SANTA CLARA, Calif., Oct. 27, 2020 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced record revenue for the third quarter of 2020 of $2.80 billion, operating income of $449 million, net income of $390 million and diluted earnings (advanced micro devices stock) per share of $0.32. On a non-GAAP* basis, operating income was $525 million, net income was $501 million and diluted earnings per share was $0.41.

                           




“Our business accelerated in the third quarter as strong demand for our PC, gaming and data center products drove record quarterly revenue,” said Dr. Lisa Su, AMD president and CEO. “We reported our fourth straight quarter with greater than 25 percent year-over-year revenue growth, highlighting our significant customer (advanced micro devices stock) momentum. We are well positioned to continue delivering best-in-class growth as we further extend our leadership product portfolio (advanced micro devices stock) with the launches of our next generation Ryzen, Radeon and EPYC processors.”

GAAP Quarterly Financial Results

 Q3 2020Q3 2019Y/YQ2 2020Q/Q
Revenue ($M)$2,801$1,801Up 56%$1,932Up 45%
Gross profit ($M)$1,230$777Up 58%$848Up 45%
Gross margin44%43%Up 1pp44%Flat
Operating expenses ($M)$781$591Up 32%$675Up 16%
Operating income ($M)$449$186Up 141%$173Up 160%
Net income ($M)$390$120Up 225%$157Up 148%
Earnings per share$0.32$0.11Up 191%$0.13Up 146%

Q3 2020 Results

Revenue was $2.80 billion, up 56 percent year-over-year and 45 percent quarter-over-quarter driven by higher revenue in both the Enterprise, (advanced micro devices stock) Embedded and Semi-Custom and Computing and Graphics segments.
Gross margin was 44 percent, up 1 percentage point year-over-year and flat quarter-over-quarter. The year-over-year increase was primarily driven by EPYC™ and Ryzen™ processor sales. Gross margin was flat quarter-over-quarter as an increase of Ryzen and EPYC processor sales was offset by a higher percentage of semi-custom revenue.
Operating income was $449 million compared to $186 million a year ago and $173 million in the prior quarter. Non-GAAP operating income was $525 million compared to $240 million a year ago and $233 million in the prior quarter. (advanced micro devices stock) Operating income improvements were primarily driven by revenue growth, including an increase in Ryzen and EPYC processor sales and semi-custom product sales.
Net income was $390 million compared to $120 million a year ago and $157 million in the prior quarter. Non-GAAP net income was $501 million compared (advanced micro devices stock) to $219 million a year ago and $216 million in the prior quarter.
Diluted earnings per share was $0.32 compared to $0.11 a year ago and $0.13 in the prior quarter. Non-GAAP diluted earnings per share was $0.41 compared (advanced micro devices stock) to $0.18 a year ago and $0.18 in the prior quarter.
Cash, cash equivalents and short-term investments were $1.77 billion at the end of the quarter.


Quarterly Financial Segment Summary

Computing and Graphics segment revenue was $1.67 billion, up 31 percent year-over-year and 22 percent quarter-over-quarter. Revenue was higher year-over-year driven by a significant increase in Ryzen processor sales partially (advanced micro devices stock) offset by lower graphics revenue. Revenue was higher quarter-over-quarter driven by a significant increase in Ryzen processor sales and an increase in graphics revenue.
Client processor average selling price (ASP) was lower year-over-year due to a higher mix of mobile processor sales. Client processor ASP was (advanced micro devices stock) higher quarter-over-quarter driven by higher desktop and mobile processor ASPs.
GPU ASP was lower year-over-year due to product cycle timing and higher (advanced micro devices stock) quarter-over-quarter due to product mix.
Operating income was $384 million compared to $179 million a year ago and $200 million in the prior quarter. The year-over-year and quarter-over-(advanced micro devices stock) quarter increases were driven by higher Ryzen revenue.