AMD Q1 FY 2019 Earnings Report: Income Down However Margins Up

AMD introduced immediately's first quarter 2019 outcomes. Income declined 23% year-on-year to $ 1.27 billion. Gross margin for the quarter elevated 5% year-on-year by 41%. Nonetheless, working revenue decreased 68% to $ 38 million. Internet revenue decreased 80% to $ 16 million and earnings per share 87.5% to $ zero.01. However why?

AMD Monetary Outcomes for First Quarter 2019 (GAAP)

Q1 & # 39; 2019
This autumn & # 39; 2018
Q1 & # 39; 2018

income
$ 1272 million
1419 million
$ 1647 million

gross margin
41%
38%
36%

working revenue
$ 38 million
$ 28 million
$ 120 million

internet revenue
$ 16 million
$ 38 million
$ 81 million

Earnings per share
$ zero.01
$ zero.04
$ zero.08

The latest success of AMD has been pushed primarily by the computing and graphics business. Nonetheless, this phase's income declined 26% year-over-year to $ 831 million. AMD claims that promoting graphics channels is the principle motive, and with the cryptocurrency crash, it is smart. Nonetheless, the decline was offset by a rise in gross sales of buyer processors and GPUs. The working revenue of this group was $ 16 million in comparison with $ 138 million a 12 months in the past.

AMD Q1 2019 Knowledge Processing and Graphics

Q1 & # 39; 2019
This autumn & # 39; 2018
Q1 & # 39; 2018

income
$ 831 million
986 million
1115 million

working revenue
$ 16 million
$ 115 million
$ 138 million

Enterprise, Embedded and Semi-Customized gross sales decreased 17% year-on-year to $ 441 million. The lower is primarily because of the decline in semi-custom gross sales, that are predominantly consoles which were in the marketplace for a number of years. Nonetheless, a part of the decline was offset by greater server revenues, and AMD stated margins had grown. This quarter was pushed by will increase in Ryzen and EPYC processor gross sales and knowledge middle GPUs. Regardless of decrease revenues, this group's working revenue elevated 385% to $ 68 million, despite the fact that $ 60 million was attributable to a three way partnership with THATIC .

AMD Q1 2019 Enterprise, Embedded and Semi-Customized

Q1 & # 39; 2019
This autumn & # 39; 2018
Q1 & # 39; 2018

income
441 million
433 million
532 million

working revenue
$ 68 million
– $ 6 million
$ 14 million

All Different had an working lack of $ 46 million in comparison with a lack of $ 32 million a 12 months in the past.

AMD additionally introduced that the Navi GPU and the Rome CPU will launch within the third quarter of this 12 months. This could then improve gross sales, however may influence short-term gross sales as clients begin to anticipate the brand new merchandise. AMD forecasts a income decline of roughly 13% year-on-year for the second quarter, with a forecast of $ 1.52 billion plus or minus $ 50 million.

Supply: AMD Investor Relations

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