AMD Profits During the First Quarter

With the first half of April now past, IT players are outlining their financial situations, and it looks like Advanced Micro Devices has finally taken its turn, revealing mixed results and expecting little improvement in Q2.

During the first quarter of the ongoing year (2011), Advanced Micro Devices could have scored big on the PC market if it had anything to really compete with Intel's Sandy Bridge CPUs.

Since the Cougar point chipset for Sandy Bridge CPUs was flawed, the Sunnyvale, California-based company could have sold a lot more processors to fill the vacuum.

Fortunately, it seems that AMD was able to rake up some profits anyway, even though its overall revenue was down sequentially (albeit up on year).

For those that want numbers, the sequential decrease for CPU revenue was of 2%, while the on-year rise was of 3%.

Meanwhile, the graphics segment revenue decreased 3% on-quarter and was flat year-over-year.

All in all, the revenue was of $1.61 billion, whereas the net income was of $510 million, quite a jump from the $375 million in the fourth quarter of the previous year.

The net income sum corresponds to $0.68 per share, while operating income ended up at of $54 million.

"First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs)," said Thomas Seifert, CFO and interim CEO.

"APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our ‘Llano’ APU."

Advanced Micro Devices now has processors with integrated graphics that are being adopted by both netbooks and tablets.

Still, as far as the ongoing second quarter is concerned, the company expects finances not to go in any direction or, at worst, slide slightly compared to those of Q1.