It cannot be said that the notorious “cryptocurrency factor” completely fell out of sight of those who undertook to analyze AMD’s latest quarterly report today, but its influence in many cases turned out to be more pronounced than expected. On the other hand, the first quarter of this year in statistics has to be compared with the same period last year, and then the demand for video cards went off scale precisely from those who used them to mine cryptocurrencies. In official comments, AMD management had to refer to these circumstances even when forming a forecast for the second quarter of this year.
So, according to the results of the first quarter, AMD managed to gain $1,27 billion, which exceeds analysts' expectations. The price of the company's shares in the first hours after the announcement of the statistics rose by five percent. Compared to the first quarter of the previous year, revenue was down 23%, and the company tends to blame the 34% decline in client product and graphics revenue, to $823 million. In a sequential comparison, there was a 10% decline in CPU revenue. But revenue from the sale of Ryzen processors, EPYC and GPUs for server applications has more than doubled year-on-year.
Consider the main trends that were expressed in the activities of the AMD division responsible for the release of client products and graphics:
- Revenue Decreased 26% YoY Mostly Due to GPUs
- Revenue down 16% sequentially due to impact from CPUs
- The average selling price of client processors increased mainly due to the growth in sales of Ryzen family processors
- In a sequential comparison, the average selling price of processors was negatively affected by a decrease in the average selling price of mobile models
- GPU Average Realization Price Increased YoY Due to Higher Sales Volumes of Data Center GPUs
- In a sequential comparison, the average price of a GPU increased due to an increase in the share of more expensive products in the sales structure.
AMD achieved a 41% Non-GAAP margin, in line with the previous quarter. In an annual comparison, the rate of return increased by five percentage points. This dynamic has been fueled by the growing popularity of Ryzen and EPYC processors, as well as GPUs for server applications.
AMD had operating income of $38 million and net income of $16 million on a GAAP basis. You won’t run away especially, but it must be admitted that the company is not formally pursued for losses either. The Computing and Graphics division reduced operating income by $122 million year-on-year and $99 million sequentially.
The EESC division, which provides enterprise, embedded and semi-custom products, generated $441 million in revenue in the first quarter. This is 17% less than a year earlier, but 2% more than in the previous quarter. The decline in revenue is affected by the cyclical sales of game consoles that use AMD components. However, the company made a separate line mentioning that Sony's next-generation console will use a solution that combines Zen 2 computing cores with Navi graphics architecture. Revenue from the sale of server processors grew significantly compared to last year, in physical terms, sales of EPYC processors increased quarter-on-quarter.
AMD ended the quarter with $1,2 billion in cash, R&D spending remained flat, but marketing and advertising spending increased markedly. In the second quarter of this year, AMD expects to gain $ 1,52 billion, which is 19% more than the results of the first quarter, but 13% less than the same period last year. If in a quarterly comparison, revenue should grow in all directions, then AMD explains the negative dynamics against the background of last year with lower revenue from the sale of graphics processors, “semi-custom products”, as well as an insignificant share of “cryptocurrency revenue”.
Source: 3dnews.ru