AMD Q3 2020 Earnings

Call Details

• Call Title: Advanced Micro Devices Q3 2020 Earnings Call
• Date: October 27, 2020 at 12:00 PM UTC
• Management Team:
  • Lisa Su (Chief Executive Officer)
  • Devinder Kumar (Senior Vice President, Chief Financial Officer and Treasurer)
  • Victor Peng (President and Chief Executive Officer of Xilinx)
  • Ruth (Senior Vice President, Worldwide Marketing, Human Resources, and Investor Relations)

Call Summary

Financial Performance

• Revenue was $2.8B, up 56% year-over-year driven by Ryzen, EPYC, and semi-custom processors.
• Computing and Graphics revenue was $1.67B, up 31% year-over-year due to higher Ryzen sales offsetting lower graphics sales.
• Enterprise, Embedded and Semi-Custom revenue was $1.13B, up 116% year-over-year driven by semi-custom console SOC ramps and server processor growth.
• Non-GAAP gross margin was 44%, up 1 percentage point year-over-year and within the guided range.
• Operating income was $525M, up $285M or up 119% year-over-year, and net income was $501M, up $282M or up 129% year-over-year.
• Diluted EPS was $0.41 compared to $0.18 in the prior year and free cash flow for the quarter was $265M.

Guidance

• Fourth quarter revenue is expected to be approximately $3.0B, plus or minus $100M, representing approximately 41% year-over-year growth and 7% sequential growth.
• Fourth quarter non-GAAP gross margin is expected to be approximately 45%.
• Fourth quarter non-GAAP operating expenses are expected to be approximately $750M.
• Fourth quarter non-GAAP interest, taxes and other are expected to be approximately $30M.
• Diluted share count for the fourth quarter is expected to be approximately 1.23B shares.
• Full-year 2020 revenue growth was raised to an expected approximately 41% year-over-year with full-year gross margin expected at approximately 45%, up one percentage point from the prior year.