AMD Earnings Meet - Revenues Beat -
April 29, 2020
AMD reported revenue for the first
quarter of 2020 of $1.79 billion, operating income of $177 million, net
income of $162 million and diluted earnings per share of $0.14. On a
non-GAAP* basis, operating income was $236 million, net income was $222
million and diluted earnings per share was $0.18.
The firm's earnings of 18 cents per
share excluding some items, was in line with the expectations. AMD's
revenue of $1.79 billion, was better than the $1.78 billion expectation.
“We executed well in the first
quarter, navigating the challenging environment to deliver 40 percent
year-over-year revenue growth and significant gross margin expansion
driven by our Ryzen and EPYC processors,” said Dr. Lisa Su, AMD
president and CEO. “While we expect some uncertainty in the near-term
demand environment, our financial foundation is solid and our strong
product portfolio positions us well across a diverse set of resilient
end markets. We remain focused on strong business execution while
ensuring the safety of our employees and supporting our customers,
partners and communities. Our strategy and long-term growth plans are
For the second quarter of 2020, AMD
expects revenue to be approximately $1.85 billion, plus or minus $100
million, an increase of approximately 21 percent year-over-year and 4
percent sequentially. The year-over-year increase is expected to be
primarily driven by growth of Ryzen and EPYC processor sales. The
sequential increase is expected to be primarily driven by EPYC processor
and semi-custom sales. AMD expects non-GAAP gross margin to be
approximately 44 percent in the second quarter of 2020. The sequential
decrease is expected to be primarily due to the initial ramp of
next-generation semi-custom products.
AMD's Q2 expected revenue of $1.85
billion was less that the $1.92 billion expectation..
Despite expectations of weaker COVID-19 related consumer demand in the
second half of the year, AMD expects 2020 revenue to grow by
approximately 25 percent, plus or minus 5 percentage points, compared to
2019 and non-GAAP gross margin to be approximately 45 percent.
Q1 2020 Results
- Revenue was
$1.79 billion, up 40 percent year-over-year primarily
driven by higher Computing and Graphics segment revenue. Revenue
was down 16 percent quarter-over-quarter due to lower revenue in
- Gross margin was
46 percent, up 5 percentage points year-over-year and 1
percentage point quarter-over-quarter, primarily driven by Ryzen™
and EPYC™ processor sales.
- Operating income
was $177 million
compared to operating income of $38 million a
year ago and
$348 million in the prior quarter. Non-GAAP operating income was
$236 million compared to operating income of $84 million
a year ago and $405 million in the prior quarter.
Operating income improved year-over-year primarily driven by
revenue growth and a greater percentage of Ryzen and EPYC
processor sales. On a sequential basis, operating income
declined due to lower revenue and higher R&D expenses.
- Net income was
$162 million compared to net income of $16
million a year ago and $170 million in
the prior quarter. Non-GAAP net income was $222 million
compared to net income of $62 million a year ago
and $383 million in the prior quarter.
- Diluted earnings
per share was $0.14
compared to diluted earnings per share of $0.01 a
year ago and
$0.15 in the prior quarter. Non-GAAP diluted earnings per share
was $0.18, compared to diluted earnings per share
$0.06 a year ago and $0.32 in the prior quarter.
- Cash, cash
equivalents and marketable securities were $1.4 billion
at the end of the quarter.
Financial Segment Summary
and Graphics segment revenue was
$1.44 billion, up 73 percent year-over-year and down 13 percent
quarter-over-quarter. Revenue was higher year-over-year driven
by strong Ryzen processor and Radeon™ product channel sales. The
quarter-over-quarter decline was primarily due to lower graphics
◦ Client processor average selling price (ASP) was up
year-over-year driven by Ryzen processor sales. Client processor
ASP was down slightly quarter-over-quarter due to higher
◦ GPU ASP was lower year-over-year and quarter-over-quarter
due to product mix.
◦ Operating income was $262 million
compared to $16 million a year ago and
$360 million in the prior quarter. The year-over-year
increase was driven by significantly higher revenue. The
quarter-over-quarter decline was primarily due to lower revenue.
Embedded and Semi-Custom segment revenue was $348 million,
down 21 percent year-over-year and 25 percent sequentially
primarily due to lower semi-custom sales, partially offset by
higher EPYC processor sales.
◦ Operating loss was $26 million compared to
operating income of $68 million a year ago, which
included a $60 million licensing gain. The
decline from operating income of $45 million in
the prior quarter was primarily due to lower revenue and higher
- All Other
operating loss was $59 million compared to
operating losses of $46 million a year ago and
$57 million in the prior quarter.