14 DAY TRIAL // AMD posted its financial results for the fourth quarter of 2009 and the report shows what is the first quarterly profit of the company after 13 consecutive quarters. Advanced Micro Devices not only performed well during 2009, from a marketing standpoint, but it also benefited from the royalty-bearing antitrust settlement with Intel. Having received $1.25 billion from the Santa Clara chip maker, the CPU and GPU manufacturer posted record year-on-year quarterly profits.
According to an official company statement, AMD's revenue rose to $1.65 billion, which implies an increase of 42 percent. Net income attributable to common stockholders was reported to be of $1.178 billion, or $1.52 per share, in the fourth quarter of 2009. This means that the favorable impact was of $1.57 per share, which corresponds to a net favorable impact of $1.238 billion.
Unlike the fourth quarter, the third one of 2009 saw a common stockholder net loss of $128 million, whereas the operating loss was of $77 million. The fourth quarter of 2008, however, was the most dismal, with an operating loss of $1.274 billion and a net loss of $1.436 billion, and revenues only amounted to $1.162 billion. While AMD did have a good marketing performance during 2009, it was the $1.25 billion received from Intel that ultimately enabled the “transformation.”
AMD will no longer consolidate the financial results of GLOBALFOUNDRIES and will only, from now on, report operating results for what was previously known as the AMD Product Company. Already, the non-GAAP net income reported for Q4 2009 was of $80 million, whereas the non-GAAP operating income amounted to $169 million. Compared with these, the same incomes for the third quarter were of only $2 million and $47 million, respectively.
The AMD Product Company reported that the adjusted EBITDA for the fourth quarter of last year amounted to $282 million, an increase compared with the $169 million from the previous quarter. The fourth quarter gross margin was of 45% (compared with the Q3 42%) and the AMD Product Company gross margin was of 41% (compared with the 38% in the third quarter). The total Q4 revenue was of $1.646 billion. This 18% sequential increase was enabled by $1.21 billion (up 14% over Q3 09) earned by AMD's computing arm, as well as the $427 million (40% sequential increase) brought in by the graphics arm.
“AMD’s quarter marks another milestone in our transformation and underscores our growing momentum,” Dirk Meyer, AMD president and CEO, said. “We enter 2010 having completed the transition to a fabless business model, reached a historic antitrust settlement, and made significant progress strengthening our balance sheet. Our innovative strategy for designing the world’s most vivid digital experiences continues to generate demand.”
AMD predicts a seasonal revenue drop for the ongoing first quarter of 2010.