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AMD Posts First Profit in Three Years

by - source: Tom's Hardware US

Get by with a little help from your friends, huh?

The year 2009 was a busy but good one for AMD. The company won a huge victory when the European Antitrust Commission found Intel guilty of anticompetitive practices and fined the company $1.45 billion. Though AMD didn't received a share of the fine, the case laid the foundations for a similar case in the United States. The FTC is still investigating Intel, but late last year, the company settled with AMD, resolving all legal disputes. The settlement saw Intel hand over $1.25 billion in damages and it was that money that helped AMD post its first profit in three years.

AMD yesterday posted a Q4 revenue of  $1.65 billion, an increase of 18 percent compared to the previous quarter and 42 percent compared to the fourth quarter of 2008. Net income attributable to AMD common stockholders was $1.178 billion, or $1.52 per share. AMD reported an operating income of $1.288 billion.

Check out the full release for all the nitty-gritty details.

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chess 01/22/2010 7:04 PM
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money is money, GO AMD!

zipzoomflyhigh 01/22/2010 7:04 PM
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Cool! The start of a new Beginning. Of course the settlement helped this but I think things are looking up. With ATI dominating the video dept and AMD doing very well in the chipset dept's, the aquisition of ATI is starting to pay off.

NapoleonDK 01/22/2010 7:06 PM
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GOGOGO!!! Spend on R&D plz, KTHXBAI!!!

Lol good for them, congratz AMD, keep it up!

Honis 01/22/2010 7:06 PM
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Even without the intel bailout they would have posted (a much smaller) profit. A good sign for AMD!

d-block 01/22/2010 7:09 PM
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I wonder what it will be like in 2010 with ATI performing so well, if it keeps this up.

invlem 01/22/2010 7:12 PM
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So without the intel suit they would have broke even? Not bad they're moving in the right direction.

belardo 01/22/2010 7:12 PM
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uh oh, intel is going DOWN now! AMD is on a roll...


Doesn't intel make this much in a week?

Raidur 01/22/2010 7:13 PM
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Yeah video is a big factor lately for AMD. I have seen countless amounts of nvidia users, who would have chose nvidia, go to ati for price and now dx11 and sheer performance. Nvidia is taking too long.

Congratz AMD. :)

trinix 01/22/2010 7:14 PM
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Who cares what intel makes. It's about 13 months of loss and they finally got out of loss by themselves. The profit is bigger thanks to intel's money, but at the same time they would have made more money if intel hadn't done what they did.

ikefu 01/22/2010 7:18 PM
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Even if you're an Intel fanboy, this has to make you happy.

We all know Intel was sitting fat and lazy until AMD started kicking their asses and woke up the sleeping giant. Competition is good for all and keeps prices down. Gratz AMD!

Now if you only we could get some good competition for the government...

huron 01/22/2010 7:18 PM
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I'm excited about this. It's always good to have competition in the marketplace. It's nice to see them profitable once again - let's hope they can invest in even more R&D and catch up with some of the new things Intel has pushed out recently.

back_by_demand 01/22/2010 7:26 PM
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Several factors at work here.
If Intel had not encroached there marketplace
If nVidia had released a good graphics card
etc etc etc
The only thing to look at now is future performance.
AMD no longer has Intel running anti-competative and ATI has current graphics dominance. So if the next year's profits are also increased it will be the true sign of strength.
Don't expect the competition to take it lying down though.
Intel will simply hit the market place with CPUs that are more powerful and consumers will vote with their feet.
Big ask but if nVidia can pull their finger out and release Fermi and get back to being the alpha dog then again, consumers will vote with their feet.
AMD need to see this as an opportunity to boost themselves higher and higher. Pour every penny into R&D and get a CPU that beats Intel for once and steal nVidia's thunder with the HD6000.

victomofreality 01/22/2010 7:30 PM
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I'm just hoping they invest the money properly and release something that can compete with Intel's core i7s now that they seem to have Nvidia firmly in hand. By the time they release their new gpu to market it may in fact be better then the 58/5900's but will it keep pace with the 6000's that are released 2 or 3 monthes later?

erdinger 01/22/2010 7:32 PM
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I agree competition is great. Intel has made a lot of profit, now AMD also made some profit that means that both have money to spend on research.

I would find it very intresting to see how much profit was made by which section (Ati, CPU's chipsets lawsuits ^^....)and how much money each section consumed.

eyemaster 01/22/2010 7:34 PM
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Silmarunya 01/22/2010 7:41 PM
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Okay, finally some good news from what seemed like a graveyard for the last few years!

Things look cheerful too for the coming year:
-ATI still has a few months market hegemony left.
-Even when Fermi launches, it will probably be very expensive and scarcely available. In the budget segment, where the majority of sales are made, they'll probably retain a healthy lead, same for the mid-end segment.
-AMD is finally out of the black hole called Global Foundries.
-CPU's are looking grim atm, but for early 2011 new architectures are planned that could put them back on stage. AMD also remains a great choice in the budget segment.

tsnorquist 01/22/2010 7:41 PM
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I really wish AMD would get it's core components out for netbooks. I can't wait to see the Dual Core/HD3200 compared to Atom/Ion.

darraghcoy 01/22/2010 7:43 PM
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This is great news. The CPU market needs some tougher competition; otherwise Intel will become complacent yet again. If they can start making profits without lawsuits this year then this can only be a good thing for the consumer.

zak_mckraken 01/22/2010 7:49 PM
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fball922 01/22/2010 7:52 PM
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Silmarunya :
Okay, finally some good news from what seemed like a graveyard for the last few years!Things look cheerful too for the coming year:-ATI still has a few months market hegemony left.-Even when Fermi launches, it will probably be very expensive and scarcely available. In the budget segment, where the majority of sales are made, they'll probably retain a healthy lead, same for the mid-end segment.-AMD is finally out of the black hole called Global Foundries.-CPU's are looking grim atm, but for early 2011 new architectures are planned that could put them back on stage. AMD also remains a great choice in the budget segment.



All great points. I especially agree with what you said about Global Foundries and the licensing changes that have occurred. I don't think people realize what a load off AMD this is as it will allow to spend more on research and development on architecture rather that fabrication. I have always loved AMD, but they need to pick it up in the performance segment a little more for me to become a fanboy :P

fball922 01/22/2010 7:54 PM
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CptTripps 01/22/2010 8:05 PM
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fazers_on_stun 01/22/2010 8:06 PM
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Actually Anandtech has a much clearer analysis of the results, at AMD Q4 2009. If you go by GAAP accounting, AMD lost about 64M in Q4 without the Intel settlement, and 938M for the entire year. However this is a huge improvement over 2008 where they lost 1.4B in Q4 and 3.1B for all of 2008.

retirepresident 01/22/2010 8:13 PM
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retirepresident 01/22/2010 8:15 PM
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I only buy AMD/ATI.

masterasia 01/22/2010 8:19 PM
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Good for them. Now lets see them come out with something that can compete with Intel.

wavebossa 01/22/2010 8:24 PM
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invlem :
So without the intel suit they would have broke even? Not bad they're moving in the right direction.



You misread it. They got no money from intel.

suny3756 01/22/2010 8:43 PM
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Actually they got 1.24 billion from the settlement with intel. Without that money, they lost 64 million.

They did not get any money from the EU fine.

jerreece 01/22/2010 8:48 PM
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Kudos to AMD :)

Gin Fushicho 01/22/2010 9:18 PM
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So.. now that AMD is making profit does this mean we will see awesome CPU's when the hex-cores come out? I'd really like to see them do to Intel like they did when Athlon's first appeared.

anamaniac 01/22/2010 9:23 PM
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Now AMD, can we see some real SoC's?
Intel has paired a power CPU with a weak GPU.
You could do a mediocre CPU with a powerful GPU.
I want one.

You're finally making money again. Hope they put it to good use.


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