Chipmaker Advanced Micro Devices Inc (AMD) reported a 25.7 percent rise in quarterly revenue on Tuesday, its sixth straight quarter rise, aided by a slew of launches such as the Epyc processors for servers and a new range of Ryzen desktop processors.
The company reported a net income of $71 million in the third-quarter ended Sept.30, compared with a loss of $406 million, a year earlier.
The chipmaker's revenue rose to $1.64 billion from $1.31 billion.
"Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago," said Dr. Lisa Su, AMD president and CEO. "Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry."
The company's revenue was $1.64 billion, up 26 percent year-over-year, primarily driven by higher revenue in the Computing and Graphics segment (CG). Revenue was up 34 percent sequentially, driven by the Enterprise Embedded and Semi-Custom segment (EESC) revenue seasonality and higher revenue in CG. In the quarter, AMD closed a patent licensing transaction which positively impacted revenue in the segments.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $819 million, up 74 percent year-over-year primarily driven by strong sales of Radeon graphics and Ryzen desktop processors.
- Client average selling price (ASP) increased significantly year-over-year, due to higher desktop processor ASP driven by Ryzen processor sales.
GPU ASP increased significantly year-over-year.
- Operating income was $70 million, compared to an operating loss of $66 million a year ago. The year-over-year improvement was primarily driven by higher revenue.
- Enterprise, Embedded and Semi-Custom segment revenue was $824 million, approximately flat year-over-year primarily driven by lower semi-custom SoC sales, mostly offset by IP related and EPYC processor revenue.
- Operating income was $84 million, compared to $136 million a year ago. The year-over-year decrease was primarily due to higher costs partially offset by the net benefit of IP related items.
- All Other operating loss was $28 million compared with an operating loss of $363 million a year ago. The year-over-year difference in operating loss was primarily related to the WSA charge in the year ago period.