AMD makes more profit thanks to good sales of Ryzen CPUs

AMD’s Computing and Graphics segment posted an operating profit of $115 million in the last quarter of last year. That is almost 3.5 times as much as in the previous year. AMD attributes that to good sales of Ryzen CPUs.

Revenue in the Computing and Graphics segment, which includes Ryzen CPUs and Radeon GPUs, was $986 million. That is just under 9 percent more than in the same quarter last year. According to AMD, the average price per CPU sold was higher than last year and also higher than in the previous quarter. That would be caused by the good sales of Ryzen processors. The average sales price of GPUs was also higher, which was caused by the sale of GPUs for data centers.

The Enterprise, Embedded and Semi-Custom business unit, which includes the Epyc server processors, had sales of $433 million, comparable to the year-ago quarter. The segment posted an operating loss of $6 million, according to AMD, partly due to investments made. Last year the loss was still 13 million dollars.

AMD also posted an operating loss of $81 million with its All Other segment; that’s much more than the $22 million loss a year earlier. AMD attributes this to licensing costs for older technology, which amounted to $45 million.

AMD’s total quarterly revenue came in at $1.42 billion, up 6 percent from a year earlier. Below the line, 38 million euros in net profit remained. A year earlier, a loss of $19 million was recorded in the same quarter.

Now that the figures for the fourth quarter of 2018 have been published, the figures for the full year are also known. AMD returned to profit for the first time in years. Total revenue was $6.48 billion and profits were $337 million. In 2017, revenue was $5.17 billion and the company recorded a loss of $33 million.