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AMD enjoys 2nd straight year of revenue & market share growth

by Mark Tyson on 30 January 2019, 09:11

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qad37s

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AMD has delivered an upbeat set of financials, publishing (PDF) its Fourth Quarter and Annual 2018 results last night. Dr Lisa Su was pleased with AMD's "second straight year of significant revenue growth, market share gains, expanded gross margin and improved profitability," and promised more exciting product launches during 2019. In particular Su highlighted the upcoming 7nm Ryzen, Radeon, and EPYC products.

Above you can see a summary table for the quarterly and annual results just published. It is quite a good custom table from AMD's presentation as it breaks down the firm's operating segments too. General financial highlights from AMD are bullet pointed below:

  • Annual results: Revenue of $6.48 billion was up 23 per cent year over year, driven by higher revenue in the Computing and Graphics segment. Gross margin was raised to 38 per cent, compared to 34 per cent a year earlier.
  • Q4 results: Revenue of $1.42 billion was up 6 per cent year over year primarily driven by the Computing and Graphics segment. Enterprise, Embedded and Semi Custom segment revenue down 14 per cent. Gross margin improvements arrived thanks to Ryzen and EPYC processor sales.

In a post-results conference call, Dr Su boasted of new products gaining market share and significantly boosting the gross margin. This lead "to our most profitable year since 2011," highlighted the AMD CEO. On the topic of GPUs, Su admitted "near-term graphics weakness," due to a stall in crypto demand (in Q4 such sales were said to be negligible). With AMD Navi introductions planned for later this year, hopefully things will pep up for AMD in this segment.

Wafer supply agreement update

AMD enetered its 7th agreement with GLOBALFOUNDRIES Inc. (GF). As you can see in the presentation slide above, AMD gains the flexibility for wafer purchases from any foundry at the 7nm node and beyond, without any one-time payments or royalties to GF.



HEXUS Forums :: 15 Comments

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“Improved profitability”

Still a pretty big loss overall though?

EDIT: No, learn to read.
Excellent news, not only for AMD, but for all PC enthusiasts including hardcore Intel fanboys. Why? Well, I'm preaching to the choir on this one, but competition is a tremendous force for good performance and price wise in the tech industry!

Personally, I absolutely cannot wait for a 3000 series (PLEASE!) APU to replace my ageing A10-7870K :)
28mil…LOL. That isn't going to catch NV/Intel. Start charging more, as I said before MARKET SHARE means NOTHING without margin on that share. Down from 150mil the year before too, not a great direction. Still I have faith they'll make some decent money once 64c server chips hit. NO faith in gpu/apu, and for good reason as we see here. They can't seem to launch a product without a price war too, so no NET INCOME until servers hit at 7nm. If they wake up and start charging correctly, maybe income goes UP. This is worse than I even thought they'd do, I thought they'd make ~100mil at least. Not that happy as a shareholder here.
nobodyspecial
… Down from 150mil the year before too …

Read the chart again. It's up 30 million from the year before - in this quarter last year AMD made a 2 million loss. It's down from the previous quarter, but ALL tech companies have seasonal cycles. It's the year-on-year that matters.
I'm not sure nobodyspecial can read as (s)he never answers people who've questioned his/her diatribes.