AMD Ignores European Worries, Posts Record Gains

Escaping the European woes that have haunted some other PC-related vendors, Advanced Micro Devices (AMD) on Wednesday reported third-quarter earnings and revenue that exceeded expectations.

For the quarter ending Oct. 1, AMD reported net income, excluding one time gains, of $US219.3 million or earnings of 64 cents per share. Fifteen analyst polled by First Call/Thomson Financial predicted that the chip-maker would rake in 62 cents per share.

Revenue for the quarter reached a record $US1.2 billion, up from $US662.2 million a year ago, Sunnyvale, California-based AMD said.

AMD realized a one-time gain of $US336 million during the quarter when its sold its voice communications business, the company said. Including that one-time gain, net income was $US408.6 million or $US1.18 per share.

The earnings per share figure beat results for the previous quarter by 4 cents, AMD said. A year ago, AMD reported a third-quarter loss of 36 cents per share.

In the fourth quarter, AMD said it expects to sell all the Athlon processors it can manufacture, and expects the Duron processors to set new sales records. Total sales of PC processors for the year should exceed the previous estimate of 25 million units by close to 3 million, the company said.

AMD finished the day's trading at $US22.75 but then enjoyed a modest boost following the earnings release. Shares of the chip vendor rose nearly 5 per cent in after hours trading to $US23.75 at the time of this report.

AMD, in Sunnyvale, California, can be reached at http://www.amd.com/.

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