Advanced Micro Devices Inc's second-quarter profit fell 65 percent Wednesday but beat Wall Street expectations as the chip maker reported record microprocessor sales despite what it claims are the unfair business practices of rival Intel Corp.
AMD said processor sales grew 38 percent over the same period last year, while revenue at its troubled division that makes flash memory for cellular phones and other devices slumped 31 percent. AMD plans to spin off the flash memory business in an upcoming public offering.
"Once again we continued to gain momentum with microprocessor sales growth," said Robert Rivet, AMD's chief financial officer. "The solid overall demand was enhanced by our newer processor offerings."
AMD also maintains its success is being hampered by unfair business practices by Intel, the world's largest chip maker. In an antitrust lawsuit filed last month, AMD claimed Intel uses incentives and threats to bully PC makers into not buying AMD chips.
For the period ending June 26, AMD earned US$11.32 million or US$0.03 per share, on sales of US$1.26 billion. That's down from a profit of US$32.2 million, or US$0.09 a share, on revenue of US$1.262 billion in the same period last year.
Analysts were expecting the maker of Athlon and Opteron processors to lose US$0.05 per share on sales of US$1.22 billion.