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 | $1.65 | Down 23% | $1.42 | Down 10% |
| Gross margin | 41% | 36% | Up 5 pp | 38% | Up 3 pp |
| Operating expense ($M) | $543 | $477 | Up $66 | $509 | Up $34 |
| Operating income ($M) | $38 | $120 | Down $82 | $28 | Up $10 |
| Net income ($M) | $16 | $81 | Down $65 | $38 | Down $22 |
| Earnings per share | $0.01 | $0.08 | Down $0.07 | $0.04 | Down $0.03 |
Non-GAAP(*) Quarterly Financial Results
| Q1 2019 | Q1 2018 | Y/Y | Q4 2018 | Q/Q | |
| Revenue ($B) | $1.27 | $1.65 | Down 23% | $1.42 | Down 10% |
| Gross margin | 41% | 36% | Up 5 pp | 41% | Flat |
| Operating expense ($M) | $498 | $446 | Up $52 | $474 | Up $24 |
| Operating income ($M) | $84 | $152 | Down $68 | $109 | Down $25 |
| Net income ($M) | $62 | $121 | Down $59 | $87 | Down $25 |
| Earnings per share | $0.06 | $0.11 | Down $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.
