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AMD second quarter, it's not all bad!
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Written by Daniel   
Saturday, 21 July 2007 06:24

AMD second quarter: revenues up, profits down
ARS Technica
By Eric Bangeman | Published: July 20, 2007 - 04:37PM CT

AMD reported its second-quarter results yesterday, and as expected, posted heavy losses. For the second quarter of 2007, AMD said it ended up $600 million, or $1.09 per share, in the red on revenues of $1.38 billion. That's a harsh reversal from the 18¢ per share profit the company made during the second quarter of 2006.
Of the $600 million loss, $130 million was related to AMD's purchase of ATI, which AMD acquired last fall for $5.6 billion, along with severance costs, stock-compensation costs, and debt issuance charges.

Revenues were actually up over last year's figure of $1.22 billion (which makes sense given that this years revenues include ATI), and more importantly for AMD, the company's sales volumes grew during the quarter. Gross margins suffered, however, dropping from 57 percent during the second quarter of 2006 to 33 percent. That's what happens when you get caught in a price war against your main competitor and end up cutting prices to the bone. The situation has improved since the first quarter of 2007, with AMD's revenues up 12 percent quarter-over-quarter and gross margins up 5 percent.... More

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