AMD Reports Twentyfold Rise in Profit

Advanced Micro Devices Inc. Tuesday reported a huge gain in revenue and profit in the first quarter on continued strong microprocessor sales.

The company introduced its Am386 microprocessor line a year ago, breaking Intel Corp.’s hold on the market for microprocessors, the brains of personal computers.

AMD spokesman John Greenagel said the company now estimates that it controls up to 50% of the market for 386 microprocessors, the controlling power inside most IBM-compatible personal computers. Santa Clara-based Intel controls much of the rest of the market.

Sunnyvale-based AMD reported earnings of $84.9 million for the first quarter ended March 29, compared to $4.2 million in the similar period a year ago--an increase of more than twentyfold. Net income per share rose to 90 cents from 2 cents.

Revenue reached $407.4 million, a 48% increase over sales of $274.3 million in the first quarter a year ago, before the Am386 went on sale.

AMD introduced its version of the 386 last April.

W. J. Sanders III, AMD’s chairman and chief executive, said sales of Am386 products were $180 million, 20% higher than in the final three months of 1991.

AMD lost $1.25 to $17.625 Tuesday in New York Stock Exchange trading.