AMD Reports Double-Digit Growth in Revenue in 2Q20
AMD had an ecxellent period in the second quarter of 2020. Revenue of $1.93 billion, operating income of $173 million, net income of $157 million and diluted earnings per share of $0.13 were well above results in the same period in 2019.
Revenue was up 26% from the same quarter last year, while gross margin rose 3 percentage points. Operating income rose from $59 million last year to $173 million in 2020, while the net income wqas significantly higher, $157 million compared with $35 million in 2019.
“We delivered strong second quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago,” said Lisa Su, AMD president and CEO. “Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets.”
Computing and Graphics segment revenue was $1.37 billion, up 45 percent year-over-year and down 5 percent quarter-over-quarter. Revenue was higher year-over-year driven by strong Ryzen processor sales. The quarter-over-quarter decline was due to lower graphics processor sales. Data center adoption of 2 nd Gen AMD EPYC processors continued to accelerate with unique cloud, enterprise and high-performance computing wins. Commercial momentum for AMD client processors is growing, driven by Ryzen PRO performance, security features and seamless management for the most demanding business environments.
For the third quarter of 2020, AMD expects revenue to be approximately $2.55 billion, plus or minus $100 million, an increase of approximately 42 percent year-over-year and 32 percent sequentially. The year-over-year and sequential increases are expected to be primarily driven by Ryzen and EPYC processor sales and next generation semi-custom products.
AMD expects non-GAAP gross margin to be approximately 44 percent in the 5 third quarter of 2020. Gross margin is expected to increase year-over-year primarily driven by Ryzen and EPYC processor sales. AMD now expects 2020 revenue to grow by approximately 32 percent compared to 2019 driven by strength in PC, gaming and data center products. Non-GAAP gross margin is expected to be approximately 45 percent.