AMD's delivers better-than-expected second quarter
AMD reported better-than-expected second quarter results as demand for notebooks helped the chip maker beat estimates.
On Thursday, AMD reported a net loss of $43 million, or 6 cents a share, on revenue of $1.65 billion, up from $1.18 billion a year ago. Non-GAAP earnings were $83 million, or 11 cents a share. Wall Street was expecting AMD to report earnings of 6 cents a share on revenue of $1.54 billion.
Like Intel, AMD's much larger rival, the company said that it was benefiting from increased demand for PCs. Both Intel and research firms such as Gartner and IDC have indicated that a strong upgrade cycle is underway.
Meanwhile, AMD CEO Dirk Meyer said that customers such as Sony, Acer, Dell, HP and Toshiba are expanding the use of the company's processors for the back-to-school and holiday shopping seasons.
AMD said in a statement that the third quarter revenue will be "up seasonally."
By the numbers:
- Gross margins for AMD were 45 percent in the second quarter, better than the 42.98 expected by Wall Street.
- Average selling prices were flat with the first quarter and up from a year ago.
- Computing solutions revenue in the second quarter was $1.2 billion, up from $926 million a year ago. Graphics revenue was $440 million, up from $235 million a year ago.
- AMD ended the quarter with 10,649 employees.
Related: Intel: Corporate PC, server demand fuels strong second quarter