Last Thursday our favourite underdog semiconductor firm AMD released its quarterly financial report for the fourth quarter of 2009 and it clearly shows that the struggling American based company are finally out of the red and seeing a profit for the first time in far too long.
The report, well, reports that Q4 revenue for AMD was up 42 percent over the same time the previous year to $1.646 billion. Of that, $1.288 billion was reported to be their operating income. However, perhaps disturbingly, the report goes on to suggest the vast majority of that cash (a sum to the tune of $1.224 billion) is from a “net favourable impact” largely due to the recent legal settlement with rival giant Intel.
Fiscal 2009 net income attributable to AMD common stockholder was $304 million, a far cry from the $3.129 billion it lost in 2008. But with well over a billion of that coming from Intel, it’s clear that AMD is not out of trouble just yet and still has a long way to go before its shareholders can rest easy at night.
Their next report will no longer list results for its new fabrication venture, Global Foundries, but rather simply put, its rather large investment in the company using the equity method. Recent rumours also suggest that AMD’s partner in the company, ATIC, wants full ownership.
The report also notes that the company moved into 2010 as somewhat of a reformed beast, now totally fabless and with no ongoing legal disputes, at least not with Intel. While they expect Q1 2010 revenue to be seasonally down, they appear upbeat and hopeful of the future, with their products going from strength to strength.
Some decent competition is always a good thing, so we hope the future is as bright as they seem to believe it will be for them.
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