AMD Q3 FY 2019 Earnings Report: Party Like It’s 2005
by Brett Howse on October 29, 2019 10:30 PM EST- Posted in
- CPUs
- AMD
- Financial Results
Today AMD announced their third quarter earnings for the 2019 fiscal year, and AMD has not seen revenue like this for a long time – in fact this is the highest quarterly revenue since 2005 for the company. AMD’s revenue jumped 9% year-over-year to $1.8 billion, and at least as importantly, AMD had gross margins of 43%, which is up 3% over last year, and the highest margins they’ve seen since 2012. Operating income was up 24% to $186 million, and net income was up 18% to $120 million. This resulted in earnings-per-share of $0.11, up 22% from Q3 2018.
| AMD Q3 2019 Financial Results (GAAP) | |||||
| Q3'2019 | Q2'2019 | Q3'2018 | |||
| Revenue | $1801M | $1531M | $1653M | ||
| Gross Margin | 43% | 41% | 40% | ||
| Operating Income | $186M | $59M | $150M | ||
| Net Income | $120M | $35M | $102M | ||
| Earnings Per Share | $0.11 | $0.03 | $0.09 | ||
This is the first full quarter for AMD since the launch of their 7 nm Zen 2 processor, and AMD attributes the revenue growth to the Computing and Graphics, but offset by lower revenue in Enterprise, Embedded, and Semi-Custom. Revenue for the Computing and Graphics segment was up 36% year-over-year to $1.28 billion, thanks to both increased volume and Average Selling Price (ASP) for Ryzen on the desktop. GPU ASP also increased year-over-year thanks to higher channel sales. The Computing and Graphics segment had operating income of $179 million, which is up 79% from a year ago.
| AMD Q3 2019 Computing and Graphics | |||||
| Q3'2019 | Q2'2019 | Q3'2018 | |||
| Revenue | $1276M | $940M | $938M | ||
| Operating Income | $179M | $22M | $100M | ||
Enterprise, Embedded, and Semi-Custom had revenue of $525 million for the quarter, down 27% year-over-year, mostly attributed to semi-custom sales, which makes sense since a large chunk of that is for the AMD APU powering both the Sony PlayStation 4 and Microsoft Xbox One, both of which are scheduled for new models in the next calendar year. Offsetting this was higher EPYC processor sales, although not enough of an offset to cover the semi-custom drop. Operating income for this segment was $61 million, down 29% from a year ago.
| AMD Q3 2019 Enterprise, Embedded and Semi-Custom | |||||
| Q3'2019 | Q2'2019 | Q3'2018 | |||
| Revenue | $525M | $591M | $715M | ||
| Operating Income | $61M | $89M | $86M | ||
Finally, AMD’s All Other category reported an operating loss of $54 million, which is a 50% larger loss than a year ago.
AMD had some big news in Q3, with multiple design wins for both Ryzen and EPYC, including Cray’s Shasta supercomputer leveraging 2nd Generation EPYC, and AMD getting a big design win in the PC space with the Microsoft Surface Laptop 3.
Looking ahead to Q4, AMD is expecting revenue of $2.1 billion, plus or minus $50 million, with a Non-GAAP gross margin of approximately 44%.
Source: AMD Investor Relations
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Furzeydown - Wednesday, October 30, 2019 - link
General question to anyone : has AMD ever had a $2 billion quarter, or would meeting their forecast be a first?ilt24 - Wednesday, October 30, 2019 - link
@Furzeydown ... "has AMD ever had a $2 billion quarter"Looking at quarterly data going back to 2005, their highest revenue was $1839M. Before 2005, their highest annual income was $5B in 2004, so I doubt they have ever had a $2B quarter.
https://www.macrotrends.net/stocks/charts/AMD/amd/...
Furzeydown - Wednesday, October 30, 2019 - link
grazieowan - Wednesday, October 30, 2019 - link
TBF a $1.8B quarter in 2005 > 2B quarter in 2019 in real money terms. Its an important milestone for them and a good return to form, but they're still not as big as they were back then in terms of revenue when you consider the time differenceTargon - Wednesday, October 30, 2019 - link
Give it another year. Third generation Ryzen was a big step forward, the new Epyc and Threadripper chips based on Zen2 will be amazing as well. When the Zen2 based laptop and desktop APUs hit the market, that's where sales will really improve.Spunjji - Wednesday, October 30, 2019 - link
I did a (very) brieg Google, and everything around the 2001-2004 period seems to be in the region of $900 million to $1.2 billion. Their era of dominance was a narrow one that ended decisively with Conroe, so I think a $2 billion quarter might well be a new high for them.The comparison is complicated by their 2006 purchase of ATi, though. You'd kind of expect revenues to be higher for a company that
Spunjji - Wednesday, October 30, 2019 - link
... deals in more markets. Derp.bronan - Sunday, November 3, 2019 - link
Its very hard for a company the size of AMD, people allways argue but look at the figures both nvidia and intel are hugely making profits each year.ATI was doing only well at a small market share and would have gone under, if it would not been taken over by AMD.
Now lets be honest AMD still only survives because some very large investors are paying every year alot of money to keep AMD alive. So without these investors AMD was already years gone from the market. Intel has been dominating almost every market at almost anything you can imagine beside the gpu market. nvidia still is dominating the GPU market for many years, even though for a few years AMD had the fastest ones but saleswise nvidia still was king (companies almost allways buy intel and nvidia products for what an age). For a while AMD had a few succes products in both their dominated markets, but because AMD has to invest hugely to be able to get a better product in both markets is unbelievable hard to accomplish. The proof for that is the many releases of attempts to get a product on the market to eat away a share of the 2 ruling kings.
This far it has been a rough time for AMD which was still loosing alot of money year after year.
So we must be glad that they still am here else we all would still be using a core2duo at 2.1 ghz with 2c/4t
liquid_c - Thursday, October 31, 2019 - link
While I am happy for AMD and i hope they remain, now more than ever, competitive, I also gotta point it out.. the number of fanboys AMD has on this site is both staggering and pretty annoying. How much more “AMD /EPYC is doing fiiiiine” are you gonna write before admitting that they’re far from “fine”. They didn’t operate at a loss and had *some* revenue but this against “Intel is dead in the water” is not even close to reality.BurntMyBacon - Thursday, October 31, 2019 - link
Intel isn't dead in the water. They just had an engine stall and had to restart the engine. It appears they've got the engine started again (10nm finally in high volume manufacturing), but are just starting to hit the accelerator. The question is more how much traction did AMD gain (can they continue to grow or maintain the market share gains they've earned) while Intel was stalling. I think people forget that Intel had significant momentum carrying them through this stall. They are still selling everything they are making and have yet to lose much ground in their most profitable market.