AMD released solid financial results for the first quarter on Tuesday, with revenue growth of 40% over the previous year, driven by increased IT and graphics card revenue.
First quarter non-GAAP net income was $ 222 million, with diluted earnings per share of 18 cents, on income of $ 1.79 billion. Analysts expected 18 cents on revenue of $ 1.78 billion.
“We had a good first quarter, navigating in a difficult environment to achieve 40% growth in turnover from one year to the next and a significant increase in the gross margin thanks to our Ryzen and EPYC processors “Details Dr. Lisa Su, CEO of AMD, in a press release. “Although we anticipate some uncertainty in short-term demand, our financial base is solid and our product portfolio positions us well in a diverse set of resilient end markets. We remain focused on carrying out our activities while ensuring the safety of our employees and supporting our customers, partners and communities. Our long-term growth strategy and plans remain unchanged. “
Computers and graphics processors
Computer and graphics card revenues reached $ 1.44 billion, up 73% year-over-year. This growth is due to sales of the Ryzen processor and the Radeon product lines.
Revenues from the Enterprise, Embedded and Semi-Custom segments were $ 348 million, down 21% year-over-year, mainly due to lower product sales “Semi-Custom”. This decrease was partially offset by the increase in sales of EPYC processors.
For the second quarter, AMD forecasts total revenues of approximately $ 1.85 billion, plus or minus $ 100 million.
AMD slightly reduced its forecast for the year as a whole due to the impact of the Covid-19 pandemic on consumer demand in the second half of the year. It now expects 2020 revenues to increase by about 25%, plus or minus 5 percentage points, compared to 2019. In January, the company provided growth prospects of around 28-30% .