The A in AMD stands for 'Aaaaannnyway...' Q1 sucked but Q2 is gonna be good, chip biz vows | 4/30/2019 | Staff
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Chip second-fiddle AMD, a day away from its 50th anniversary, delivered better-than-expected Q1 2019 earnings on Tuesday, lifting its share price about four per cent in after-hours trading to $28.66 apiece.

The Santa Clara-based processor designer reported revenues of $1.27bn, down 23 per cent year-on-year, though that's in line with the company's own earlier guidance of -25 per cent for Q1 and beating analyst expectations of $1.26bn.

Earnings - Share - GAAP - Terms - Share

All that amounted to diluted earnings per share of $0.01 (GAAP). In non-GAAP terms, that translates to $0.06 per share, more than the $0.05 cents per share that analysts, on average, had anticipated.

For the three months to March 31, the chip biz posted operating income of $38m, down 68 per cent from $120m a year ago, and net income of $16m, down 80 per cent from $80m, cementing the biz as a rounding error against Intel for the moment, at least.

AMD - President - CEO - Lisa - Su

AMD president and CEO Lisa Su in a statement characterized the company's Q1 results as "solid," and noted the expanded gross margin – 41 per cent, up 5 percentage points year-on-year – for its Ryzen and Epyc processors. She also pointed to the year-on-year doubling of datacenter GPU revenue.

The company's GPU revenue appears to have little if anything to do with blockchain applications, whatever those might be. In its Q2 guidance, the company attributed its projected 13 per cent year-on-year revenue decline mainly to "lower graphics channel sales, negligible blockchain-related GPU revenue and lower semi-custom revenue." Compared to the current quarter, however, Q2 looks to bring 19 per cent more revenue.

Operating - Expenses - Increase - Part - Increase

Operating expenses reached $543m, an increase of $66m. Part of that increase includes a $5m set-aside as a loss contingency for a legal matter. That may refer to a class-action lawsuit over the company's 2011 Bulldozer chips.

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