Cash flows at AMD

AMD yesterday reported that its third quarter sales were up 23% compared to the third quarter of last year and had increased 21% from the second quarter of 2005.

In the third quarter of 2004, AMD reported sales of $1.239 billion and net income of $44 million, or $0.12 per diluted share. In the second quarter of 2005, the company reported sales of $1.260 billion and net income of $11 million, or $0.03 per share.

Operating income in the third quarter of 2005 was $79 million as compared to operating income of $68 million in the third quarter of 2004 and an operating loss of $7 million in the second quarter of 2005.

“This was another record-breaking quarter for AMD’s microprocessor business,” said Robert J. Rivet, AMD’s chief financial officer. “Exceptional customer demand for our server, mobile and desktop processors helped drive microprocessor sales growth of 44% compared to the third quarter of 2004 and 26% compared to the second quarter of 2005. We established new quarterly records in unit and dollar sales, gross margin and operating income.”