SUNNYVALE, Calif., July 25, 2017 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2017 of $1.22 billion, operating income of $25 million, and net loss of $16 million, or $(0.02) per share. On a non-GAAP(1) basis, operating income was $49 million, net income was $19 million, and earnings per share was $0.02.
|GAAP Financial Results|
|Operating income (loss)||$25M||$(29)M||$(8)M|
|Net income (loss)||$(16)M||$(73)M||$69M|
|Earnings (loss) per share||$(0.02)||$(0.08)||$0.08|
|Non-GAAP Financial Results(1)|
|Operating income (loss)||$49M||$(6)M||$3M|
|Net income (loss)||$19M||$(38)M||$(40)M|
|Earnings (loss) per share||$0.02||$(0.04)||$(0.05)|
“Our second quarter results demonstrate strong growth driven by leadership products and focused execution," said Dr. Lisa Su, AMD president and CEO. "Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”
Q2 2017 Results
- On a GAAP basis, revenue was $1.22 billion, up 19 percent year-over-year, driven by higher revenue in the Computing and Graphics segment. Revenue was up 24 percent sequentially, driven by increased sales in both business segments. Gross margin was 33 percent, up 2 percentage points year-over-year due to a richer product mix and a higher percentage of revenue from the Computing and Graphics segment, driven by the first full quarter of Ryzen processor sales. On a sequential basis, gross margin declined 1 percentage point due to a higher percentage of revenue from the Enterprise, Embedded and Semi-Custom segment. Operating income was $25 million compared to an operating loss of $8 million a year ago and an operating loss of $29 million in the prior quarter. Net loss was $16 million compared to net income of $69 million a year ago and a net loss of $73 million in the prior quarter. Loss per share was $0.02 compared to diluted earnings per share of $0.08 a year ago (which included a pre-tax gain of $150 million related to our ATMP JV transaction) and a loss per share of $0.08 in the prior quarter.
- On a non-GAAP(1) basis, operating income was $49 million compared to operating income of $3 million a year ago and an operating loss of $6 million in the prior quarter. Net income was $19 million compared to a net loss of $40 million a year ago and a net loss of $38 million in the prior quarter. Diluted earnings per share was $0.02 compared to a loss per share of $0.05 a year ago and a loss per share of $0.04 in the prior quarter.
- Cash, cash equivalents, and marketable securities were $844 million at the end of the quarter, compared to $943 million in the prior quarter.
Quarterly Financial Segment Summary
• Computing and Graphics segment revenue was $659 million, up 51 percent year-over-year, driven by demand for graphics and Ryzen desktop processors.
- Operating income was $7 million, compared to an operating loss of $81 million in Q2 2016. The year-over-year improvement was driven primarily by higher revenue and improved product mix.
- Client average selling price (ASP) increased significantly year-over-year, as desktop processor ASP increased due to the first full quarter of Ryzen processor shipments.
- GPU ASP increased year-over-year.
• Enterprise, Embedded and Semi-Custom segment revenue was $563 million, down 5 percent year-over-year primarily due to lower semi-custom SoC sales. In the quarter, AMD reached an important milestone by recognizing initial revenue from EPYC datacenter processor shipments.
- Operating income was $42 million, compared to operating income of $84 million in Q2 2016. The year-over-year decrease was primarily due to lower revenue and higher datacenter related R&D investments.
• All Other operating loss was $24 million compared with an operating loss of $11 million in Q2 2016. The year-over-year difference in operating loss was related to stock-based compensation charges and a $7 million restructuring credit in Q2 2016.
Q2 2017 Highlights
- AMD launched its new “Zen” architecture-based EPYC™ 7000 series processors, returning innovation and choice to the x86 server market with record setting single and dual-socket performance and product introductions from 10 of the world’s largest server manufacturers.
- AMD introduced its upcoming high-end desktop solution targeted at the world’s fastest ultra-premium desktop systems, the Ryzen™ Threadripper™ CPU.
- AMD unveiled new details about its upcoming Ryzen™ 3 desktop CPUs.
- AMD launched its Ryzen™ PRO desktop processors, designed to bring reliability, security, and performance to enterprise desktops.
- AMD announced that Radeon Instinct™ accelerators, including Radeon Instinct MI25, MI8, and MI6, together with AMD’s open ROCm 1.6 software platform, will ship in Q3 2017.
- AMD launched the Radeon™ Vega Frontier Edition graphics card which expands the capacity of traditional GPU memory to 256TB by leveraging system memory.
- AMD introduced the Radeon™ RX 580 and Radeon™ RX 570 graphics cards, engineered using the 2nd generation Polaris architecture for smooth gaming in leading AAA games at HD resolutions and higher.
- Microsoft ® unveiled new details and branding for its Xbox One X™ (formerly “Project Scorpio”), which features an AMD semi-custom chip.
- AMD announced that it has been selected by the Department of Energy's Exascale Computing Project (ECP) to accelerate critical computing technology research for the development of the nation's first exascale supercomputers.
- At Financial Analyst Day, AMD detailed the next phase of its long-term growth strategy focused on delivering products and technologies for a combined $60 billion market for PCs, immersive devices, and datacenters.
- AMD announced the appointment of Abhi Y. Talwalkar to its board of directors.