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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  • BurntMyBacon - Friday, July 22, 2016 - link

    @Dragonstongue: "apprently their yield on said 14nm is higher then Nv at their 16nm"

    Apparently? According to who? Not saying you're wrong, but I TSMC has a better track record than Global Foundries. That said, GP106 chips haven't been on market long enough to get a feel for their yields and GP104 is larger than Polaris 10, so all else equal, yields are expected to be a little worse. Still, it would be nice to have a source.

    @Dragonstongue: "Zen which has met all milestones right off the bat, which is unheard of for first run in the oven sort of speak."

    That sounds great. A description of what milestones they have met to date would sound even better. A source to substantiate it all would take the cake.
    Reply
  • fanofanand - Friday, July 22, 2016 - link

    Well they already met the pre-production hype milestone. :) Reply
  • tamalero - Friday, July 22, 2016 - link

    TSCM is not flawless, I still remember their huge troubles when changing to the 90nm and 60nm nodes. Reply
  • JonnyDough - Wednesday, July 27, 2016 - link

    I also think you mean 65nm, not 60. Small correction 4 U. Reply
  • Alexvrb - Friday, July 22, 2016 - link

    Sounds like you've got a few deleted records in your memory banks. :D As old techie I can tell you TSMC has such a terrible track record with new nodes that your comment literally made me laugh aloud. 40nm in particular was a HUGE fustercluck, and took them a substantial amount of time and effort to rectify even partially.

    Also, GF is using Samsung's proven 14nm process. So I wouldn't be shocked in the slightest to find out that TSMC's 16nm had worse yields than GF's 14nm production.
    Reply
  • yannigr2 - Friday, July 22, 2016 - link

    So, excluding those $150 things would look pretty bad. On the other hand that +15% for the next quarter looks nice, but probably expected for a quarter where the "back to school" period is included. Reply
  • yannigr2 - Friday, July 22, 2016 - link

    $150 MILLIONS. damn... Reply
  • fanofanand - Friday, July 22, 2016 - link

    Go Go AMD! Reply
  • webdoctors - Monday, July 25, 2016 - link

    This is huge news. I can't recall when was the last time AMD didn't lose money in a quarter. Its a tough market right now, which makes this quarters profit even more surprising.

    Who bought all this stuff? I cant see anyone buying AMD HW recently...
    Reply
  • C.C. - Tuesday, July 26, 2016 - link

    most likely OEM contracts? Reply

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