Let's hope it's not a case of mo' money, mo' problems for AMD
It’s been a long time coming – over three years – but AMD has finally made a profit
. The company yesterday reported that in the fourth quarter of 2009, its revenues were $1.646 billion and 42 per cent better than the same period last year.
During the fourth quarter, AMD’s operating income
(a measure of profit which excludes interest and income tax) was a fairly handy $1.288 billion. That said, AMD’s statement pointed out this includes “a net favourable impact of $1.224 billion. The net favourable impacts were primarily from a legal settlement with Intel Corp.
” So while the company is back in the black, much of its profit is actually Intel’s.
“[This] quarter marks another milestone in our transformation and underscores our growing momentum,
” said Dirk Meyer, AMD president and CEO. “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.
While a billion dollars from Intel certainly helped, even without the cash AMD would have had a good quarter, with revenues up 18 per cent compared to the previous quarter of 2009. That period saw AMD return an operating loss of $77 million.
Happy with AMD’s good fortunes? Would you be tempted to invest in the company right now? Or is Intel still the way to go? Let us know your thoughts in the forums