AMD Reports First Quarter 2018 Financial Results

April 26, 2018

SANTA CLARA, Calif., April 26, 2018 — AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2018 of $1.65 billion, operating income of $120 million, net income of $81 million, and diluted earnings per share of $0.08. On a non-GAAP(1) basis, operating income was $152 million, net income was $121 million, and diluted earnings per share was $0.11.

GAAP Financial Results
Year-over-Year and Quarter-over-Quarter

Q1 2018 Q1 2017 Y/Y Q4 2017 Q/Q
Revenue $1.65B $1.18B Up 40% $1.34B Up 23%
Gross Margin %  36%  32% Up 4 pp  34% Up 2 pp
Operating Expense $477M $394M Up $83M $454M Up $23M
Operating Expense %  29%  33% Down 4 pp  34% Down 5 pp
Operating income (loss) $120M $11M Up $109M $(2)M Up $122M
Net income (loss) $81M $(33)M Up $114M $(19)M Up $100M
Earnings (loss) per share $0.08 $(0.04) Up $0.12 $(0.02) Up $0.10

Non-GAAP Financial Results(1)
Year-over-Year and Quarter-over-Quarter

Q1 2018 Q1 2017 Y/Y Q4 2017 Q/Q
Revenue  $1.65B  $1.18B Up 40%  $1.34B Up 23%
Gross Margin %  36%  32% Up 4 pp  34% Up 2 pp
Operating Expense  $446M  $371M Up $75M  $433M Up $13M
Operating Expense %  27%  31% Down 4 pp  32% Down 5 pp
Operating income $152M $34M Up $118M $19M Up $133M
Net income $121M $2M Up $119M $8M Up $113M
Earnings per share $0.11 $0.00 Up $0.11 $0.01 Up $0.10

“The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said Dr. Lisa Su, AMD president and CEO. “PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate.  We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability.”

Q1 2018 Results

  • All AMD financial results are reported under the new revenue recognition accounting standard, ASC 606, with prior period financial results adjusted for comparison purposes.
  • Revenue was $1.65 billion, up 40 percent year-over-year and 23 percent quarter-over-quarter, driven primarily by higher revenue in the Computing and Graphics segment.
  • Gross margin was 36 percent, up 4 percentage points year-over-year and 2 percentage points quarter-over-quarter.  The gross margin percentage increase was driven by a greater percentage of revenue from Ryzen, Radeon and EPYC products.
  • On a GAAP basis, operating income was $120 million compared to operating income of $11 million a year ago and an operating loss of $2 million in the prior quarter.
  • Net income was $81 million compared to net losses of $33 million a year ago and $19 million in the prior quarter. Diluted earnings per share was $0.08, compared to losses per share of $0.04 a year ago and $0.02in the prior quarter.
  • On a non-GAAP(1) basis, operating income was $152 million compared to operating income of $34 million a year ago and $19 million in the prior quarter.
  • Non-GAAP net income was $121 million compared to net income of $2 million a year ago and $8 millionin the prior quarter. Non-GAAP diluted earnings per share was $0.11, compared to break even from a year ago and diluted earnings per share of $0.01 in the prior quarter.
  • Cash and cash equivalents were $1.04 billion at the end of the quarter.

Quarterly Financial Segment Summary

  • Computing and Graphics segment revenue was $1.12 billion, up 95 percent year-over-year and 23 percent quarter-over-quarter, primarily driven by strong sales of Radeon and Ryzen products.
    ◦ Client processor average selling price (ASP) increased year-over-year and quarter-over-quarter due to a greater percentage of revenue from our Ryzen products.
    ◦ GPU ASP increased year-over-year and quarter-over-quarter driven by a greater percentage of revenue from our new Radeon products.
    ◦ Operating income was $138 million, compared to an operating loss of $21 million a year ago and operating income of $33 million in the prior quarter. Operating income improvement was driven by higher revenue.
  • Enterprise, Embedded and Semi-Custom (EESC) segment revenue was $532 million, down 12 percent year-over-year due to lower semi-custom revenue, partially offset by higher server and embedded revenue. EESC segment revenue was up 23 percent quarter-over-quarter, driven by semi-custom, embedded and EPYC processor revenue.
    ◦ Operating income was $14 million, compared to operating income of $55 million a year ago and an operating loss of $13 million in the prior quarter. The year-over-year decrease was primarily due to a licensing gain that occurred in Q1 2017.  The quarter-over-quarter increase was primarily due to higher revenue.
  • All Other operating loss was $32 million compared with operating losses of $23 million a year ago and $22 million in the prior quarter.

Q1 2018 Highlights

  • AMD continued returning innovation and excitement to the PC market with the introduction of new consumer-focused desktop processors.
    ◦ AMD introduced the first AMD Ryzen desktop APUs, combining the high-performance Radeon “Vega” graphics architecture with revolutionary “Zen” CPU cores on a single chip.
    ◦ AMD also delivered the next products in the Company’s strong multi-generational roadmap with thelaunch of its 2nd Generation Ryzen desktop CPUs just over one year after bringing the first Ryzen processors to market. The new 2nd Generation Ryzen processors can deliver up to 15% higher gaming performance compared to 1st Generation Ryzen processors, with the Ryzen 7 2700X processor delivering the highest multiprocessing performance available on a mainstream desktop PC.
  • Adoption of AMD products for the datacenter continued with new AMD EPYC processor-powered platforms and deployments.
    ◦ Dell EMC introduced three new PowerEdge platforms powered by AMD EPYC 7000 series server processors.
    ◦ Yahoo Japan Corporation and Packet joined the expanding list of global businesses deploying EPYC processors to enhance the performance and efficiency of their datacenters.
    ◦ Supercomputing leader Cray announced that it added EPYC processors to its Cray CS500 line of HPC offerings.
  • AMD brought the powerful “Zen” architecture to a variety of new embedded markets with the launch of EPYC Embedded and Ryzen Embedded processors.
  • AMD released new Radeon Software Adrenalin Edition updates to optimize the performance of some of the most popular PC games and improve the eSports experience for Radeon graphics card owners.
  • AMD and Microsoftannounced support for Radeon FreeSync™ technology in Microsoft’s Xbox One™ S and Xbox One™ X consoles, bringing the exceptional tear-free gaming experience to a broader base of gamers.
  • Adobe announced a new version of Adobe® Premiere Pro® CC with native support for AMD Radeon Pro SSG graphics to dramatically accelerate 4K and 8K workflows for popular native camera formats.
  • Steam launched support for AMD TrueAudio Next in Steam Audio, offering Steam users a more immersive audio experience.
  • AMD was included in Fast Company’s “World’s Most Innovative Companies” 2018 edition, ranking in the top ten Most Innovative Companies in the Consumer Electronics sector.

Current Outlook

AMD’s outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

For the second quarter of 2018, AMD expects revenue to be approximately $1.725 billion, plus or minus $50 million, an increase of 50 percent year-over-year, and non-GAAP gross margin of approximately 37 percent.

AMD Teleconference

AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its first quarter 2018 financial results and forward looking financial guidance. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at The webcast will be available for 12 months after the conference call.  A slide presentation of quarterly financial results can be found

 (In millions, except per share data) Three Months Ended
March 31,
December 30,
April 1,
GAAP Gross Margin $ 597 $ 452 $ 378
GAAP Gross Margin % 36 % 34 % 32 %
Stock-based compensation 1
Non-GAAP Gross Margin $ 598 $ 452 $ 378
Non-GAAP Gross Margin % 36 % 34 % 32 %
GAAP operating expenses $
477   $
454   $
Stock-based compensation 31 21 23
Non-GAAP operating expenses $
446   $
433   $
GAAP operating income (loss) $ 120 $ (2 ) $ 11
Stock-based compensation 32 21 23
Non-GAAP operating income $ 152 $ 19 $ 34
Three Months Ended
March 31,
December 30,
April 1,
GAAP net income (loss) /earnings (loss) per share $ 81 $ 0.08 $ (19 ) $ (0.02 ) $ (33 ) $ (0.04 )
Loss on debt redemption 1 3 4
Non-cash interest expense related to convertible debt 6 5 6 0.01
Stock-based compensation 32 0.03 21 0.02 23 0.02
Gain on sale of 85% of ATMP (3 )
Tax provision related to sale of 85% of ATMP JV 1
Equity loss in investee 1 2
Non-GAAP net income / earnings per share $ 121 $ 0.11 $ 8 $ 0.01 $ 2 $ 0.00
Q1 2018 non-GAAP diluted EPS is calculated based on 1,140 million shares, which include 100.6 million shares related to the Company’s 2026 Convertible Notes and a $5 million cash interest expense add-back to net income under the “if converted” method.

About AMD

For more than 45 years, AMD has driven innovation in high-performance computing, graphics, and visualization technologies – the building blocks for gaming, immersive platforms, and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses, and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work, and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible.

Source: AMD

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Neural Network ‘Synapse’ Technology Showcased at IEEE Meeting

December 12, 2018

There’s nice snapshot of advancing work to develop improved neural network “synapse” technologies posted yesterday on IEEE Spectrum. Lower power, ease of use, manufacturability, and performance are all key paramete Read more…

By John Russell

Is Amazon’s Plunge into Server Chips a Watershed Moment?

December 11, 2018

For several years now the big cloud providers – Amazon, Microsoft Azure, Google, et al – have been transforming from technology consumers into technology creators in hardware and software. The most recent example bei Read more…

By John Russell

Mellanox Uses Univa to Extend Silicon Design HPC Operation to Azure

December 11, 2018

Call it a corollary to Murphy’s Law: When a system is most in demand, when end users are most dependent on the system performing as required, when it’s crunch time – that’s when the system is most likely to blow up. Or make you wait in line to use it. Read more…

By Doug Black

HPE Extreme Performance Solutions

AI Can Be Scary. But Choosing the Wrong Partners Can Be Mortifying!

As you continue to dive deeper into AI, you will discover it is more than just deep learning. AI is an extremely complex set of machine learning, deep learning, reinforcement, and analytics algorithms with varying compute, storage, memory, and communications needs. Read more…

IBM Accelerated Insights

Blurring the Lines Between HPC and AI @ SC18

The dominant topic at SC18 was the convergence of HPC and Artificial Intelligence (AI) with some of the biggest research and enterprise HPC users providing perspectives on how HPC and AI are moving closer together. Read more…

Clemson’s Cautionary Cryptomining Tale

December 11, 2018

In some ways, the bigger the computer, the more vulnerable it is to cryptomining as Clemson University discovered after cryptominers dug into its Palmetto supercomputer. When a number of nodes on Clemson University’s P Read more…

By Staff

Topology Can Help Us Find Patterns in Weather

December 6, 2018

Topology--–the study of shapes-- seems to be all the rage. You could even say that data has shape, and shape matters. Shapes are comfortable and familiar conc Read more…

By James Reinders

Zettascale by 2035? China Thinks So

December 6, 2018

Exascale machines (of at least a 1 exaflops peak) are anticipated to arrive by around 2020, a few years behind original predictions; and given extreme-scale performance challenges are not getting any easier, it makes sense that researchers are already looking ahead to the next big 1,000x performance goal post: zettascale computing. Read more…

By Tiffany Trader

Robust Quantum Computers Still a Decade Away, Says Nat’l Academies Report

December 5, 2018

The National Academies of Science, Engineering, and Medicine yesterday released a report – Quantum Computing: Progress and Prospects – whose optimism about Read more…

By John Russell

Revisiting the 2008 Exascale Computing Study at SC18

November 29, 2018

A report published a decade ago conveyed the results of a study aimed at determining if it were possible to achieve 1000X the computational power of the the Read more…

By Scott Gibson

AWS Debuts Lustre as a Service, Accelerates Data Transfer

November 28, 2018

From the Amazon re:Invent main stage in Las Vegas today, Amazon Web Services CEO Andy Jassy introduced Amazon FSx for Lustre, citing a growing body of applicati Read more…

By Tiffany Trader

AWS Launches First Arm Cloud Instances

November 28, 2018

AWS, a macrocosm of the emerging high-performance technology landscape, wants to be everywhere you want to be and offer everything you want to use (or at least Read more…

By Doug Black

Move Over Lustre & Spectrum Scale – Here Comes BeeGFS?

November 26, 2018

Is BeeGFS – the parallel file system with European roots – on a path to compete with Lustre and Spectrum Scale worldwide in HPC environments? Frank Herold Read more…

By John Russell

DOE Under Secretary for Science Paul Dabbar Interviewed at SC18

November 21, 2018

During the 30th annual SC conference in Dallas last week, SC18 hosted U.S. Department of Energy Under Secretary for Science Paul M. Dabbar. In attendance Nov. 13-14, Dabbar delivered remarks at the Top500 panel, met with a number of industry stakeholders and toured the show floor. He also met with HPCwire for an interview, where we discussed the role of the DOE in advancing leadership computing. Read more…

By Tiffany Trader

Quantum Computing Will Never Work

November 27, 2018

Amid the gush of money and enthusiastic predictions being thrown at quantum computing comes a proposed cold shower in the form of an essay by physicist Mikhail Read more…

By John Russell

Cray Unveils Shasta, Lands NERSC-9 Contract

October 30, 2018

Cray revealed today the details of its next-gen supercomputing architecture, Shasta, selected to be the next flagship system at NERSC. We've known of the code-name "Shasta" since the Argonne slice of the CORAL project was announced in 2015 and although the details of that plan have changed considerably, Cray didn't slow down its timeline for Shasta. Read more…

By Tiffany Trader

IBM at Hot Chips: What’s Next for Power

August 23, 2018

With processor, memory and networking technologies all racing to fill in for an ailing Moore’s law, the era of the heterogeneous datacenter is well underway, Read more…

By Tiffany Trader

House Passes $1.275B National Quantum Initiative

September 17, 2018

Last Thursday the U.S. House of Representatives passed the National Quantum Initiative Act (NQIA) intended to accelerate quantum computing research and developm Read more…

By John Russell

Summit Supercomputer is Already Making its Mark on Science

September 20, 2018

Summit, now the fastest supercomputer in the world, is quickly making its mark in science – five of the six finalists just announced for the prestigious 2018 Read more…

By John Russell

CERN Project Sees Orders-of-Magnitude Speedup with AI Approach

August 14, 2018

An award-winning effort at CERN has demonstrated potential to significantly change how the physics based modeling and simulation communities view machine learni Read more…

By Rob Farber

AMD Sets Up for Epyc Epoch

November 16, 2018

It’s been a good two weeks, AMD’s Gary Silcott and Andy Parma told me on the last day of SC18 in Dallas at the restaurant where we met to discuss their show news and recent successes. Heck, it’s been a good year. Read more…

By Tiffany Trader

US Leads Supercomputing with #1, #2 Systems & Petascale Arm

November 12, 2018

The 31st Supercomputing Conference (SC) - commemorating 30 years since the first Supercomputing in 1988 - kicked off in Dallas yesterday, taking over the Kay Ba Read more…

By Tiffany Trader

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

TACC’s ‘Frontera’ Supercomputer Expands Horizon for Extreme-Scale Science

August 29, 2018

The National Science Foundation and the Texas Advanced Computing Center announced today that a new system, called Frontera, will overtake Stampede 2 as the fast Read more…

By Tiffany Trader

HPE No. 1, IBM Surges, in ‘Bucking Bronco’ High Performance Server Market

September 27, 2018

Riding healthy U.S. and global economies, strong demand for AI-capable hardware and other tailwind trends, the high performance computing server market jumped 28 percent in the second quarter 2018 to $3.7 billion, up from $2.9 billion for the same period last year, according to industry analyst firm Hyperion Research. Read more…

By Doug Black

Nvidia’s Jensen Huang Delivers Vision for the New HPC

November 14, 2018

For nearly two hours on Monday at SC18, Jensen Huang, CEO of Nvidia, presented his expansive view of the future of HPC (and computing in general) as only he can do. Animated. Backstopped by a stream of data charts, product photos, and even a beautiful image of supernovae... Read more…

By John Russell

Germany Celebrates Launch of Two Fastest Supercomputers

September 26, 2018

The new high-performance computer SuperMUC-NG at the Leibniz Supercomputing Center (LRZ) in Garching is the fastest computer in Germany and one of the fastest i Read more…

By Tiffany Trader

Houston to Field Massive, ‘Geophysically Configured’ Cloud Supercomputer

October 11, 2018

Based on some news stories out today, one might get the impression that the next system to crack number one on the Top500 would be an industrial oil and gas mon Read more…

By Tiffany Trader

Intel Confirms 48-Core Cascade Lake-AP for 2019

November 4, 2018

As part of the run-up to SC18, taking place in Dallas next week (Nov. 11-16), Intel is doling out info on its next-gen Cascade Lake family of Xeon processors, specifically the “Advanced Processor” version (Cascade Lake-AP), architected for high-performance computing, artificial intelligence and infrastructure-as-a-service workloads. Read more…

By Tiffany Trader

Google Releases Machine Learning “What-If” Analysis Tool

September 12, 2018

Training machine learning models has long been time-consuming process. Yesterday, Google released a “What-If Tool” for probing how data point changes affect a model’s prediction. The new tool is being launched as a new feature of the open source TensorBoard web application... Read more…

By John Russell

The Convergence of Big Data and Extreme-Scale HPC

August 31, 2018

As we are heading towards extreme-scale HPC coupled with data intensive analytics like machine learning, the necessary integration of big data and HPC is a curr Read more…

By Rob Farber

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This