AMD posts $61 million profit for Q2 2011
Advanced Micro Devices Inc. (AMD) saw a strong Q2 2011 ending in its latest earnings call as reported by WSJ.
The semiconductor company experienced a net profit of $61 million during its Q2 window ending July 2nd, a hefty improvement over its $42 million loss just a year ago.
One major factor in the profit turnaround could be due to AMD’s lineup of low-power, high efficiency Fusion processors. “AMD has reached an inflection point with its APU strategy as evidenced by the success of APU offerings,” said Chief Financial Officer Thomas Seifert. San Francisco-based analyst Sujeeva De Silva also praised the APU. “Fusion has done pretty well out of the gate,” said Silva in response to the AMD report. According to WSJ, Seifert expects the new Llano chipsets to boost AMD’s presence in the mainstream sector of the notebook market during the second half of 2011.
While profits are up for the chipmaker, revenue fell by 4.8% from the previous quarter to $1.57 billion. As a result, gross margin increased to 45.7% from the previous 44.6%. The company, however, is projecting revenue to jump by up to 12 percent for Q3 2011.
The Fusion series of APUs was introduced at the beginning of the year during CES 2011 and has shipped over 5 million units ever since. Its latest Llano platform has just begun appearing in recent notebooks such as the HP Pavilion dv6-6110eg.