Following more numerous price-cuts on its microprocessor production Advanced Micro Devices now has a reason to celebrate, at it managed to end up the expansion of Intel Corp.’s market share in the second quarter, according to the company itself and some other indicators. Nevertheless, the firm still lost hundreds of millions during the quarter.
“In a seasonally down second quarter, we grew our revenues and regained CPU market share and, while pleased with our progress on the top line, our bottom line results are obviously unacceptable. We will improve these results going forward,” said Dirk Meyer, president and chief operating officer at AMD, in a teleconference with analysts.
During the second quarter of its fiscal year 2007 computing solutions segment revenue was $1.098 billion, compared with $918 million in the first quarter of 2007, which represents a 20% sequential increase. The reason improvements among computing products revenue is a 38% increased unit shipments of microprocessors, which effect was offset partially by lower average selling prices (ASPs) for desktop microprocessors. Second quarter server, mobile, and desktop microprocessor revenue increased sequentially. Mobile processor unit shipments increased 21% sequentially and 82% year-over-year.
“We believe we won back market share on both a unit and dollar basis. Overall microprocessor ASPs were down, driven by a decline in desktop ASPs offset somewhat by increased ASPs in mobile and server. We achieved sequential double-digit revenue increases from our server, mobile and desktop product lines. Chipset revenue declined 13% in the quarter, driven by a decline in our Intel business offset somewhat by increased AMD chipset revenue,” said Robet J. Rivet, AMD’s chief financial officer.
According to preliminary estimates by analyst firm iSuppli, AMD in the second quarter of 2007 accounted for 11.4%of worldwide microprocessor sales, up half a percentage point from 10.9% in the first quarter. This rise brought to an end a period of decline for AMD that saw its market share dwindle by nearly six points from 16.8% in the third quarter of 2006 to 10.9% in the first quarter of 2007.
Meanwhile, Intel experienced a corresponding half-point decline in the second quarter, with its share decreasing to 80.3%, down from 80.8% in the previous quarter.
On the other hand, Q2’s graphics segment revenue was $195 million, flat from the first quarter of 2007, whereas consumer electronics business was down to $85 million. By comparison, desktop and mobile graphics processors accounted for $326.14 million in Q3 FY2006 of ATI Technologies (which ended on May 31, 2006), whereas consumer electronics business reached $135 million at that time.
AMD reported second quarter 2007 revenue of $1.378 billion, an operating loss of $457 million, and a net loss of $600 million.