This afternoon, AMD announced their second quarter earnings for the 2016 fiscal year. It’s been a while, but AMD finds itself in the black for this quarter, with higher revenues, and thanks to $150 million from a joint venture with Nantong Fujitsu Microelectronics, AMD’s net income found its way into the positive column. AMD had revenues of $1.027 billion for the quarter, which is up 23% from last quarter, and more importantly up 9% from a year ago. Gross margin for the quarter was 31%, which is still not what AMD wants or needs to maintain profitability, but it is up 6% from their Q2 2015 results which is good news for the company. AMD did record an operating loss for the quarter of $8 million, but that’s a big improvement compared to the $68 million loss last quarter and $137 million loss in Q2 2015. Net income for this quarter was $68 million, or $0.08 per share, compared to a net loss of $109 million last quarter and a $181 million loss a year ago.

AMD Q2 2016 Financial Results (GAAP)
  Q2'2016 Q1'2016 Q2'2015
Revenue $1027M $832M $942M
Gross Margin 31% 32% 25%
Operating Income -$8M -$68M -$137M
Net Income $69M -$109M -$181M
Earnings Per Share $0.08 -$0.14 -$0.23

AMD also released Non-GAAP results which exclude restructuring charges and some other results. On a Non-GAAP basis, AMD had the same $1.027 billion in revenue, but showed a slight operating income of $3 million, compared to a $55 million operating loss last quarter and a $87 million loss last year. Looking at net results, AMD had a net loss of $40 million, or $0.05 per share, compared to a $96 million net loss last quarter and a $131 million net loss a year ago.

AMD Q2 2016 Financial Results (Non-GAAP)
  Q2'2016 Q1'2016 Q2'2015
Revenue $1027M $832M $942M
Gross Margin 31% 32% 28%
Operating Income $3M -$55M -$87M
Net Income -$40M -$96M -$131M
Earnings Per Share -$0.05 -$0.12 -$0.17

AMD attributes their revenue increase primarily to higher sales of its semi-custom SoCs, and with the announcement of the Xbox One Scorpio AMD has secured another design win there. Overall the Enterprise, Embedded, and Semi-Custom segment had revenues of $592 million for the quarter, which is up 5% from a year ago, once again attributed to the increased sales of semi-custom SoCs. The segment had an operating income of $84 million for the quarter, up from $27 million in Q2 2015.

AMD Q2 2016 Enterprise, Embedded, and Semi-Custom
  Q2'2016 Q1'2016 Q2'2015
Revenue $592M $372M $563M
Operating Income $84M $16M $27M

AMD’s Computing and Graphics segment just had an important quarter with the launch of their first FinFet GPU design in the AMD Radeon RX 480. They’ve also been releasing several Carrizo based APUs and CPUs, as well as announcing Bristol Ridge, and all the while working on Zen. The Computing and Graphics segment had revenues of $435 million for the quarter, which is up 15% from Q2 2015. Notebook processor and GPU sales have been tagged as the reason for the revenue increase. The segment had an operating loss of $81 million, which is better than the $147 million operating loss a year ago, but still a bit way from profitability. Lowered expenses have helped them here quite a bit, but they still have some work to do. AMD’s average selling price of their notebook APUs decreased compared to Q2 2015, and GPU average selling price also declined.

AMD Q2 2016 Computing and Graphics
  Q2'2016 Q1'2016 Q2'2015
Revenue $435M $460M $379M
Operating Income -$81M -$70M -$147M

Looking ahead to next quarter, AMD is expecting revenues to increase 18% from this quarter, plus or minus 3%.

Source: AMD Investor Relations

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  • jospoortvliet - Monday, July 25, 2016 - link

    It really depends on what selection of benches a site uses in the review. The more Dx12 and Vulcan the smaller the gap. The future will probably see the RX480's performance age a bit better than the 1060, especially the 8gb model but the price/performance of the 4gb is unmatched.

    Yes, nvidia could do a 3gb 1060 but where 4gb is close to the edge and probably the minimum many game developers will be targeting going forward, 3 gb is likely to be troublesome soon.
    Reply
  • kuttan - Friday, July 22, 2016 - link

    In the long run RX 480 likely to be a good performer over GTX 1060. The GTX 680 for example was a faster and more efficient card over HD 7970 when the two cards first appeared in 2012. Now HD 7970 (280x) often beats higher end GTX 780 and GTX 680/770 become an irrelevant card.

    RX 480 already has its performance advantage in most of the Dx12 games and Doom running in Vulkan mode. The 480 had some additional 1.3 Billion transistors over GTX 1060, when drivers matures after sometime and when next generation games based on Dx12 become common 480 will have its obvious strengths.
    Reply
  • benedict - Friday, July 22, 2016 - link

    Unless you're only going to play old games and don't play to buy any new one 480 is much better than 1060. Reply
  • sharath.naik - Friday, July 22, 2016 - link

    I have not seen one game benchmark where 480 matches 1060, Reply
  • benedict - Friday, July 22, 2016 - link

    Then I would say you need your eyes checked, but reading your other comments I think you need your brain checked. Go home, fanboy. Reply
  • Mr Perfect - Friday, July 22, 2016 - link

    I'm not sure if you're really interested, but in HardOCP's testing the 1060 and 480 trade blows. Generally speaking, the 480 takes the DX12 games and 1060 the DX11 games.

    http://www.hardocp.com/article/2016/07/19/nvidia_g...
    Reply
  • MarkieGcolor - Friday, July 22, 2016 - link

    R9 Nano is faster.... plus it can crossfire Reply
  • BlueBlazer - Friday, July 22, 2016 - link

    Unlikely, as Q3 increase is usually tied to the holiday season. In other words, higher console chip sales (Sony's PS/4, Microsoft's Xbox, etc). As for AMD's Radeon RX480 sales, that should be included in Q2 earnings already (chips sold to graphic card manufacturers earlier around Q1 & Q2 period in preparation for launch by end of Q2). Reply
  • poohbear - Friday, July 22, 2016 - link

    well good for them. Finally turning things around and they're looking at future growth! Reply
  • Dragonstongue - Friday, July 22, 2016 - link

    when said RX 480 selling like hot cakes, that is tremendous volume, they obviously not going to sell at a loss and apprently their yield on said 14nm is higher then Nv at their 16nm so performance aside, what costs the least and ships the most will more oft then not of course bring the margins up, which apprently by all intents and purposes, it will be doing, then there is everything else, semi-custom etc etc, and then comes Vega then not much longer Zen which has met all milestones right off the bat, which is unheard of for first run in the oven sort of speak. Reply

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