Advanced Micro Devices reported fourth-quarter financial results Wednesday that were in line with its lowered forecast, although its earnings fell short of analysts' expectations. The chip maker also said it expects its first-quarter 2001 results to be dampened by "normal seasonal weakness" and weak PC demand.
AMD reported revenue of $US1.1 billion and earnings per share of 53 cents for the quarter ending December 31, 2000, according to a statement. Net income for the period was $177.9 million, the US-based chip company said. Analysts had expected AMD to report earnings per share of 55 cents and revenue of $1.2 billion, according to First Call/Thomson Financial.
The deterioration of the PC market late in the year impacted sales of PC processors in the fourth quarter, but AMD outperformed the semiconductor industry with "extraordinary growth", William "Jerry" Sanders, chairman and chief executive officer of AMD, said in the statement. AMD achieved record unit shipments of nearly seven million processors during the quarter, he said.
In early December, AMD reduced its forecast for the fourth quarter, citing weak year-end demand. The company predicted that earnings would be between 50 and 60 cents a share, far below the 68 cents analysts had been hoping for before the warning.
Unit and dollar sales of AMD Athlon and Duron processors increased despite weak PC demand in the US during the quarter, Sanders said at a teleconference with press and analysts. Unit sales of Duron processors, however, were hurt by AMD's inability to acquire certain chipsets, he said. Flash memory sales remained strong and more than doubled during 2000.
Looking ahead, AMD expects sales in its first fiscal quarter of 2001 to increase year-on-year, but to be no better than flat sequentially from the fourth quarter of 2000, the company said.
Growth for 2001 as a whole could be in the range of 15 per cent, AMD said.