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Q3 is Strong for AMD

By Robert | October 26, 2007

AMD showed a very good increase in sales in the third quarter but it is still not enough to put the company in positive earnings. We are faced with revenue increases of 18% when compared with Q2 and a 29 percent increase in revenues when analyzing strictly the graphics segment. It is truly a strong quarter for AMD but it is still not satisfying when thinking about potential.AMD is down by 396 million dollars because of many reasons. The most important one is the purchase of ATI, which cost the company 120 million dollars. We can also add the price cuts we saw this year and the quad-core line (also known as Barcelona), which did not bring in as much profit as previously expected. On the other hand, we see AMD countering this with ramping Barcelona and adding Phenom to the list, a desktop triple- and quad- core version.

In related news, we got to hear that Phenom and the RD670 GPU will be launched the following month as a part of what is now known as the Spider platform. In the middle of the next quarter we also eagerly expect Barcelona to be more available and we might also see a clock speed boost coming its way. AMD will also launch the 45nm ramp in the first 6 months of the next year although no specific details were given.

Much of the profit growth showed in this quarter came from the mobile segment of AMD. On the other hand we also saw decreases in the server market so maybe this needs to be analyzed a little as well. AMD is still at “war” with Intel but Q3 did show us that the company might be coming back fast. We also need to see what will happen directly linked with the ATI purchase.

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