AMD today announced revenue for the second quarter of 2017 of $1.22 billion, operating income of $25 million, and net loss of $16 million, or $(0.02) per share. On a non-GAAP basis, operating income was $49 million, net income was $19 million, and earnings per share was $0.02."Our second quarter results demonstrate strong growth driven by leadership products and focused execution," said Dr. Lisa Su, AMD president and CEO. "Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products."AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.For the third quarter of 2017, AMD expects revenue to increase approximately 23 percent sequentially, plus or minus 3 percent. The midpoint of guidance would result in third quarter 2017 revenue increasing approximately 15 percent year-over-year. AMD now expects annual revenue to increase by a mid to high-teens percentage, compared to prior guidance of low double digit percentage revenue growth.

43 Comments on AMD Reports Second Quarter 2017 Financial Results

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#1 ShurikN

Considering Epyc just launched and TR is around the corner, I believe revenue will jump even higher for the next quarter.

The problem is Vega, and how much profit (loss) can be had with it. Posted on Jul 26th 2017, 7:46 Reply

#2 bug

Wth, not even Ryzen could pull them out of the red? Posted on Jul 26th 2017, 7:58 Reply

#3 Prima.Vera

How much can they go on RED ??? Hope they won't bankrupt soon.... Posted on Jul 26th 2017, 9:02 Reply

#4 opojare

I don't think there is single soul in AMD that could spell 'profit'. Posted on Jul 26th 2017, 9:04 Reply

#5 notb

bug Wth, not even Ryzen could pull them out of the red? Why would it? It's a low profit product. They most likely need way more volume. Why would it? It's a low profit product. They most likely need way more volume. Posted on Jul 26th 2017, 9:06 Reply

#6 the54thvoid

bug Wth, not even Ryzen could pull them out of the red? It's a long road to recovery but the financials show a positive debt slowdown. It's a long road to recovery but the financials show a positive debt slowdown. Posted on Jul 26th 2017, 9:17 Reply

#7 FrustratedGarrett

Even with Ryzen out and selling they're losing money. I don't see how they can survive in the long term. They should sell their graphics division to Intel and their CPU division to Nvidia and call it a day already. Posted on Jul 26th 2017, 9:20 Reply

#8 bug

notb Why would it? It's a low profit product. They most likely need way more volume. It's also possible they're still in the red because of investments (I don't know the detailed situation), but after milking Polaris for a year and Ryzen for about a quarter, I'm a little surprised to see those numbers. Not that AMD exists to avoid surprising me or anything ;) It's also possible they're still in the red because of investments (I don't know the detailed situation), but after milking Polaris for a year and Ryzen for about a quarter, I'm a little surprised to see those numbers. Not that AMD exists to avoid surprising me or anything ;) Posted on Jul 26th 2017, 9:29 Reply

#9 Easo

It seems that most of the commenters here don't understand that you cannot reverse negative bilance for years into green within less than half a year. Please stop the doom and gloom, it's tiring. AMD made sure via Ryzen that they won't kick the bucket just yet, which should be obvious when looking at that chart. Posted on Jul 26th 2017, 9:31 Reply

#10 deu

Some people wondering about why they are in the red: If you want marketshare as a underdog you will have to invest. Right now AMD is producing more CPU that they have done in a decade and pushing on all cpu markets. Do you think that stuff comes cheap? A company will push their economy to the max for marketshare and SHOULD go to 0 or minus (if not they have not invested enough. Reestablishing infrastructure and reputation at sellers is not free! :) Posted on Jul 26th 2017, 9:35 Reply

#11 bug

deu Some people wondering about why they are in the red: If you want marketshare as a underdog you will have to invest. Right now AMD is producing more CPU that they have done in a decade and pushing on all cpu markets. Do you think that stuff comes cheap? A company will push their economy to the max for marketshare and SHOULD go to 0 or minus (if not they have not invested enough. Reestablishing infrastructure and reputation at sellers is not free! :) You're mostly right, but I'd add one correction: they're not into mobile/laptops which is a growing market, so raw quantity may not be what they're after. They followed up Ryzen with Epyc, which means they're going for higher margins first (which is a valid approach). You're mostly right, but I'd add one correction: they're not into mobile/laptops which is a growing market, so raw quantity may not be what they're after. They followed up Ryzen with Epyc, which means they're going for higher margins first (which is a valid approach). Posted on Jul 26th 2017, 9:51 Reply

#12 Frick

Fishfaced Nincompoop FrustratedGarrett Even with Ryzen out and selling they're losing money. I don't see how they can survive in the long term. They should sell their graphics division to Intel and their CPU division to Nvidia and call it a day already. Ryzen is still very new, and I count three OEM computers (in a few different configurations) with Ryzen in my country, and Newegg has precious few of them as well. From the OEMs that matter (HP and so on).



AMD really need them some APUs. Ryzen is still very new, and I count three OEM computers (in a few different configurations) with Ryzen in my country, and Newegg has precious few of them as well. From the OEMs that matter (HP and so on).AMD really need them some APUs. Posted on Jul 26th 2017, 9:58 Reply

#13 JATownes

Most of these comments are laughable and show a sad understanding of how to read a companies financials. Basic understanding of economics and how the financial markets work would really help people understand that these are phenomenal numbers coming from AMD and show a clear path toward long term growth and profitability.



But by all means, listen to Goldman-Sachs if you would prefer...their last few analysts predictions have helped them increase their holdings in AMD for cheap.



JAT Posted on Jul 26th 2017, 10:03 Reply

#14 TheinsanegamerN

notb Why would it? It's a low profit product. They most likely need way more volume. I can almost guarantee that the ryzen 7 chips have far higher margins then any radeon product. Heck, the ryzen 5 lineup stands a very high chance of having higher margins then the 8GB 580 does. It certainly is not "low profit" margin wise.



The bigger issue was ryzen's launch date, early supply issues with motherboards, lack of different model mobos to choose from, ece. Ryzen hasnt been out long enough to make a huge dent, ryzen 5 is barely a month old, ece. I can almost guarantee that the ryzen 7 chips have far higher margins then any radeon product. Heck, the ryzen 5 lineup stands a very high chance of having higher margins then the 8GB 580 does. It certainly is not "low profit" margin wise.The bigger issue was ryzen's launch date, early supply issues with motherboards, lack of different model mobos to choose from, ece. Ryzen hasnt been out long enough to make a huge dent, ryzen 5 is barely a month old, ece. Posted on Jul 26th 2017, 10:04 Reply

#15 XiGMAKiD

Frick AMD really need them some APUs. ...that's not crippled by OEMs ...that's not crippled by OEMs Posted on Jul 26th 2017, 10:12 Reply

#16 bug

JATownes Most of these comments are laughable and show a sad understanding of how to read a companies financials. Basic understanding of economics and how the financial markets work would really help people understand that these are phenomenal numbers coming from AMD and show a clear path toward long term growth and profitability.



But by all means, listen to Goldman-Sachs if you would prefer...their last few analysts predictions have helped them increase their holdings in AMD for cheap.



JAT So... companies that end up in black are stupid? So... companies that end up in black are stupid? Posted on Jul 26th 2017, 10:13 Reply

#17 JATownes

AMD is looking for GROWTH to sustain long term profitability. Revenue growth 19% for the year; Gross margins 2% increase year to year; Computing and graphics revenue up an astonishing 51% year over year. What about this looks bad?



And for clarity, the market has reflected these numbers with a jump of almost 20% since close yesterday afternoon. The fundamentals for AMD look absolutely amazing over the last 2 quarters, and revenue is only expected to increase. But I guess someone that does not invest regularly and understand how to read fundamentals of a stock analysis would see this as a bad thing.



I see this as nothing but pure win, and the market does too.



JAT Posted on Jul 26th 2017, 10:30 Reply

#18 btarunr

Editor & Senior Moderator ShurikN Considering Epyc just launched and TR is around the corner, I believe revenue will jump even higher for the next quarter.

The problem is Vega, and how much profit (loss) can be had with it. Threadripper may be high-margin, but it's a very low-volume product. It won't have a direct tangible impact on AMD's revenues, but improve its overall PR. You'd want to buy budget CPUs from a company that's capable of making ultra-high-end CPUs like Threadripper.



We kinda already know from Pro Vega Frontier Edition's performance that RX Vega may suck, unless AMD shocks with pricing, which is unlikely given the exotic tech AMD used to make Vega, and the Ethereum madness. Threadripper may be high-margin, but it's a very low-volume product. It won't have a direct tangible impact on AMD's revenues, but improve its overall PR. You'd want to buy budget CPUs from a company that's capable of making ultra-high-end CPUs like Threadripper.We kinda already know from Pro Vega Frontier Edition's performance that RX Vega may suck, unless AMD shocks with pricing, which is unlikely given the exotic tech AMD used to make Vega, and the Ethereum madness. Posted on Jul 26th 2017, 10:39 Reply

#19 Steevo





Still made money though. btarunr Threadripper may be high-margin, but it's a very low-volume product. It won't have a direct tangible impact on AMD's revenues, but improve its overall PR. You'd want to buy budget CPUs from a company that's capable of making ultra-high-end CPUs like Threadripper.



We kinda already know from Pro Vega Frontier Edition's performance that RX Vega may suck, unless AMD shocks with pricing, which is unlikely given the exotic tech AMD used to make Vega, and the Ethereum madness. Vega as a consumer graphics card will not be a profit center either, it's cost to manufacture, engineer, and support for its price to performance will probably make it a loss leader. AMD has probably done better with plain Ryzen chips and Polaris dies than anything, and considering they have other obligations to MS and Sony it's little wonder they can't keep up with demand.



Lastly, companies like AMD are trying to get rid of long term debt coming due before it starts to cost them, so "overspending" to come out in the black during a profitable time is normal, they have been dumping assets for a few years to control costs and reduce long term debt at the expense of their cash or liquid assets for a few years as well. In the long run they may be able to buy back more shares for a few key shareholders at lower prices and come out with a cleaner balance sheet on the debts and liabilities... except those outstanding shares to themselves... I fucked up and only made decent money and sold stock before this. For some reason a loss now equals higher stock price when historically it drops...Still made money though.Vega as a consumer graphics card will not be a profit center either, it's cost to manufacture, engineer, and support for its price to performance will probably make it a loss leader. AMD has probably done better with plain Ryzen chips and Polaris dies than anything, and considering they have other obligations to MS and Sony it's little wonder they can't keep up with demand.Lastly, companies like AMD are trying to get rid of long term debt coming due before it starts to cost them, so "overspending" to come out in the black during a profitable time is normal, they have been dumping assets for a few years to control costs and reduce long term debt at the expense of their cash or liquid assets for a few years as well. In the long run they may be able to buy back more shares for a few key shareholders at lower prices and come out with a cleaner balance sheet on the debts and liabilities... except those outstanding shares to themselves... Posted on Jul 26th 2017, 10:49 Reply

#20 Dave65

It's fair to say, most here don't understand business.. AMD is on a good road right now! Posted on Jul 26th 2017, 11:06 Reply

#21 bug

Dave65 It's fair to say, most here don't understand business.. AMD is on a good road right now! I don't think anyone said AMD is not doing well. I myself only said I'm surprised they're still in the red, while at the same time ackowledged Idk their position in detail. I don't think anyone said AMD is not doing well. I myself only said I'm surprised they're still in the red, while at the same time ackowledged Idk their position in detail. Posted on Jul 26th 2017, 11:12 Reply

#22 phanbuey

bug I don't think anyone said AMD is not doing well. I myself only said I'm surprised they're still in the red, while at the same time ackowledged Idk their position in detail. How are they still in the red? - the income statement shows they made 49 mil / 19 mil GAAP and 2 cents a share... How are they still in the red? - the income statement shows they made 49 mil / 19 mil GAAP and 2 cents a share... Posted on Jul 26th 2017, 11:27 Reply

#23 LogitechFan

Pathetic. Even with mining and new products they are bleeding $$. I was right about overstock, see prices drop further.



PS. Up 9% on the fact that "we're still alive", well, it does not take much nowadays eh? Posted on Jul 26th 2017, 11:35 Reply

#24 bug

phanbuey How are they still in the red? - the income statement shows they made 49 mil / 19 mil GAAP and 2 cents a share... That's non-GAAP. GAAP shows their net income is negative. That's non-GAAP. GAAP shows their net income is negative. Posted on Jul 26th 2017, 11:52 Reply

#25 Captain_Tom

bug So... companies that end up in black are stupid? Have you watched the show Silicon Valley? LOL Have you watched the show Silicon Valley? LOL Posted on Jul 26th 2017, 12:04 Reply