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Buy.com Winter Blowout!AMD cited record gross margins for its computer microchips, specifically its chips used in servers and laptops, as drivers of its first profit in nine months. AMD's memory group posted a steep loss, but the top and bottom lines for the unit both improved from the previous quarter.

For the quarter ended June 26, AMD earned $11 million, or 3 cents a share, on sales of $1.26 billion. During the same quarter last year, AMD earned $32.2 million, or 9 cents a share, on sales of $1.26 billion.

Analysts had expected a loss of 5 cents a share on sales of $1.22 billion, on average, according to Thomson First Call. The bottom line range was wide, however, with expectations spanning a loss of 17 cents to earnings of 5 cents.

At the quarter's start, AMD only said microprocessor sales would be flat to slightly down; it didn't disclose expectations for its memory unit, which AMD has said it would like to spin off via an IPO.

 
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