AMD posts Q1 financials, spins off memory group
AMD has reported its first quarter financial results for this year. The company posted an operating loss of $46 million on sales of $1.227 billion. Sales were down 1% from the first quarter of last year, when AMD turned a $45 million profit. AMD's processor division seems to be doing well, though.
“Our microprocessor business delivered record sales in what is typically a seasonally down quarter, driven by increased sales across all product categories,” said Robert J. Rivet, AMD’s chief financial officer. “We continued to gain momentum with year-over-year sales growth of 31 percent, highlighted by AMD Opteron™ and AMD Athlon™ 64 processor sales, each of which more than doubled from a year ago.
Sales from AMD's Computation Products Group were up 31% from the same period of last year, and the group posted a record $92 million profit. AMD's Memory Group, on the other hand, saw a 29% decline in sales from the first quarter of last year. The memory group also posted a $110 million operating loss. Given those results, it's no surprise that AMD has moved to consolidate
its processor businesses under a single organization.
The formation of the Microprocessor Solutions Sector is accompanied by two key changes to AMD’s executive management team. Dirk Meyer, previously executive vice president of the Computation Products Group (CPG), has been promoted to president and COO of MSS – a role that gives him profit and loss responsibility for all of AMD’s microprocessor business. In addition, Henri Richard has been promoted to the position of chief sales and marketing officer of AMD.
AMD is spinning off its Flash memory division for obvious reasons, but as C|Net notes, that could be a tough sell
given the memory market's price sensitivity and AMD's falling market share.