AMD Q2 FY 2019 Quarterly Profit Report
AMD announced its second-quarter earnings for fiscal 2019, with company revenue of $ 1.53 billion for the quarter. This is a decrease of 13% compared to the same quarter last year. Gross margin improved from 37% to 41% compared to the previous year. Operating income is $ 59 million, down from $ 153 million a year ago, and net income is down $ 81 million to $ 35 million. This resulted in a $ 0.03 earnings per share.
|AMD Q2 2019 Financial Results (GAAP)|
| Q2 & # 39; 201
||Q1 & # 39; 2019||Q2 & # 39; 2018|
|Revenue||$ 1531M||$ 1272M  $ 1756M|
|Operating income||$ 59M||$ 38M||$ 153 million|
|net income||$ 35 million||$ 16 million||$ 116 million|
|earnings per share||0.03||$ 0.01||$ 0.12|
Although AMD was in the black for another quarter, this is certainly a decline that AMD does not expect to continue. Their Q3 2019 forecast is a 9% year-over-year increase in revenue of up to $ 1.8 billion, and they recently released new products that could help them reach those goals.
|AMD Q2 2019 Computing and Graphics|
| Q2 & # 39; 2019||Q1 & # 39; 2019||Q2 & # 39; 2018|
|Revenue||$ 940M||$ 831M||$ 1086M|
|Operating income||$ 2265||$ 2265||$ 22 M||$ 117M|
Looking back at Q2, computer and graphic technology revenue declined 13% to $ 940 million , and AMD attributes this decline to lower graphics channel sales. This decline was slightly offset, although higher sales of CPUs to customers and GPUs. Also good for AMD and their investors is that their average sales price for client processors has increased thanks to more Ryzen sales, and the average GPU sales price has also increased thanks to GPU data processing sales. The Computers and Graphics sector had operating income of $ 22 million for the quarter, up from $ 117 million a year ago.
|AMD Q2 2019 Enterprise, Embedded and Semi-Custom|
|Q2 & # 39; 2019||Q1 & # 39; 2019||Q2 & # 39; 2018|
|Revenue||$ 591M||$ 441M||$ 670M|
|Operating income||$ 89M||$ 68M||$ 69M||$ 69M||$ 69M||$ 69M||$ 69M||$ 69M|| Another major segment of AMD is their Enterprise, Embedded and Semi-Custom, with this product group also reporting a 12% drop in revenue to $ 591 million for the quarter. AMD attributes this decline to lower revenue from semi-customized products that you can read more or less as console sales, and that makes sense since current-generation consoles are near the end of their lives, but so is Microsoft, and Sony have committed to AMD platforms for their next-generation consoles, so expect the fortunes of this segment to get a little better. Operating income was $ 89 million for this group, up from $ 69 million last year. The higher operating income is due to higher sales of EPYC processors, which is also a great sign for this segment. |
Although revenue for the quarter certainly saw a decline, AMD just released its latest third-generation Ryzen this month, which would not be counted in its Q2 earnings, which ended on June 29. As we saw in our review, this is a great step forward for AMD's design processors, and they also released their Navi-based navigation processors in July, so it makes sense to see a dip before launching the main product. We will be monitoring their Q3 results, but as mentioned above, they expect it to be a short-term decline and with their new product range this seems like a safe bet.
Source: AMD Investor Relations