AMD has reported its third quarter 2007 revenues were US$1.63 billion, an 18% increase compared to the second quarter and a 23% improvement compared to the third quarter of 2006.

In the third quarter, AMD reported an operating loss of US$226 million, and a net loss of US$396 million, or US$0.71 per share. Third-quarter results include a negative impact of US$120 million, or US$0.22 per share, due to ATI acquisition-related, integration and severance charges and impairment of assets, noted AMD. In the second quarter of 2007, AMD reported revenues of US$1.38 billion and an operating loss of US$457 million. In the third quarter of 2006, AMD reported revenues of US$1.328 billion and operating income of US$121 million, according to the company.

"We are encouraged by the progress we made in our third-quarter financial results. We delivered a strong revenues increase, gained 8% of gross margin and reduced our operating loss by more than half," said Robert J Rivet, AMD's CFO. "We sold a record number of microprocessors through our distribution channel and began revenue shipments of quad-core AMD Opteron processors in the quarter.

"Graphics segment revenues increased 29% sequentially, as customers increasingly adopted AMD's new ATI Radeon HD 2000 series of graphics processors."

Third quarter charges of US$120 million consisted of ATI acquisition-related, integration and severance charges of US$78 million and asset impairments of US$42 million associated with AMD's ownership of Spansion common stock.

Third quarter 2007 gross margin was 41%, compared to 33% in the second quarter of 2007 and 51% in the third quarter of 2006. The increase from the prior quarter was due to increased microprocessor unit shipments, manufacturing efficiencies, improved inventory management, and a richer product mix in the computing solutions and graphics segments, said AMD.

Third quarter computing solutions segment revenues were US$1.28 billion, a 17% sequential increase. The increase was driven primarily by a 19% increase in microprocessor revenues. Microprocessor unit shipments increased 16% sequentially. Mobile processor unit shipment growth remained strong, increasing 41% sequentially and 68% on-year.

In the fourth quarter, AMD expects revenue to increase in line with seasonality.

By: DocMemory
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