AMD meets Q1 expectations due to strong demand for Ryzen CPUs
Advanced Micro Devices (AMD) published its first quarter financial results on Monday, meeting market expectations. However, AMD shares fell in after-hours trading.
As Wall Street anticipated, the company posted a non-GAAP net loss of $38 million, or 4 cents per share, on revenue of $984 million.
Revenue was up 18 percent year-over-year, largely driven by demand for Ryzen CPUs, CEO Lisa Su noted.
"We are positioned for solid revenue growth and margin expansion opportunities across the business in the year ahead as we bring innovation, performance, and choice to an expanding set of markets," she said.
The Computing and Graphics segment revenue was $593 million, up 29 percent year-over-year and down 1 percent sequentially. Initial revenue from Ryzen desktop processors couldn't completely offset the decrease in mobile and graphics processor sales in Q1.
Meanwhile, Enterprise, Embedded, and Semi-Custom segment revenue was $391 million, up 5 percent year-over-year. Sequentially, revenue decreased 23 percent primarily due to seasonally lower sales of semi-custom SoCs.
For the second quarter of 2017, AMD expects revenue to increase approximately 17 percent sequentially, plus or minus 3 percent. That would make the midpoint revenue guidance come in around $1.15 billion.