AMD Snaps Losing StreakAMD Snaps Losing Streak

Advanced Micro Devices Inc. snapped a string of nine consecutive quarters of losses with a strong fourth quarter that pushed the company back into the black.

For the quarter ended Dec. 28, the chipmaker reported net income of $43.2 million, or 12 cents per share, on revenue of $1.16 billion. That compares with a loss of $31.2 million on revenue of $984 million in the previous quarter, and a loss of $854.7 million on revenue of $1.28 billion in the year-ago quarter.

For the year, AMD reported a net loss of $274.5 million, or 79 cents a share, on revenue of $3.75 billion, compared with a loss of $1.3 billion, or $3.81, on revenue of $3.92 billion in 2002.

"Fourth-quarter profitability was driven by solid sales growth across all business lines," CFO Robert Rivet said in a statement. "We saw positive growth across all microprocessor brands, including strong Athlon XP sales in the fourth quarter."

AMD's Computation Products Group sales of $581 million were up 38% compared with the fourth quarter of 2002 and up 15% from the $503 million reported in the third quarter of 2003. The group had operating income of $63 million in the fourth quarter, up from $19 million in the third quarter, primarily based on improved average selling price and higher unit volumes.

Because of seasonal patterns in the processor and flash memory businesses, AMD advised that it expects revenue for the first quarter of 2004 to be down slightly from the fourth quarter of 2003.