Stefan Mileschin

Gross margin up to 40 percent, but stock drops

AMD has officially announced its Q3 2018 financial report, reporting revenues of $1.65 billion and a gross margin of 40 percent, both up compared to the same quarter last year. Nevertheless, AMD stock took a hit due to weak GPU sales but things are looking good for AMD.

While the announced Q3 2018 financial report is lower than expected, the big hit that AMD got from low GPU sales, which now only accounts for 30 percent of the revenue, was somewhat offset by strong CPU sales.

In numbers, AMD has reported revenues of $1.65 billion, up by four percent compared to the same quarter last year, and down by six percent compared to the previous quarter. The gross margin is at 40 percent, up by four percent Y/Y and up by three percent compared to the previous quarter. The operating expense was raised to $511 million, up by $59M Y/Y and up by $12 million Q/Q. The operating and net income were reported at $150 million and $102 million, respectively, and were up compared to the same quarter last year and down from the previous quarter. Earnings per share raised slightly to $0.09, which is up by $0.03 from the same quarter last year, but down by $0.02 compared to the previous quarter.

According to AMD's CEO, Dr. Lisa Su, the revenue and net income growth is mainly driven by "the accelerated adoption of Ryzen, EPYC and datacenter graphics products, and this managed to offset low graphics channel sales, which is understandable considering the drop in GPU cryptocurrency mining. According to AMD, "Blockchain-related GPU sales in the third quarter were negligible", leaving AMD with high channel inventory and low ASP (average selling price), both of which had a big impact on the GPU revenue.

https://fudzilla.com/news/47468-amd-...-1-65b-revenue