Intel settlement pushes AMD into 4Q profitability
updated 06:45 pm EST, Thu January 21, 2010
Gain follows consistent losses for several years
AMD has finally posted a profit after several years of consistent losses, with revenues of $1.65 billion in the fourth quarter of 2009 and a net income of $1.18 billion. The company would have reported yet another loss if it had not landed a $1.25 billion settlement payment from an antitrust dispute with the chip maker's rival Intel.
The company was able to achieve a 14 percent gain in microprocessor revenues compared to the third quarter of 2009, while revenue from graphics component was up by 40 percent.
“We enter 2010 having completed the transition to a fabless business model, reached a historic antitrust settlement, and made significant progress strengthening our balance sheet," said AMD CEO Dirk Meyer.
Intel also reported impressive gains for the last quarter in 2009, with revenues up by 28 percent to reach $10.6 billion. Even with the AMD payout, Intel still reported a net profit of $2.3 billion.
