AMD tops Wall Street estimates with Q1 profit

Chip maker Advanced Micro Devices Inc. on Wednesday reported a first-quarter profit of US$0.37 a share, striding past the expectations of Wall Street analysts. The company cited strong sales of its Athlon and Duron processors for PCs.

Net income for the period, excluding one-time charges, was US$124.8 million, down from $189.3 million a year ago, AMD said in a statement. Revenue grew 9 percent to $1.19 billion, from $1.09 billion in the first quarter of 2000, AMD said.

Analysts had expected the company to profit by $0.33 a share, according to a consensus estimate of 14 brokers compiled by First Call/Thomson Financial. AMD's per share profit of $0.37 was down from $0.55 a year ago.

The chip maker said it sold more than 7.3 million PC processors during the quarter, including 6.5 million of its newer Athlon and Duron chips. Total processor sales totalled $661 million, and the average selling price of those chips increased 17 percent from last year, AMD said.

"AMD had an excellent quarter in challenging economic conditions," William J. Sanders, AMD's chairman and chief executive officer, said in the statement.

When it issued its fourth-quarter results, AMD warned that results for the first quarter would be dampened by "normal seasonal weakness." Looking ahead, the company warned that the second quarter is usually slow for PC sales, and said overall revenues for that period could decline by as much as 10 percent sequentially, depending on market conditions.

However, AMD said still expects to meet the current First Call estimate of $1.50 per diluted share for the year as a whole.

The results were announced after trading ended Wednesday. The company's stock (AMD) closed up 4.85 percent, at $27.85.

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