AMD's 2Q profit soars
Semiconductor maker credits strong flash, microprocessor demand
July 19, 2000: 5:42 p.m. ET
NEW YORK (CNNfn) - Advanced Micro Devices Inc. on Wednesday reported a second-quarter profit that beat Wall Street's expectations as demand for its PC microprocessor and flash memory chips resulted in another quarter of record sales and earnings.
Separately, AMD's board of directors authorized a 2-for-1 stock split payable on August 21 to shareholders of record as of August 7.
AMD (AMD: Research, Estimates) said it earned $207 million, or $1.21 per share during the quarter ended July 2. That compares with a loss of $1.10 per share during the corresponding period last year, and is well ahead of the $1.14 per-share profit analysts polled by earnings tracker First Call had expected the company to turn during the quarter.
Meanwhile, sales nearly doubled from last year's second quarter, coming in at $1.2 billion.
Executives at AMD in Sunnyvale, Calif., chalked up the better-than-expected results to soaring demand for its computer processors and flash-memory chips.
AMD is the world's second largest supplier of PC microprocessors behind Intel and is a leading supplier of flash memory, which is used widely in wireless telephones and other portable electronic devices.
"AMD had another great quarter," Hector de J. Ruiz, AMD's president
and chief operating officer, said in a statement. "Strong revenue growth in both of our principal product lines - PC processors and flash memory devices - again resulted in record sales and earnings."
During the quarter, typically the weakest for suppliers of PC processors, AMD said combined unit shipments of its Athlon, Duron, and K6-2 processors remained near record levels at well in excess of 6 million units.
Sales of flash memory rose by more than 10 percent from the immediately preceding quarter, Ruiz said.
On Monday, Intel, AMD's much larger rival, also posted results that topped analysts' forecasts, and executives there noted that sales were stronger than they had expected during the seasonally slow part of the year.
The second half of the year is typically the strongest for the semiconductor industry as demand for PCs and other electronics increases during the holiday and back-to-school seasons.
AMD shares rose 1 to 92 in New York Stock Exchange ahead of the earnings announcement. They were halted in after hours
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