As the primary quarter 2020 earnings interval continues, up subsequent is AMD, who has reported their earnings for the primary three months of the 12 months. The firm, having fun with an accelerating turn-around in its fortunes thanks in large half to its Zen collection of CPU architectures and ensuing merchandise, has closed the books on considered one of its finest first quarters in years, with the corporate turning a tidy revenue within the course of.
For the primary quarter of 2020, AMD reported $1.79B in income, a staggering 40% leap over the identical quarter a 12 months in the past. Their finest first quarter in virtually 10 years noticed all of AMD’s metrics enhance; together with that income AMD’s web revenue jumped by $146M (over 900%) to $162M, coming in simply behind a seasonally sturdy This autumn. Meanwhile gross margins are up as properly, with AMD hitting 46%, enhancing on This autumn and leaping 5 factors greater than the year-ago quarter.
| AMD Q1 2020 Financial Results (GAAP) | |||||
| Q1’2020 | This autumn’2019 | Q1’2019 | |||
| Revenue | $1.79B | $2.13B | $1.27B | ||
| Gross Margin | 46% | 45% | 41% | ||
| Operating Income | $177M | $348M | $38M | ||
| Net Income | $162M | $170M | $16M | ||
| Earnings Per Share | $0.14 | $0.15 | $0.01 | ||
As all the time, the flag bearer for AMD is their Computing and Graphics phase, which encompasses their desktop and pocket book CPU gross sales, in addition to their GPU gross sales. That division booked $1.44B in income for the quarter, $607M (73%) greater than Q1 2020. Accordingly, the phase’s working revenue as up considerably as properly, going from simply $16M a 12 months in the past to $262M this 12 months.
| AMD Q1 2020 Computing and Graphics | |||||
| Q1’2020 | This autumn’2019 | Q1’2019 | |||
| Revenue | $1438M | $1662M | $831M | ||
| Operating Income | $262M | $360M | $16M | ||
AMD doesn’t present an in depth breakout of data from this phase, however for this quarter they’ve supplied some data on income and common promoting costs (ASPs). Overall, shopper CPU gross sales have been fairly sturdy, with AMD recording file quarterly income for notebooks thanks largely to the latest launch of its Renoir Ryzen 4000 APUs. The power of the phase result in greater ASPs on a year-over-year foundation, although curiously CPU ASPs dropped a bit over This autumn as a result of greater pocket book gross sales.
However, AMD’s graphics division ended up being a little bit of a laggard right here. GPU ASPs have been down on each a yearly and quarterly foundation, despite the fact that AMD has launched quite a few new Navi merchandise within the final 12 months. As all the time, it needs to be famous that ASPs don’t consider manufacturing prices/profitability, however I’m a bit shocked that AMD’s averages aren’t greater given their extra conservative pricing technique. Meanwhile graphics income was down on a quarterly foundation, although this isn’t sudden coming off of This autumn; and sadly, AMD didn’t present any year-over-year comparability information.
| AMD Q1 2020 Enterprise, Embedded and Semi-Custom | |||||
| Q1’2020 | This autumn’2019 | Q1’2019 | |||
| Revenue | $348M | $465M | $441M | ||
| Operating Income | -$26M | $45M | $68M | ||
Meanwhile AMD’s Enterprise, Embedded, and Semi-Custom phase noticed a really combined Q1, with the server CPU + semi-custom reporting group working a loss for the quarter. All instructed, the phase recorded $348M in income, $93M lower than Q1’19. As a consequence the phase dipped into the purple, recording an working lack of $26M.
Breaking down the phase, AMD reported that semi-custom gross sales have dropped whereas EPYC processor gross sales are up, underscoring the bizarre nature of the phase. Overall, EPYC gross sales have improved by “double digit” percentages over the earlier quarter, an essential improvement for AMD as it really works to rebuild its server market share, but it surely finally wasn’t sufficient to offset the drop in semi-custom gross sales. AMD after all continues to be…
