NEW YORK, April 14 (Reuters) - Advanced Micro Devices Inc. (AMD), the second-largest producer of personal computer microprocessors, on Wednesday reported quarterly profit and revenue that topped Wall Street analysts' expectations, citing stronger sales of chips for computers and cell phones.
AMD forecast second-quarter sales at about the same level as in the first quarter, with business seen in line with historical patterns for the period. The outlook was a relief to investors after arch-rival Intel Corp. predicted on Tuesday that sales would dip about 2 percent in the current quarter.
"The numbers look solid," said Eric Gomberg, an analyst with Thomas Weisel Partners. "The company showed a somewhat better-than-expected top line and was able to show better margin improvement than they have in a couple of quarters."
AMD shares rose to $17.39 in after-hours trading after closing at $17.12 on the New York Stock Exchange. The gain stood in contrast to Intel, whose shares declined after its earnings report.
Analysts have described AMD's current line of processors for business and consumer computers as its strongest in recent years in its fierce competition with Intel. AMD has about a 20 percent market share for personal computer microprocessors, a PC's core chip.
AMD earlier this year scored a marketing coup when Intel followed its lead on introducing a new feature, 64-bit computing, into its line of industry standard chips. Leading computer makers Hewlett-Packard Co. (HPQ) and International Business Machines Corp. (IBM), among others, have agreed to sell the company's AMD64 family of chips.
"Our customers continue to show interest in the unique value proposition of our AMD 64 technology," Chief Executive Hector Ruiz said on a conference call. "We present a superior alternative to the competition."
REVENUE JUMPS
The Sunnyvale, California-based company, whose chips appear in about one of every five personal computers, posted earnings of $45.1 million, or 12 cents a share, in the first quarter ended March 28, compared with a year-earlier loss of $146.4 million, or 42 cents a share.
Revenue jumped 73 percent to $1.24 billion, which Ruiz said was a record. The revenue topped the average analyst target of $1.17 billion. Sales were particularly strong in Asia and Latin America, AMD said.
Analysts on average were expecting results in the range of a loss of 6 cents a share to a profit of 10 cents, with an average estimate of a 3-cent profit, according to Reuters Research, a unit of Reuters Group Plc.
AMD said its flash memory business, which produces memory chips used in mobile phones, was expected to increase sales modestly next quarter, while its personal computer chip business would see sales decline modestly.
AMD produces flash memory chips in conjunction with Fujitsu Ltd. , as part of their Spansion joint venture.
On Tuesday, AMD's arch-rival Intel Corp. (INTC) posted an 89 percent gain in quarterly profit but issued a revenue forecast that fell short of some analysts' estimates.
Intel posted revenue of $8.1 billion for the first quarter, but said second-quarter revenue would likely fall in the range of $7.6 billion to $8.2 billion, with a midpoint estimate of $7.9 billion. REUTERS
AMD forecast second-quarter sales at about the same level as in the first quarter, with business seen in line with historical patterns for the period. The outlook was a relief to investors after arch-rival Intel Corp. predicted on Tuesday that sales would dip about 2 percent in the current quarter.
"The numbers look solid," said Eric Gomberg, an analyst with Thomas Weisel Partners. "The company showed a somewhat better-than-expected top line and was able to show better margin improvement than they have in a couple of quarters."
AMD shares rose to $17.39 in after-hours trading after closing at $17.12 on the New York Stock Exchange. The gain stood in contrast to Intel, whose shares declined after its earnings report.
Analysts have described AMD's current line of processors for business and consumer computers as its strongest in recent years in its fierce competition with Intel. AMD has about a 20 percent market share for personal computer microprocessors, a PC's core chip.
AMD earlier this year scored a marketing coup when Intel followed its lead on introducing a new feature, 64-bit computing, into its line of industry standard chips. Leading computer makers Hewlett-Packard Co. (HPQ) and International Business Machines Corp. (IBM), among others, have agreed to sell the company's AMD64 family of chips.
"Our customers continue to show interest in the unique value proposition of our AMD 64 technology," Chief Executive Hector Ruiz said on a conference call. "We present a superior alternative to the competition."
REVENUE JUMPS
The Sunnyvale, California-based company, whose chips appear in about one of every five personal computers, posted earnings of $45.1 million, or 12 cents a share, in the first quarter ended March 28, compared with a year-earlier loss of $146.4 million, or 42 cents a share.
Revenue jumped 73 percent to $1.24 billion, which Ruiz said was a record. The revenue topped the average analyst target of $1.17 billion. Sales were particularly strong in Asia and Latin America, AMD said.
Analysts on average were expecting results in the range of a loss of 6 cents a share to a profit of 10 cents, with an average estimate of a 3-cent profit, according to Reuters Research, a unit of Reuters Group Plc.
AMD said its flash memory business, which produces memory chips used in mobile phones, was expected to increase sales modestly next quarter, while its personal computer chip business would see sales decline modestly.
AMD produces flash memory chips in conjunction with Fujitsu Ltd. , as part of their Spansion joint venture.
On Tuesday, AMD's arch-rival Intel Corp. (INTC) posted an 89 percent gain in quarterly profit but issued a revenue forecast that fell short of some analysts' estimates.
Intel posted revenue of $8.1 billion for the first quarter, but said second-quarter revenue would likely fall in the range of $7.6 billion to $8.2 billion, with a midpoint estimate of $7.9 billion. REUTERS
