by CIO Staff

AMD Misses Wall Street Target Despite Opteron Sales

Jul 21, 20061 min
Data Center

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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