AMD Reports Second Quarter 2019 Financial Results
- Revenue grew 20 percent quarter-over-quarter;
- Gross margin expanded to 41 percent, up 4 percentage points year-over-year -
Q2 2019 | Q2 2018 | Y/Y | Q1 2019 | Q/Q | |
Revenue ($B) | $1.53 | $1.76 | Down 13% | $1.27 | Up 20% |
Gross margin | 41% | 37% | Up 4 pp | 41% | Flat |
Operating expense ($M) | $562 | $499 | Up $63 | $543 | Up $19 |
Operating income ($M) | $59 | $153 | Down $94 | $38 | Up $21 |
Net income ($M) | $35 | $116 | Down $81 | $16 | Up $19 |
Earnings per share | $0.03 | $0.11 | Down $0.08 | $0.01 | Up $0.02 |
Q2 2019 | Q2 2018 | Y/Y | Q1 2019 | Q/Q | |
Revenue ($B) | $1.53 | $1.76 | Down 13% | $1.27 | Up 20% |
Gross margin | 41% | 37% | Up 4 pp | 41% | Flat |
Operating expense ($M) | $512 | $467 | Up $45 | $498 | Up $14 |
Operating income ($M) | $111 | $186 | Down $75 | $84 | Up $27 |
Net income ($M) | $92 | $156 | Down $64 | $62 | Up $30 |
Earnings per share | $0.08 | $0.14 | Down $0.06 | $0.06 | Up $0.02 |
- Revenue was $1.53 billion, down 13 percent year-over-year due to lower revenue in both segments. Revenue was up 20 percent quarter-over-quarter due to higher revenue in both segments.
- Gross margin was 41 percent, up 4 percentage points year-over-year, primarily driven by increased RyzenTM and EPYCTM processor sales. Gross margin was flat quarter-over-quarter.
- Operating income was $59 million compared to $153 million a year ago and $38 million in the prior quarter. Non-GAAP operating income was $111 million compared to $186 million a year ago and $84 million in the prior quarter. The year-over-year decline was primarily due to lower revenue and higher operating expenses.
- Net income was $35 million compared to $116 million a year ago and $16 million in the prior quarter. Non-GAAP net income was $92 million compared to $156 million a year ago and $62 million in the prior quarter.
- Diluted earnings per share was $0.03, compared to $0.11 a year ago and $0.01 in the prior quarter. Non-GAAP diluted earnings per share was $0.08, compared to $0.14 a year ago and $0.06 in the prior quarter.
- Cash, cash equivalents and marketable securities were $1.1 billion at the end of the quarter.
- Computing and Graphics segment revenue was $940 million, down 13 percent year-over-year and up 13 percent quarter-over-quarter. Revenue was lower year-over-year primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales. The quarter- over-quarter increase was primarily due to higher GPU sales.
- Client processor average selling price (ASP) was up year-over-year driven by Ryzen processor sales. Client processor ASP was down quarter-over-quarter due to a higher mix of mobile processor sales.
- GPU ASP increased year-over-year primarily driven by datacenter GPU sales. GPU ASP was down slightly quarter-over-quarter due to lower datacenter GPU sales and higher graphics channel sales.
- Operating income was $22 million, compared to $117 million a year ago and $16 million in the prior quarter. The year-over-year decrease was primarily due to lower revenue. The quarter-over- quarter increase was due to higher GPU sales.
- Enterprise, Embedded and Semi-Custom segment revenue was $591 million, down 12 percent year- over-year and up 34 percent sequentially. The year-over-year revenue decrease was primarily due to lower semi-custom product revenue, partially offset by higher EPYC processor sales. The quarter- over-quarter increase was driven by higher semi-custom and EPYC processor revenue.
- Operating income was $89 million, compared to $69 million a year ago and $68 million in the prior quarter. The year-over-year and quarter-over-quarter increases were primarily driven by higher EPYC processor sales.
- All Other operating loss was $52 million compared to $33 million a year ago and $46 million in the prior quarter.
- AMD launched its highly anticipated client and graphics processors based on advanced new architectures and leading-edge 7nm process technology.
- The “Zen 2” CPU core delivers up to an estimated 15 percent instructions per clock (IPC) uplift over the “Zen” architecture, outperforming the historical generational performance improvement industry trend.
- AMD Ryzen Desktop Processors are available now with up to 12 cores and 24 threads based on the new “Zen 2” core architecture to deliver leadership performance for gamers, creators and everyday PC users.
- AMD unveiled the new X570 chipset for AMD Socket AM4, enabling the world’s first PCIe® 4.0 ready platform for consumers. Motherboard manufacturers are expected to introduce more than 50 models using the new AMD X570 chipset by year end, creating the widest selection of motherboards at launch in AMD history.
- AMD introduced RDNA, a new foundational gaming architecture designed to drive the future of PC, console and cloud gaming. RDNA provides up to 1.25X higher performance- per-clock and up to 1.5X higher performance-per-watt compared to AMD’s previous generation Graphics Core Next architecture.
- AMD Radeon™ RX 5700 series graphics cards, built on the new AMD RDNA gaming
- architecture, deliver superior visual fidelity, performance and advanced features for the latest AAA and eSports titles at their respective price points.
- AMD announced that it is working with Cray, the U.S. Department of Energy and Oak Ridge National Laboratory to build what is expected to be the world’s fastest supercomputer - Frontier. Based on future-generation high performance custom AMD EPYC CPUs and Radeon Instinct GPUs optimized for artificial intelligence (AI), Frontier is expected to deliver greater than 1.5 exaflops of processing performance.
- 2nd Gen EPYC processors are advancing the use of AI across diverse research fields on Indiana University’s Cray Shasta™ supercomputer.
- Microsoft announced that AMD will power its upcoming next generation game console, codenamed Project Scarlett, with a custom, high performance SoC combining the AMD Ryzen “Zen 2” CPU core
- Samsung and AMD announced a multi-year strategic partnership through which Samsung will license AMD graphics IP to advance graphics technologies and solutions for mobile applications including smartphones.
- Apple announced an all-new Mac Pro featuring AMD Radeon Pro Vega II GPUs that deliver exceptional computational performance by harnessing the power of the 7nm process technology, “Vega” graphics architecture and AMD Infinity Fabric™ Link GPU interconnect technology.
- Acer announced the upcoming availability of the new Acer Nitro 5 and Swift 3 laptops, based on 2nd Gen AMD Ryzen Mobile processors, adding to the more than 40 new consumer and commercial notebooks based on the latest Ryzen Mobile and Ryzen Mobile PRO processors launched this year from all leading global OEMs.
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