AMD releases their Q3 2017 financial results – Profit has returned to AMD

AMD releases their Q3 2017 financial results - Profit has returned to AMD

AMD releases their Q3 2017 financial results – Profit has returned to AMD

Advanced Micro Devices (AMD) has released their Q3 financial report, showcasing the first operating profit for the company in over three years. This profit is mostly thanks to increased revenue, especially from the company’s Computing and Graphics Division, which generated 74% more revenue than this time last year. 

In total the company generated revenue of around $1.64 billion, which is an increase of 26% year-over-year while delivering a GAAP Operating income of $126 million, rather than an operating loss of $293 million. 

  Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago, Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry.

 

AMD releases their Q3 2017 financial results - Profit has returned to AMD

 

Breaking things down further, AMD’s Computing and Graphics Division posted revenue of $819 million this quarter, offering a 75% increase year-over-year due to strong sales of both Ryzen and Radeon CPUs and GPUs. Ryzen CPU sales have also significantly increased the cost per unit of AMD CPU sales, thanks to the CPU’s high levels of performance when compared to AMD’s older products. 

AMD’s Computing and Graphics Division earned AMD an operating income of 70 million, which is great news for the company since this decision was operating at a $66 million loss this time last year.  

AMD’s Enterprise, Embedded and Semi-Custom segment earned a revenue of $824 million this quarter, earning roughly the same amount that the segment earned last year. This quarter AMD has earned less money from Semi-Custom SoC sales, which are used to make consoles like the Xbox One and PS4/PS4 Pro, though this reduction in sales has been offset by the revenue created by their new IP revenue and the sale of EPYC CPUs. 

This division earned AMD an operating profit of $84 million, though this is down from $136 million this time last year. 

The company has also been able to reduce its “all other” operating losses from $363 million to $28 million, though this change is mostly due to AMD’s WSA surcharge from Globalfoundries last year. 

  
AMD releases their Q3 2017 financial results - Profit has returned to AMD

  

In all this has been a strong quarter for AMD, with the company delivering a profit in both of its major divisions thanks to strong sales for their Ryzen CPUs, Radeon GPUs and EPYC enterprise products. 

Moving into Q4 AMD expects to see its revenue drop around 15% ( or – 3%) and see a revenue boost of around 26% increase in Q4 revenue year-over-year. 

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