A higher operating expense ratio negatively impacted AMD’s non-GAAP operating margin, which fell 260 basis points YoY to a two-year low of 6.6% in the first quarter. The change in operating margin was less than the change in operating expense, which rose as a $60 million licensing gain from the THATIC (Tianjin Haiguang Advanced Technology Investment) joint venture partially offset the impact of higher expenses.

AMD expects the operating margin to improve in the coming quarters as it launches its 7-nm portfolio. For the second quarter, it expects an operating margin of 7.4% and an operating expense ratio of 33.6%.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!