AMD have today release financial results for the first quarter of 2018, and the news certainly appears to be good for the Red Team. Buoyed primarily by a strong hardware lineup in the Computing and Graphics segment, Q1 2018 revenue was up a stonking 40% year on year to $1.65bn, or up 24% compared with Q4 2017. As a result Operating Income was up to $120m compared with only $11m in the same quarter last year, or a $2m loss in the last quarter of 2017. Gross margins were up, and operating expenses down, in what appears (on face value) to be a rosy report for January-March 2018.
"The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth. PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate. We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability."
- Dr. Lisa Su, AMD president and CEO.
- Dr. Lisa Su, AMD president and CEO.
A highlight of the first quarter of 2018 was the release of desktop APUs based on Ryzen CPU and Vega graphics architectures, whereas the recently released 2nd generation of Ryzen Desktop CPUs will be factored into Q2 results. The Computing and Graphics segment saw improvement in revenue to $1.12bn, an eyewatering 95% increase year on year. Additionally adoption of AMD's EPYC server platform has caused an improvement in the Enterprise, Embedded and Semi-Custom (EESC) segment performance over the previous quarter.
AMD are expecting revenue of approximately $1.725bn in Q2 2018, representing an increase of 50% year on year, and a gross margin of 37%. That's despite treading water on the release of new GPU hardware.
SOURCE: AMD Q1 2018 Financial Report
