AMD Releases Q3 Earnings Results: Significantly Higher Net Income than Previous Quarters

[DocSwag]

Source: http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=2310889

AMD has just released their Q3 2017 financial results, and it's looking to be pretty good.

 

Quote

GAAP Financial Results
		Q3-17			Q2-17				Q3-16
Revenue		$1.64B			$1.22B				$1.31B
Operating income (loss)		$126M			$25M				$(293)M
Net income (loss)		$71M			$(16)M				$(406)M
Earnings (loss) per share		$	0.07		$	(0.02	)		$	(0.50	)

 

Non-GAAP Financial Results(1)
		Q3-17			Q2-17			Q3-16
Revenue		$1.64B			$1.22B			$1.31B
Operating income		$155M			$49M			$70M
Net income		$110M			$19M			$27M
Earnings per share		$	0.10		$	0.02		$	0.03

As you can see, revenue from this quarter is significantly higher than last quarter (which is to be expected, as this is the back to school season), but the more impressive part is that it is significantly higher than the Q3 2016 results.

 

If you look at the earnings tables, you'll see this:

Quote

The key takeaway is this: Compared to last year in the same quarter, semi custom sales were relatively similar, but this quarter the computing and graphics revenue is SIGNIFICANTLY higher: nearly 75% more! This is most likely due to both Ryzen and GPU mining. We already saw a pretty noticeable jump in revenue last quarter from both Ryzen and cryptocurrency mining, and it seems this quarter it is even higher, perhaps due to increased Ryzen sales or Vega.

 

Overall, this is looking pretty good for AMD. Their net income is finally high enough to be significant, and this is also the first time in a while that their GAAP and non-GAAP results have both shown a positive net income.

 

Overall, even with a shakey Vega launch Ryzen has definitely propelled AMD forward quite a bit. I'm excited to see what Raven Ridge, which should launch this quarter, can do for AMD as well as what Epyc might be able to get for AMD from the lucrative server and data center market.

[emosun]

I think AMD is learning the whole "if you make a product people will buy it" as opposed to their "make nothing for 4 years straight" plan they used previously

[bcredeur97]

wow.

[Damascus]

2 minutes ago, emosun said:

I think AMD is learning the whole "if you make a product people will buy it" as opposed to their "make nothing for 4 years straight" plan they used previously

Yep, zen could have been analogous to a 4790k and people still would have bought it (though not nearly as many) as some folks just wanted an FX upgrade and didn't want intel at all

[PlayStation 2]

How much do you wanna bet miners helped?

[Princess Luna]

13 minutes ago, emosun said:

I think AMD is learning the whole "if you make a product people will buy it" as opposed to their "make nothing for 4 years straight" plan they used previously

Please if you can build an entire micro-processing silicon based architecture in less than 4 years be my guest.

[handymanshandle]

13 minutes ago, emosun said:

I think AMD is learning the whole "if you make a product people will buy it" as opposed to their "make nothing for 4 years straight" plan they used previously

Well also this

1 minute ago, Dan Castellaneta said:

How much do you wanna bet miners helped?

 

[handymanshandle]

Just now, Princess Cadence said:

Please if you can build an entire micro-processing silicon based architecture in less than 4 years be my guest.

Then how is Intel releasing new CPUs every year

[GOTSpectrum]

This is really promising, but I think with the release of CoffeeLake the incomes going to drop off relatively quickly. Let's hope this isn't the case, having an Intel monopoly wouldn't be good for PCMR or technology in general.

[emosun]

1 minute ago, Princess Cadence said:

Please if you can build an entire micro-processing silicon based architecture in less than 4 years be my guest.

I'm not going to pretend intel doesn't take the same amount of time to make something that can be considered TRULY new.

But at least intel was doing SOMETHING. They were at least standing in the court practicing free throws while they waited for amd to show up. I don't think intel really minded that several year period of no competition as people paid premium prices. 

[Herman Mcpootis]

3 minutes ago, wcreek said:

Then how is Intel releasing new CPUs every year

-take the same thing and add a 1% performance bump

-claim it performs 10% better than last gen

-add/remove a couple pins

-market as new architecture

-profit

[Himommies]

Honestly what were you guys expecting

[Princess Luna]

Just now, emosun said:

.

The technology Intel has created has allowed for you and me even be talking right now, considering so much wasted money on government tributes and what not funding it's research has done more for our life style than most things.

 

Nobody needed the most premium it offered, every one knew it was overpriced and it is just fractions of your time saved on workloads, yet people got it any ways... There is nothing wrong in "offering"

[emosun]

2 minutes ago, herman mcpootis said:

-take the same thing and add a 1% performance bump

-claim it performs 10% better than last gen

-add/remove a couple pins

-market as new architecture

-profit

What sucks for AMD is that , this works , and it works really well.

AMD will be riding the ryzen/threadripper platform for years to come , while intel will keep making these tiny little improvements here and there. 

Yes , the intel cpu's will eventually cost more and only be a few % faster , but that kind of method works really well for convincing people to buy a new 10% faster intel over a 4 year old ryzen cpu. sounds crazy but it works

[Shreyas1]

15 minutes ago, Ben Quigley said:

This is really promising, but I think with the release of CoffeeLake the incomes going to drop off relatively quickly. Let's hope this isn't the case, having an Intel monopoly wouldn't be good for PCMR or technology in general.

I think that the AMD apus should last a bit longer in the mobile department

[handymanshandle]

8 minutes ago, emosun said:

What sucks for AMD is that , this works , and it works really well.

AMD will be riding the ryzen/threadripper platform for years to come , while intel will keep making these tiny little improvements here and there. 

Yes , the intel cpu's will eventually cost more and only be a few % faster , but that kind of method works really well for convincing people to buy a new 10% faster intel over a 4 year old ryzen cpu. sounds crazy but it works

They're shrinking down to 12nm next year, I think they'll revise the following year on 12nm and then it'll be 7nm for AMD.

[GOTSpectrum]

6 minutes ago, Shreyas1 said:

I think that the AMD apus should last a bit longer in the mobile department

I like the original idea of an APU, which was to offload FP16 and other integer processing to the GPU section. I don't know how well, if at all, they manage to do this. But to get a decent(ish) GPU and CPU with lower power requirements is great. Especially for custom applications like games consoles.

[AresKrieger]

13 minutes ago, emosun said:

really well for convincing people to buy a new 10% faster intel over a 4 year old ryzen cpu. sounds crazy but it works

TBF the last time intel booted amd out with a new cpu it wasn't 10% difference, there is a reason people make fun of the fx cpus afterall

[HKZeroFive]

And AMD's stock price dropped... what a cruel, cruel world...

[emosun]

1 minute ago, AresKrieger said:

TBF the last time intel booted amd out with a new cpu it wasn't 10% difference, there is a reason people make fun of the fx cpus afterall

I have to admit I've really never considered an amd cpu option over intel as I usually buy used cpu's and can always find something faster from intel for the same price.

Even with ryzen and threadripper , the prices are new , but the performance is old news.

[GOTSpectrum]

3 minutes ago, AresKrieger said:

TBF the last time intel booted amd out with a new cpu it wasn't 10% difference, there is a reason people make fun of the fx cpus afterall

As an ex-FX processor owner I can say they are not bad if you got them for the right price. An FX 6100 for 30GBP isn't really that bad which is what I got mine for. 

 

These days I'm on a r7 1700 and loving the upgrade. But my FX really still got the job done for me, mostly because I play older games and indie games. The funniest thing was that paired with vengeance RAM and a GTX 980ti...

[AresKrieger]

19 minutes ago, Ben Quigley said:

As an ex-FX processor owner I can say they are not bad if you got them for the right price. An FX 6100 for 30GBP isn't really that bad which is what I got mine for. 

This may be true but im talking about how weak fx was when it lanuched, picking up scraps on the cheap is never a bad thing and price can make a piece of coal sparkle like a diamond, but part of the reason you were able to get it for so cheap was that it didn't compete and fell by the wayside.

 

After all amd doesn't make only money off sales like that

[GOTSpectrum]

1 minute ago, AresKrieger said:

This may be true but im talking about how weak fx was when it lanuched, picking up scraps on the cheap is never a bad thing and price can make a piece of coal sparkle like a diamond, but part of the reason you were able to get it for so cheap was that it didn't compete and fell by the wayside.

 

After all amd doesn't make only money off sales like that

The sad part is this was new! When the 6300 got released actually. I was running a Pentium 4 HT when I got it so it was an upgrade for me haha! I still use the processor on my server funnily enough.

[AresKrieger]

Just now, Ben Quigley said:

The sad part is this was new! When the 6300 got released actually. I was running a Pentium 4 HT when I got it so it was an upgrade for me haha! I still use the processor on my server funnily enough.

Weird that you got it so cheap while being brand new, either way I doubt it covered the overhead on the chip so why someone would sell it for that price is beyond me unless it was a private seller who stole it (doubtful since you said new) or they expected to make money of a motherboard thus offsetting the low price

[DocSwag]

1 hour ago, Dan Castellaneta said:

How much do you wanna bet miners helped?

They helped, no doubt, but I'm sure that Ryzen helped as well. Last quarter mining was going full speed and computing and graphics had around 600 million in revenue; this quarter its at 800 million.

51 minutes ago, Himommies said:

Honestly what were you guys expecting

AMD exceeded their own expectations. In the Q2 2017 earnings call they predicted Q3 to have 23 percent, plus or minus 3 percent, higher revenue than Q2. They ended up with 34% higher revenue.