AMD misses quarterly targets due to declining demand for graphics cards

Happiness has turned for the processor maker AMD, which since the launch of Zen has constantly turned defeat into success. When the company presents the figures for the third quarter of the year, it is once again a positive result, but it cracked miningThe bubble causes the company to miss goals.

	Q3 2018	Q2 2018	Q3 2017
Income	$ 1.65 billion	$ 1.76 billion	$ 1.58 billion
Operating results	$ 150 million	$ 153 million	$ 119 million
Net profit	$ 102 million	$ 116 million	$ 61 million
Gross margin	40%	37%	36%

Revenue for the third quarter of the year landed at $ 1.65 billion, well below an estimated $ 1.7 billion. The reason for this is that sales of graphics cards for breaking cryptocurrencies have fallen more than expected. Despite AMD missing its own revenue target, the gross margin continues its upward trend and was 40 percent during the third quarter.

Divisions Computing and Graphics continues to be the brightest star at AMD. On an annual basis, revenues here increased by 12 percent to 938 million, with a positive operating profit of 100 million – up 37 percent in one year. While sales of graphics cards weight down, it is sales of processors for laptops and laptops that lift the department.

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The other big part of AMD is Enterprise, Embedded and Semi-Custom, which includes processors for Microsoft Xbox, Sony Playstation and license fees, but also the server processors Epyc. Revenues here during the period were 715 million, a slight decrease of 4.5 percent from the third quarter of 2017. Operating profit, however, takes a step up by 16.2 percent to 86 million.

The result for the division is a mixed compote. The game consoles Playstation 4 and Xbox One have been on the market for five years and demand is thus starting to saturate. This is instead offset by the fact that AMD has started to get air under the wings with Epyc, which is being sold increasingly and is slowly starting to take market share from Intel, which has completely dominated the market for x86 servers.

During the third quarter, many manufacturers make their purchases ahead of major sales periods such as Black Friday and Christmas shopping, which is why AMD’s revenues, as in previous years, are expected to fall sharply during the fourth quarter of 2018. The company forecasts SEK 1.45 billion, up 8 percent compared to Q4 2017, while the gross margin is estimated at 41 percent.

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