AMD Reports First Quarter 2019 Financial Results

SANTA CLARA, Calif., April 30, 2019 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2019 of $1.27 billion, operating income of $38 million, net income of $16 million and diluted earnings per share of $0.01. On a non-GAAP(*) basis, operating income was $84 million, net income was $62 million and diluted earnings per share was $0.06.

 GAAP Quarterly Financial Results

  Q1 2019 Q1 2018 Y/Y Q4 2018 Q/Q
Revenue ($B)$1.27$1.65Down 23%$1.42 Down 10%
Gross margin41%36%Up 5 pp38%Up 3 pp
Operating expense ($M)$543$477Up $66$509Up $34
Operating income ($M)$38$120Down $82$28Up $10
Net income ($M)$16$81Down $65$38Down $22
Earnings per share$0.01$0.08Down $0.07$0.04Down $0.03

Non-GAAP(*) Quarterly Financial Results

  Q1 2019 Q1 2018 Y/Y Q4 2018 Q/Q
Revenue ($B)$1.27$1.65Down 23%$1.42 Down 10%
Gross margin41%36% Up 5 pp41%Flat
Operating expense ($M)$498$446Up $52$474Up $24
Operating income ($M)$84$152Down $68$109 Down $25
Net income ($M)$62$121Down $59$87 Down $25
Earnings per share$0.06$0.11Down $0.05$0.08 Down $0.02

“We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year,” said Dr. Lisa Su, AMD president and CEO. “We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth.”

Q1 2019 Results

  • Revenue was $1.27 billion, down 23 percent year-over-year primarily due to lower revenue in the Computing and Graphics segment. Revenue was down 10 percent quarter-over-quarter primarily due to lower client processor sales.
  • Gross margin was 41 percent, up 5 percentage points year-over-year, primarily driven by the ramp of RyzenTM and EPYCTM processor and datacenter GPU sales. Gross margin was up 3 percentage points quarter-over-quarter primarily due to a charge in the fourth quarter of 2018 related to older technology licenses. Non-GAAP gross margin was flat quarter-over-quarter.
  • Operating income was $38 million compared to operating income of $120 million a year ago and $28 million in the prior quarter. Non-GAAP operating income was $84 million compared to operating income of $152 million a year ago and $109 million in the prior quarter. The year-over-year decline was primarily due to lower revenue and operating income in the Computing and Graphics segment.
  • Net income was $16 million compared to net income of $81 million a year ago and $38 million in the prior quarter. Non-GAAP net income was $62 million compared to net income of $121 million a year ago and $87 million in the prior quarter. 
  • Diluted earnings per share was $0.01, compared to diluted earnings per share of $0.08 a year ago and $0.04 in the prior quarter. Non-GAAP diluted earnings per share was $0.06, compared to diluted earnings per share of $0.11 a year ago and $0.08 in the prior quarter.
  • Cash, cash equivalents and marketable securities were $1.2 billion at the end of the quarter. 

Quarterly Financial Segment Summary

  • Computing and Graphics segment revenue was $831 million, down 26 percent year-over-year and 16 percent quarter-over-quarter. Revenue was lower year-over-year primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales. The quarter-over-quarter decline was primarily due to lower client processor sales.
    • Client processor average selling price (ASP) was up year-over-year driven by Ryzen processor sales. Client ASP was down slightly quarter-over-quarter due to a decrease in mobile processor ASP.
    • GPU ASP increased year-over-year primarily driven by datacenter GPU sales. GPU ASP was up sequentially driven by improved product mix. 
    • Operating income was $16 million, compared to operating income of $138 million a year ago and operating income of $115 million in the prior quarter. The year-over-year and quarter-over-quarter operating income decreases were primarily due to lower revenue.
  • Enterprise, Embedded and Semi-Custom segment revenue was $441 million, down 17 percent year-over-year and up 2 percent sequentially. The year-over-year revenue decrease was primarily due to lower semi-custom product revenue, partially offset by higher server sales. The quarter-over-quarter increase was primarily driven by higher semi-custom revenue. 
    • Operating income was $68 million, compared to operating income of $14 million a year ago and an operating loss of $6 million in the prior quarter. The year-over-year and sequential improvements were primarily driven by a $60 million licensing gain associated with the company’s joint venture with THATIC.
  • All Other operating loss was $46 million compared with operating losses of $32 million a year ago and $81 million in the prior quarter. The prior quarter included a $45 million charge related to older technology licenses.

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