AMD posts 40 percent higher quarterly revenue and expects growth in 2020
AMD reported revenue of $1.79 billion in the first fiscal quarter of 2020. That’s about 40 percent higher than the same period in 2019. The company also expects annual sales to grow in 2020, despite market uncertainty.
The company had about $1.79 billion in revenue in the past fiscal quarter. Converted that is about 1.65 billion euros. Compared to the first quarter of 2019, turnover increased by 40 percent. At that time, the company had a turnover of $1.27 billion. That growth was driven by higher revenue in the computing and graphics segment, which grew 73 percent in the past fiscal year, according to AMD CEO Lisa Su. In the last quarter of 2019, AMD made $2.13 billion in revenue. At the time, the company also mentioned an expected turnover of 1.8 billion dollars. Turnover was lower than in the previous quarter and costs also rose somewhat, for example, mainly due to higher R&D costs.
Net income for the quarter was $162 million. Last year net income was $16 million. Gross margin is also up five percentage points from the previous fiscal year, thanks to sales of Ryzen and Epyc CPUs.
AMD CEO Lisa Su says the company has performed well in the “challenging” market. Su does report that the company expects uncertainty in the market during 2020, probably due to the outbreak of the new coronavirus, SARS-CoV-2, although the CEO did not specifically mention this.
In an earnings call with investors, the CEO does mention the corona virus. There, Su also says that the company expects to generate higher turnover in the next quarter. The CEO indicates that he achieves an estimated turnover of $1.85 billion, plus or minus $100 million. At the same time, the company expects its annual sales to increase by 25 percent, plus or minus five percentage points, despite the coronavirus pandemic and market uncertainty.
Intel also shared its quarterly results earlier this month. The company’s quarterly revenue was $19.8 billion. That’s an increase of 23 percent from the same quarter in 2019. Intel’s net revenue in the first fiscal quarter of 2020 was about $5.7 billion. In the first quarter of 2019, Intel generated $4 billion in net revenue.