Advanced Micro Devices Inc reported a 46% rise in fourth quarter profits, slightly better than some analysts had expected following the company’s warning not to expect too much last month. Turnover was up only 9% for the quarter at $593m. Overall sales in the fourth quarter were only nominally higher over the third quarter due to lower than expected unit shipments of Am486 microprocessors, the company said. With the exception of Microsoft Windows-compatible microprocessors, our product sales increased by 8% sequentially and more than 36% for the year. It is in process of acquiring Nexgen Inc for a Pentium-class part. The results benefited from an unusually low tax rate of just 10%, against 33% a year ago, reflecting a larger reserve taken earlier in the year and a desire to get to a 30% rate for the full year. The company also achieved manufacturing efficiencies in the microprocessor business. The shares, as high as $35 in September, rose 50 cents at $17 Wednesday.
