Advanced Micro Devices Inc. surprised investors with a sharply reduced loss for the third quarter, as the computer chip maker received a large lump sum for licensed technologies. Its shares soared in extended trading.
Even without the licensing fees, AMD apparently outdid low expectations thanks to strong sales. The results provided a contrast to solid but unspectacular results for the quarter reported by its much larger rival, Intel Corp., and gave some reassurance to investors nervous about the prospects for the highly cyclical semiconductor industry as the economy slows down.
AMD's shares jumped 40 cents, or 10%, to $4.52 in extended trading after the release of the results.
The Sunnyvale, Calif.-based company lost $67 million, or 11 cents a share, compared with a loss of $396 million, or 71 cents, a year earlier. AMD has reported a string of steep losses in the last year as the company struggles to compete with Intel and digest the acquisition of graphics-chip maker ATI.
Revenue increased 14% to $1.78 billion, helped by $191 million in technology licensing fees related to the earlier sale of older manufacturing equipment to a Russian company. Excluding the fees, revenue rose 1.7%.