Advanced Micro Devices (NASDAQ: AMD) Is Profitable Once More – Posts GAAP EPS Of 7 Cents A Share And Beats Revenue by $139 Million
This is the moment a lot of followers of AMD have been waiting for. The sweet moment that a lot of its employees have been working towards. AMD is a profitable company once more. In its third quarter results for 2017, the company posted a non-GAAP EPS of 10 cents and a GAAP EPS of 7 cents on revenue of $1.64 Billion, which exceeds analyst expectations by roughly $139 Million.
AMD (NASDAQ:AMD 11.38 1.16%) Q3 2017 Results: Triumphant moment as Lisa Su turns the ship around, AMD posts EPS of 7 cents on the dollar, beats on revenue
This is absolutely fantastic news for pretty much everyone involved – including the consumer. A stronger AMD means stronger competition for Intel and NVIDIA and consequently better and cheaper products for the consumer. Here is what Lisa Su had to say on the occasion:
“Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago,” said Dr. Lisa Su, AMD president and CEO. “Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry.”
The company intro-ed their brand new x86 product, Threadripper as well as Vega line of GPUs. Since this marks the first real revenue quarter for these products and AMD’s anxiously awaited x86 comeback, it is little wonder that we are seeing results this good. It is almost certainly, AMD’s moment of triumph.
- Computing and Graphics segment revenue was $819 million, up 74 percent year-over-year primarily driven by strong sales of Radeon graphics and Ryzen desktop processors.
- Client average selling price (ASP) increased significantly year-over-year, due to higher desktop processor ASP driven by Ryzen processor sales.
- GPU ASP increased significantly year-over-year.
- Operating income was $70 million, compared to an operating loss of $66 million a year ago.
- Enterprise, Embedded and Semi-Custom segment revenue was $824 million, approximately flat year-over-year primarily driven by lower semi-custom SoC sales, mostly offset by IP related and EPYC processor revenue.
- Operating income was $84 million, compared to $136 million a year ago. The year-over-year decrease was primarily due to higher costs partially offset by the net benefit of IP related items.
- All Other operating loss was $28 million compared with an operating loss of $363 million a year ago. The year-over-year difference in operating loss was primarily related to the WSA charge in the year ago period.
We will be following this up with a detailed breakdown soon – so stay tuned!