SAN FRANCISCO—Advanced Micro Devices Inc. (AMD) reported fiscal fourth quarter sales in line with analysts' expectations Thursday (Jan. 20), a little more than a week after the company's CEO abruptly resigned.
AMD (Sunnyvale, Calif.) reported sales of $1.65 billion, up 2 percent sequentially and flat compared with the year-ago quarter. The company posted a net income of $375 million, or 50 cents per share, compared with a net loss of $118 million in the previous quarter and a net income of $1.18 billion in the year-ago quarter. AMD's fourth quarter 2009 net income was boosted by a $1.25 billion settlement payment from Intel Corp.
On a pro forma basis, excluding charges, AMD reported a net income of $106 million, or 14 cents per share. The pro forma net income excluded a net of tax gain of $236 million, and a pre-tax gain of $283 million, respectively, that the company recognized related to a patent license and legal settlement, AMD said.
AMD's fourth quarter sales were in line with consensus analysts' expectations, according to Yahoo Finance. The company's pro forma net income of 14 cents per share beat analysts' expectations, which called for a pro forma net income of 11 cents per share.
For the full fiscal year, also concluded on Dec. 25, 2010, AMD reported revenue of $6.49 billion, up 22 percent from fiscal 2009. The company posted a net income of $471 million, or 64 cents per share, for the year, up 55 percent from fiscal 2009.
Thomas Seifert, AMD's chief financial officer and interim CEO, said the company enters 2011 with momentum amplified by the release of its first Fusion applications processing units, released in early January.
"I am confident we can drive profitable growth based on the strength of new products we will bring to market," Seifert said.
For the current quarter, AMD said it expects revenue to be flat to down slightly compared with the fourth quarter of fiscal 2010. AMD's guidance for the current quarter was consistent with consensus analysts' expectations.
Last week, AMD reported that CEO Dirk Meyer resigned suddenly by "mutual agreement" with the board of directors.
Despite mixed fourth quarter results and first quarter guidance, Craig Berger, an analyst with FBR Capital Markets, said shares of AMD were likely to remain held back by former CEO Dirk Meyer's sudden resignation at the hands of the company's board of directors.
"While we wanted to get positive on AMD in 2011, CEO Meyer's dismissal (misguided in our opinion) leaves AMD without a leader or strategy at a critical time as it ramps integrated APU Fusion processors," Berger wrote in a report circulated Friday. "With Fusion AMD’s top priority, we fail to understand how dismissing the firm's reasonably well-executing CEO and top champion is going to ramp that product steeper."
Berger maintains a rating of "market perform" on AMD's shares, with a price target of $10. Shares of AMD traded at $7.58 in early afternoon trading Friday, down 5.5 percent from Thursday's closing price of $8.02.