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The graphics card manufacturer AMD has announced its "highest profitability in [seven] years, "but expects its revenues to fall in the next quarter due, at least in part, to lower demand from cryptocurrency miners.
The company generated sales of $ 1.42 billion in the last quarter, for a total of $ 6.48 billion in 2018, well above the total of $ 5.25 billion for 2017; announced AMD in a statement.
That said, AMD has still lost about $ 20 million of its target revenue, and this publication suggests that its revenue from the cryptographic exploitation space has completely disappeared.
"For the first quarter of 2019, AMD expects a turnover of about $ 1.25 billion, plus or minus $ 50 million, a decrease of about 12% sequentially and 24% year-on-year, "explained AMD, explaining:
"The sequential decrease should be mainly due to the continued weakness of the graphical channel and seasonality throughout the company. The decrease from one year to the next should be mainly due to the decline in graphics sales due to the excessive inventory of channels, in the absence of GPU revenues related to the blockchain and down memory sales. "
The company warned that demand from the mining sector could disappear for over a year now. CEO Lisa Su said in October 2017 that the company "predicted that demand for cryptocurrency would stabilize."
The company reiterated this prediction in its annual report 10-K last year, explaining that "the cryptocurrency market is unstable and demand could change rapidly."
The company's GPU sales could suffer from lower demand, AMD said at the time.
AMD's subsequent performance reports have proven the accuracy of these forecasts. While GPU sales to cryptocurrency miners accounted for 10% of the company's total sales in this region in the first quarter of 2018, the market share of this sector then declined in the coming months.
AMD's revenue from crypto-miners was "negligible" in the third quarter of 2018, the company said in October.
AMD image via JHVEPhoto / Shutterstock
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