AMD reported net income of $45 million or 12 cents per share on sales of $1.24 billion.

Sales increased by 73 percent year over year and 3 percent sequentially.   In Q1 of last year, AMD reported a net loss of $146 million or 42 cents per share on sales of $715 million.

"Our performance in the first quarter of 2004 was driven by record sales, solid growth and strong execution," said Robert Rivet, CFO, in a statement. "Our flash memory and microprocessor businesses delivered solid sales results in a seasonally down quarter, and both business lines were profitable. Sales were especially strong in Asia Pacifica and Latin America."

Rivet said processor shipments of the AMD64 platform nearly doubled quarter over quarter. During the quarter both Hewlett Packard and Sun Microsystems shipped AMD Opteron-based servers for the first time. Opteron is the AMD64 server processor.

Higher sales and "disciplined expense management" led to an increase in operating income to 61 million for Q1 compared to $46 million in Q4. AMD also said average selling prices improved for both of its major product lines.

The flash memory achieved record sales during Q1, driven by strong performance in the wireless and embedded markets.

For Q2 the outlook is not quite as bright. The company expects sales to increase modestly for its memory group, but expects its sales for its computation products group to decline modestly in line with industry seasonal patterns. Overall, AMD said it expects seasonal patterns to prevail and sales to be flat for Q2.