AMD boasts of Ryzen-driven growth

May 2, 2017 | 11:38

Tags: #1q2017 #earnings-call #financial #fy2017 #lisa-su #loss #ryzen #ryzen-3 #vega

Companies: #amd

AMD has reported its results for the first quarter of its 2017 financial year, but it's sobering reading: Despite an impressive 18 percent year-on-year revenue uptick driven primarily by its Ryzen processor family, the company has still posted a major loss.

In its latest financial filings, AMD showed impressive growth compared to the same quarter last year: Its overall revenue, sitting at $948 million, was up 18 percent year-on-year though down 11 percent sequentially, thanks primarily to the launch of its Ryzen processor family which drove its Computing and Graphics division to 29 percent revenue growth year-on-year. Revenue growth, though, is only part of the story, and AMD's overall financial position is still best described as perilous: The company made a $73 million net loss for the quarter, and while that was down from $109 million for the same period last year, a loss is most definitely still a loss.

'We achieved 18 percent year-over-year revenue growth driven by strong demand for our high performance Ryzen CPUs as well as graphics processors,' claimed Lisa Su, AMD's president and chief executive, during the company's earnings call. '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.'

During the same earnings call, AMD revealed official but rough launch schedules for upcoming products. The entry-level Ryzen 3 processor family will launch early in the second half of 2017, Su claimed, while the first consumer graphics cards to be based on the company's new Vega architecture will arrive later this quarter. 'We expect Vega to be a broad product for us that will go across the gaming segment, the professional workstation segment, as well as GPUs in the data centre,' explained Su. 'We will be launching products across all of those segments with the Vega architecture in the next couple of months.' Su also offered a timescale for mobile-centric Ryzen variants, which will arrive 'towards the holiday cycle for the second half' - meaning on-shelf by Christmas 2017.

While Su spoke of considerable demand for Ryzen and projected further growth, hitting yet another loss despite a major product launch clearly has investors antsy. In pre-market trading following the filing, AMD's share price plummeted 11.89 percent to $12, wiping out a 2.41 percent gain the company had made ahead of the earnings report and cutting more than $1 billion from the company's market capitalisation.
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