SANTA CLARA, Calif., July 25, 2018 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2018 of $1.76 billion, operating income of $153 million, net income of $116 million and diluted earnings per share of $0.11. On a non-GAAP⁽¹⁾ basis, operating income was $186 million, net income was $156 million and diluted earnings per share was $0.14.

GAAP Financial Results

Non-GAAP⁽¹⁾ Financial Results

“We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,” said Dr. Lisa Su, AMD president and CEO. “Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”

Q2 2018 Results

• Revenue was $1.76 billion, up 53 percent year-over-year and 7 percent quarter-over-quarter. The year-over-year increase was driven by higher revenue in both the Computing and Graphics and Enterprise, Embedded and Semi-Custom business segments. The sequential increase was driven by higher revenue in the Enterprise, Embedded and Semi-Custom segment.
• Gross margin grew to 37 percent, up 3 percentage points year-over-year, driven by the ramp of new products. On a sequential basis, gross margin was up 1 percentage point primarily driven by a richer mix of revenue in the Enterprise, Embedded and Semi-Custom segment.
• On a GAAP basis, operating income was $153 million compared to an operating loss of $1 million a year ago and operating income of $120 million in the prior quarter.
• Net income was $116 million compared to a net loss of $42 million a year ago and net income of $81 million in the prior quarter. Diluted earnings per share was $0.11, compared to a loss per share of $0.04 a year ago and diluted earnings per share of $0.08 in the prior quarter.
• On a non-GAAP⁽¹⁾ basis, operating income was $186 million compared to operating income of $23 million a year ago and $152 million in the prior quarter.
• Non-GAAP⁽¹⁾ net income was $156 million compared to a net loss of $7 million a year ago and net income of $121 million in the prior quarter. Non-GAAP diluted earnings per share was $0.14, compared to a loss per share of $0.01 a year ago and diluted earnings per share of $0.11 in the prior quarter.
• Cash, cash equivalents and marketable securities were $983 million at the end of the quarter.

Quarterly Financial Segment Summary

• Computing and Graphics segment revenue was $1.09 billion, up 64 percent year-over-year and down 3 percent quarter-over-quarter. Year-over-year revenue growth was driven by strong sales of Radeon™ products and continued growth of Ryzen™ products. The quarter-over-quarter decline was primarily related to lower revenue from GPU products in the blockchain market.
  • Client processor average selling price (ASP) was lower year-over-year and quarter-over-quarter primarily due to lower desktop processor ASP, partially offset by higher mobile processor ASP.
  • GPU ASP increased year-over-year driven by Radeon products for the channel and datacenter. GPU ASP increased quarter-over-quarter driven by GPU sales for datacenter.
  • Operating income was $117 million, compared to operating income of $7 million a year ago and operating income of $138 million in the prior quarter. The year-over-year operating income improvement was primarily driven by higher revenue. The quarter-over-quarter operating income decline was primarily due to lower revenue and higher operating expenses.
• Enterprise, Embedded and Semi-Custom segment revenue was $670 million, up 37 percent year-over-year and 26 percent quarter-over-quarter primarily due to higher semi-custom and server revenue.
  • Operating income was $69 million, compared to operating income of $16 million a year ago and operating income of $14 million in the prior quarter. The year-over-year and quarter-over-quarter increases were primarily due to higher revenue.
• All Other operating loss was $33 million compared with operating losses of $24 million a year ago and $32 million in the prior quarter.