SAN FRANCISCO --
Advanced Micro Devices
reported a narrower-than-expected net loss in the third quarter, as the company's shipments jumped quarter over quarter.
And the Sunnyvale, Calif., chipmaker said it returned to profitability on an operating basis, achieving a long-running goal, thanks to a $191 million technology licensing deal.
In the three months ended Sept. 27, AMD posted revenue of $1.77 billion, including $191 million in revenue from a process technology license.
The average analyst expectation called for sales of $1.48 billion.
The company said unit shipments of its quad-core Barcelona processors increased 46% sequentially, while revenue from sales of its graphics processors jumped 55% sequentially.
AMD had a net loss of $67 million, or 11 cents a share, vs. a net loss of $396 million, or 71 cents a share at this time last year.
Analysts expected AMD to lose 40 cents a share.
AMD said its operating income was $131 million in the third quarter, or 7 cents a share, including a boost of 31 cents courtesy of the licensing deal.
"We are pleased to have reached our ogal of operating profitability this quarter while increasing gross margin to 51%," said CFO Robert Rivet in a statement.
AMD said sales in the current quarter will be the roughly flat compared to the $1.585 billion in third-quarter sales the company said it generated excluding the licensing revenue.
While analysts were looking for $1.59 billion in fourth-quarter sales, the estimates called for a 7% sequential increase based on lower expectations in third-quarter revenue.
AMD shares were up 35 cents, or 8.5%, to $4.45 in after-hours trading.