Advanced Micro Devices Inc. narrowed its third-quarter loss slightly, as the chip maker’s remaining stake in factories it spun off last year dragged down the results.
Ignoring the baggage from the spin-off, AMD said Thursday it would have earned more than Wall Street expected, a sign the company is getting better at squeezing profit out of the remaining business.
AMD shares rose 33 cents, or 4.6 percent, to $7.47 in extended trading, after the release of the results.
AMD makes microprocessors, the “brains” of computers, and graphics processors. Its numbers supply fresh evidence that corporate spending is propping up the computer industry as consumer demand sags.
Consumers buoyed the industry during the recession, but backed off a bit this summer because of mounting economic anxieties and the emergence of the iPad. Meanwhile, corporate orders have emerged from a deep freeze, but there are fears they could slow down again as businesses finish a cycle of replacing old machines.
AMD said it lost $118 million, or 17 cents per share, compared to $128 million, or 18 cents per share, a year ago.
Excluding one-time items and the factory business, the company earned 15 cents per share. Analysts on average expected earnings of 6 cents per share, roughly on the same basis as the company, according to a survey by Thomson Reuters.
Revenue rose 16 percent to $1.62 billion, slightly higher than the $1.61 billion analysts expected.
However, AMD said fourth-quarter revenue would be about the same as the third quarter, while analysts had been expecting a higher figure — $1.67 billion.
AMD’s numbers support trends laid out by its main rival, Intel Corp.
Both companies warned Wall Street that they were dinged weak back-to-school computer buying, cutting their third-quarter guidance when it became clear that consumers weren’t buying as many new PCs as expected, and PC makers curbed orders for new…