Advanced Micro Devices Inc. shrank its second-quarter loss on reviving sales of computers that use its chips and a wrenching effort to shed costs that’s lasted years.
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The results were better than analysts had expected, and AMD’s stock rose 4.7 percent, or 35 cents, to $7.76 in extended trading.
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AMD would have made money were it not for a loss related to its investment in factories it used to own but were spun off into a separate company a year ago.
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The numbers come two days after AMD’s main rival, Intel Corp., reported the highest revenue and profit margins in the company’s 42-year history. AMD’s chips are inside 20 percent of the world’s personal computers and servers. Intel supplies nearly all the rest.
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Intel cited bigger corporate spending on PCs and servers that use expensive chips — an encouraging sign for the semiconductor industry that shows technology budgets are being reinflated. But many analysts are worried that economic turbulence in Europe could upset the computer industry’s resurgence over the past year.
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AMD’s CEO, Dirk Meyer, said customers in Europe and China have been reluctant to build their stocks of chips because of fears that demand might wane. But AMD hasn’t seen any signs of a slowdown that would cause it to change its financial forecast, Meyer said.
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AMD’s net loss was $43 million, or 6 cents per share, in the quarter ended June 26. Excluding items, AMD would have earned 11 cents per share. On that basis, analysts expected profit of 6 cents per share.
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Revenue was $1.65 billion, an increase of 40 percent over last year. Analysts expected $1.55 billion.
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A closely watched measure of profitability, AMD’s gross margin, rose to 45 percent of revenue. Last year it was 37 percent.
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The company expects third-quarter revenue to rise in line with seasonal trends. Analysts expect $1.66 billion.
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AMD, which…