AMD Returns to Profitability, Beats Expectations

The Sunnyvale, Calif.-based chip maker said it turned in a profit of three cents per share, or $11 million, on $1.26 billion in revenue for the quarter that ended June 26. The average of Wall Street analyst estimates was for AMD to report a six-cent per share loss on $1.21 billion in sales.

However, AMD's profit did decline from the $32 million, or nine cents per share, it turned in for the same quarter in 2004.

In a statement, AMD's chief financial officer, Robert Rivet, said the company turned in another good quarter of microprocessor sales.

"Our microprocessor business delivered another record quarter driven by increased demand for AMD server and mobile processors from our largest global OEM customers," Rivet said. The company's chip sales increased by 38 percent, year over year, for the quarter, he said.

Going forward, AMD said it expects its microprocessor business to exceed normal seasonal expectations.