The No. 2 chip maker is encouraged by strong demand for accelerated processing units; its board is still interviewing CEO candidates.
Chip maker Advanced Micro
Devices barely edged past Wall Street projections in its first-quarter earnings
report, released April 21, and declared that demand appears strong for its
accelerated processing units.
Sunnyvale, Calif.-based AMD
also said it expects second-quarter revenue to be "flat to slightly down
The company reported
earnings of $510 million (68 cents per share) on revenue of $1.61 billion,
which was up 2 percent from Q1 2010. Non-GAAP (not based on generally accepted
accounting principles) earnings were 8 cents a share-3 cents over Wall Street
AMD's stock was down a few
cents per share in after-hours trading at $8.68.
operating results were highlighted by strong demand for our first generation of
AMD Fusion Accelerated Processing Units," Thomas Seifert, CFO and interim
CEO, said during AMD's earnings conference call. "APU unit shipments greatly
exceeded our expectations, and we are building on that momentum now that we are
shipping our -Llano' APU."
Seifert said the board of
directors, which is interviewing CEO candidates, is "pleased with the
progress we are making and with the candidates we have."
Seifert said that as far as
a time frame to get a new chief executive is concerned, "we are more
concerned about making the right choice than about any timeline."
After two years in the job, Dirk
Meyer, resigned from the post last January following a disagreement with AMD's
board of directors over the direction of the company regarding products for
mobile devices. Seifert has been running the company ever since.
Brian G. Alexander, managing
director of Equity Research at Raymond James & Associates, said in an
advisory that "without strategic direction, it's difficult to overcome an
increasingly likely 2011 in which the company is set to lose both CPU and GPU
market share. There is no formalized tablet/smartphone strategy at AMD."
AMD is a distant No. 2 in
the worldwide processor market, which Intel dominates. According to analyst
accounts, AMD has about 19 percent of the market while Intel owns more than 80