AMD’s second quarter marked a swing to profitability compared to the same period last year as the company nearly doubled its sales.
Flash memory sales reached record levels at the company, driving total sales for Q2 to $1.26bn, a 96 per cent increase year over year and two per cent increase sequentially.
The company, mostly known for its microprocessors, posted net income of $32m for Q2 compared with a net loss of $140m for the year ago quarter and net income of $45m in Q1.
AMD announced the results just hours after the market battered its rival Intel for its lowered gross margin forecast and increased inventories.
“We achieved record Spansion flash memory sales in the second quarter and more than tripled operating income from $14m to $45m,” said Robert Rivet, CFO. “Spansion maintained clear leadership in the NOR flash memory market. In addition, accelerating AMD Opteron and Mobile Athlon 64 processor sales contributed to a double-digit operating margin for our microprocessor business.”
Yet the company refused to commit to numbers for Q3 or the year saying “economic and industry conditions remain uncertain and continue to make it difficult to forecast product demand. In the third quarter of 2004, AMD expects sales to increase in each of its two major businesses and total sales to increase moderately,” the company said.