Summary
Advanced Micro Devices Inc. (AMD) reported strong year-over-year growth in its second quarter of 2018, with net revenue increasing by 53% to $1.76 billion. This growth was driven by a significant 64% increase in the Computing and Graphics segment, primarily due to higher sales of its Radeon™ and Ryzen™ products, and a 37% increase in the Enterprise, Embedded and Semi-Custom segment, fueled by semi-custom revenue and EPYC™ server sales. The company also achieved profitability, with net income of $116 million compared to a net loss of $42 million in the prior year's second quarter. This turnaround reflects improved gross margins to 37% and increased operating income to $153 million, signaling effective execution of its growth strategy. AMD's financial position remains solid, with cash, cash equivalents, and marketable securities at $983 million, and the company expects sufficient liquidity to fund operations.
Financial Highlights
50 data points| Revenue | $1.76B |
| Cost of Revenue | $1.10B |
| Gross Profit | $652.00M |
| R&D Expenses | $357.00M |
| SG&A Expenses | $142.00M |
| Operating Income | $153.00M |
| Interest Expense | $31.00M |
| Net Income | $116.00M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 972.00M |
| Shares Outstanding (Diluted) | 1.15B |
Key Highlights
- 1Net revenue surged 53% year-over-year to $1.76 billion, driven by strong performance in both the Computing and Graphics segment (up 64%) and the Enterprise, Embedded and Semi-Custom segment (up 37%).
- 2The company returned to profitability, reporting a net income of $116 million, a significant improvement from a net loss of $42 million in the same period last year.
- 3Gross margin improved to 37% from 34% year-over-year, attributed to the ramp-up of new, higher-margin products.
- 4Operating income reached $153 million, a substantial turnaround from an operating loss of $1 million in the second quarter of 2017.
- 5Research and Development expenses increased by 25% to $357 million, reflecting continued investment in product engineering and design.
- 6Cash, cash equivalents, and marketable securities stood at $983 million, providing a healthy liquidity position.
- 7The company is actively managing its debt, with plans to repurchase outstanding notes and maintaining compliance with its secured revolving line of credit.