AMD reports solid Q1

Chip vendors keeps gaining market share

AMD has reported sales of $1.33bn and profit of $185m for its first quarter ended 26 March, 2006.
The figures cannot be directly compared to the same quarter last year, because this time last year it still had its memory business, which was spun off as Spansion at the end of last year.

However, In the first quarter of 2005, excluding the memory products segment, AMD reported sales of $780m and operating income of $64m.

Robert Rivet, AMD’s chief financial officer, said: “Building on our positive momentum, we believe we once again gained dollar market share based on strong customer demand for AMD64 single and multi-core processors. We expanded our global customer base in the quarter, achieved record AMD Opteron processor sales, increased our average selling price, and realised year-over-year sales growth of 71 per cent.”

“Our manufacturing strategy execution was excellent and our technology transitions remain on track, with 65nm production shipments expected in the second half of 2006.”

AMD expects second quarter sales to be flat to slightly down seasonally from the first quarter of 2006. If achieved, this would approximate a 65 per cent increase from comparable sales in the second quarter of 2005.