reported on Intel's
Q2 earnings. The company posted Q2 revenue of $8.7 billion USD, operating
income of $1.35 billion USD and net income of $1.3 billion USD.
Today, it's archrival AMD's turn with regards to financial
performance for the quarter. AMD recorded revenue of $1.378 billion USD, an
operating list of $457 million USD and a net loss of $600 million USD.
This compares with revenue of $1.216 billion USD and
operating income of $102 million USD for Q2 2006.
"While we made solid progress in the second quarter
across a number of fronts, we must improve our financial results," said
AMD CFO Robert J. Rivet. "We achieved a 12 percent sequential revenue
increase, improved the gross margin and won back microprocessor unit and
revenue market share."
AMD appears to have worked out problems that it had in late
2006 with OEM/channel
processor distribution and attributes 38 percent sequential increase in
microprocessor unit shipments to orders from Toshiba, an increased adoption of
AMD-based platforms and strong initial sales of the ATI Radeon HD 2000
"We continue to focus on realigning our business model
and reducing our capital expenditures and cost structure in the second half of
the year," said Rivet.
quote: http://www.businessweek.com/investor/content/jul20...Advanced Micro Devices (AMD; $15.78)Reiterates 3 STARS (hold)Analyst: Clyde MontevirgenOperating loss of about 89 cents vs. EPS of 18 cents is wider than our 61 cents loss forecast. Sales grew 12% from first quarter, as AMD likely regained microprocessor market share. Sales mix and better unit shipments from new processes lifted gross margin, offsetting higher operating costs and aided operating margin. We think AMD benefited from strong PC demand and market share gains in lower-end markets, but it may have trouble doing so in the higher-end. We are widening our 2007 loss view by 47 cents to $2.84, but raising our 12-month target price by $2 to $17 on our view of better 2008 growth.