By this morning, in the investor section of the AMD website, it was already possible to find the 10-Q form, which is submitted at the end of the quarter to the US supervisory authorities. This document usually describes a little more the trends that affected the company's expenses and income in the reporting period, and therefore contains a lot of additional information that could have slipped away even when reading the transcript of the reporting event.
It became known, for example, that in the areas of computing products and graphics, AMD's revenue for the past quarter increased by 36%, and the supply of products averaged by type in physical terms increased by 10% compared to the same period last year, and the average selling price rose immediately by 40%. In this regard, consumer processors Ryzen acted as the locomotive, but the demand for mobile video cards of the Radeon family decreased in real terms.
If we compare the first nine months of this year and last year, then AMD in such a comparison has a decrease in revenue from the sale of computing and graphics products by 3%. In this case, the effects of the cryptocurrency boom are having a negative impact, as they reduced the demand for AMD GPUs compared to 2018. Even increased sales of Ryzen processors failed to quantify the drop in demand for Radeon graphics solutions. But the average selling price of a conventional unit of production has grown by 16% since the beginning of the year, and not only Ryzen processors, but also GPUs for server applications have already helped here.
American companies include not only funds spent on engineering and scientific activities, but also compensation payments to specialists involved in research and development. At AMD in the third quarter of this year, this item of expenditure increased by 12% compared to the same period last year, but the absolute value of the amount of $ 406 million is many times the same indicator of the main competitor in the face of Intel. The main increase in expenses was directed to developments in the segment of computing products and graphics. As AMD representatives explained at the quarterly reporting event, the company sought to realize all the opportunities that opened up for it this year, and therefore spent additional funds to improve its hardware platforms and software. The company admits that they spent more on development than they originally expected.
Marketing and administrative expenses also had to be increased, as it was necessary to bring several families of new products to the market at once. In the third quarter, the budget for marketing and other needs increased by 25% to $185 million compared to the same period last year. In the first nine months of this year, the increase was 28%. These expenses were more or less evenly distributed among all areas of activity in which AMD has new products.
It should be noted that in the third quarter, AMD spent 22,5% of its total revenue on development and research, and about 10% of revenue on marketing and administrative needs. These shares are useful to remember for comparison with the cost structure of rival Intel.
Source: 3dnews.ru