AMD Reports First Quarter 2020 Financial Results

[AleksandarK]

AMD today announced 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.

"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 unchanged."



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 both segments.
• 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 of $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. Quarterly Financial Segment Summary
• Computing 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 processor sales.
• 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 notebook sales.
• 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.
• Enterprise, 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 operating expenses.
• All Other operating loss was $59 million compared to operating losses of $46 million a year ago and $57 million in the prior quarter.

View at TechPowerUp Main Site

 

[ARF]

With upcoming Comet Lake, I think AMD must rethink its tactics because it won't be so competitive across the line.
2020 was supposed to be a big year for AMD, now things suddenly changed against it.

AMD AMD, -1.73%, which has not rescinded annual guidance like many others companies have, eased its expectations for 2020 sales, and now expects revenue to grow 20% to 30% from 2019, after previously projecting 28% to 30% revenue growth. The company maintained its guidance for adjusted gross margin of 45%.
“Unlike many, AMD is providing a guide for 2020 with 25% growth, which I believe shows the conservativeness of the forecast,” said Patrick Moorhead, principal analyst at Moor Insights & Strategy, in emailed comments. “AMD’s consumer bend to most of its client computing sales warrants the +/-5% guard rails and at the same time I am pleased at the 45% gross margin target.”

AMD earnings hit target, but annual forecast trimmed as business spending slows

Advanced Micro Devices Inc. shrank in the extended session Tuesday after the chip company admitted that the COVID-19 pandemic would trim its growth in 2020.

www.marketwatch.com

 

[Vya Domus]

With upcoming Comet Lake, I think AMD must rethink its tactics

Comet Lake has been a thing since August last year, it's nothing ground breaking, there is nothing to rethink here. It's funny if you follow AMD stock you know there is always a drop in share price when earnings are announced and an increase that follows soon.

 

[ARF]

Comet Lake has been a thing since August last year, it's nothing ground breaking, there is nothing to rethink here. It's funny if you follow AMD stock you know there is always a drop in share price when earnings are announced and an increase that follows soon.

No,
Core i9-10900F 65-watt for $422, Core i7-10700F (65-watt) for $298, Core i5-10400F (65-watt) for $157 are all very tempting offering and AMD has to adjust its pricing accordingly.
AMD has so poor lineup, it's unbelievable.

 

[Vya Domus]

AMD has so poor lineup, it's unbelievable.

Sure thing buddy, we know the drill, "Intel good AMD bad".

What's unbelievable is that Intel will still be on 14nm for desktops in 2020.

 

[medi01]

Comet Lake has been a thing since August last year, it's nothing ground breaking, there is nothing to rethink here. It's funny if you follow AMD stock you know there is always a drop in share price when earnings are announced and an increase that follows soon.

Just came to post that since there are good news, stock gotta drop... ))

 

[Mysteoa]

No,
Core i9-10900F 65-watt for BGN 758.80 ( $422), Core i7-10700F (65-watt) for BGN 535.84 ( $298), Core i5-10400F (65-watt) for BGN 282.30 ( $157 )are all very tempting offering and AMD has to adjust its pricing accordingly.
AMD has so poor lineup, it's unbelievable.

I can't figure out if you are a troll or not, but I will assume that you are base on all other comments you did.

10900F and the others are not out yet. No retail prices available and the Wattage is meaningless metric, if not measured the same. It will have to compete with ZEN3 - 4000 series.

 

[Cranky5150]

Also, the last time i checked, i didn’t have to buy a new socket anytime a new chip came out..Just the longevity of the AM4 platform is attest to that.