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AMD profits double due to high Fusion shipment numbers

Q1 2011 results soar past expectations, while overall revenue numbers are expected to remain largely the same for Q2 2011.

AMD may have found its answer in the low-power processor market if its latest Q1 2011 figures are of any indication.

According to WSJ, the chipmaker’s first quarter profits nearly doubled to $510 million up from $257 million a year earlier, largely due to the higher than expected demand for the new Fusion APUs. Chief financial officer Thomas Seifert said shipments of the Fusion platform “greatly exceeded” expectations from AMD, and is looking to reproduce the same level of demand with its latest Llano chipsets. For the company’s next quarter, Seifert is expecting to see total revenue to remain the same at around $1.61 billion, with only a 0% to 5% decline.

The large profit numbers can also be attributed to AMD’s decision sell off its manufacturing operations to a separate company, thus earning $492 million in noncash gain. WSJ claims the move was responsible for pushing AMD to better compete with Intel and Nvidia in the CPU and GPU market.

First introduced at CES 2011, the Fusion platform is the result of the AMD and ATI merger and combines a traditional CPU with elements from a discrete GPU. The end product is the integration of a GPU into a general purpose CPU for decreased die sizes and lower power consumption, an application just right for entry-level notebooks and netbooks.


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Allen Ngo, 2011-04-24 (Update: 2012-05-26)