AMD has reported its Q4 2018 and annual 2018 financial results.
The Q4 revenue was $1.42B, with earnings of 8 cents per share; an increase of 6% y/y. This missed Wall Street estimates
of $1.44 billion in revenue. AMD reported that the growth was driven by the Computing and Graphics segment. Revenue was down 14% compared to the prior quarter as a result of lower revenue in the Enterprise, Embedded and Semi-Custom segment. Also reported was a Non-GAAP Gross Margin of 41% (+7 percentage points Y/Y). Gross margin improvements were primarily driven by Ryzen and EPYC processor sales. Non-GAAP net income of $87M (+$79M Y/Y), and Non-GAAP EPS of .08 (+.07 Y/Y) were also highlighted in the report. AMD announced that strong sales of Ryzen processors contributed to a 9% y/y increase in Computing and Graphics segment revenue and significantly boosted operating income. Datacenter GPU sales were also higher. Strong EPYC datacenter processor sales were offset by lower semicustom sales and server-related investments in the Enterprise, Embedded and Semi-Custom segment. AMD announced its outlook for Q1 2019. AMD expects revenue to be approximately $1.25 billion, plus or minus $50 million, a decrease of approximately 12 percent sequentially and 24 percent year-over-year