AMD revenue drops 13% to $1.5 billion

Chipmaker Advanced Micro Devices (AMD) reported revenue of $1.53 billion (–13 percent) as it achieved lower sales in both its computing and graphics and enterprise, embedded and semi-custom segments.
AMD at CES 2019AMD’s computing and graphics revenue dropped 13 percent to $940 million. The company blamed decline in the segment’s revenue on lower graphics channels sales, but said its 13 percent increase from the last quarter was mainly due to higher GPU sales.

AMD’s Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services.

Revenue for AMD’s enterprise, embedded and semi-custom segment fell 12 percent to $591 million for the quarter. AMD said the segment’s dip was mainly due to lower semi-custom product revenue but that its 34 percent increase from last quarter was due to higher semi-customer and EPYC processor sales.

AMD’s Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles.

AMD has provided revenue guidance of $1.8 billion for the third quarter. AMD provided guidance of a mid-single digit percent increase in revenue in its full year 2019 from $6.48 billion in 2018.

AMD expects the growth of its new Ryzen, EPYC and Radeon processors to fuel its growth for the year.

AMD CEO Lisa Su said changes in the gaming market impacted its lowered revenue guidance.

“We have stopped shipping some products to a couple of our customers that are on the U.S. entities list and that is a little bit of a headwind into the second half of the year, but we have great products that are backstopping some of that and so we feel really good about the growth prospects into the second half,” Lisa Su said during earnings call with analysts.