Morning news on May 1, Beijing time, AMD today announced its first quarter financial report for fiscal year 2024: revenue was US$5.473 billion, a year-on-year increase of 2%, and a month-on-month decrease of 11%; net profit was US$123 million, compared with the previous year. Net loss for the same period of the year was US$139 million, equivalent to a year-on-year increase of 188%, and a sharp decline of 82% month-on-month; adjusted net profit not in accordance with U.S. GAAP was US$1.013 billion, a year-on-year increase of 4%, and a month-on-month decrease. 19%.
AMD's first-quarter revenue and adjusted diluted earnings per share both slightly exceeded Wall Street analysts' previous expectations, and its outlook for second-quarter revenue was in line with expectations.After the earnings report was released, AMD's stock price fell sharply by nearly 7% after hours.
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Main achievement:
In the quarter ended March 30, AMD's net profit was US$123 million, compared with a net loss of US$139 million in the same period last year, equivalent to a year-on-year increase of 188%, but compared with the previous quarter's net profit of US$667 million. Compared with the US dollar, it dropped significantly by 82%; diluted earnings per share was US$0.07, compared with the diluted loss per share of US$0.09 in the same period last year, which is equivalent to a year-on-year increase of 178%, but compared with the diluted earnings per share of US$0.41 in the previous quarter. In comparison, it dropped significantly by 83%.
Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted net profit in the first quarter was US$1.013 billion, an increase of 4% compared with US$970 million in the same period last year, and an increase of 4% from US$1.249 in the previous quarter. Compared with US$100 million, this dropped by 19%.
Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted diluted earnings per share in the first quarter was $0.62, compared with adjusted diluted earnings per share of $0.60 in the same period last year, an increase of 3% year-over-year. ; Adjusted diluted earnings per share in the last quarter were US$0.77, a decrease of 19% from the previous quarter. This performance slightly exceeded analysts' previous expectations. According to data provided by Yahoo Finance Channel, 32 analysts had previously expected AMD's adjusted earnings per share to reach $0.61 in the first quarter.
AMD's first quarter revenue was US$5.473 billion, an increase of 2% compared with US$5.353 billion in the same period last year, and a decrease of 11% compared with US$6.168 billion in the previous quarter. This performance also slightly exceeded analyst expectations. . According to data provided by Yahoo Finance Channel, 32 analysts had previously expected AMD's first-quarter revenue to reach US$5.46 billion on average.
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AMD's operating profit in the first quarter was US$36 million, compared with an operating loss of US$145 million in the same period last year, equivalent to a year-on-year increase of 125%; operating profit in the previous quarter was US$342 million, a significant decrease of 89% from the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted operating profit in the first quarter was US$1.133 billion, an increase of 3% compared with US$1.098 billion in the same period last year, and an increase of 3% from US$1.412 billion in the previous quarter. Compared with US$100 million, this dropped by 20%.
AMD's operating profit margin in the first quarter was 1%, while the operating loss rate in the same period last year was 3%, which is equivalent to a year-on-year increase of 4 percentage points; the operating profit margin in the previous quarter was 6%, a decrease of 5 percentage points from the previous quarter. Excluding certain one-time items (non-GAAP), AMD's adjusted operating margin in the first quarter was 21%, which was unchanged from 21% in the same period last year and compared with 23% in the previous quarter. It dropped by 2 percentage points.
Revenue and operating profit by business segment:
– AMD Data Center Division's first quarter revenue was US$2.337 billion, an increase of 80% compared with US$1.295 billion in the same period last year. This growth was driven by AMD Instinct GPU and fourth-generation AMD EPYC CPU; operating profit was US$541 million, a significant increase compared with US$148 million in the same period last year. Compared with the previous quarter's $2.282 billion, AMD's data center division's first-quarter revenue also achieved a 2% quarter-on-quarter growth, mainly because this quarter was the first full quarter since AMD Instinct GPU sales began, but it was This was partially offset by a seasonal decline in CPU sales.
– Customer segment revenue in the first quarter was US$1.368 billion, an increase of 85% compared with US$739 million in the same period last year. This growth was mainly driven by the sales of AMD Ryzen 8000 series processors; operating profit was 86 million US dollars, compared with an operating loss of US$172 million in the same period last year, turning a profit year-on-year. Compared with US$1.461 billion in the previous quarter, the customer segment's revenue in the first quarter fell by 6% sequentially.
– The first quarter revenue of the gaming department was US$922 million, a decrease of 48% compared with US$1.757 billion in the same period last year; operating profit was US$151 million, a significant decrease compared with US$314 million in the same period last year. The gaming segment also saw a 33% sequential decline in the first quarter, compared to $1.368 billion in the previous quarter. The year-over-year and quarter-over-quarter revenue declines in this segment were due to lower semi-custom business revenue and declining sales of AMD Radeon GPUs.
– The revenue of the Embedded Products Division in the first quarter was US$846 million, a decrease of 46% compared with US$1.562 billion in the same period last year; operating profit was US$342 million, a significant decrease compared with US$798 million in the same period last year. Compared with the previous quarter's $1.057 billion, the embedded products division's first-quarter revenue also experienced a 20% sequential decline. The segment's revenue declined year-over-year and sequentially as the company's customers continued to manage their inventory levels.
– The operating loss of all other divisions was US$1.084 billion, compared with the operating loss of US$1.233 billion in the same period last year, narrowing the loss year-on-year.
AMD's first-quarter gross profit was US$2.56 billion, an increase of 9% compared with US$2.359 billion in the same period last year, and a decrease of 12% compared with US$2.911 billion in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit in the first quarter was US$2.861 billion, an increase of 7% compared with US$2.675 billion in the same period last year, and an increase of 7% from US$3.133 in the previous quarter. This was a decrease of 9% compared to US$1 billion.
AMD's gross profit margin in the first quarter was 47%, an increase of 3 percentage points from 47% in the same period last year and the same as 47% in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit margin in the first quarter was 52%, an increase of 2 percentage points from 50% in the same period last year, and 51% in the previous quarter. It also increased by 1 percentage point.
AMD's first quarter operating expenses were US$2.537 billion, basically the same as the US$2.514 billion in the same period last year, and basically the same as the US$2.575 billion in the previous quarter. Among them, R&D expenses were US$1.525 billion, an increase from US$1.411 billion in the same period last year, and basically the same as US$1.511 billion in the previous quarter; marketing, general and administrative expenses were US$620 million, an increase from US$1.511 billion in the previous quarter. An increase compared with US$585 million in the same period last year, and a decrease compared with US$644 million in the previous quarter; amortization expenses of intangible assets related to mergers and acquisitions were US$392 million, a decrease compared with US$518 million in the same period last year. Licensing revenue was $13 million, compared to $10 million a year ago and $6 million in the prior quarter.
Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted operating expenses in the first quarter were $1.741 billion, an increase of 10% compared with $1.587 billion in the same period last year, and an increase of 10% from $1.727 billion in the previous quarter. billion US dollars was basically the same.
AMD's total cost of sales in the first quarter was US$2.913 billion, which was basically the same as US$2.994 billion in the same period last year, and decreased compared with US$3.257 billion in the previous quarter. Among them, the cost of sales was US$2.683 billion, which was basically the same as US$2.689 billion in the same period last year, and decreased compared with US$3.042 billion in the previous quarter; the amortization cost of intangible assets related to mergers and acquisitions was US$230 million, which was US$230 million, which was lower than the US$3.042 billion in the previous quarter. This was a decrease from US$305 million in the same period last year and an increase from US$215 million in the previous quarter.
Performance Outlook:
AMD predicts that revenue in the second quarter of fiscal 2024 will reach about US$5.7 billion, plus or minus US$300 million, a year-on-year increase of about 6% and a month-on-month increase of about 4%. This performance outlook is in line with analyst expectations. According to data provided by Yahoo Finance Channel, 32 analysts had previously expected AMD's first-quarter revenue to reach US$5.7 billion on average.
AMD also expects non-GAAP gross profit margin to be approximately 53% in the second quarter of fiscal 2024.
AMD expects the company's artificial intelligence chip sales to reach $4 billion in fiscal 2024, up from its previous forecast of $3.5 billion in January. In contrast, Nvidia, the largest supplier of artificial intelligence server chips, previously reported that in the last fiscal quarter ending in January alone, its data center division’s sales reached US$18.4 billion, most of which It's an artificial intelligence chip.
Stock price changes:
On that day, AMD's stock price fell by $1.82 in regular trading on Nasdaq, closing at $158.38, a decrease of 1.14%. In the subsequent after-hours trading as of 7:50 pm Eastern Time on Tuesday (7:50 am Beijing time on Wednesday), AMD's stock price fell sharply again by US$10.95 to US$147.43, a decrease of 6.91%. In the past 52 weeks, AMD's highest price was $227.30 and its lowest price was $81.02.