The reported revenue of $1.53 billion is actually not a bad result, despite the fact that it is a 13 percent drop compared to the same quarter last year. The revenue is up by 20 percent compared to the last quarter, and the yearly drop can be attributed to a drop in graphics card sales as the cryptocurrency market has significantly slowed down.
The gross margin remained at 41 percent, same as the previous quarter, and up by four percent compared to the last year. AMD also reported operating income of $59 million, and net income of $35 million, leaving it with $0.03 earnings per share, a significant drop compared to the last year.
Although AMD launched its new Navi-based Radeon RX 5700 series as well as its new 3rd generation Ryzen CPUs, these do not have an impact on the Q2'19 report but will help AMD reach its Q3 targets, expecting a revenue of around $1.8 billion and gross margin of 43 percent.
The Computing and Graphics segment of the company actually did good, reporting a revenue of $940 million, down by 13 percent compared to the last year, but up by 13 percent compared to the previous quarter. The Enterprise, Embedded and Semi-Custom segment was down by 12 percent compared to the last year, but up by 34 percent compared to the last quarter, and AMD expect it to grow around 20 percent compared to the previous year.
“I am pleased with our financial performance and execution in the quarter as we ramped production of three leadership 7nm product families,” said Dr. Lisa Su, AMD president and CEO. “We have reached a significant inflection point for the company as our new Ryzen, Radeon and EPYC processors form the most competitive product portfolio in our history and are well positioned to drive significant growth in the second half of the year.”
Hopefully, AMD will be able to keep up with its launches and it has some new products to sell, so it should be positively reflected in its Q3'19 financial report.