Advanced Micro Devices Inc. posted better-than-expected second-quarter results as corporate spending on tech hardware strengthened, sending its shares up 6.6 per cent after hours.
AMD, which competes with much-larger rival Intel Corp , said Thursday that revenue rose 40 per cent to $1.65-billion in the period, beating expectations of $1.55-billion according to Thomson Reuters I/B/E/S.
It posted net income, excluding items, of $83-million (U.S.) or 11 cents a share, versus a net loss of $244-million, or 37 cents a share, in the year-ago period. That surpassed expectations for 6 cents a share.
AMD's earnings report came two days after competitor Intel set a bright tone for earnings, signaling a resurgence of IT enterprise spending after years of straitened budgets.
Looking forward, the company estimated revenue in the third quarter would be up seasonally. Analysts had been expecting revenue of $1.66-billion in the third quarter.
Shares of Sunnyvale, California-based AMD rose 6.6 per cent to $7.90 in after-hours trading, after closing nearly flat at $7.41 on the New York Stock Exchange.