[The Exiled]

AMD reports first quarter 2020 financial results

AMD shares record first-quarter sales in the first three months of this year. Compared to the same time frame last year, sales increased 40% to $ 1.79 billion. The gross margin generated net sales of $162 million from revenues, with a gross profit margin of 46%. According to AMD, the Ryzen processors are a big part of the increased sales and profits. AMD announced revenue for the first quarter of 2020 of $1.79 billion, operating income of $177 million, net income of $162 million and diluted earnings per share of $0.14. On a non-GAAP* basis, operating income was $236 million, net income was $222 million and diluted earnings per share was $0.18.

In Q1 2020, AMD's R&D spending has increased by over $45 million from its Q4 2019 spend of $395 million. That represents an increase in spending of 11.8% quarter-over-quarter. Year-over-year, AMD's Q1 R&D spending has increased by almost 18.5%, a change that will make a huge difference to AMD's future developments. AMD's main concern right now is to ensure that its success continues in the coming quarters, which means that the company cannot allow its R&D efforts to fall behind. AMD needs a strong hardware roadmap to continue competing with both Intel and nVidia, both of which have the ability to outspend AMD. Strong IP and continuous generational improvements will help AMD to continue its positive growth, but as its CPUs and GPUs become more complex, more and more effort will be required to continue pushing the performance envelope.

“We executed well in the first quarter, navigating the challenging environment to deliver 40 percent year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and EPYC processors,” said Dr. Lisa Su, AMD president and CEO. “While we expect some uncertainty in the near-term demand environment, our financial foundation is solid and our strong product portfolio positions us well across a diverse set of resilient end markets. We remain focused on strong business execution while ensuring the safety of our employees and supporting our customers, partners and communities. Our strategy and long-term growth plans are unchanged.”

Izvor: AMD