AMD tops estimates with $1.3 billion revenue

AMD topped analyst estimates for the third quarter, reporting net income of $134 million, or $0.27 a share on revenue of $1.33 billion.

Advanced Micro Devices Inc. (AMD) beat analyst estimates for financial performance in third-quarter results released Thursday, with net income of U$134 million, or $0.27 cents a share on revenue of $1.33 billion, as it continues to pressure number-one chipmaker Intel Corp.

AMD's results for the quarter that ended Sept. 30 topped analyst estimates of $0.24 cents a share on revenue of $1.31 billion.

The company's latest results are an improvement over net income of $44 million, or $0.18 on $1.52 billion in revenue in the same quarter a year ago and net income of $89 million, or $0.18 on $1.22 billion in the second quarter of 2006.

When memory products sales are excluded, AMD's sales grew 9 percent from the previous quarter and 32 percent from last year's third quarter, Robert Rivet, AMD's chief financial officer.

However, AMD's operating margins slipped in the third quarter to 51.4 percent, down from 56.8 percent in the previous quarter and 55.4 percent in the year ago quarter. AMD attributes the decline to lower average selling prices for processors used in desktop computers.

AMD has been taking semiconductor market share away from rival Intel in the last year with new dual-core processors, forcing Intel into a defensive posture.

(More to follow.)

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