AMD posts $1.18 billion profit thanks to Intel cash

After managing to squeeze out a profit from its product business in the third quarter, AMD has posted an impressive $1.18 billion net income for the fourth quarter. Impressive, that is, until you realize much of that profit can be attributed to the massive Intel settlement AMD pocketed in November. According to AMD's balance sheet, the Intel cash totaled $1.27 billion.

That said, the fourth quarter numbers do look like a considerable improvement overall:

  Q4 2008 Q3 2009 Q4 2009
Revenue  $1.162 billion $1.396 billion $1.646 billion
Net income  -$1.436 billion -$128 million  $1.178 billion
Gross margin 23% 42% 45%

For 2009 as a whole, AMD quotes revenue of $5.4 billion and net income of $304 million, respectively down and up from 2008's $5.8 billion revenue and $3.13 billion net loss. (Yikes.)

The chipmaker has no surprising expectations for the ongoing quarter: revenue will be "down seasonally," it says. Nevertheless, the way AMD reports its financial results will change, because it will no longer group its "Product Company" results with those of GlobalFoundries. That's another perk from the Intel settlement, and it could make it easier for AMD to post positive results from here on out.

As we told you yesterday, ATIC seeks to take complete ownership of GlobalFoundries. AMD may therefore sell off its stake before too long. (Thanks to TR reader Shawn for the heads up.)

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