(PR) AMD Reports First Quarter 2018 Financial Results

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AMD (NASDAQ:AMD) at the moment introduced income for the primary quarter of 2018 of $1.65 billion, working revenue of $120 million, internet revenue of $81 million, and diluted earnings per share of $0.08. On a non-GAAP foundation, working revenue was $152 million, internet revenue was $121 million, and diluted earnings per share was $0.11.

“The primary quarter was an excellent begin to 2018 with 40 p.c year-over-year income progress,” mentioned Dr. Lisa Su, AMD president and CEO. “PC, gaming and datacenter adoption of our new, high-performance merchandise continues to speed up. We’re enthusiastic about our long-term roadmaps and targeted on delivering sustained income progress and profitability.”

Q1 2018 Results

  • All AMD monetary outcomes are reported below the new income recognition accounting customary, ASC 606, with prior interval monetary outcomes adjusted for comparability functions.
  • Income was $1.65 billion, up 40 p.c year-over-year and 23 p.c quarter-over-quarter, pushed primarily by increased income within the Computing and Graphics phase.
  • Gross margin was 36 p.c, up 4 proportion factors year-over-year and 2 proportion factors quarter-over-quarter. The gross margin proportion enhance was pushed by a better proportion of income from Ryzen , Radeon and EPYC merchandise.
  • On a GAAP foundation, working revenue was $120 million in comparison with working revenue of $11 million a yr in the past and an working lack of $2 million within the prior quarter.
  • Web revenue was $81 million in comparison with internet losses of $33 million a yr in the past and $19 million within the prior quarter. Diluted earnings per share was $0.08, in comparison with losses per share of $0.04 a yr in the past and $0.02 within the prior quarter.
  • On a non-GAAP(1) foundation, working revenue was $152 million in comparison with working revenue of $34 million a yr in the past and $19 million within the prior quarter.
  • Non-GAAP internet revenue was $121 million in comparison with internet revenue of $2 million a yr in the past and $8 million within the prior quarter. Non-GAAP diluted earnings per share was $0.11, in comparison with break even from a yr in the past and diluted earnings per share of $0.01 within the prior quarter.
  • Money and money equivalents have been $1.04 billion on the finish of the quarter.
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Quarterly Financial Phase Abstract

  • Computing and Graphics phase income was $1.12 billion, up 95 p.c year-over-year and 23 p.c quarter-over-quarter, primarily pushed by robust gross sales of Radeon and Ryzen merchandise.
  • Consumer processor common promoting price (ASP) elevated year-over-year and quarter-over-quarter as a consequence of a better proportion of income from our Ryzen merchandise.
  • GPU ASP elevated year-over-year and quarter-over-quarter pushed by a better proportion of income from our new Radeon merchandise.
  • Working revenue was $138 million, in comparison with an working lack of $21 million a yr in the past and working revenue of $33 million within the prior quarter. Working revenue enchancment was pushed by increased income.
  • Enterprise, Embedded and Semi-Customized (EESC) phase income was $532 million, down 12 p.c year-over-year as a consequence of decrease semi-custom income, partially offset by increased server and embedded income. EESC phase income was up 23 p.c quarter-over-quarter, pushed by semi-custom, embedded and EPYC processor income.
  • Working revenue was $14 million, in comparison with working revenue of $55 million a yr in the past and an working lack of $13 million within the prior quarter. The year-over-year lower was primarily as a consequence of a licensing achieve that occurred in Q1 2017. The quarter-over-quarter enhance was primarily as a consequence of increased income.
  • All Different working loss was $32 million in contrast with working losses of $23 million a yr in the past and $22 million within the prior quarter.

Q1 2018 Highlights

  • AMD continued returning innovation and pleasure to the PC market with the introduction of new consumer-focused desktop processors.
  • AMD launched the primary AMD Ryzen desktop APUs, combining the high-performance Radeon “Vega” graphics structure with revolutionary “Zen” CPU cores on a single chip.
  • AMD additionally delivered the subsequent merchandise within the Firm’s robust multi-generational roadmap with the launch of its 2nd Technology Ryzen desktop CPUs simply over one yr after bringing the primary Ryzen processors to market. The new 2nd Technology Ryzen processors can ship as much as 15% increased gaming efficiency in comparison with 1st Technology Ryzen processors, with the Ryzen 7 2700X processor delivering the very best multiprocessing efficiency out there on a mainstream desktop PC.
  • Adoption of AMD merchandise for the datacenter continued with new AMD EPYC processor-powered platforms and deployments
  • Dell EMC launched three new PowerEdge platforms powered by AMD EPYC 7000 sequence server processors.
  • Yahoo Japan Company and Packet joined the increasing checklist of worldwide companies deploying EPYC processors to reinforce the efficiency and effectivity of their datacenters.
  • Supercomputing chief Cray introduced that it added EPYC processors to its Cray CS500 line of HPC choices.
  • AMD introduced the highly effective “Zen” structure to quite a lot of new embedded markets with the launch of EPYC Embedded and Ryzen Embedded processors.
  • AMD launched new Radeon Software program Adrenalin Version updates to optimize the efficiency of a few of the hottest PC games and enhance the eSports expertise for Radeon graphics card homeowners.
  • AMD and Microsoft introduced assist for Radeon FreeSync know-how in Microsoft’s Xbox One S and Xbox One X consoles, bringing the distinctive tear-free gaming expertise to a broader base of avid gamers.
  • Adobe introduced a new version of Adobe Premiere Professional CC with native assist for AMD Radeon Professional SSG graphics to dramatically speed up 4K and 8K workflows for in style native camera codecs.
  • Steam launched assist for AMD TrueAudio Subsequent in Steam Audio, providing Steam customers a extra immersive audio expertise.
  • AMD was included in Quick Firm’s “World’s Most Revolutionary Corporations” 2018 edition, rating within the prime ten Most Revolutionary Corporations within the Shopper Electronics sector.
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Present Outlook
AMD’s outlook statements are primarily based on present expectations. The next statements are forward-looking, and precise outcomes might differ materially relying on market circumstances and the components set forth below “Cautionary Assertion” under.

For the second quarter of 2018, AMD expects income to be roughly $1.725 billion, plus or minus $50 million, a rise of 50 p.c year-over-year, and non-GAAP gross margin of roughly 37 p.c.

Source : TechPowerUp