Continuing our take a look at tech trade monetary outcomes, AMD this afternoon is celebrating setting some new information in its Q2’2020 monetary outcomes. Enjoying a seamless turn-around in its fortunes t hanks in massive half to its Zen sequence of CPU architectures and ensuing merchandise, the corporate has simply closed the books on the primary yr of gross sales of its Zen 2-based desktop processors, with EPYC following shut behind. At this level AMD is now setting quarterly income information, and the corporate is anticipating to develop its income additional over the approaching months.
For the second quarter of 2020, AMD reported $1.93B in income, a 26% bounce over the identical quarter a yr in the past. As a consequence, Q2’2020 was AMD’s finest quarter ever, constructed on the again of document pocket book and server income. Overall, all of AMD’s metrics have improved in a year-over-year foundation, with web revenue up $122M (349%) to $157M, whereas the corporate’s all-important gross margin improved by three factors to 44%. In reality the one actual knock that may be made on AMD’s quarter is that they didn’t move their Q1’2020 web revenue or gross margin, which was as a result of elevated semi-custom shipments, which aren’t as worthwhile for the corporate.
| AMD Q2 2020 Financial Results (GAAP) | |||||
| Q2’2020 | Q2’2019 | Q1’2020 | |||
| Revenue | $1.93B | $1.53B | $1.79B | ||
| Gross Margin | 44% | 41% | 46% | ||
| Operating Income | $173M | $59M | $177M | ||
| Net Income | $157M | $35M | $162M | ||
| Earnings Per Share | $0.13 | $0.03 | $0.14 | ||
Once once more 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 $1.37B in income for the quarter, $427M (45%) greater than Q2 of 2019. The phase’s working revenue as up considerably as effectively, leaping from simply $22M a yr in the past to $200M this yr.
These numbers come as AMD closes the e-book on their first yr of Zen 2 product gross sales – the primary retail chips hit retailer cabinets on the very begin of Q3’2019. Since then AMD has grown their desktop chip gross sales considerably, and mixed with laptop computer gross sales the corporate is reporting their finest consumer processor income in additional than 12 years. As beforehand talked about, laptop computer gross sales noticed document income – doubling final yr’s numbers – thanks partially to AMD transport a document variety of pocket book chips.
| AMD Q2 2020 Computing and Graphics | |||||
| Q2’2020 | Q2’2019 | Q1’2020 | |||
| Revenue | $1367M | $940M | $1438M | ||
| Operating Income | $200M | $22M | $262M | ||
As for product common promoting costs (ASPs), AMD is reporting that consumer processor costs are up on a year-over-year foundation (thanks once more to Zen 2). However they’ve dropped on a quarterly foundation as a result of a higher mixture of Ryzen Mobile gross sales.
Meanwhile AMD’s GPU division seems to have as soon as once more been the laggard. While AMD doesn’t escape income numbers to particular divisions, as regards to ASPs they observe that GPU ASPs are down on each a year-over-year and quarterly foundation, as a result of decrease channel gross sales. On their earnings name, AMD has famous that whereas cell GPU gross sales are up by double digits, this was greater than offset by declines in desktop GPU gross sales. Overall, with AMD’s Q2’2019 being a considerably comfortable quarter for GPU gross sales to start with as shoppers awaited their heavily-teased Navi structure merchandise, I’m shocked to see that AMD’s ASPs nonetheless slipped this yr.
| AMD Q2 2020 Enterprise, Embedded and Semi-Custom | |||||
| Q2’2020 | Q2’2019 | Q1’2020 | |||
| Revenue | $565M | $591M | $348M | ||
| Operating Income | $33M | $89M | -$26M | ||
Finally, AMD’s Enterprise, Embedded, and Semi-Custom phase noticed a really strong Q2, because the group loved an uptick in EPYC processor gross sales. In…
