AMD has posted its third-quarter financials, and the company ended up in the black across the board. The company took in revenue of $1.64 billion, up 26% year-over-year. The company's third-quarter operating income of $126 million stands in stark contrast to the $293 million operating loss the company posted a year ago, and the company's net income of $71 million finishes off a fully profitable quarter. Earnings per share rang in at $0.07, compared to a $0.50 loss per share a year ago, and gross margin increased 30 points year-over-year to 35%.
|Q3 2017||Q3 2016||Change from Q3 2016|
|Revenue||$1.64 billion||$1.31 billion||up 26%|
|Operating income||$126 million||-$293 million||—|
|Net income||$71 million||-$406 million||—|
|Gross margin||35%||5%||up 30 points|
The Computing and Graphics division drove the rosy results with $819 million in revenue, up 74% year-on-year, thanks to what the company calls strong sales of Radeon graphics cards and Ryzen desktop CPUs. The Ryzen tide lifted average selling prices of the company's client products, and the ASP of Radeon graphics products also "increased significantly" year-over-year. The division took in $70 million in operating income, versus a net loss of $66 million a year ago.
The Enterprise, Embedded, and Semi-Custom division brought in $824 million, about the same as this time last year. The company says that Epyc processor sales and IP licensing revenue offset a decrease in semi-custom SoC sales. The division brought in operating income of $84 million, down from $136 million a year ago. AMD blames "higher costs partially offset by the net benefit of IP related items" for the change. In its All Other bucket, the company posted a $28 million operating loss, reined in from a $363 million operating loss a year ago.
For the fourth quarter of 2017, AMD expects revenue to decrease 15% sequentially, plus or minus 3%. The company says that if it hits the midpoint of this guidance, revenue would still be up about 26% year-on-year in the fourth quarter.