AMD shows positive operating profit for the second quarter of the year

AMD has had some tough years behind it with almost non-existent competitive opportunity in the higher segments of the processor market. With the return to the market with the Ryzen 7, they therefore predicted that it would turn around, something which, however, did not have time to yield results financially for the first quarter of the year.

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	Q2 2017	Q1 2017	Q2 2016
Income	$ 1.22 billion	$ 984 million	$ 1.03 billion
Operating profit	$ 25 million	– $ 29 million	– $ 8 million
Net profit	– $ 16 million	– $ 73 million	$ 69 million
Gross margin	33%	34%	31%

However, as AMD’s quarterly report for the second quarter of 2017 is published, there will be more positive tones, and it is clear that the company is offering significantly stronger figures. The company’s revenue for the second quarter of the year amounts to USD 1.22 billion, an increase of approximately 18 percent compared with the same period last year.

Operating profit is stated at USD 25 million, which means black figures for AMD for the first time in a long time. This can be compared with last year’s operating profit for the same quarter, which landed at minus USD 8 million. However, the net profit lands at minus USD 16 million, which can be compared with the same period last year when it was USD 69 million.

According to AMD, it is the division Computing and Graphics including processors, control circuits and graphics cards that generated a large portion of revenue totaling $ 659 million. This is a 51 percent increase over the previous year and is said to be due to increased demand for graphics cards and Ryzen processors.

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Divisions Enterprise, Embedded, and Semi-Custom, which includes the system circuits for the Playstation 4 and Xbox One game consoles, had sales of $ 563 million. This is 5 percent less than the previous year and AMD explains that it is mainly based on lower sales of customized circuits.

For the third quarter, a sequential increase of 23 percent over second quarter revenue is forecast with a margin of error of 3 percentage points. Furthermore, the company announces to its investors that the total profit for the year is expected to increase to a “medium or high” double-digit number, compared with previous calculations for a low double-digit number.