Advanced Micro Devices delivered its fourth consecutive quarter of profit yesterday, as a strong performance by its processor business offset stumbles in its memory business.
The vendor had originally expected revenues to be up moderately on the previous quarter’s $1.26 billion, It warned earlier this week that sales for the third quarter would be slightly lower than expected though net income would be up on the previous quarter’s $32 million.
In the event, AMD’s sales came in at $1.24 billion, up 30% on the year, and down 2% on the previous quarter. Operating income was $68.4 million, compared to last year’s $30.2 million loss, while net income was $43.8 million, compared to a $31.2 million loss last year.
In a statement, CFO Robert Rivet said the net income improvement was largely driven by the Computation Products Group (CPG), which saw sales up 21%, and by improved gross margin in its memory group. This was despite the memory unit’s weaker than expected sales into the wireless handset market.
Total CPG sales were $672 million, up 34% on the year, and up 21% sequentially. The group generated operating income of $89 million, compared to $58 million in the previous quarter. AMD64 shipments almost doubled on the previous quarter, and now account for over a third of its processor sales.
Memory sales were $538 million, up 27% on the year, but down 20% sequentially. Operating profit dropped to $15 million, compared to $45 million in the previous quarter.
AMD delivered its usual vague forecast for the fourth quarter, saying it expected overall sales to increase, with processor sales topping seasonal trends and flash sales being flat to slightly up.
For the year to date, sales are $3.7 billion, up 61.6%, while net income is $121.1 million, compared to last year’s $317.7 million loss.