Today AMD announced their third quarter earnings for the 2019 fiscal year, and AMD has not seen revenue like this for a long time – in fact this is the highest quarterly revenue since 2005 for the company. AMD’s revenue jumped 9% year-over-year to $1.8 billion, and at least as importantly, AMD had gross margins of 43%, which is up 3% over last year, and the highest margins they’ve seen since 2012. Operating income was up 24% to $186 million, and net income was up 18% to $120 million. This resulted in earnings-per-share of $0.11, up 22% from Q3 2018.

AMD Q3 2019 Financial Results (GAAP)
  Q3'2019 Q2'2019 Q3'2018
Revenue $1801M $1531M $1653M
Gross Margin 43% 41% 40%
Operating Income $186M $59M $150M
Net Income $120M $35M $102M
Earnings Per Share $0.11 $0.03 $0.09

This is the first full quarter for AMD since the launch of their 7 nm Zen 2 processor, and AMD attributes the revenue growth to the Computing and Graphics, but offset by lower revenue in Enterprise, Embedded, and Semi-Custom. Revenue for the Computing and Graphics segment was up 36% year-over-year to $1.28 billion, thanks to both increased volume and Average Selling Price (ASP) for Ryzen on the desktop. GPU ASP also increased year-over-year thanks to higher channel sales. The Computing and Graphics segment had operating income of $179 million, which is up 79% from a year ago.

AMD Q3 2019 Computing and Graphics
  Q3'2019 Q2'2019 Q3'2018
Revenue $1276M $940M $938M
Operating Income $179M $22M $100M

Enterprise, Embedded, and Semi-Custom had revenue of $525 million for the quarter, down 27% year-over-year, mostly attributed to semi-custom sales, which makes sense since a large chunk of that is for the AMD APU powering both the Sony PlayStation 4 and Microsoft Xbox One, both of which are scheduled for new models in the next calendar year. Offsetting this was higher EPYC processor sales, although not enough of an offset to cover the semi-custom drop. Operating income for this segment was $61 million, down 29% from a year ago.

AMD Q3 2019 Enterprise, Embedded and Semi-Custom
  Q3'2019 Q2'2019 Q3'2018
Revenue $525M $591M $715M
Operating Income $61M $89M $86M

Finally, AMD’s All Other category reported an operating loss of $54 million, which is a 50% larger loss than a year ago.

AMD had some big news in Q3, with multiple design wins for both Ryzen and EPYC, including Cray’s Shasta supercomputer leveraging 2nd Generation EPYC, and AMD getting a big design win in the PC space with the Microsoft Surface Laptop 3.

Looking ahead to Q4, AMD is expecting revenue of $2.1 billion, plus or minus $50 million, with a Non-GAAP gross margin of approximately 44%.

Source: AMD Investor Relations

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  • yeeeeman - Friday, November 1, 2019 - link

    The only big advantage AMD has now (besides 7nm) is their bet on chiplet architecture. Intel seems to also have thought about this (see EMIB) while waiting for 10nm process to work, but they just couldn't fab anything yet. I am pretty sure they will also go on this route after Ice Lake SP.
  • bronan - Sunday, November 3, 2019 - link

    Well not fab anything .... the yields are bad that is the issue. It would make them loose alot of money on every batch they create. So they can make them but at a premium cost.
  • bronan - Sunday, November 3, 2019 - link

    I full agree on your comment many people do not want to see the reality.
    As i posted above AMD has very lucky for us gained a small gain in money, but compared to the profit of intel and nvidia the numbers of AMD are bleak both giants have a huge amount of all markets they are in. While AMD is trting to get some foothold its still a small competition for the 2 others which both make insane profits year after year. And both hate to loose a share to the any of the competition. Since intel has decided to build their own gpu also, this might gonna hurt nvidia as well, but surely is going to hurt AMD as well.
    I am going back to AMD as soon as my current machine is no longer fast enough.
    But for what i am doing my current system is at the moment overkill already.
    I am only playing my oldest titles games again, because the new titles are all online crap which is not my cup of tea. I hate the cheating and whining in those online games. The reason is that i know a few developers who make cheats for every game online, and allways seem to be able to let their paying customers win. When i ask do the security of the server detect your cheats??, they allways start to laugh loud and say what security??. Meanwhile they eran enough to buy fast cars and a huge house at ages you would not believe.
    Anyway i am currently doing my c&c collection and am trying out tips from a friend to stay alive in stellaris. He actually gifted me a few steam keys to avoid me from deleting the game again from my machine. I still think its a totally crappy game, so because i am bored i keep it and try their tips.
    But i admit most fun games got destroyed by the owners. Eurotruck and the american version where fun untill they started to screw players into submission. No more ability to turn anywhere in the game besides on roads, and no more faster driving because they made it so that you crash.
    Anyway all fun parts had been broken and now its a boring overpriced piece of crap.
    Back on topic i am waiting to see what AMD is cooking up with TR40/80 because i need more pci-e lanes because cpu wise the lanes are very limited on the new consumer products with only 24 lanes. Which is not enough for my taste and the limitations it will have for what i want todo.
    I want to use the machine for both gaming and server tasks while running 24/7/365.

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