AMD posts $97 million third-quarter net income

Last month's revenue warning was a tad too grim, as it turns out. AMD's third-quarter financial results announcement touts a 7% sequential increase in revenue, slightly above the revised 4-6% range and just shy of the originally predicted 8-12%. The chipmaker saw profits grow quite considerably, as well:

  Q3 2010 Q2 2011 Q3 2011
Revenue $1.62 billion $1.57 billion $1.69 billion
Net income -$118 million $61 million $97 million
Gross margin 46% 46% 45%

AMD said in September that it would miss guidance because of 32-nm manufacturing issues at GlobalFoundries. Now, in spite of those hiccups, AMD says it has enjoyed "double digit revenue and unit shipment growth in emerging markets like China and India as well as overall notebook share gains in retail at mainstream price points." The company's mobile business saw a 35% increase in revenue compared to the previous quarter, as well, which CEO Rory Read attributes to the popularity of Fusion accelerated processing units.

Here's the low-down on AMD's Computing Solutions and Graphics segments. It sounds like discrete GPU and mobile sales were on the rise, but desktop sales weren't so hot:

Computing Solutions segment revenue increased 6 percent sequentially and 5 percent year-over-year. Sequentially, higher mobile and server microprocessor revenues were partially offset by lower desktop revenue. The year-over-year increase was primarily driven by higher mobile processor and chipset revenue. . . . Graphics segment revenue increased 10 percent sequentially and 4 percent year-over-year. The sequential increase was driven primarily by seasonality in the add-in-board market. The year-over-year increase was primarily driven by increased discrete mobile graphics revenue.

AMD says it expects its revenue to grow a modest 1-5% in the fourth quarter.

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