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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  • nandnandnand - Thursday, July 21, 2016 - link

    Anything the company needs to do to live long enough to release Zen. Reply
  • Stochastic - Saturday, July 23, 2016 - link

    Let's hope it comes at least somewhat close to living up to expectations. Reply
  • Small Bison - Friday, July 22, 2016 - link

    "Looking ahead to next quarter, AMD is expecting revenues to increase 18% from this quarter"

    That would be $1.21 billion, up 14% from Q3 2015's revenue of $1.06 billion, and probably entirely due to the release of the RX 480.
    Reply
  • sharath.naik - Friday, July 22, 2016 - link

    And how is that going to happen since GTX 1060 is shown to beat even a R9 Nano at 250$. I can only see their revenue going down. Unless they expect people to be buying RX480 over GTX 1060, I fail to see a reason why any one would want to do that! Reply
  • GodHatesFAQs - Friday, July 22, 2016 - link

    480 is cheaper than 1060. Reply
  • sharath.naik - Friday, July 22, 2016 - link

    By 13$? Reply
  • Alexvrb - Friday, July 22, 2016 - link

    Well when discussing reference models, a 4GB 480 is $200 and the 8GB model is around $240. So if you're on a 1080p budget, that 4GB model is pretty appealing. The 8GB model is slightly overpriced, though if you're aiming for that much VRAM you might just be looking to future proof.

    The 6GB 1060 reference is more like $300, with some cheaper AIB designs coming in around $260 ish. From what I've seen so far, there isn't gobs of OC potential in these cards either. I'd like to see OC results for upgraded aftermarket designs of both the 1060 and 480.
    Reply
  • gundamnoid - Thursday, July 28, 2016 - link

    the difference in my country between 1060 (cheapest version) vs 480 Reference 8GB (cheapest atm) is 100$ which is a lot (in my country)...so i will choose RX 480. Reply
  • gundamnoid - Thursday, July 28, 2016 - link

    where and how do you even get those numbers ? "By 13$" ????? is it a typo ? did you mean 103 $ ??? Reply
  • Wreckage - Friday, July 22, 2016 - link

    The 480 kills motherboards Reply

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