Firm-wide Development Drives Doubled Income

Company-wide Growth Drives Doubled Revenue

Persevering with our Q2 earnings protection this month, AMD is subsequent out the gate in reporting their earnings. And, has been the story now for a lot of the final yr, AMD is having fun with explosive income development throughout the corporate. CPU, GPU, and semi-custom gross sales are all up, pushing the bounds of what AMD can do amidst the present chip crunch, and pushing the corporate to new ranges of profitability within the course of.

For the second quarter of 2021, AMD reported $3.85B in income, making for one more huge bounce over a year-ago quarter for AMD, when the corporate made simply $1.93B in a then-record quarter. Now, half-way via 2021, AMD’s monetary trajectory is all about setting (and beating) data for the corporate, as evidenced by the 99% leap in year-over-year income – falling simply hundreds of thousands in need of outright doubling their income.

AMD’s large run-up in income can also be mirrored within the firm’s different metrics; together with that income AMD’s web revenue has grown by 352% year-over-year, now reaching $710M. And if not for an uncommon, one-off tax profit for AMD’s This fall’2020, this could have been AMD’s most worthwhile quarter ever – and certainly is on a non-GAAP foundation. In the meantime, as you may count on from such excessive web revenue figures, AMD’s gross margin has risen even additional and now sits at 48%, up 4 proportion factors from the year-ago quarter and a couple of factors from final quarter.

AMD Q2 2021 Monetary Outcomes (GAAP)
  Q2’2021 Q2’2020 Q1’2021 Y/Y Q/Q
Income $3.85B $1.93B $3.45B +99% +12%
Gross Margin 48% 44% 46% +4pp +2pp
Working Revenue $831M $173M $662M +380% +26%
Web Revenue $710M $157M $555M +352% +28%
Earnings Per Share $0.58 $0.13 $0.45 +346% +29%

Breaking down AMD’s outcomes by phase, we begin with Computing and Graphics, which encompasses their desktop and pocket book CPU gross sales, in addition to their GPU gross sales. That division booked $2.25B in income for the quarter, $883M (65%) greater than Q2 2020. Accordingly, the phase’s working revenue is (as soon as extra) up considerably as nicely, going from $200M a yr in the past to $526M this yr.

As all the time, AMD doesn’t present an in depth breakout of knowledge from this phase, however they’ve supplied some selective info on income and common promoting costs (ASPs). Total, shopper CPU gross sales have remained robust; shopper CPU ASPs are up on each a quarterly and yearly foundation, indicating that AMD has been promoting a bigger share of high-end (high-margin) elements. Based on AMD that is the case for each desktop and laptop computer gross sales, and making this the fifth straight quarter of income share positive aspects.

In the meantime the corporate is reporting equally excellent news from their GPU enterprise. As with CPUs, ASPs for AMD’s GPU enterprise as up on each a yearly and quarterly foundation. Based on the corporate that is being pushed by demand for high-end Radeon 6000 video playing cards, in addition to AMD Intuition (information middle) gross sales. AMD started preliminary shipments of their first CDNA 2 architecture-based Intuition accelerators in Q2, opening the spigot there for information middle GPU income going into Q3.

AMD Q2 2021 Reporting Segments
  Q2’2021 Q2’2020 Q1’2021

Computing and Graphics

Income $2250M $1367M $2100M
Working Revenue $526M $200M $485M

Enterprise, Embedded and Semi-Customized

Income $1600M $565M $1345M
Working Revenue $398M $33M $277M

Transferring on, AMD’s Enterprise, Embedded, and Semi-Customized phase has as soon as once more skilled 1 / 4 of fast development, because of the success of AMD’s EPYC processors and demand for the ninth technology consoles. This phase of the corporate booked $1.6B in income, $1035M (183%) greater than what they pulled in for Q2’20, and 19% forward of an already spectacular Q1’21. The massive bounce in income additionally signifies that the phase is even additional into the black on an working revenue foundation, persevering with to shut the hole with the Computing and Graphics phase even with the all-around development.

Total, each the enterprise and semi-custom sides of this phase are up on a yearly foundation. AMD set one other report for server processor income this quarter on the power of EPYC processor gross sales. In the meantime semi-custom income was up on each a yearly and a quarterly foundation, reflecting the continued demand for the most recent technology of consoles.

Trying ahead, AMD’s expectations for the quarter and for the remainder of the yr have been bumped up as soon as once more. For Q3 the corporate expects to e book $4.1B (+/- $100M) in income, which if it involves move will likely be 46% development over Q3’20. In the meantime AMD’s full yr 2021 projection now stands at a 60% year-over-year improve in income versus their $9.8B FY2020, which is 10 proportion factors larger than their forecast from the top of Q1.

Lastly, whereas AMD doesn’t have any main updates on the continuing Xilinx acquisition, the corporate has reiterated that it stays on-track. Which signifies that if all goes in response to plan, it’s going to shut by the top of the yr.

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