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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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