Beat Wall St estimates, share price falls 5%. Who else but... AMD?
Chipmaker grows revenues 34 per cent, investors are meh
AMD says it managed to boost revenues by 34 per cent as its Ryzen and Radeon chip lines rack up sales.
The other-other CPU builder reports it managed to turn a profit for both the quarter and the 2017 fiscal year.
- Revenues of $1.48bn were up 34 per cent from the year-ago quarter's $1.11bn and ahead of analyst forecasts of $1.4bn.
- Net income of $61m was a nice change from the $51m loss AMD logged in Q4-16.
- Earnings per share of $0.08 beat the $0.05 forecast from analysts.
- Computing and Graphics revenues were $958m, a 60 per cent jump from the year-ago quarter on the strength of Ryzen and Radeon rollouts.
- Enterprise, embedded and semi-custom revenues were $522m, up three per cent from last year's quarter.
For the full fiscal year 2017:
- Revenues were $5.33bn, up 25 per cent from $4.27bn last year.
- Net income of $179m was up from a $117m loss in 2016, when AMD had to write off a $372m charge related to GlobalFoundries.
- Earnings per share of $0.17 compared to a $0.14 per share loss last year.
- AMD said it got around $18m in gains from the new US tax laws.
“2017 marked a key inflection point for AMD as we re-shaped our product portfolio, delivered 25 percent annual revenue growth, expanded gross margin and achieved full-year profitability," AMD CEO Dr Lisa Su said of the results.
"We are even more excited about 2018 as we launch our next wave of high-performance products and continue to position AMD as one of the premier long-term growth companies in the technology industry.”
Su also touched on AMD's response to the Spectre vulnerabilities. While the company's designs weren't affected to the extent of rival Intel, Su says her company has gone ahead and designed the Zen 2 line (believed to be arriving next year) to include mitigations for the vulnerability, though Su acknowledged the company could see a financial hit from the bugs.
"Security is and always has been a fundamental focus for AMD across all our products," Su said. "As new exploits arise we are dedicated to responding with speed and focus."
Unfortunately for Su, investors weren't as enthusiastic about AMD's outlook. Shortly after the results hit, AMD stock fell five per cent in after-hours trading. At the time of writing shares were still down 0.16 per cent at $12.85. ®