AMD generates highest quarterly revenue since 2005

By admin On Oct 30, 2019

Spread the love

AMD’s quarterly earnings show that the company posted its highest quarterly revenue since 2005. According to AMD CEO Lisa Su, this is mainly due to the release of 7nm products such as the Ryzen 3000 series, Epyc Rome and Navi GPUs.

The company generated $1.8 billion in revenue in the past fiscal quarter, which translates to 1.62 billion euros. This is the highest quarterly revenue for AMD since the third quarter of 2005. For example, in the fourth quarter of 2005 AMD generated about $1.78 billion in sales, which, including inflation, would equate to about $2.3 billion in 2019 .

Nevertheless, the quarterly revenues increased by about 9 percent compared to last year. In the second quarter of 2019, the company generated $1.53 billion in revenue. In total, net income this quarter amounted to USD 120 million, equivalent to approximately EUR 108 million. This equates to a net margin of 6.6 percent.

According to Lisa Su, the sales increase was driven by increased sales of 7nm products, such as the Ryzen 3000 series, the new Epyc processors and Navi GPUs. However, the turnover from the sale of semi-custom chips is disappointing. Such chips are used, for example, in game consoles. According to AMD, this is in line with expectations as the market waits for next-gen consoles. Enterprise and embedded revenues also declined, but this was offset somewhat by Epyc CPU sales; AMD CPU sales to data centers have increased by 50 percent since the release of Epyc Rome.

In a conference call with shareholders, Su said AMD expects to generate $2.1 billion in revenue in the coming quarter. This would be an increase of 48 percent compared to the same quarter in 2018. The CEO further indicates that the company expects further sales increases of 7nm processors and GPUs. The release of new Threadripper CPUs and those of the Ryzen 9 3950X are hereby cited.

AMD does not want to release anything about expectations for 2020 yet. Devinder Kumar, vice president of AMD, says that the market for semi-custom chips, for example, is currently in a transition phase, so that revenues in this market segment are currently low. The PlayStation 5 and Xbox Scarlett will be released at the end of 2020, both of which will include hardware from AMD.

Intel also recently presented its quarterly figures and reports record revenue of 19.2 billion. The company states that the turnover generated in the desktop and laptop segment has decreased by 5 percent. The revenue growth comes from its Data Center Group, according to Intel. This business unit includes sales of products to data centers, but also sales of IoT devices, Mobileye products and programmable solutions. Compared to last year, the turnover of this division has increased by 6 percent.