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AMD swings to quarterly profit

AMD Tuesday posted its first quarterly net profit in more than a year, on a 76 percent jump in revenue, driven by strong shipments of microprocessors used in personal computers.
/ Source: Reuters

Advanced Micro Devices Inc., the No. 2 maker of microprocessors, on Tuesday posted its first quarterly net profit in more than a year, on a 76 percent jump in revenue, driven by strong shipments of microprocessors used in personal computers.

AMD's results surpassed analysts estimates, but like larger rival Intel Corp., the company said it sees a seasonal decline in revenue for the current quarter.

Sunnyvale, California-based AMD reported fourth-quarter net income of $43.1 million, or 12 cents a share, compared with a loss of $854.7 million, or $2.49 a share. The year-ago loss included $330 million restructuring charge.

AMD sales rose to $1.21 billion from $686.4 million a year ago. The final quarter of the year is typically a strong selling season for AMD, boosted by demand electronic devices including cellular phones, for which AMD makes key components.

Analysts had on average forecast AMD would post a profit of 4 cents a share, on revenue of $1.08 billion, according to Reuters Research, a unit of Reuters Group Plc.

Looking ahead to the first quarter, AMD said it believes that seasonal patterns "are expected to prevail," with aggregate sales seen down slightly.