By Ian Sherr
SAN FRANCISCO, Jan 21 (Reuters) - Advanced Micro Devices Inc reported better-than-expected revenue on strong holiday spending and a net profit boosted by a large legal settlement payment from rival Intel Corp.
AMD also said sales will be down in 2010's typically weaker first quarter. Its shares slid more than 3 percent, erasing gains racked up during the regular session.
Stellar earnings from bellwether Intel last week reinforced expectations of a rebound in chip demand.
Shares of AMD -- which had posted 12 consecutive quarters of losses until the fourth quarter -- slid 3.2 percent as investors cashed in profits after a more than 75 percent run-up over the past three months.
Revenue rose to $1.65 billion, versus the Wall Street expectation of nearly $1.5 billion, according to Thomson Reuters I/B/E/S.
AMD said on Thursday net income rose to $1.2 billion, or $1.52 a share, in its fourth quarter ended Dec. 26, reversing a loss of $418 million in the year-ago period.
But the company's net income was boosted mainly by a payment of $1.2 billion from Intel
AMD said that from the next quarter's earnings announcement, the company will no longer consolidate financial results of its former chip manufacturing arm, now called GlobalFoundries.
Wedbush Morgan analyst Patrick Wang said that effectively removes debt that had hung over the company's balance sheet.
But that expected move had been priced into the stock and was not enough to keep investors from cashing out, analysts said.
'Due to investor sentiment and how semis are being traded throughout this earnings season, good news isn't rewarded,' he said.
Shares of the Sunnyvale, California-based company fell to $8.70 in extended trading after rising 1.4 percent to an $8.99 close in regular trading on the New York Stock Exchange.
(Reporting by Ian Sherr; Editing by Tim Dobbyn and Matthew Lewis)
((ian.sherr@thomsonreuters.com; + 1 415.677.2542; Reuters Messaging: ian.sherr.thomsonreuters.com@reuters.net)) Keywords: AMD/ (See http://blogs.reuters.com/mediafile/ for Media and Technology -- Reuters' media and technology blog.) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
SAN FRANCISCO, Jan 21 (Reuters) - Advanced Micro Devices Inc reported better-than-expected revenue on strong holiday spending and a net profit boosted by a large legal settlement payment from rival Intel Corp.
AMD also said sales will be down in 2010's typically weaker first quarter. Its shares slid more than 3 percent, erasing gains racked up during the regular session.
Stellar earnings from bellwether Intel last week reinforced expectations of a rebound in chip demand.
Shares of AMD -- which had posted 12 consecutive quarters of losses until the fourth quarter -- slid 3.2 percent as investors cashed in profits after a more than 75 percent run-up over the past three months.
Revenue rose to $1.65 billion, versus the Wall Street expectation of nearly $1.5 billion, according to Thomson Reuters I/B/E/S.
AMD said on Thursday net income rose to $1.2 billion, or $1.52 a share, in its fourth quarter ended Dec. 26, reversing a loss of $418 million in the year-ago period.
But the company's net income was boosted mainly by a payment of $1.2 billion from Intel
AMD said that from the next quarter's earnings announcement, the company will no longer consolidate financial results of its former chip manufacturing arm, now called GlobalFoundries.
Wedbush Morgan analyst Patrick Wang said that effectively removes debt that had hung over the company's balance sheet.
But that expected move had been priced into the stock and was not enough to keep investors from cashing out, analysts said.
'Due to investor sentiment and how semis are being traded throughout this earnings season, good news isn't rewarded,' he said.
Shares of the Sunnyvale, California-based company fell to $8.70 in extended trading after rising 1.4 percent to an $8.99 close in regular trading on the New York Stock Exchange.
(Reporting by Ian Sherr; Editing by Tim Dobbyn and Matthew Lewis)
((ian.sherr@thomsonreuters.com; + 1 415.677.2542; Reuters Messaging: ian.sherr.thomsonreuters.com@reuters.net)) Keywords: AMD/ (See http://blogs.reuters.com/mediafile/ for Media and Technology -- Reuters' media and technology blog.) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.