Intel's poor performance in the last three months of 2005 turned out to be good news for rival chipmaker Advanced Micro Devices Inc., (AMD) which on Wednesday reported better-than-expected financial results for the period. With sales of AMD's microprocessor division increasing nearly 80 percent from the previous year, the company reported revenue of US$1.84 billion.
AMD's fourth quarter 2005 revenue was up 45 percent year-over-year, and the company went from losing $30 million during Q4 2004 to reporting a profit of US$96 million, or US$0.24 per share, during this most recent quarter. Excluding US$110 million in costs related to the initial public offering of AMD's Spansion flash memory division, the company's profit was US$205 million or US$0.45 per share.
The revenue numbers were well ahead of Wall Street expectations. Analysts had expected revenue for the quarter to total US$1.67 billion, according to a survey of 29 analysts by Thomson.
Investors had been expecting good things from AMD. While Intel's (INTC) stock was down more than 11 percent Wednesday, closing at US$22.60, AMD (AMD) shares rose by nearly 4 percent on the day, closing at US$34.15, and continued to rise in after-hours trading following the announcement of AMD's results.