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AMD Q2 2017 earnings

raghu78

Diamond Member
Aug 23, 2012
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http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsarticle&ID=2288687

AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2017 of $1.22 billion, operating income of $25 million, and net loss of $16 million, or $(0.02) per share. On a non-GAAP(1) basis, operating income was $49 million, net income was $19 million, and earnings per share was $0.02.


“Our second quarter results demonstrate strong growth driven by leadership products and focused execution," said Dr. Lisa Su, AMD president and CEO. "Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”

Quarterly Financial Segment Summary

• Computing and Graphics segment revenue was $659 million, up 51 percent year-over-year, driven by demand for graphics and Ryzen desktop processors.

  • Operating income was $7 million, compared to an operating loss of $81 million in Q2 2016. The year-over-year improvement was driven primarily by higher revenue and improved product mix.
  • Client average selling price (ASP) increased significantly year-over-year, as desktop processor ASP increased due to the first full quarter of Ryzen processor shipments.
  • GPU ASP increased year-over-year.
• Enterprise, Embedded and Semi-Custom segment revenue was $563 million, down 5 percent year-over-year primarily due to lower semi-custom SoC sales. In the quarter, AMD reached an important milestone by recognizing initial revenue from EPYC datacenter processor shipments.
  • Operating income was $42 million, compared to operating income of $84 million in Q2 2016. The year-over-year decrease was primarily due to lower revenue and higher datacenter related R&D investments.
• All Other operating loss was $24 million compared with an operating loss of $11 million in Q2 2016. The year-over-year difference in operating loss was related to stock-based compensation charges and a $7 million restructuring credit in Q2 2016.
 

formulav8

Diamond Member
Sep 18, 2000
7,003
522
126
Looks good to me. Around an 10% increase in after hours, For me on my stock is good news. But also the web cast from AMD. While i've made more on my Intel stock than AMD, hopefully I will do better this go round with AMD.
 

positivedoppler

Golden Member
Apr 30, 2012
1,043
120
106
If you have Intel shares, you better offload it now. AMD has obviously cut deeply into their consumer cpu sales. Laptap is next. If EPYC performs, their data center is threaten. Intel needs that fat margin to maintain their FAB superiority which at this point is arguably gone. If AMD is a threat to them on all front(and looks like it's happening), then Intel does not have a prayer to compete against TSMC and Samsung. They failed at mobile, CPU became stagnant, and now someone is knocking at their datacenter. Rome will soon burn to the ground.
 

Phynaz

Lifer
Mar 13, 2006
10,140
817
126
If you have Intel shares, you better offload it now. AMD has obviously cut deeply into their consumer cpu sales. Laptap is next. If EPYC performs, their data center is threaten. Intel needs that fat margin to maintain their FAB superiority which at this point is arguably gone. If AMD is a threat to them on all front(and looks like it's happening), then Intel does not have a prayer to compete against TSMC and Samsung. They failed at mobile, CPU became stagnant, and now someone is knocking at their datacenter. Rome will soon burn to the ground.
Intel is obviously doomed. I mean how long can they stay in business with a net income greater than AMD's entire revenue?
 

FIVR

Diamond Member
Jun 1, 2016
3,753
907
106
My calls will be worth bank tomorrow. I wonder if I should hold them till friday?


Considering rolling them into INTC puts for the bloodbath after their earnings. Fun times.
 

maddie

Diamond Member
Jul 18, 2010
3,513
2,497
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Intel is obviously doomed. I mean how long can they stay in business with a net income greater than AMD's entire revenue?
What does that have to do with Intel's stock price almost certainly heading for drop?

Serious question.
 

DooKey

Golden Member
Nov 9, 2005
1,669
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Cool. I hope AMD thrives. I have no issues going back AMD 100% like I did back in the A64 days.. They just need to give me moar performance!
 
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SlowSpyder

Lifer
Jan 12, 2005
17,305
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Its still early, but so far Ryzen is proving to be a tremendously successful product for AMD. Glad to see their business getting healthier.
 
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raghu78

Diamond Member
Aug 23, 2012
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Yes. Intel stated that last quarter.
2017 is a teaser. EPYC has just started selling and given that server qualification cycles could take up to 4 quarters the real damage from EPYC will start showing up in 2018 in Intel's financials. Ryzen APU should launch by late 2017 for notebooks and in Q1 2018 for desktops. Intel's yet to feel the real brunt of AMD's Zen onslaught. 2018 is when that starts to happen.

https://seekingalpha.com/article/4090497-advanced-micro-devices-amd-q2-2017-results-earnings-call-transcript?part=single

"Sure, Mark. Thanks for your questions. So we are very pleased with the reception to EPYC. The launch that we did in June was very well-received. We had a number of customers as well as partners, OEM providers, ODM guys, as well as cloud providers who participated in that. The general reception has been very positive. I would say that interest level is very high. In fact, we're adding additional customer support to really ensure that we help customers get their platforms up and running.

In terms of what to expect in the revenue ramp, we started shipping early volume in the second half of June. We would expect that we continue to ramp that revenue through the second half of the year. We would expect some additional customer announcements in the second half of the year.

And then as we stated with both cloud and the enterprise accounts, depending on their qualification cycles, it can take anywhere up to four quarters to qualify the parts. But so far so good. I think very good traction, and we continue to lean in hard on the datacenter opportunities"
 
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Aug 11, 2008
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Sooner or later though the mining craze will die out and the market will be flooded with cheap used cards. AMD desperately needs competitive mid/high and high end cards. They have been without them far too long.
 

ecogen

Golden Member
Dec 24, 2016
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Sooner or later though the mining craze will die out and the market will be flooded with cheap used cards. AMD desperately needs competitive mid/high and high end cards. They have been without them far too long.
What AMD needs is to get a decent foothold in the server market. GPUs are chump change compared to that, and by the looks of things they're gonna get that. Also they have competitive mid-range cards, it's just in the high-end segment that they've shit the bed (at least by all indications about VEGA so far).
 

stockolicious

Member
Jun 5, 2017
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Yes. Intel stated that last quarter.
if you saw INTC's new product launch and watched them do a 38 slide "Hit piece" on AMD i would say that Intel knows there are going to be changes. There are 2 things really hurting INTC going forward
1) Their cost structure for CPU's with their Monolithic design doesn't work anymore - AMD is making a 32 core server ship that doesnt even cost them $1,000 - the yields are much higher than intel's due to the approach.
2) INTC seems to have been stuck in the mudd with their manufacturing advantage - it is going away on them.

what some people dont understand is that AMD is in a situation where they have not made a dime but have already won. They are going to get server share because they can produce the chips so easily and they perform well. For every 1% server share AMD gets its .10c per share EPS. This is server only not to mention the rest of their business. AMD is going to make a fortune once all the new products are ramped up.
 
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kawi6rr

Senior member
Oct 17, 2013
567
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I bought AMD Shares at 3.9 and 1.6 when they dropped a few years ago :) I have an auto unload when it hits 15 so I'm pretty happy not just for me but for AMD getting back in the game.
 
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Phynaz

Lifer
Mar 13, 2006
10,140
817
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What AMD needs is to get a decent foothold in the server market. GPUs are chump change compared to that, and by the looks of things they're gonna get that.
GPU's in the data center are the future.
 

Phynaz

Lifer
Mar 13, 2006
10,140
817
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They are going to get server share because they can produce the chips so easily and they perform well.
AMD's current server share is essentially 0%, so of course they are going to get market share. You're stating the obvious here.

As far as producing chips "so easily", I don't understand what you mean. If chips were "easy" to produce fabs wouldn't cost billions.
 

raghu78

Diamond Member
Aug 23, 2012
4,093
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AMD's current server share is essentially 0%, so of course they are going to get market share. You're stating the obvious here.

As far as producing chips "so easily", I don't understand what you mean. If chips were "easy" to produce fabs wouldn't cost billions.
Obviously semiconductor manufacturing is a very complex technology. But in the current context of server CPUs from AMD and Intel manufacturing a 200 sq mm Zen at high yields die is much easier than manufacturing a massive 650 - 700 sq mm monolithic die. Infinity Fabric is truly a masterstroke by AMD.
 

DooKey

Golden Member
Nov 9, 2005
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Obviously semiconductor manufacturing is a very complex technology. But in the current context of server CPUs from AMD and Intel manufacturing a 200 sq mm Zen at high yields die is much easier than manufacturing a massive 650 - 700 sq mm monolithic die. Infinity Fabric is truly a masterstroke by AMD.
I think you might be as overly optimistic as you have always been. How about we see how things play out? Makes no sense to be a fan of a company and spout how much they are going to beat another without the data to match the claim. I've seen this over an over again for all of the tech companies and their "fans". Silly if you ask me.
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,045
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Whilst AMD should turn a profit in a qtr or two, am I the only one who is surprised they didn't make a profit this qtr?
 
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