AMD Earnings in Line, Sales Above

Updated from 8:33 a.m. EDT

Advanced Micro Devices ( AMD) swung to a profit and met Wall Street's earnings estimates while delivering slight revenue upside in the June quarter, the chipmaker reported after the bell Wednesday.

On the conference call, Chief Executive Officer Hector Ruiz said he thinks the second half of the year will be "good, an improvement over the first half for AMD. We are excited, optimistic," he said, adding that he believes AMD gained share in server and mobile chips on a unit basis in the most recent quarter.

Echoing commentary from Intel ( INTC), which yesterday disputed that demand has declined lately, Chief Financial Officer Robert Rivet said he had not seen any drop-off in recent purchases of flash or processor chips. "As a matter of fact processor demand was modestly better in the second half of June than the first half," he said.

Thursday, the shares were recently down 89 cents, or 6.5%, to $12.85.

June quarter sales jumped 96% from last year's levels to $1.26 billion, outpacing the consensus estimate for $1.24 billion.

Net income totaled $32 million, or 9 cents a share, in line with expectations, compared to a loss of $140 million a year ago.

Memory chip sales made up the bulk of revenue with $673 million in sales, up 220% from last year's levels. The memory line generated operating income of $45 million.

Sales of processors totaled $554 million, up 36% year over year, contributing operating income of $58 million. That was a decrease from $67 million in the first quarter of 2004.

AMD issued a vague outlook on its September quarter. "Economic and industry conditions remain uncertain and continue to make it difficult to forecast product demand," the company said in a press release. "In the third quarter of 2004, AMD expects sales to increase in each of its two major businesses and total sales to increase moderately."

That compares to a consensus estimate for EPS of 15 cents on $1.33 billion in revenue for the quarter ending in September.

More from Technology

ACLU Asks Amazon to Halt Sale of Facial Recognition Software

ACLU Asks Amazon to Halt Sale of Facial Recognition Software

10 Big Tech Companies Are Spending $100 Billion in 2018 to Dominate Even More

10 Big Tech Companies Are Spending $100 Billion in 2018 to Dominate Even More

Listen: Smart Technologies That Could Lure Millennials Back to Motorcycle Riding

Listen: Smart Technologies That Could Lure Millennials Back to Motorcycle Riding

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why