Total revenues in the three months ending March 28 were $1.24bn, up 73% on the year. Operating income was $61.3m, compared to a $125.5m loss last year, while net income was $45.1m, compared to last year’s $146.4m loss.
The figures highlighted the importance of AMD’s flash operation to the company’s overall performance. Memory group sales were $628m in the quarter, up 188% on the year, and it made an operating profit of $14m.
However, the memory group is operating at the edge of its capacity, leading to some tightness of supply, which the vendor expects to continue at least into the current quarter. It is currently adding capacity, and things should begin to alleviate in the third quarter.
In the meantime, AMD said it was seeing flash prices firming up, but not rocketing up.
The vendor’s computation products group saw sales of $571m in the quarter, and generated operating income of $67m. Shipments of the Athlon 64 line doubled quarter on quarter, said AMD. At the same time, AMD assured analysts on its earnings conference call that it didn’t foresee any constraints of supplies of its Athlon 64 line.
Looking ahead, AMD issued what it said was conservative guidance, saying it expected memory group sales to rise modestly, with computation product sales decline modestly, in line with industry seasonal patterns. Overall, it said, seasonal patterns would prevail, and sales would be approximately flat.
This article is based on material originally published by ComputerWire
Content from our partners
