For the first time since the second quarter of 2001, Advanced Micro Devices (AMD) is in the black as strong revenue growth brought the company back to profitability in the fourth quarter.
For the period ended December 28, 2003, AMD reported net income of $US43 million on revenue of $US1.2 billion. This compared with a net loss of $US855 million on revenue of $US686 million in the fourth quarter of 2002.
The fourth quarter results included a $US14 million benefit related to restructuring charges and accounting for the introduction of the company's FASL LLC flash memory joint venture with Fujitsu, AMD said.
AMD's Computation Products Group led the company's improvement over last year's fourth-quarter results, recording revenue of $US581 million, up 38 per cent from the fourth quarter of 2002. This group manufactures and sells the company's microprocessors, including the Opteron and Athlon 64 processors introduced in 2003.
Sales of both 64-bit processors were strong, AMD said.
Demand for the company's Athlon XP processors also increased in the fourth quarter as compared to last year, AMD said.
Flash memory sales increased 161 per cent from the fourth quarter of 2002 to $US566 million for this year's fourth quarter.
AMD said it gained market share in flash memory during the quarter.
For the full year, AMD posted revenue of $US3.5 billion and a net loss of $US274 million. This compared favourably to revenue of $US2.7 billion and a net loss of $US1.3 billion in 2002.
AMD provided a cautionary outlook for the first quarter. It declined to provide numeric targets and said sales of its products would likely drop in the first quarter due to seasonal patterns.
The fourth quarter is generally a strong quarter for semiconductor and PC companies due to the holiday season.