Advanced Micro Devices or most popularly known as AMD reported a solid first quarter; revenue was up tremendously, but gross margin forecasts shrouded the company with a handful of concerns. But even despite the strong quarter, premarket trading on Monday lead a bit of a stumble to the company’s shares.
The recent quarter report showed revenue of $984 million, a sizeable increase as opposed to last year’s first-quarter of $832 million while operating loss for the current quarter is at $29 million and Non-GAAP at $6 million from last year’s $68 million and Non-GAAP of $55 million last year. AMD’s reported net loss was at $73 million the Non-GAAP is at $38 million and a loss per share at $0.04.
According to Kevin Cassidy of Stifel, "Semiconductor companies, and, particularly, one that's trying to turn around and become profitable, trades on gross margin and I think there's concern,” Cassidy also said "I think that's the hang up - that these new products should be ramping production and they're not as profitable as the Street was expecting."
AMD Year-Over-Year Growth
The company’s quarter turned out to be a great one, the company manages to reach what most analysts expect at 18% year-over-year growth. According to Dr. Lisa Su, the current CEO and President of AMD, “We are positioned for solid revenue growth and margin expansion opportunities across the business in the year ahead as we bring innovation, performance, and choice to an expanding set of markets.”
AMD’s numbers were highly backed up by higher revenue in their Computing and Graphics and Enterprise success, Embedded, and Semi-Custom business segments. The announcement of their highly acclaimed desktop processors Ryzen gave the Computing and Graphics segment’s revenue a much-needed push, the high-performance processor has been taking the year with a storm.
GPU ASP was up on a year-over-year period, client average selling price was also up year-over-year driven by desktop processor ASP. The cash, cash equivalents, and marketable securities were reported to be at $943 million in the quarter, $321 million lower from the latter quarter.
AMD’s Q1 Highlight
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