AMD posts small loss this quarter

July 16, 2010 | 10:21

Tags: #amd-earnings #amd-financials #amd-loss

Companies: #amd #intel

Intel might have enjoyed its best quarter ever, but underdog AMD is still struggling to compete - posting a loss, despite increased sales.

In financial figures released by AMD yesterday and quoted by HotHardware, the processor manufacturer showed a 40 percent year-on-year increase in revenue thanks to increased demand for mobile-oriented chips and server parts, and a five percent increase on the first quarter.

Sadly, the good news - which AMD's president Dirk Meyer stated was due to "robust demand for our latest mobile platforms and solid execution," - was tempered by an overall loss due - it is believed - to the company's continuing restructuring work with fab spin-off GlobalFoundries. The costs associated with this have left AMD posting a second quarter loss of $43 million (around £28 million).

While the loss will be a concern to the company's shareholders, the rise in revenue appears to indicate that the long-awaited economic recovery is in full swing - and when taken with Intel's bumper quarter, could offer hope to companies which have been sweating through the credit crunch and waiting for the tech sector to pick up again.

For AMD, however, the figures offer a stark wake-up call: either start saving money, or watch as Intel disappears into the far distance.

Are you pleased to see that the technology sector is starting to recover after the vagaries of the credit crunch, or does the news that AMD posted a loss despite increased revenue fill you with dread for the future of the processor market? Share your thoughts over in the forums.
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