Yesterday AMD announced their financial results for the second quarter of the 2018 fiscal year, and calling it better than expected would be a huge understatement. With AMD posting their best quarter in over seven years, AMD started the year off dropping a pipe bomb announcing that it had achieved a profit within the fourth-quarter of 2017, a first since 2011.
But it doesn’t seem to end there as AMD have announced they had achieved revenue sales of $ 1.76 billion, a 53 percent increase year-over-year. An operating income of $153M, net income of $116M and a diluted earnings per share of $0.11 while gross margins have risen to 37%.
Looking at the non-GAAP numbers we see an operating income of $186M a net income of $156M and a diluted earnings per share of $0.14.
“We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,” said Dr. Lisa Su, AMD president and CEO. “Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”
The huge increase year-over-year and firm improvements sequentially are driven by increase in sales of all AMD’s markets. With AMD’s Computing and Graphics segment landing a $1.09 Billion revenue for the quarter. A 64 percent increase in revenue year-over-year though a 2.6 percent decline sequentially. Operating income was $117M, $110M better off year-over-year though a 15 percent drop from the previous quarter. The steady increase in growth is attributed by a strong double-digit increase for Ryzen and Ryzen Mobile doubled sequentially. Radeon Graphics sales are down due to a decline in blockchain revenue although it is not very significant being only 4 percent it is highly likely for it to continue to decline as time goes on.
Along with AMD’s Enterprise, Embedded and Semi-Custom market shows $670M in revenue up $180M year-over-year. Operating income is also up rising from $16M to $69M year-over-year and rising from $14M sequentially. Noticeably driven a 50% increase in EPYC units and revenue showing a consistent upwards trajectory for their enterprise products.
This may be the best in a long time for AMD but the best is yet to come. AMD holds a very strong position to continue to improve sales with Ryzen and other markets. The launch of Threadripper 2 is surely going to shake things up a little in the “HEDT” market and with AMD sampling their next generation EPYC on the 7nm process, based on the Zen 2 architecture with a targeted launch in 2019. I am fairly confident in AMD’s ability to continue to hold ground if not chip away slightly at market share on most markets at least until the new year. Come 2019 we will be seeing AMD firing on all cylinders…. a scary sight to behold indeed.