AMD Quarterly Report Q2 FY 2019
AMD announced its second-quarter earnings for the 2019 fiscal year and generated $ 1.53 billion in revenue for the quarter. This is a decrease of 13% compared to the same quarter last year. The gross margin improved from 37% in the previous year to 41%. Operating income was $ 59 million, compared to $ 153 million a year ago, and net income decreased $ 81 million to $ 35 million. This resulted in earnings per share of $ 0.03.
|AMD Q2 2019 – Financial Results (GAAP)|
| Q2 ̵
||Q2 – 2019||Q2 –|
|Sales||$ 1531Mio.||$ 1,272million.||$ 1756 million.|
|Operating income||$ 59Mio. $ 153 million|
|Net Income||$ 35 million||$ 16 million||$ 116 million|
|Earnings per share||$ 0.03||$ 0.01  0.12 USD|
Although AMD was in the black range Another quarter, this is certainly a decline that AMD does not expect forever. Their forecast for the third quarter of 2019 is based on an increase in sales of 9% over the previous year to $ 1.8 billion. Recently, they have launched new products that help them achieve these goals.
|AMD Q2 2019 Computing and Graphics|
| Q2 & 2019||Q1 & # 39; 2019||Q2 & 2018|
|Sales||$ 940 million||$ 831 million USD||$ 1086 million|
|Operating income [196590022659MUS$||$ 117 million|
Computing and graphics revenues decreased 13% to $ 940 million in the second quarter. AMD attributes this decline to lower graphics channel revenue. However, this decline was easily offset by higher sales of client CPUs and data center GPUs. It's also good for AMD and its investors that their average selling price for customer processors has increased thanks to more Ryzen sales and the average selling price for GPUs has also increased thanks to GPU sales in the data center. The Computing and Graphics segment generated $ 22 million in operating income in the first quarter, compared to $ 117 million in the prior year.
|AMD Q2 2019 Enterprise, Embedded and Semi-Custom|
|& # 39; 2019||Q2 & 2018|
|Sales||$ 591 million||$ 441 million||$ 670 million|
|Operating income||$ 89 million||$ 68 million|| The other important segment of AMD is Enterprise, Embedded and Semi-Custom. In this product group, quarterly revenues also decreased 12% to $ 591 million. AMD attributes this decline to lower sales of semi-custom products, which you can more or less call console sales. This makes sense as the consoles of the current generation reach the end of their lives. However, both Microsoft and Sony have committed to AMD platforms for their next generation consoles. So expect the assets of this segment to improve soon. The operating income for this group was $ 89 million, compared to $ 69 million a year ago. The higher operating result is due to higher sales of EPYC processors, which is also a good sign for this segment. |
While sales were certainly down in the quarter, AMD just launched the third generation Ryzen this month, which was not reflected in their Q2 earnings, which ended June 29. As we saw in our review, this is a big step forward for the AMD processor design. In addition, they launched their navigation-based GPUs in July. Therefore, it makes sense to see a decline before a major product launch. We will keep an eye on their results for the third quarter, but as mentioned above, they expect a short-term decline, and with their new product range this seems to be a safe bet.
Source: AMD Investor Relations