AMD fourth-quarter earnings good

AMD announced a fourth-quarter profit of $375 million, or 50 cents per share, on revenue of $1.65 billion. Revenue is flat year-over-year and on a non-GAAP basis, earnings came in at $106 million, or 14 cents per share, 3 cents more than the year before. Wall Street analysts expected the chip maker to post earnings of 11 cents per share on revenue of $1.63 billion.

AMD expects Q1 2011 revenue to be flat to slightly down sequentially.
Fourth Quarter 2010 Results

• AMD revenue $1.65 billion, 2 percent sequential increase and flat year-over-year
• Net income $375 million, EPS $0.50, operating income $413 million
• Non-GAAP(1,2) net income $106 million, EPS $0.14, operating income $141 million
• Gross margin 45 percent

2010 Annual Results

• AMD revenue $6.49 billion, an increase of 20 percent year-over-year
• Net income $471 million, EPS $0.64, operating income $848 million
• Non-GAAP(1,2) net income $360 million, EPS $0.49, operating income $553 million
• GAAP annual gross margin 46 percent, non-GAAP annual gross margin 45 percent

AMD (NYSE: AMD) today announced revenue for the fourth quarter of 2010 of $1.65 billion, net income of $375 million, or $0.50 per share, and operating income of $413 million. The company reported non-GAAP net income of $106 million, or $0.14 per share, and non-GAAP operating income of $141 million. The non-GAAP net income and non-GAAP operating income primarily 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.

For the year ended December 25, 2010, AMD reported revenue of $6.49 billion, net income of $471 million, or $0.64 per share, and operating income of $848 million. Full year non-GAAP net income was $360 million, or $0.49 per share, and operating income was $553 million.

"AMD enters 2011 with significant momentum, amplified by the successful launch of our first Fusion APUs," said Thomas Seifert, CFO and Interim CEO. "I am confident we can drive profitable growth based on the strength of new products we will bring to market. Our customers recognize that Fusion APUs are at the core of delivering the world's most vivid digital experiences."
AMD shares are currently trading at $8.00 (-0.25%) in after-hours trading, after initially soaring towards $8.30.