AMD, Intel report fourth quarter financials
AMD and Intel have both reported their fourth quarter financial results. AMD posted record sales of $1.84 billion, and a net income of $96 million. As one might expect, those numbers are less impressive than Intel's $10.2 billion in sales and $2.5 billion in net income for the quarter. However, Intel's revenues and income aren't growing nearly as fast as AMD's. AMD's fourth quarter sales surged 45% over the same period last year and 21% from the third quarter of this year, while the company's net income was up 25% from the third quarter and a whopping 420% from the fourth quarter of 2004. Intel's revenues only grew 2% from the third quarter of the year and 6% from last year, while its net income was up 23% from the previous quarter and 16% from the fourth quarter last year.
Despite taking in over $10 billion, Intel saw lower than expected processor shipments and prices in the fourth quarter of the year. Intel's average selling price for processor products was down, and shipments were low enough that the company expects to lose one point of processor market share to AMD. AMD has been doing particularly well in North American retail, and it recently captured more than 50% of sales. AMD's earning report also states that its average selling price was up in the fourth quarter.