AMD reports excellent third quarter 2018 financial results

AMD has released its quarterly results for the third quarter of 2018, with positive results despite the decline in demand for products related to cryptocurrencies. Sales for AMD were approximately $1.65 billion.

AMD reports excellent third quarter 2018 financial results

AMD stated that “sales of GPUs related to cryptocurrencies were negligible in the third quarter”, which drastically reduced demand for Radeon graphics hardware, but compensated thanks to AMD’s profits in the CPU market, where the company’s Ryzen and EPYC products continued to perform well.

In this quarter, AMD’s revenue was $1.65 billion, an increase of 4% over the previous year and a decrease of 6% over the previous quarter (Q/Q). During this period, AMD’s gross margins increased by up to 40%, mainly due to AMD’s IP-related revenues and the success of the EPYC and Threadripper series processors.

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Broken down by the main business areas, the Computing and Graphics segment is quite successful, with the growth of 12% year-on-year and a quarter-on-quarter decline of 14%. In this segment, AMD’s Ryzen processors generated strong revenues, but the company’s Radeon graphics segment recorded a significant decline in revenues due to the downturn in the cryptocurrency market.

AMD reports excellent third quarter 2018 financial results

AMD’s Enterprise, Embedded, and Semi-Custom business generated sales of $715 million, down 5% year-on-year and up 7% quarter-on-quarter. This year-on-year decline is mainly due to lower semi-autonomous revenue, which is very useful in the absence of new console launches and hardware launches this year. This decline in revenues is offset by higher server revenues driven by EPYC processors.

The red company seems to be doing well thanks to the sale of desktop CPUs, servers and semi-customs (consoles) despite its results in the GPU market.