AMD Finally Posts a Profit, Thanks to Intel
AMD Finally Posts a Profit, Thanks to Intel
Posted 01/22/2010 at 12:37pm
| by Bart Salisbury
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Profits are always something to celebrate, especially if the profit is the first one in three years. AMD is definitely in the mood to celebrate. But it’s what underlies AMD’s profit that gives others pause about this achievement--the profit only exists because of AMD’s arch-rival Intel. Since Intel’s involuntary largess is likely a one-shot deal, AMD might want to party hard, because the its next quarterly report may just return to the red AMD has become so accustomed to.
AMD’s bottom line was boosted by the settlement of a lawsuit between AMD and Intel, which netted AMD $1.25 billion in damages. AMD concedes that without this little bundle of Intel’s cash it would have posted a $57 million loss in the 4th quarter of 2009.
Still, there’s a bright side for AMD. Overall, revenues are up 42 percent, due to an upswing in the computer market, and unit sales of its microprocessors and graphics chips rose. For the full year, AMD reported a net income of $304 million on revenues of $5.4 billion, a nice contrast to 2008, which saw a net loss of $3.1 billion on revenues of $5.8 billion.
Image Credit: AMD, StormchaserMike/Flickr
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jwalch.hawk
January 22, 2010 at 2:12pm
For what it's worth, AMD's stock was down about 12% today. Investors, apparently, are not impressed.
imagonex
January 22, 2010 at 2:09pm
Personallly, I want all companies to succeed because competition only means better products and prices for the consumer. Besides that, variety is also a good thing! Additionally, I don't like seeing anyone lose their job. These corporations employ a lot of people and create jobs for a lot of people.
I Jedi
January 22, 2010 at 2:54pm
AMD will never fail because Intel needs AMD, or it becomes a monopoly for Intel. Same can be said with Microsoft and Apple. AMD is still a few years behind Intel in the CPU making business, and they're still dealing with the bad fallouts of their decisions that they have made in the past; however, they are starting to slowly turn around and come back. The thing about the computer industry is that big manufactures/software developers depend on one another often times, so you don't usually hear big industry names going under.
I Jedi
January 22, 2010 at 12:51pm
And so it continues... One day... one day you will be dominant again...
DBsantos77
January 22, 2010 at 1:05pm
AMD is planning to release a AMD Phenom X4 975 clocked at 3.6 ghz stock. Istanbul desktop proc due sometime this year too. Good stuff!
-Santos
gendoikari1
January 22, 2010 at 1:19pm
I hope they get all the way up to 995. Sure, the heat/TDP would be insane, but 4GHz!
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DBsantos77
January 22, 2010 at 2:08pm
I can't wait for their Hexa-core procs, Being that I'm in 3D Animation. Wonder when the 5XXX will support Cuda-like rendering abilities.
-Santos
gendoikari1
January 22, 2010 at 8:04pm
OpenCL/DirectCompute could work, if enough software is made for it.
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nekollx
January 22, 2010 at 1:02pm
agreed, just look at their over all year trend, they had a (minicule) profit vs last year wich was a massive loss
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