According to the published financial report, the revenue for Q1 2019 stood at $1.27 billion, down by 23 percent compared to the same quarter last year and down by 10 percent compared to the last quarter. More importantly, AMD reported a higher gross margin of 41 percent, up by five percent compared to the last year and up by three percent compared to the last quarter.
The operating income and net income were reported at $38 million and $16 million, respectively. These were also down compared to the last year, while operating income was up by $10 million compared to the last quarter. The same thing goes for operating expenses, which were reported at $543 million, up by $66 million compared to the last year and up by $34 million compared to the last quarter. With this in mind, earnings per share were also reported at $0.01, down by $0.07 compare to the last year and down by $0.03 compared to the last quarter.
Despite lower revenue and income, this is really a solid quarter for AMD, with the expected drop due to lower revenue from Computing and Graphics segment, or, in short, a drop in the cryptomining and lower graphics card sales.
"We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year", said Dr. Lisa Su, AMD president and CEO. "We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth."
According to AMD, the important higher gross margin comes from the datacentre market and Radeon Vega and EPYC series CPUs.
When it comes to another segment, the Enterprise, Embedded and Semi-Custom segment also reported a drop of 17 percent compared to the last year and two percent compared to the last year, mostly due to lower demand for semi-custom solutions but should eventually see a rise as it has been confirmed that AMD will continue to be Sony's partner for next-gen Playstation console.
AMD expects higher revenue in Q2 2019, around $1.52 billion (+/- $50 million), a 19 percent growth if it comes to pass. Again, lower demand for graphics cards due to the cryptomining crash should be reflected in Q2 results as well, at least compared to the same quarter last year.
AMD has a busy and exciting year ahead, at least if it manages to deliver on its roadmap, as Zen 2 and Navi will be a big part of its Q3 2019 financial report.