http://ir.amd.com/news-releases/new...-reports-third-quarter-2018-financial-results
Highlights:
Revenue = $1.65B which was a $50M "miss" from expectations. This is up 4% y/y and down %6 Q/Q.
EPS = $0.13 (Non-GAAP, $0.01 beat), $0.09 (GAAP, $0.01 miss).
Gross Margin = 40%.
Net Income = $102M (GAAP) and $150M (Non-GAAP)
AMD gave a revenue guidance for Q4 of $1.45B which is weaker than the $1.6B expected. AMD expects gross margin to increase to 41%
Revenue in this quarter and guidance for next quarter mostly down due to high channel inventory for GPUs due mostly to the blockchain market crash. AMD expecting it to take a few quarters for the channel inventory to work back to normal seasonality.
The THATIC joint venture generate $86M in IP revenue this quarter. None expected next quarter.
Ryzen products accounted for more than 70% of client revenue this past quarter.
In notebooks, Ryzen mobile processor unit shipments doubled sequentially for the second straight quarter.
"In server, we delivered our third straight quarter of strong double-digit percentage sequential revenue and unit shipment growth."
Still expecting the exit the year with mid-single digit server share.
In professional graphics, revenue increased by a double-digit percentage from a year ago, driven by datacenter GPU sales. The 7nm Vega GPU is shipping to customers this quarter.
Console revenue continues to decrease as the consoles continue to age. AMD expects console revenue to continue to decline next year but to grow again in 2020.
When asked about how the intel shortage could effect AMD, Lisa Su said that they are seeing "pockets" of shortages and that they are working with partners and ramping to meet their needs. Lisa gave the impression that this wouldn't be too significant a boost for AMD.
AMD believes their 7 nm server chips will help them to continue to grow their server share. This lead to the following Q/A.
Mitch Steves - RBC Capital Markets LLC
Hey, guys. Thanks for taking my questions. I had two of them really quick. The first is actually on the CPU side, the server side. So, is there any reason why a 10-nanometer chip wouldn't be able to outperform your 7-nanometer product, given that you've already been able to do some of the testing on the server side?
Lisa T. Su - Advanced Micro Devices, Inc.
Maybe I would answer the question this way. When we look at our 7-nanometer product and its positioning in 2019 across the server landscape, we feel very good about the positioning. I think it's not just 7-nanometer, 7-nanometer is important, but we've also made some significant changes to the architecture as well as how – sort of the system. So, I think, overall, we feel with the design and process capabilities, that our 7-nanometer products will be quite competitive.
Highlights:
Revenue = $1.65B which was a $50M "miss" from expectations. This is up 4% y/y and down %6 Q/Q.
EPS = $0.13 (Non-GAAP, $0.01 beat), $0.09 (GAAP, $0.01 miss).
Gross Margin = 40%.
Net Income = $102M (GAAP) and $150M (Non-GAAP)
AMD gave a revenue guidance for Q4 of $1.45B which is weaker than the $1.6B expected. AMD expects gross margin to increase to 41%
Revenue in this quarter and guidance for next quarter mostly down due to high channel inventory for GPUs due mostly to the blockchain market crash. AMD expecting it to take a few quarters for the channel inventory to work back to normal seasonality.
The THATIC joint venture generate $86M in IP revenue this quarter. None expected next quarter.
Ryzen products accounted for more than 70% of client revenue this past quarter.
In notebooks, Ryzen mobile processor unit shipments doubled sequentially for the second straight quarter.
"In server, we delivered our third straight quarter of strong double-digit percentage sequential revenue and unit shipment growth."
Still expecting the exit the year with mid-single digit server share.
In professional graphics, revenue increased by a double-digit percentage from a year ago, driven by datacenter GPU sales. The 7nm Vega GPU is shipping to customers this quarter.
Console revenue continues to decrease as the consoles continue to age. AMD expects console revenue to continue to decline next year but to grow again in 2020.
When asked about how the intel shortage could effect AMD, Lisa Su said that they are seeing "pockets" of shortages and that they are working with partners and ramping to meet their needs. Lisa gave the impression that this wouldn't be too significant a boost for AMD.
AMD believes their 7 nm server chips will help them to continue to grow their server share. This lead to the following Q/A.
Mitch Steves - RBC Capital Markets LLC
Hey, guys. Thanks for taking my questions. I had two of them really quick. The first is actually on the CPU side, the server side. So, is there any reason why a 10-nanometer chip wouldn't be able to outperform your 7-nanometer product, given that you've already been able to do some of the testing on the server side?
Lisa T. Su - Advanced Micro Devices, Inc.
Maybe I would answer the question this way. When we look at our 7-nanometer product and its positioning in 2019 across the server landscape, we feel very good about the positioning. I think it's not just 7-nanometer, 7-nanometer is important, but we've also made some significant changes to the architecture as well as how – sort of the system. So, I think, overall, we feel with the design and process capabilities, that our 7-nanometer products will be quite competitive.