear. Unfortunately, when you take away the bonus check, AMD lost $57million on the quarter, but it still feels like AMD is on the up andup. $1.25 billion can go a long way in the R&D department, andwe're hoping the chip maker doesn't squander this once in a lifetimeopportunity to really do something special on its most hated rival'sdime.
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Analysts seem pessimistic, AMD's stock fell 12% after the earning report came out. AMD is in the middle of a weak product cycle in CPU with respect to Intel, and is unlikely to regain lost market share near term.

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Bighorse replied on Sun, Jan 24 2010 4:30 PM

Hopefully that money from Intel will allow AMD to put out some chips that will challenge the i-series chips Intel is putting out.

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3vi1 replied on Sun, Jan 24 2010 7:31 PM

>> Now, we should point out that the most likely reason that said profit was posted is Intel.

And you should also point out that the most likely reason they had not previously posted profits is also Intel and anticompetitive business practices.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

++++++++++++[>++++>+++++++++>+++>+<<<<-]>+++.>++++++++++.-------------.+++.>---.>--.

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But even taking Intel's anti-competitive practices into consideration, AMD has been in Intel's shadow for the last couple of years.

AMD primary CPU market's revenue improved 14% over last year's numbers, while the GPU revenue went up by 40%.

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realneil replied on Mon, Jan 25 2010 12:48 PM

We would be in trouble without AMD's existence keeping prices within reason. Competition only does the consumer good. Therefore, I buy from AMD to foster competition and to get more bang for my buck, Chuck!

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

(Mark Twain)

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