AMD scores Q2 profit on nearly double revenue

Advanced Micro Devices (AMD) grew its revenue significantly and posted a profit in its second quarter, ended June 27, 2004, helped by robust growth in its Memory Group business unit, which is in charge of flash memory products, the company said Wednesday.

Net revenue came in at $1.26 billion, up 96 percent from 2003’s second quarter and slightly above consensus expectations of $1.24 billion from analysts polled by Thomson First Call.

Meanwhile, net income was $32.2 million, or $0.09 per share, in line with analysts’ consensus projection and an improvement over a net loss of $140 million, or $0.40 per share, in last year’s second quarter.

AMD’s Memory Group business unit raked in record revenue of $673 million, up 220 percent over 2003’s second quarter. It posted operating income of $45 million, up from $14 million in the preceding quarter.

Meanwhile, the Computation Products Group, which is in charge of PC, server and mobile processors, rang up revenue of $554 million, up 36 percent from a year ago. It posted operating income of $58 million, down from $67 million in the preceding quarter.

Demand for AMD’s 64-bit processors, the Athlon64 and Opteron families, “accelerated significantly” during the quarter, the Sunnyvale, California, company said in the statement.