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AMD today announced its first quarter results of fiscal year 2019. Revenues declined 23% from one year to the next to reach $ 1.27 billion. Gross margin was 41% for the quarter, up 5% from last year, but operating income decreased 68% to $ 38 million. Net income decreased by 80% to $ 16 million and earnings per share from 87.5% to $ 0.01. But why?
| AMD Financial Results for the first quarter of 2019 (GAAP) | |||||
| Q1 & # 39; 2019 | Q4 & # 39; 2018 | Q1 & # 39; 2018 | |||
| Returned | $ 1272 million | $ 1419 million | $ 1647 million | ||
| Gross margin | 41% | 38% | 36% | ||
| Operating product | $ 38 million | $ 28 million | $ 120 million | ||
| Net revenue | $ 16 million | $ 38 million | $ 81 million | ||
| Earnings per share | $ 0.01 | $ 0.04 | $ 0.08 | ||
The recent success of AMD is mainly due to the Computer and Graphics sector. However, sales in this sector decreased by 26% from the previous year to $ 831 million. AMD states that the decline in sales of graphic channels is the main reason. It makes sense with the crash of cryptocurrency. However, the decline was offset by increased sales of client processors and GPUs. Operating income for this group was $ 16 million compared to $ 138 million a year ago.
| AMD Q1 2019 Computer and Graphics | |||||
| Q1 & # 39; 2019 | Q4 & # 39; 2018 | Q1 & # 39; 2018 | |||
| Returned | $ 831 million | $ 986 million | $ 1115 million | ||
| Operating product | $ 16 million | $ 115 million | $ 138 million | ||
Enterprise, Embedded and Semi-Custom products dropped 17% from the previous year to $ 441 million. This decline can be mainly attributed to the decline in semi-custom revenues, mainly consoles that have been on the market for several years now, but part of this decline was offset by an increase in server sales, and AMD said that margin growth Sales of Ryzen and EPYC processors as well as data center GPUs were the drivers this quarter. Despite lower revenues, operating income for this group increased 385% to $ 68 million, of which $ 60 million was attributable to a joint venture with THATIC.
| AMD T1 2019 Enterprise, Embedded and Semi-Custom | |||||
| Q1 & # 39; 2019 | Q4 & # 39; 2018 | Q1 & # 39; 2018 | |||
| Returned | $ 441 million | $ 433 million | $ 532 million | ||
| Operating product | $ 68 million | – $ 6 million | $ 14 million | ||
All others recorded an operating loss of $ 46 million, compared to a loss of $ 32 million a year ago.
AMD also announced that its Navi GPU and Rome processor would be launched in the third quarter of this year, which should help boost sales, but could have an impact on short-term sales as customers wait for the launch. new products. AMD expects revenues for the second quarter will be down about 13% from the previous year, with a forecast of $ 1.52 billion plus or minus $ 50 million.
Source: AMD Investor Relations
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