Processor giant Intel, which claims it did not lose its 90 percent plus market share hold in the first quarter to AMD, on Tuesday reported earnings of $1.7 billion on sales of $8. 1 billion for the first quarter.
Nevertheless, AMD said demand for its AMD Opteron, AMD Athlon64 and AMD Athlon XP families of microprocessors were strong. Average selling prices on AMD processors increased for the fourth straight quarter enhanced by what AMD called continued penetration of the enterprise market.
AMD said its manufacturing transition to 90nm production for AMD64 processors is on-track with strong yields demonstrating excellent power consumption and heat dissipation characteristics. AMD will be initiating volume 90nm production in the second quarter and expects to deliver products for revenue in the third quarter.
AMD said its gross margin improved by more than 2 percentage points over the fourth quarter to 37.8 percent.
As for the current quarter, AMD said in aggregate it expects seasonal patterns to prevail and sales to be approximately flat. The company expects sales in its memory group to increase modestly, while in its computation products group it expects sales to decline modestly in line with industry seasonal patterns.
Article appears courtesy of CRN.
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