Finally. After seven quarters of crushing financial losses, AMD has posted its first operational profit since Q3 2006. For the third quarter of this year, AMD says it saw revenue of $1.776 billion, operational income of $131 million, and a net loss of $67 million.
Indeed, AMD still recorded a net loss for the third quarter. However, AMD CFO Bob Rivet says, "We are pleased to have reached our goal of operational profitability this quarter." Rivet praises a 55% sequential growth in graphics revenue and a 46% growth in quad-core processor shipments. All in all, AMD saw its revenue rise 32% from to the previous quarter and 14% from to the third quarter of 2007. The company's gross margin also jumped to 51%, although six points of that correspond to "process technology license revenue."
Looking forward, AMD expects revenue to be "roughly flat" sequentially for this quarter, but it doesn't say whether its bottom line will also rise above the red.
In case you missed the big news last week, AMD announced a plan to spin off its manufacturing division early next year. Abu Dhabi-based investment firm ATIC will get a 55.6% stake in the spun-off fab business, while AMD will get the other 44.4% and a $700-million payment.