Summary
Advanced Micro Devices, Inc. (AMD) reported its second quarter and first half fiscal year 2017 results. For the second quarter, net revenue increased by 19% year-over-year to $1.22 billion, driven by a significant 51% increase in the Computing and Graphics segment, largely due to higher sales of graphics processors and AMD Ryzen desktop processors. This growth, coupled with improved product mix, led to a gross margin of 33%, up from 31% in the prior year's quarter. The company swung to an operating income of $25 million from an operating loss of $8 million in the same period last year. However, the six-month period presented a mixed picture. While net revenue grew 19% to $2.21 billion, the company incurred an operating loss of $4 million compared to a loss of $76 million in the prior year. This was influenced by increased R&D expenses, particularly in the Enterprise, Embedded, and Semi-Custom segment, and a decrease in revenue from semi-custom SoC products. The company's cash position decreased to $760 million from $1.26 billion, primarily due to working capital changes, including significant wafer purchases. AMD continues to invest heavily in product development, anticipating future growth from its new product lines.
Financial Highlights
54 data points| Revenue | $1.15B |
| Cost of Revenue | $765.00M |
| Gross Profit | $386.00M |
| R&D Expenses | $285.00M |
| SG&A Expenses | $127.00M |
| Operating Income | -$1.00M |
| Interest Expense | $32.00M |
| Net Income | -$42.00M |
| EPS (Basic) | $-0.04 |
| EPS (Diluted) | $-0.04 |
| Shares Outstanding (Basic) | 945.00M |
| Shares Outstanding (Diluted) | 945.00M |
Key Highlights
- 1Net revenue for the second quarter of 2017 increased 19% year-over-year to $1.22 billion.
- 2The Computing and Graphics segment saw a significant 51% revenue increase, driven by graphics processors and AMD Ryzen desktop processors.
- 3Gross margin improved to 33% from 31% year-over-year, reflecting a richer product mix and higher revenue from the Computing and Graphics segment.
- 4The company achieved operating income of $25 million in Q2 2017, a significant improvement from an operating loss of $8 million in Q2 2016.
- 5Despite revenue growth, the six-month period resulted in an operating loss of $4 million, with increased R&D expenses impacting profitability.
- 6Cash, cash equivalents, and marketable securities decreased to $844 million from $1.26 billion at the end of 2016, largely due to working capital changes and inventory build-up.
- 7AMD launched new products including Ryzen 5 and Ryzen PRO desktop processors, Radeon 500 series graphics cards, and EPYC 7000 series datacenter processors.