AMD Does Well in Q2, Despite Small Loss

Like all players on the IT market, Advanced Micro Devices has come around and published its financial results for the second quarter. Apparently, the industry really is doing well and shipments of any sort of hardware were quite healthy, leading to a favorable position at the end of June, even in spite of the small net loss that the company registered. Increases in both the CPU and GPU businesses were the main catalyst.

AMD ended up with a net loss of about $43 million at the end of last month. This sum can be attributed to expenses related to GlobalFoundries and is really smaller than the $67 million registered during the same period of last year. On the other hand, operating income was of $128 million, whereas the total revenue for the April-June period reached $1.65 billion. Comparatively, in Q1 2010, revenues amounted to $1.57 billion.

“Robust demand for our latest mobile platforms and solid execution drove record second quarter revenue and a healthy gross margin,” said Dirk Meyer, AMD President and CEO. “Our unmatched combination of microprocessor and graphics capabilities resulted in customers launching a record number of new mobile and desktop platforms. We added Sony as a microprocessor customer and continue to see our existing customers expand their AMD-based platform offerings.”

These figures were reached because of multiple factors. For one, CPU unit sales rose 4% sequentially and 31% on-year, all the way up to $1.12 billion. GPU sales also jumped, to $440 million, which is 87% compared to Q2 2009 and 8% over the first quarter. Finally, the gross margin was of 45 percent. Moving forward, Advanced Micro Devices expects its Q3 revenues to show an even bigger increase, both sequentially and on-year. All in all, the chip maker expects to finally return to profitability.