AMD reported its second-quarter 2017 financial results today. At the end of a busy quarter, the company took in revenue of $1.22 billion and operating income of $25 million, though it turned in a net loss of $16 million. Revenue was up 19% year-over year, and the company's operating profit marks its first time in the black by that metric in quite some time.
|Q2 2017||Q2 2016||Change from Q1 2016|
|Revenue||$1.22 billion||$1.03 billion||up 19%|
|Operating income||$25 million||-$8 million||—|
|Net income||-$16 million||$69 million||—|
|Gross margin||33%||31%||up 2%|
The company's Computing and Graphics division took in $659 million in revenue, up 51 percent year-over-year, and turned in an operating profit of $7 million versus an operating loss of $81 million this time last year. The company says average selling prices rose along with its other financial metrics, all thanks to the introduction of the Ryzen CPU lineup and a full quarter of Ryzen CPU availability.
The Enterprise, Embedded, and Semi-Custom segment took in $563 million in revenue, down 5% year-on-year. AMD blamed that decline on lower sales from its semi-custom SoC business. Operating income fell to $42 million from $84 million a year ago, a decrease the company pins on "lower revenue and higher datacenter related R&D investments."
The All Other portion of AMD's balance sheet recorded a $24 million operating loss, as opposed to an $11 million operating loss at this time last year. The company says the increase is because of "stock-based compensation charges" and a "$7 million restructuring credit" that was applied in the second quarter of 2017.
For its fiscal third quarter, AMD expects a 23% sequential revenue increase, plus or minus 3%. If that figure holds, the company would bring in $1.5 billion in revenue for Q3.
The company also revised its annual revenue forecast upward, telling investors to expect that figure to increase "by a mid to high-teens percentage." In the past, AMD had told its investors to expect "low double digit" percentage growth.