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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  • shabby - Tuesday, October 29, 2019 - link

  • quorm - Tuesday, October 29, 2019 - link

    I'm happy for AMD, but it's amazing how little net income there is in a successful quarter. It's a tough business.
  • evernessince - Tuesday, October 29, 2019 - link

    Yes net income may be low but their financials are very good looking forward. The continual increase in gross margin is a very good sign they are building their brand and capitalizing on their investments. Just for reference, Intel and Nvidia have a margin in the 60% area.

    AMD has been pumping a ton of money into R&D, which is a good sign they aim to remain competitive.
  • Count Rushmore - Tuesday, October 29, 2019 - link

    That shows AMD is the champion in performance per $.
  • GreenReaper - Wednesday, October 30, 2019 - link

    Not necessarily. They could be giving better value, or it could be that their products are not as good and they simply can't charge as much for them and make sales. For CPUs it's mostly the former for the past few years, unless you need the highest single-core speeds; for GPUs, it's been more the latter - until perhaps very recently, and even then it depends on the game.
  • Korguz - Wednesday, October 30, 2019 - link

    not as good ?? some one needs to read more reviews...
  • inighthawki - Wednesday, October 30, 2019 - link

    AMD's GPUs are definitely not as good as nvidias right now. I'd certainly like to know which reviews you're reading...
  • Xyler94 - Wednesday, October 30, 2019 - link

    Pretty much any RX5700 XT review?

    Just because Nvidia still have cards that outperform AMD's cards right now, they also cost way more for that performance. AMD hasn't shown off what their big Navi cards can do, but NVidia has shown what big Touring can do (2080 Super/2080ti). But at the 2060/2060 Super level, the same priced RX5700 and RX5700 XT on average beat out those cards, with the 5700XT sometimes reaching 2070 Super territory, an almost 100$ difference for that last card.

    So yeah, AMD is pretty good right now. And if I didn't own a G-Sync display (have no need to change my display), I'd seriously consider an AMD card... hell I am still heavily considering them, if they can beat out NVidia's 2080 Super with Big Navi.
  • RSAUser - Wednesday, October 30, 2019 - link

    Erm, no? 5700XT competes with the 2060S about, it's within 6% performance depending on the game. It's not much of a win as it comes at way higher power envelope to compete.

    Personally, I'd go second hand market and look for a 1080 or 1080Ti, can pick them up for about the same price here.
  • bronan - Sunday, November 3, 2019 - link

    Its for me clear that nvidia allways gives customers alot less than the cards actually can perform.
    Proof for that is that they even are able to release top models which has outperformed the previous models twice already, I actually would not be surprised if another series get released later with the same chip outperforming the super line. Now do not get me wrong both companies have a long history for releasing products with the same core design in faster and lower performing versions. But nvidia is the clear winner in making the most products with the same design chips in each line.
    They have broadest range in performance even though its almost silly between most low end models, but in recent years they have added 4+ models so called mid/high performance cards in stead of the 2 we had. We had low, mid and high end cards and now the list is what ... i stopped checking after they released even lower performing products.
    Ofcourse if i compare nvidia to intel the winner would be intel for sure, but who is counting ;)

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