Advanced Micro Devices, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Q1 2020 revenue reached $1.79B, up 40% year-over-year, and down 16% sequentially from Q4 2019.
  • Gross margin improved to 46%, up 490 basis points year-over-year, driven by Ryzen and EPYC mix.
  • Operating income rose to $236M compared to $84M in Q4 2019 and $84M in Q1 2019 (non-GAAP), with operating margin growing to 13% from 7% a year prior.
  • Net income increased to $222M from $62M in Q1 2019.
  • Free cash flow improved year-over-year by $155M, though remained negative at $120M.

Business Segment Performance

Computing & Graphics
  • Revenue of $1.44B grew 73% year-over-year, driven by Ryzen and Radeon momentum.
  • Segment operating income rose to $262M from $16M a year ago.
  • Client processor unit shipments and ASPs saw strong double-digit growth year-over-year.
  • Ryzen desktop processors gained share for the 10th straight quarter, holding over 50% share in premium e-tailer sales.
  • Notebook revenue hit a record high; Ryzen Mobile 4000 ramped strongly with >135 new platform launches expected in 2020.
  • Graphics revenue grew double digits year-over-year, led by Radeon RX 5000 GPUs and Radeon 5000M mobile GPUs.
  • RDNA 2 GPUs remain on track for launch later in 2020, targeting a 50% performance-per-watt uplift over current offerings.
Enterprise, Embedded & Semi-Custom (EESC)

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Operator: Greetings, and welcome to the AMD first quarter financial results conference call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce Ruth Cotter, Senior Vice President, Worldwide Market, Human Resources and Investor Relations. Ruth, please go ahead. Ruth Cotter: Thank you, and welcome to AMD's First Quarter 2020 Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings release and slides. If you have not reviewed these documents, they can be found on the Investor Relations page of AMD's website amd.com. Participants on today's call are Dr. Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on our website. Before we begin today, please note that our annual shareholder meeting will be held on Thursday, the 7th of May, as a virtual event accessible from amd.com. We will also be attending several virtual Wall Street events during the second quarter, including the Bernstein Strategic Decisions Conference on Thursday, May 28. And our second quarter 2020 quiet time is expected to begin at the close of business on Friday, the 12th of June. Today's discussions contain forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak onl

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