AMD rebounds in 4Q, but outlook disappoints Street

Published on NewsOK Modified: January 21, 2014 at 4:47 pm •  Published: January 21, 2014
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SAN FRANCISCO (AP) — Advanced Micro Devices Inc. swung back to a profit during the fourth quarter as the holiday-season debuts of the latest PlayStation and Xbox video-game consoles helped the chip maker overcome an ongoing slump in personal computer sales.

The results released Tuesday were upstaged by a management forecast that left open the possibility of AMD's first-quarter revenue falling below the analyst projections that guide Wall Street. That prospect appeared to rattle investors as AMD's stock shed 41 cents, or nearly 10 percent, to $3.76 in extended trading.

AMD earned $89 million, or 12 cents per share, during the three months ended Dec. 28. That contrasted with a loss of $473 million, or 63 cents per share, a year earlier.

The Sunnyvale, Calif., company benefited from a $48 million gain that flowed in from a legal settlement in a patent dispute.

If not for that one-time lift, AMD said it would have earned 6 cents per share. That figure was penny better than the average estimate among analysts surveyed by FactSet.

Revenue for the period climbed 38 percent from the previous year to $1.59 billion — $50 million above analysts' predictions.

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