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AMD: successful first quarter and moderate projections to the second

AMD announced the financial results of the first quarter of this year, which look very good – the gross profit of $ 185 million in total sales to 1.33 billion dollars, especially if we compare these figures with the first quarter of last year, brought the company not only sales of $ 1.23 billion, and $ 17.4 million loss. However, AMD cautious approach to forecasting the financial results of the second quarter of 2006, the CEO, Hector Ruiz (Hector Ruiz), in his speech explained the two main reasons – traditionally heavy in terms of sales and the second quarter of sluggish market conditions in western Europe.

The question – how the company intends to build a strategy to compete with Intel? – Ruiz replied that, as in the first quarter, AMD will “differentiate themselves from their competitors.” Differentiation – differentiation, but in practice the market shows that the “sworn friends” continue to be closely related, for example, before the announcement of quarterly financial results fell slightly AMD stock price Intel, and vice versa, AMD shares dropped in price by 17% after the March statements Intel, said at the time, based on the findings of some analysts, a slowdown in market development PC. In the first quarter

AMD reported a record level for a gross margin that is fixed at 58.5% compared with 57.3% of the quarter earlier. This fact connects the company to increase production volumes, making a variety of improvements in production, and increasing production efficiency. Were reported record sales of AMD Opteron, basically – dual core models for servers and desktop systems. In the second quarter gross margin values ​​projected at 55-60%. It is also reported continuing to increase production by 90-nm process at Fab 36.

Thematic material in articles:

– Dual-core processors;
– The AMD today and tomorrow. Source

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