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 | $1.18B | Up 40% | $1.34B | Up 23% | ||||||
Gross Margin % | 36% | 32% | Up 4 pp | 34% | Up 2 pp | ||||||
Operating Expense | $477M | $394M | Up $83M | $454M | Up $23M | ||||||
Operating Expense % | 29% | 33% | Down 4 pp | 34% | Down 5 pp | ||||||
Operating income (loss) | $120M | $11M | Up $109M | $(2)M | Up $122M | ||||||
Net income (loss) | $81M | $(33)M | Up $114M | $(19)M | Up $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 | $1.18B | Up 40% | $1.34B | Up 23% | ||||||
Gross Margin % | 36% | 32% | Up 4 pp | 34% | Up 2 pp | ||||||
Operating Expense | $446M | $371M | Up $75M | $433M | Up $13M | ||||||
Operating Expense % | 27% | 31% | Down 4 pp | 32% | Down 5 pp | ||||||
Operating income | $152M | $34M | Up $118M | $19M | Up $133M | ||||||
Net income | $121M | $2M | Up $119M | $8M | Up $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