AMD Misses Wall Street Target Despite Opteron Sales

Growing demand for its Opteron server chips pushed Advanced Micro Devices (AMD) to greater second-quarter profits, but the company failed to meet financial analyst expectations.

AMD on Thursday reported a profit of US$89 million for the quarter, far above its mark of $11 million last year.

Despite the profit, AMD’s earnings of $0.18 per share missed a forecast of $0.22 per share on revenues of $1.25 billion from analysts surveyed by Thomson Financial.

AMD, of Sunnyvale, Calif., posted $1.22 billion in revenue for the quarter ending July 2, up from the $797 million reported by the company’s processor division last year. Including revenue from its Spansion flash memory unit, which was spun off in December 2005, AMD reported $1.26 billion in the previous year’s quarter.

Strong demand for AMD’s Opteron server chip accounted for the 53 percent jump in revenue, the company said.

-Ben Ames, IDG News Service (Boston Bureau)

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