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Intel rival Advanced Micro has a profitable first quarter

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREOregon Ducks football players get stuck on Disney ride during Rose Bowl eventThe first-quarter results were the first time AMD hasn’t counted sales of memory products, which are now part of a separate business called Spansion Inc., which sold shares to the public in December. Excluding sales of those products in the first quarter of 2005, revenue would have been $780 million. AMD over the past year has been stealing market share from Intel, as it benefits from chips that outperform its much bigger rival and from cheaper manufacturing costs. AMD, which last week said it has begun shipping microprocessors from a new factory in Germany, is also getting a boost from increased productivity. It said Wednesday the new facility is producing “mature yields.” The higher volume AMD is seeing, combined with the high output and refurbished factories, is driving down the company’s costs. Gross margin, or the percentage of sales left after paying manufacturing costs, widened to 58.5 percent in the first quarter, from 57.3 percent in the period that ended in December and 53.3 percent in the year-earlier quarter. The results were released after financial ended regular trading. Earlier, shares of AMD rose $1.07, or 3 percent, to close at $35.42 on the New York Stock Exchange. In after-hours trading, AMD shares fell 52 cents, or 1.5 percent, to $34.90. SAN FRANCISCO – Advanced Micro Devices Inc. on Wednesday said it swung to a first-quarter profit as Intel Corp.’s biggest rival for microprocessors benefited from market-share gains and the spinoff of its unprofitable flash memory subsidiary. The Santa Clara-based company posted net income of $185 million, or 38 cents a share, for the quarter ended March 26, compared to a net loss of $17.4 million, or 4 cents a share, in the same period last year. AMD’s profit easily exceeded analysts consensus estimates of 30 cents a share. First-quarter sales grew 8.6 percent to $1.33 billion from $1.23 billion. The company’s shares fell in extended trading after it said revenue for the current quarter would be “flat to slightly down” from the first quarter. That was slightly lower than the $1.35 billion analysts were expecting in a Thomson Financial survey. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img

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