Home General Various News AMD reports net loss of US$16 million for 2Q17

AMD reports net loss of US$16 million for 2Q17

229

  • Register
Taipei, Wednesday, July 26, 2017 17:46 (GMT+8)
thunderstorms
Taipei
36°C

  • Article
  • . (0)
  • Related content
Print Email

AMD reports net loss of US$16 million for 2Q17
Joseph Tsai, DIGITIMES, Taipei [Wednesday 26 July 2017]

AMD has announced second-quarter 2017 revenues of US$1.22 billion, operating income of US$25 million, and net loss of US$16 million, or negative US$0.02 per share. On a non-GAAP basis, operating income was US$49 million, net income was US$19 million, and earnings per share came to US$0.02.

On a GAAP basis, revenues in the second quarter were up 19% on-year to reach US$1.22 billion, driven by higher revenues in the Computing and Graphics segment. Revenues were up 24% sequentially, driven by increased sales in both business segments. Gross margin was 33%, up 2pp on year due to a richer product mix and a higher percentage of revenues from the Computing and Graphics segment, driven by the first full quarter of Ryzen processor sales, according to the company.

On a sequential basis, gross margin declined 1pp due to a higher percentage of revenues from the Enterprise, Embedded and Semi-Custom segment. Operating income was US$25 million compared to an operating loss of US$8 million a year ago and an operating loss of US$29 million in the prior quarter. Net loss was US$16 million compared to net income of US$69 million a year ago and a net loss of US$73 million in the prior quarter. Loss per share was US$0.02 compared to diluted earnings per share of US$0.08 a year ago (which included a pre-tax gain of US$150 million related to ATMP JV transaction) and a loss per share of US$0.08 in the prior quarter.

On a non-GAAP basis, operating income was US$49 million compared to operating income of US$3 million a year ago and an operating loss of US$6 million in the prior quarter. Net income was US$19 million compared to a net loss of US$40 million a year ago and a net loss of US$38 million in the prior quarter. Diluted earnings per share were US$0.02 compared to a loss per share of US$0.05 a year ago and a loss per share of US$0.04 in the prior quarter.

Cash, cash equivalents, and marketable securities were US$844 million at the end of the quarter, compared to US$943 million in the prior quarter.

Quarterly financial segment summary

Computing and Graphics segment revenues were US$659 million, up 51% on year, driven by demand for graphics and Ryzen desktop processors.

Operating income was US$7 million, compared to an operating loss of US$81 million in the second quarter of 2016. The on-year improvement was driven primarily by higher revenues and improved product mix.

Client average selling price (ASP) increased significantly on year, as desktop processor ASP increased due to the first full quarter of Ryzen processor shipments, while GPU ASP increased on year.

Enterprise, Embedded and Semi-Custom segment revenues were US$563 million, down 5% on year primarily due to lower semi-custom SoC sales. In the quarter, AMD said it reached an important milestone by recognizing initial revenues from EPYC datacenter processor shipments.

Operating income was US$42 million, compared to operating income of US$84 million in the second quarter of 2016. The on-year decrease was primarily due to lower revenues and higher datacenter related R&D investments.

All other operating loss was US$24 million compared with an operating loss of US$11 million in the second quarter of 2016. The on-year difference in operating loss was related to stock-based compensation charges and a US$7 million restructuring credit in the second quarter of 2016.

For the third quarter of 2017, AMD expects revenues to increase approximately 23% sequentially, plus or minus 3pp. The midpoint of guidance would result in third quarter 2017 revenue increasing approximately 15% on year. AMD now expects annual revenues to increase by a mid to high-teens percentage, compared to prior guidance of low double digit percentage revenue growth.

AMD GAAP financial results, 2Q17 (US$m)

2Q17

1Q17

2Q16

Revenues

1,220

984

1,030

Operating income (loss)

25

(29)

(8)

Net income (loss)

(16)

(73)

69

Earnings (loss) per share (US$)

(0.02)

(0.08)

0.08

Source: Company, compiled by Digitimes, July 2017

AMD Non-GAAP financial results, 2Q17 (US$m)

2Q17

1Q17

2Q16

Revenues

1,220

984

1,030

Operating income (loss)

49

(6)

3

Net income (loss)

19

(38)

(40)

Earnings (loss) per share (US$)

0.02

(0.04)

(0.05)

Source: Company, compiled by Digitimes, July 2017

Tweet

Categories: IT + CE IT components, peripherals

Tags: 2017 2Q17 AMD desktop embedded GPU gross margin loss processor product revenues sales shipments SoC

    Related stories

  • AMD appoints Abhi Talwalkar to board of directors (Jul 4)
  • AMD launches Ryzen PRO desktop processors for professional-grade performance (Jun 30)
  • AMD launches new graphics card for machine learning (Jun 28)
  • AMD launches Zen-based datacenter processors and new GPU accelerators for servers (Jun 21)
  • AMD top-end CPU adopted in new Dell gaming PC (Jun 20)
  • Computex 2017: AMD exhibits PC innovations covering CPU, GPU and servers (Jun 1)

WCIT
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
Sponsored links
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.

Buy link

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here