Advanced Micro Devices posted a GAAP second-quarter lack of 2 cents a share and a pair of cents a share revenue on an adjusted foundation, even because it continued with the launch of its best chips in a decade. However within the third quarter, AMD expects revenues to rise 23 % above Q2 ranges.
Relying on the way you take a look at these outcomes, it’s each good news and dangerous news, which is the place AMD has just about been for the previous decade. From AMD’s perspective, the longer term will only get higher.
AMD has been caught across the breakeven stage for some time, however the brand new Ryzen chips launched as early as March didn’t actually assist the corporate a lot up to now. That’s the dangerous news. However the good news is that the pipeline of getting chips into new computer systems and within the fingers of consumers takes some time, and AMD is in the course of that. AMD’s outcomes had been near breakeven, however they had been barely higher than expectations.
The Sunnyvale, California-based chip maker is the No. 2 maker of PC processors behind Intel, and its outcomes are a bellwether for the PC business. The corporate is within the midst of launching its Ryzen desktop processors and Epyc server processors, which AMD claims will take the efficiency crown away from Intel for the primary time in a decade. AMD has additionally announced its new Vega graphics processing models for high-end computer systems in competitors with graphics chip maker Nvidia.
“Our second quarter results demonstrate strong growth driven by leadership products and focused execution,” stated Lisa Su, AMD president and CEO, in an announcement. “Our Ryzen desktop processors, Vega GPUs, and Epyc data center products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”
The Ryzen and Epyc households are based mostly on AMD’s Zen cores, that are 52 % quicker per clock cycle than AMD’s earlier era. The chips symbolize AMD’s core technique of attempting to out-innovate Intel, which has monumental monetary, manufacturing, and manpower benefits.
Analysts anticipated AMD to report a lack of three cents a share on a GAAP foundation, and a breakeven quarter on an adjusted foundation. In the identical quarter a yr in the past, AMD reported a revenue of eight cents a share.
Analysts additionally anticipated AMD to report gross sales of $1.16 billion. Precise income within the second quarter was $1.22 billion, up 19 % from a yr in the past. Gross sales had been pushed by the primary full quarter of Ryzen processor gross sales. Common promoting costs had been up considerably from a yr in the past.
The GAAP web loss was $16 million in comparison with web earnings of $69 million a yr in the past and a web lack of $73 million within the prior quarter. Loss per share was 2 cents, in comparison with eight cents a yr in the past. On an adjusted foundation, web earnings was $19 million in comparison with a web lack of $40 million a yr in the past and a web lack of $38 million within the prior quarter. Diluted earnings per share was 2 cents, in comparison with a loss per share of 5 cents a yr in the past and a loss per share of Four cents within the prior quarter.
AMD stated that semi-custom chip gross sales, which embrace chips for sport consoles, had been down 5 % from a yr in the past.
AMD recently announced pricing and availability for its Ryzen three and Ryzen Threadripper client desktop processors, and the chip maker touted costs that undercut Intel’s comparable central processing models (CPUs) by as a lot as $1,000. However these chips began transport within the third quarter, after the June 30 finish of the second quarter.
AMD additionally unveiled the pricing and launch dates for its two Ryzen Threadripper CPUs for high-end desktops. The fashions embrace a 12-core, 24-thread Ryzen Threadripper 1920X with a three.5-GHz base velocity and Four.Zero-GHz increase; and a 16-core, 32-thread Ryzen Threadripper 1950X at a three.Four-GHz base and Four.Zero-GHz increase. These chips can be available in early August. The 1920X sells $800 and the 1950X sells for $1,000.
For the third quarter of 2017, AMD expects income to extend roughly 23 % sequentially, plus or minus three %. The midpoint of steering would lead to third quarter 2017 income growing roughly 15 % year-over-year. AMD now expects annual income to extend by a mid to high-teens proportion, in comparison with prior steering of low double-digit proportion income progress.