AMD expects to turn a profit later this year

— 11:28 AM on May 20, 2009

The recession certainly didn't help AMD's plan to become profitable again last year—the chipmaker kept posting losses. However, AMD CEO Dirk Meyer said earlier this week that, if the PC market improves from the first half of this year to the second, his company would finally end up with positive net income.

"On the assumption we return to at least nominal seasonality from a growth perspective, we'll be in good shape to leave this year with a profit and free cash flow," Meyer said. "I'm hopeful things will stabilize and we'll see a resumption of growth in the back half of the year."

There's a catch: that prediction applies to AMD's "core business" only. While AMD only has a 34% stake in GlobalFoundries, it consolidates its results with those of the foundry firm for financial reporting. An AMD spokesperson told Reuters the consolidated report "will not show a profit."

Incidentally, Meyer noted that AMD is "done with restructuring and layoffs," and has cut costs enough to be able to break even with quarterly revenue of $1.3 billion. According to its latest earnings report, AMD alone (the product company) saw revenue of $1.177 billion in the first quarter.

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