This is yet another record revenue for AMD and at $5.9B it is a 71 percent increase compared to the last year and 22 percent compared to the previous quarter. As noted, the company reported a gross margin of 48 percent, operating margin of 16 percent with operating income of $951 million, net income of $786 million, and diluted (EPS) earnings per share of $0.56. AMD reported a solid increase across the board, with a 2 percent increase in gross margin compared to the last year, driven by higher server processor revenue and high margin Xilinx revenue.
AMD's latest financial report includes the recently completed acquisition of Xilinx, which closed on February 14th.
Excluding the aforementioned Xilinx acquisition, AMD still had a record quarter with revenue of $5.3B, up by 55 percent compared to the last year and up by 10 percent compared to the previous quarter.
"The first quarter marked a significant inflection point in our journey to scale and transform AMD as we delivered record revenue and closed our strategic acquisition of Xilinx," said AMD Chair and CEO Dr. Lisa Su. "Each of our businesses grew by a significant double digit percentage year-over-year, led by EPYC server processor revenue more than doubling for the third straight quarter. Demand remains strong for our leadership products, with our increased full-year guidance reflecting higher AMD organic growth and the addition of the growing Xilinx business."
According to AMD, the record revenue can be attributed to high sales from Computing and Graphics and Enterprise, Embedded and Semi-Custom segments and the inclusion of Xilinx revenue.
AMD's Computing and Graphics segment was the big winner, reporting a revenue of $2.8 billion, a 33 percent increase compared to the last year and 8 percent increase compared to the previous quarter. AMD states that higher revenue was driven by both Ryzen and Radeon sales, and most can be attributed to an increase in average selling price (ASP) for both CPUs and GPUs.
The Enterprise, Embedded and Semi-Custom segment revenue was reported at $2.5 billion, up by 88 percent compared to the last year and up by 13 percent compared to the previous quarter, with an increase in EPYC, semi-custom and embedded product revenue and sales.
AMD was keen to note that it managed to complete the acquisition of Xilinx and made an agreement to acquire Pensado.
The company also announced the general availability of 3rd gen AMD EPYC processors with 3D V-cache technology, as well as expanded its lineup of high-performance Ryzen desktop processors for gamers and creators, the Ryzen 7 5800X3D. The company also expanded its Versal product lineup.
AMD's board of directors elected President and CEO Dr. Lisa Su as the chair of the board and John E. Caldwell as lead independent director, while former Xilinx board members Jon Olson and Elizabeth Vanderslice also joined the AMD board. A;D board of directors approved a new $8 billion share repurchase program that will be an addition to a $4 billion share repurchase program announced last year. The board also has decided to enter into a $3 billion sustainability-linked credit facility to replace its existing $500 million revolving credit facility.
For Q2 2022, AMD expects revenue to be around $6.5 billion, plus or minus $200 million, an increase of approximately 69 percent compared to the last year and a 10 percent increase compared to the current quarter. AMD expects revenue of $26.3 billion for the full year, an increase of around 60 percent compared to the last year.