AMD shows first quarter results

AMD has published its financial results for the first quarter of 2006. The company posted an income of $259 million for the quarter—a 304.7% increase over its $64 million income for the first quarter of last year. Over the same period, sales also increased 70.5% from $0.78 billion to $1.33 billion, and gross margin rose from 52.7% to 58.5%. Growth was less impressive from the fourth quarter of 2005, with income, sales, and gross margin only going up 1.5%, 3.4%, and 1.2%, respectively. AMD chief financial officer Robert J. Rivet attributes the results thusly:
We expanded our global customer base in the quarter, achieved record AMD Opteron processor sales, increased our average selling price (ASP), and realized year-over-year sales growth of 71 percent. Our manufacturing strategy execution was excellent and our technology transitions remain on track, with 65nm production shipments expected in the second half of 2006.
Despite the growth, AMD says second quarter sales could be "flat to slightly down" compared to the first quarter. The company didn't divulge any predictions beyond those, but with Intel's Conroe and Woodcrest due out in the third quarter, AMD's outlook could be bleak for the remainder of this year.
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