Intel is by far the largest chipmaker in the world with AMD trailing in a distant second place. AMD announced its Q3 financials this week and again posted a significant loss for Q3 2009. However, despite the loss, executives believe that AMD is poised for a turnaround.
AMD’s Q3 ended on September 26 and analysts expected the company to post a loss of about 42 cents per share with revenue of $1.26 billion. AMD surprised analysts by posting a smaller loss than expected. AMD posted a loss of $128 million or 18 cents per share on $1.39 million in revenue.
AMD CEO Dirk Meyer also said during a conference call to present the Q3 results that he expects consumers to start buying PCs again in Q4 and that businesses are expected to start refreshing their machines as well. Meyer said, “We are seeing continued recovery in both Europe and North America. It also appears that the commercial IT market is positioned to improve next year.”
Meyer also said that AMD is continuing to cut costs and shift its manufacturing process to 45nm parts, which can be built for much lower cost.
AMD is expecting a strong Q4 with Windows 7 debuting and several new laptop platforms aimed at consumers. The new AMD platforms include Tigris for the mainstream notebook market and Congo for the thin and light market. AMD also expects good things from its new ATI HD 5000 series video cards that offer support for DirectX 11 at low entry prices.
AMD is also expecting a larger corporate refresh for computers and servers in early 2010, so it is positive overall on the outlook for the company. The chipmaker expects its new six-core Opteron parts to be popular in the server market.
Meyer said, “We are well-positioned relative to the extent that [the] commercial IT sector regains strength.”
AMD rival Intel posted Q3 numbers earlier this week to the tune of $1.9 billion in profit on $9.39 billion in revenue.
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