AMD Reports First Quarter 2018 Financial Results

SANTA CLARA, Calif. , April 25, 2018 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2018 of $1.65 billion, operating income of $120 million, net income of $81 million, and diluted earnings per share of $0.08. On a non-GAAP(1) basis, operating income was $152 million, net income was $121 million, and diluted earnings per share was $0.11.

GAAP Financial Results
Year-over-Year and Quarter-over-Quarter

  Q1 2018 Q1 2017 Y/Y Q4 2017 Q/Q
Revenue$1.65B$1.18BUp 40%$1.34BUp 23%
Gross Margin % 36% 32%Up 4 pp 34%Up 2 pp
Operating Expense$477M$394MUp $83M$454MUp $23M
Operating Expense % 29% 33%Down 4 pp 34%Down 5 pp
Operating income (loss)$120M$11MUp $109M$(2)MUp $122M
Net income (loss)$81M$(33)MUp $114M$(19)MUp $100M
Earnings (loss) per share$0.08 $(0.04)Up $0.12$(0.02)Up $0.10

Non-GAAP Financial Results(1)
Year-over-Year and Quarter-over-Quarter

  Q1 2018 Q1 2017 Y/Y Q4 2017 Q/Q
Revenue $1.65B $1.18BUp 40% $1.34BUp 23%
Gross Margin % 36% 32%Up 4 pp 34%Up 2 pp
Operating Expense $446M $371MUp $75M $433MUp $13M
Operating Expense % 27% 31%Down 4 pp 32%Down 5 pp
Operating income$152M$34MUp $118M$19MUp $133M
Net income$121M$2MUp $119M$8MUp $113M
Earnings per share$0.11 $0.00 Up $0.11$0.01 Up $0.10
      

“The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said Dr. Lisa Su, AMD president and CEO. “PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate.  We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability.”

Q1 2018 Results

  • All AMD financial results are reported under the new revenue recognition accounting standard, ASC 606, with prior period financial results adjusted for comparison purposes.
  • Revenue was $1.65 billion, up 40 percent year-over-year and 23 percent quarter-over-quarter, driven primarily by higher revenue in the Computing and Graphics segment.
  • Gross margin was 36 percent, up 4 percentage points year-over-year and 2 percentage points quarter-over-quarter.  The gross margin percentage increase was driven by a greater percentage of revenue from Ryzen™, Radeon™ and EPYC™ products.
  • On a GAAP basis, operating income was $120 million compared to operating income of $11 million a year ago and an operating loss of $2 million in the prior quarter.
  • Net income was $81 million compared to net losses of $33 million a year ago and $19 million in the prior quarter. Diluted earnings per share was $0.08, compared to losses per share of $0.04 a year ago and $0.02 in the prior quarter.
  • On a non-GAAP(1) basis, operating income was $152 million compared to operating income of $34 million a year ago and $19 million in the prior quarter.
  • Non-GAAP net income was $121 million compared to net income of $2 million a year ago and $8 million in the prior quarter. Non-GAAP diluted earnings per share was $0.11, compared to break even from a year ago and diluted earnings per share of $0.01 in the prior quarter.
  • Cash and cash equivalents were $1.04 billion at the end of the quarter.

Quarterly Financial Segment Summary

  • Computing and Graphics segment revenue was $1.12 billion, up 95 percent year-over-year and 23 percent quarter-over-quarter, primarily driven by strong sales of Radeon and Ryzen products.
     ◦ Client processor average selling price (ASP) increased year-over-year and quarter-over-quarter due to a greater percentage of revenue from our Ryzen products.
     ◦ GPU ASP increased year-over-year and quarter-over-quarter driven by a greater percentage of revenue from our new Radeon products.
     ◦ Operating income was $138 million, compared to an operating loss of $21 million a year ago and operating income of $33 million in the prior quarter. Operating income improvement was driven by higher revenue.
  • Enterprise, Embedded and Semi-Custom (EESC) segment revenue was $532 million, down 12 percent year-over-year due to lower semi-custom revenue, partially offset by higher server and embedded revenue. EESC segment revenue was up 23 percent quarter-over-quarter, driven by semi-custom, embedded and EPYC processor revenue.
     ◦ Operating income was $14 million, compared to operating income of $55 million a year ago and an operating loss of $13 million in the prior quarter. The year-over-year decrease was primarily due to a licensing gain that occurred in Q1 2017.  The quarter-over-quarter increase was primarily due to higher revenue.
  • All Other operating loss was $32 million compared with operating losses of $23 million a year ago and $22 million in the prior quarter.

Q1 2018 Highlights

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