Looks like AMD doesn't need juicy Intel settlement money to turn a profit, at least now that it no longer consolidates its financial results with GlobalFoundries'. AMD has posted net income of $257 million on "record" $1.57 billion revenue for 2010's first quarter.
|Q1 2009||Q4 2009||Q1 2010|
|Revenue||$1.18 billion||$1.65 billion||$1.57 billion|
|Net income||-$416 million||$1.18 billion||$257 million|
Those results mark a notable improvement over AMD's $416 million net loss for the first quarter of 2009. The chipmaker continued to string up losses until the fourth quarter of last year, when approximately $1.27 billion dollars of Intel settlement money finally tipped the scales. Because of the terms of that settlement, AMD now gets to stop reporting GlobalFoundries results as its own—and sure enough, Q1 2010 marks the first quarter of GlobalFoundries-free financial reporting.
AMD's processor and graphics businesses both saw revenue growth compared to Q1 2009: the company quotes a 23% increase for the Computing Solutions unit and 88% for the graphics unit. Those same businesses did see sequential revenue drops of 5% and 3%, respectively, compared to Q4 '09. (Processor shipments fell sequentially, and AMD raked in less cash on royalties from console sales, although it says higher average CPU prices and a GPU revenue increase largely offset the declines.)
Looking at the ongoing quarter, AMD says it expects revenue will be "down seasonally." That's a tad bleaker than Intel's outlook, which leaves room for both revenue and gross margin increases.