AMD announces 2020 Q2 results, turnover increased by 26% year-on-year

The stock price surpasses Big Brother, and its market share in server and notebook processors continues to increase. Recently, AMD is gaining momentum. Seizing the rare opportunity brought by 7nm advanced process technology, AMD still maintained its momentum in 2020, which is full of uncertainty. With the outstanding sales of Ryzen and EPYC (Xiaolong), it delivered in the second quarter. A good answer sheet. At the same time, AMD also raised its full-year forecast, and its stock price rose more than 10% after the market.

AMD announced a revenue of US$1.93 billion in the second quarter of 2020, operating income of US$173 million, net income of US$157 million, and diluted earnings per share of US$0.13. Non-GAAP operating income was US$233 million, net income was US$216 million, and diluted earnings per share were US$0.18.

AMD President and CEO Dr. Lisa Su said: "Our second quarter performance was very strong. The sales of notebook and server processors, namely Ryzen and EPYC (Xiaolong) turnover increased compared to the same period last year. Although there is a certain degree of uncertainty in the macroeconomic environment, we have increased our full-year revenue expectations, because the accelerated business layout in the diversified market drives AMD into the next stage of development."

2020 second quarter results

* This quarter's turnover was US$1.93 billion, an increase of 26% year-on-year, mainly due to the increase in turnover of the Computing and Graphics Division. The 8% quarter-on-quarter increase was attributable to the growth in turnover of the enterprise, embedded and semi-custom business units.

* Gross profit was 44%, a year-on-year increase of 3 percentage points and a month-on-month decrease of 2 percentage points. The year-on-year growth was mainly due to the strong sales of Ryzen and EPYC (Xiaolong) processors, while the quarter-on-quarter decline was due to the increase in sales of semi-custom products.

* Compared with the operating income of US$59 million in the same period last year and the operating income of US$177 million in the previous quarter, operating income for the quarter was US$173 million. Based on non-GAAP standards, compared with operating income of US$111 million in the same period last year and US$236 million in the previous quarter, operating income for the quarter was US$233 million. The year-on-year increase in operating income was mainly due to the increase in turnover and the high sales proportions of Ryzen and EPYC processors.

* Compared with net income of USD 35 million in the same period last year and USD 162 million in the previous quarter, net income for the quarter was USD 157 million. Based on non-GAAP standards, compared with the net income of USD 92 million in the same period last year and the net income of USD 222 million in the previous quarter, the net income for the quarter was USD 216 million.

* Compared with the diluted earnings per share of US$0.03 in the same period last year and US$0.14 in the previous quarter, the diluted earnings per share for this quarter was US$0.13. Based on non-GAAP standards, compared with the diluted earnings per share of US$0.08 in the same period last year and US$0.18 in the previous quarter, this quarter's diluted earnings per share was US$0.18.

* The total value of cash, cash equivalents and marketable securities at the end of the quarter was US$1.78 billion

Quarterly Departmental Financial Report Summary

* The computing and graphics business unit has a turnover of US$1.37 billion, a year-on-year increase of 45% and a month-on-month decrease of 5%. The year-on-year growth was due to the strong sales of Ryzen processors, and the quarter-on-quarter decline was due to the decline in sales of graphics processors.

* Thanks to sales of Ryzen processors, the average selling price of client processors increased year-on-year. Due to the high sales ratio of Ryzen mobile processors, the average selling price of client-side processors has declined month-on-month.

* The year-on-year and quarter-on-quarter declines in GPU average selling prices were attributed to the decline in channel sales.

* Compared with operating income of USD 22 million in the same period last year and USD 262 million in the previous quarter, operating income for the quarter was USD 200 million. The year-on-year growth was due to the significant increase in turnover, while the quarter-on-quarter decline was due to the increase in operating costs and the decrease in turnover compared to the previous quarter.

* The turnover of the enterprise, embedded and semi-custom business divisions was US$565 million, a year-on-year decrease of 4% and a month-on-month increase of 62%. The year-on-year decrease was due to the low turnover of semi-custom products, although part of it was used by EPYC Of the strong turnover. The quarter-on-quarter growth was due to the increase in sales of EPYC processors and semi-custom products compared with the previous quarter.

* Compared with the operating income of US$89 million in the same period last year and the operating loss of US$26 million in the previous quarter, operating income for the quarter was US$33 million. The year-on-year decline was caused by the increase in operating costs and the decline in turnover, while the quarter-on-quarter growth was due to an increase in turnover compared to the previous quarter.

* Compared to the operating loss of US$52 million in the same period last year and the operating loss of US$59 million in the previous quarter, all other operating losses in the quarter were US$60 million.

Recent company performance highlights

* Unique cloud, enterprise-class and high-performance computing solutions have won more orders, and the second-generation AMD EPYC (Xiaolong) processors continue to accelerate their deployment in data centers.

* Google announced the launch of new confidential virtual machines (VMs) on the Google Compute Engine using the second-generation AMD EPYC (Xiaolong) processor, taking full advantage of AMD's secure encryption virtualization features. With AMD EPYC (Xiaolong) processor leading security features, these confidential virtual machines can ensure customer data security and provide high-performance cloud computing.

* AWS released the sixth series of cloud instances powered by AMD EPYC (Xiaolong) processors. The new Amazon EC2 C5a instances allow customers to run compute-intensive workloads.

* Oracle and AMD announced that the AMD EPYC (Xiaolong) processor brings leading memory bandwidth and ultra-high core count to the Oracle Cloud Infrastructure Computing E3 platform, which is suitable for general-purpose and high-bandwidth workloads.

* Dell Technology Group, HPE, IBM Cloud, Nutanix, Supermicro, VMware and other vendors announced the launch of products based on the new AMD EPYC 7Fx2 processor family, bringing high-frequency processing to enterprise workloads Capacity and super high performance per core.

* Dell Technologies announced that its first hyper-converged infrastructure system VxRail E series will be based on AMD EPYC (Xiaolong) processors.

* The new Nvidia DGX A100 system utilizes AMD EPYC (Xiaolong) processor in performance, core number and PCIe 4 support to accelerate data analysis, training and inference and other types of AI workloads.

* Ryzen PRO performance, security features, and seamless management of the most challenging business environments drive the growth of AMD's client processor business development momentum.

* Lenovo and AMD announced that ThinkStation P620 will be equipped with AMD Ryzen Threadripper PRO processors, including 64-core workstation processors. The new Ryzen Threadripper PRO processor family has outstanding performance and extremely fast experience bandwidth, and its AMD PRO technology provides enterprise-level security and manageability.

* AMD announced that the AMD Ryzen PRO 4000 series mobile processors can bring perfect performance, flexibility to work anywhere, security and seamless manageability for modern IT infrastructure. HP and Lenovo business notebooks equipped with AMD Ryzen PRO 4000 series mobile processors are now available.

* AMD's desktop processor portfolio adds the third-generation Ryzen 3000XT series processors. Compared with the previous generation products, the third-generation Ryzen 3000XT series desktop processors can provide a higher BOOST frequency, bringing elite-level performance to games and content creation.

* Apple announced that the latest 16-inch MacBook Pro will be equipped with AMD Radeon Pro 5600M mobile GPU processor, bringing desktop-level graphics performance to mobile users.

* AMD announced that AMD Radeon™ Pro VII workstation graphics cards incorporating AMD Infinity Fabric™ Link technology can provide broadcast and engineering professionals with superior graphics and computing performance.

* AMD announced the provision of a cloud-based supercomputing system powered by AMD EPYC (Xiaolong) processors and AMD Radeon Instinct accelerators to the AMD HPC Fund to support COVID-19 related research. AMD will work with Penguin Computing to donate these systems to New York University, Massachusetts Institute of Technology, and Rice University to provide remote supercomputing capabilities for researchers around the world.