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“AMD’s Impressive Q2 2023 Financial Results: Record-Breaking Performance and Growth”

by primenewsglobal.com
AMD Reports Second Quarter 2023 Financial Results

AMD Reports Strong Q2 2023 Results with Revenue of $5.4 Billion

SANTA CLARA, Calif., Aug. 01, 2023 — AMD (NASDAQ: AMD) announced impressive financial results for the second quarter of 2023, achieving a revenue of $5.4 billion. The company reported a gross margin of 46%, an operating loss of $20 million, net income of $27 million, and diluted earnings per share of $0.02. On a non-GAAP(*) basis, AMD demonstrated a gross margin of 50%, operating income of $1.1 billion, net income of $948 million, and diluted earnings per share of $0.58.

According to AMD Chair and CEO Dr. Lisa Su, the second quarter saw significant advancements in their 4th Gen EPYC and Ryzen 7000 processors. Additionally, the company’s AI engagements experienced remarkable growth, increasing by more than seven times. Multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale. AMD also made substantial progress in meeting crucial hardware and software milestones to cater to the growing customer demand for their data center AI solutions. The company is on-track to launch and ramp production of MI300 accelerators in the fourth quarter.

AMD EVP, CFO, and Treasurer Jean Hu expressed satisfaction with the second quarter’s execution. Looking ahead to the third quarter, AMD expects both Data Center and Client segment revenues to grow by a double-digit percentage sequentially, driven by increasing demand for their EPYC and Ryzen processors. However, this growth is expected to be partially offset by declines in the Gaming and Embedded segments.

Quarterly Financial Results:

GAAP Quarterly Financial Results:

  • Q2 2023 Revenue: $5,359 million (down 18% YoY, flat QoQ)
  • Gross Profit: $2,443 million (down 19% YoY, up 4% QoQ)
  • Gross Margin: 46% (flat YoY, up 2ppts QoQ)
  • Operating Expenses: $2,471 million (down 1% YoY, down 2% QoQ)
  • Operating Income (Loss): ($20) million (down 104% YoY, up 86% QoQ)
  • Operating Margin: 0% (down 8 ppts YoY, up 3ppts QoQ)
  • Net Income (Loss): $27 million (down 94% YoY, up 119% QoQ)
  • Earnings (Loss) Per Share: $0.02 (down 93% YoY, up 122% QoQ)

Non-GAAP(*) Quarterly Financial Results:

  • Q2 2023 Revenue: $5,359 million (down 18% YoY, flat QoQ)
  • Gross Profit: $2,665 million (down 25% YoY, flat QoQ)
  • Gross Margin: 50% (down 4 ppts YoY, flat QoQ)
  • Operating Expenses: $1,605 million (up 3% YoY, up 1% QoQ)
  • Operating Income: $1,068 million (down 46% YoY, down 3% QoQ)
  • Operating Margin: 20% (down 10 ppts YoY, down 1ppt QoQ)
  • Net Income: $948 million (down 44% YoY, down 2% QoQ)
  • Earnings Per Share: $0.58 (down 45% YoY, down 3% QoQ)

Based on the financial data provided, AMD has reported its second-quarter 2023 financial results. Here’s a summary of the key highlights:

  1. Revenue: AMD’s total revenue for the second quarter of 2023 was $5.359 billion, slightly higher than the previous quarter’s revenue of $5.353 billion.
  2. Gross Profit: The company reported a gross profit of $2.443 billion, resulting in a gross margin of 46%. This is an improvement compared to the previous quarter’s gross margin of 44%.
  3. Operating Income (Loss): AMD recorded an operating loss of $20 million for the quarter. This reflects a recovery compared to the previous quarter’s operating loss of $145 million.
  4. Net Income: The company reported a net income of $27 million for the second quarter of 2023, which is a significant improvement compared to the net loss of $139 million in the previous quarter.
  5. Earnings Per Share (EPS): AMD’s earnings per share for the quarter were $0.02, compared to a loss per share of $0.09 in the previous quarter.
  6. Segment Performance: The company’s different business segments performed as follows:
    • Data Center: The Data Center segment generated $1.321 billion in revenue and $147 million in operating income.
    • Client: The Client segment reported $998 million in revenue and an operating loss of $69 million.
    • Gaming: The Gaming segment contributed $1.581 billion in revenue and $225 million in operating income.
    • Embedded: The Embedded segment generated $1.459 billion in revenue and $757 million in operating income.
    • All Other: The All Other category reported a loss of $1.080 billion.
  7. Financial Outlook: AMD provided its outlook for the third quarter of 2023, projecting revenue to be approximately $5.7 billion, with a non-GAAP gross margin of approximately 51%.
  8. Stockholder’s Equity: AMD’s total stockholder’s equity stood at $55.136 billion at the end of the quarter.

Overall, AMD’s financial results for the second quarter of 2023 showed improvements in key areas, such as revenue, gross profit, and net income. However, the company still faces some challenges, as reflected in the operating loss and weak performance in certain segments. The company plans to discuss these results further during its teleconference call with the financial community.

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