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AMD Swings to Profit, Cites Mobile Growth

AMD conference call comments and updated share price have been added to this story.

SUNNYVALE, Calif. ( TheStreet) -- AMD (AMD - Get Report) swung to a profit in its third-quarter results, released after market close on Thursday, citing strong demand for its mobile processors.

The no. 2 chip maker earned $97 million, or 13 cents a share, in the latest quarter, up from a year-ago equivalent loss of $118 million, or 17 cents a share.

On a non-GAAP basis, AMD earned $110 million, or 15 cents a share, in the September-ended quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 10 cents a share.
AMD reports its third-quarter results after market close.

AMD, which recently lowered its sales forecast following manufacturing issues, brought in revenue of $1.69 billion, up from $1.62 billion in the prior year's quarter. Wall Street was looking for revenue of $1.65 billion.

The processor maker, which faces stiff competition from market leader Intel (INTC - Get Report), also noted a 60% sequential increase in shipments of mobile Accelerated Processor Units (APUs), which helped drive record mobile microprocessor revenue.

"Strong adoption of AMD APUs drove a 35 percent sequential revenue increase in our mobile business," explained Rory Read, AMD's CEO, in a statement. "Despite supply constraints, we saw double digit revenue and unit shipment growth in emerging markets like China and India as well as overall notebook share gains in retail at mainstream price points."

Investors responded positively to AMD's results, pushing the company's shares up 28 cents, or 5.05%, to $5.82 in extended trading.

Read returned repeatedly to the issue of execution during the company's conference call after market close. "We will continue an aggressive effort with our foundry partner to improve manufacturing performance," he said. "But we're not out of the woods yet."

"Moving forward, we think that we have found a better way to balance our risk profile in terms of our foundry partners," added Thomas Seifert, the AMD CFO, in response to an analyst's question.

-- Written by James Rogers in New York.

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