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AMD shows profit growth

AMD said its profit nearly doubled in the first quarter of the year - to more than $510 million for the period ending April 2, up from $257 million a year earlier.

Revenue was up to $1.61 billion from $1.57 billion last year. Earnings were 68 cents a share, compared with 35 cents a share a year earlier. Profit was pegged at 8 cents a share. Analysts had predicted closer to 5 cents a share.

AMD made a one-time gain of $492 million thanks to a change in the value of its stake in manufacturing spin-off Globalfoundries. Without the one-time gains, AMD’s profit was actually down 11 per cent although revenue grew by 2.5 per cent.

"First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs)," said Thomas Seifert, CFO and interim CEO. "APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our 'Llano' APU."

Intel this week saw its first-quarter profit rise 34 per cent on increased revenue of 25 per cent.