In the wake of a solid second-generation Ryzen CPU launch, AMD reported its first-quarter 2018 financial results this afternoon. The company announced revenue of $1.65 billion, up 40% year-on-year, and operating income of $120 million, up a whopping 990% from $11 million a year ago. To wrap up a fine quarter, the company reported net income of $81 million, reversing a course charted by a $33 million net loss a year ago. The company earned eight cents per share, up from a four-cent-per-share loss a year ago. Gross margin was 36%, up four percentage points.
|Q1 2018||Q1 2017||Year-on-year
|Revenue||$1.65 billion||$1.18 billion||+40%|
|Gross margin %||36%||32%||+4%|
|Operating expense||$477 million||$394 million||+$83 million|
|Operating expense %||29%||33%||-4%|
|Operating income||$120 million||$11 million||+$109 million|
|Net income||$81 million||-$33 million||+$114 million|
|Earnings per share||$0.08||-$0.04||+$0.12|
On a business-unit level, AMD's Computing and Graphics unit took in $1.12 billion in revenue, up 95% year-on-year, thanks to strong sales of Ryzen CPUs and Radeon graphics products. The company says its CPU and graphics-card average selling prices increased thanks to its Ryzen CPUs and new Radeon graphics products. Operating income for the segment was $138 million, compared to an operating loss of $21 million a year ago.
AMD's Enterprise, Embedded, and Semi-Custom revenue was $532 million, down 12% on the year. AMD says that result is thanks to lower semi-custom revenue, but that server and embedded parts helped arrest the slide. The division made $14 million in operating income, compared to an operating profit of $55 million a year ago. The outsize year-ago profit was thanks in part to a licensing payment the company received during that quarter. The All Other operating unit posted an operating loss of $32 million, compared with a $23 million loss a year ago.
For its second quarter of 2018, AMD expects revenue of $1.725 billion, plus or minus $50 million. If those projections hold, the company would increase revenue 50% year-over-year. The company expects a non-GAAP gross margin of 37% next quarter.