The Business of Tech: AMD & Intel Q3’08
@ 2008/10/20Getting down to the numbers, as predicted for some time by AMD this quarter has been another loss. But it’s a loss that was anything but expected. For the quarter AMD lost a paltry $67 million on revenues of $1.78 billion, completely blowing away their own predictions and what analysts were expecting, losing nearly $100 million less than expected. Compared to their loss last quarter of $1.19 billion and their Q3 loss last year of $400 million, AMD may have as well broken even for the quarter. In fact if you switch to the numbers from their non-Generally Accepted Accounting Principles accounting, then they did indeed make a profit of $80mil for the quarter. The quarter also marks the end of AMD’s operating losses, they posted an operating income of $131 million this quarter.
It seems that as long as AMD doesn’t do too well, Intel can do quite well. Intel posted another big quarter, with $2 billion in profits on $10.2 billion in revenue, for a 12% rise in profit and 1% rise in revenue respectively. Interestingly however, the company missed analyst estimates on revenue, where they were expected to bring in $10.25 billion. Intel has been especially proud of their gross margin for the quarter, which was an unexpectedly high 59% (for the sake of comparison, AMD Is 51%). All things considered, the market seems happy as long as Intel’s gross margins stay this high, even if they miss estimates elsewhere.
It seems that as long as AMD doesn’t do too well, Intel can do quite well. Intel posted another big quarter, with $2 billion in profits on $10.2 billion in revenue, for a 12% rise in profit and 1% rise in revenue respectively. Interestingly however, the company missed analyst estimates on revenue, where they were expected to bring in $10.25 billion. Intel has been especially proud of their gross margin for the quarter, which was an unexpectedly high 59% (for the sake of comparison, AMD Is 51%). All things considered, the market seems happy as long as Intel’s gross margins stay this high, even if they miss estimates elsewhere.