strong results for AMD, Intel's down a third

AMD 's 1/3 zone consequences surpassed analysts' predictions. Its earnings for the length become $134m (£71m), or 27 cents in step with proportion on the $1.33 billion revenue it generated.

Analysts had anticipated that AMD's earnings would be around the $1.31bn mark, or 24 cents in keeping with share.

The consequences are an improvement over the equal length ultimate yr when AMD made a earnings of $44m, or 18 cents in line with proportion, and generated $1.52bn.

AMD's income expanded via 9 in keeping with cent compared with the previous area, and by means of 32 according to cent compared with the same length remaining 12 months, said Robert Rivet, AMD's leader economic officer, in a assertion.

Its gross margins went down from fifty six.eight in line with cent for the duration of the second one zone of 2006 to 51.four according to cent at some stage in the third. in step with AMD, that is because of the high price competitiveness within the processor market and the charge drop on processors.

Intel down compared to last year

Intel , alternatively, recorded a income of $1.3bn (£689m) which is extra than the predictions made by way of analysts, however a large drop in comparison with ultimate 12 months's effects.

Intel's sales all through the 0.33 zone of 2006 was $eight.7bn, a whole lot because of robust income of the new center Microarchitecture product for portables and servers. In general, the employer made a earnings of 22 cents in keeping with proportion, which is up at the expected 18 cents according to percentage. The revenue, in keeping with a prognosis, was predicted to be around $8.62bn.

The income marks a drop in net earnings by 35 per cent, and shows that sales are down by means of 12 per cent. all through the same duration remaining yr, Intel's revenue was $nine.96bn, with a profit of 32 cents per share.

The enterprise previously announced that it'd miss its annual earnings target because of the expanded opposition via AMD. Intel has due to the fact allow off 10,500 - a 10th - of its personnel.

Intel's CEO, Paul Otelini, said that key new launches need to make a difference in future profits. the brand new core 2 Duo architecture and quad middle processors are anticipated to increase earnings and revenue. at some point of the fourth quarter, Intel expects sales to are available between $nine.1bn and $9.7bn.