- Google announced at the Game Developers Conference that it has selected high-performance, custom AMD RadeonTM datacenter GPUs and AMD software developer tools for its Stadia next-generation game streaming platform. Also at the conference, AMD announced a number of updates to its software tools to help game developers accelerate game design and foster innovation.
- Amazon Web Services announced broader availability of AMD EPYC processor-based service and launched three new EPYC processor-powered EC2 instance families, including the first T3-series instances.
- Sony Interactive Entertainment released new details about its upcoming next-generation game console, which will be powered by a custom AMD chip based on the “Zen 2” CPU and “Navi” GPU architectures.
- Apple announced updates to its 21.5-inch iMac and 27-inch iMac computers, which for the first time offer “Radeon Pro Vega” graphics cards. The 21.5-inch iMac with Radeon Vega 12 GPUs delivers up to 80 percent faster graphics performance than the previous generation. The 27-inch iMac with Radeon Vega 10 GPUs delivers up to 50 percent faster graphics performance.
- OEMs announced new systems based on the expanded lineup of consumer and commercial mobile processors from AMD:
- HP and Lenovo announced commercial PCs powered by the 2nd Gen AMD Ryzen PRO mobile processors with Radeon Vega Graphics and AMD AthlonTM PRO mobile processors with Radeon Vega Graphics. At HP Reinvent, the company announced the HP ProBook 445R G6 and HP ProBook 455R G6, powered by 2nd Gen Ryzen mobile processors, and the HP ProDesk 405 G4 Desktop Mini powered by 2nd Gen Ryzen PRO processors. For consumers, HP announced the latest HP ENYY x360 13 and 15, both featuring 2nd Gen Ryzen mobile processors.
- Lenovo announced the IdeaPad S540 and IdeaPad S340 powered by 2nd Gen Ryzen mobile processors.
- Multiple customers began shipping new 2nd Gen AMD Ryzen mobile-powered laptops, including the new ASUS FX505 and 705DY TUF Gaming notebooks, with additional systems coming throughout 2019.
- AMD announced the new AMD Ryzen Embedded R1000 SoC, growing the AMD Ryzen embedded family of processors. The SoC will be used in numerous embedded applications from customers like Advantech, IBASE, ASRock, Kontron, MEN and others. It will also power the upcoming Atari VCS entertainment system.
- Demonstrating its commitment to workplace equality, AMD was included in the 2019 Bloomberg Gender-Equality Index and received a perfect score of 100 on the Human Rights Campaign Foundation’s 2019 Corporate Equality Index.
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
For the second quarter of 2019, AMD expects revenue to be approximately $1.52 billion, plus or minus $50 million, an increase of approximately 19 percent sequentially and a decrease of approximately 13 percent year-over-year. The sequential increase is expected to be driven by growth across all businesses. The year-over-year decrease is expected to be primarily driven by lower graphics channel sales, negligible blockchain-related GPU revenue and lower semi-custom revenue. AMD expects non-GAAP gross margin to be approximately 41 percent in the second quarter of 2019.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its first quarter 2019 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com. The webcast will be available for 12 months after the conference call.
AMD 50th Anniversary Webcast
In celebration of AMD’s 50th Anniversary on May 1, 2019, AMD will host a live webcast at approximately 10:00 a.m. PT (1:00 p.m. ET). The webcast will be a discussion with AMD President and CEO, Dr. Lisa Su and members of AMD’s Executive Leadership Team reflecting on 50 years of innovation. The webcast will be hosted on the Investor Relations page of AMD’s website at www.amd.com.
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||
| (In millions, except per share data) | Three Months Ended | |||||||||||
|
March 30,
2019 |
December 29,
2018 |
March 31,
2018 | ||||||||||
| GAAP gross margin | $ | 521 | $ | 537 | $ | 597 | ||||||
| GAAP gross margin % | 41 | % | 38 | % | 36 | % | ||||||
| Impairment of technology licenses | — | 45 | — | |||||||||
| Stock-based compensation | 1 | 1 | 1 | |||||||||
| Non-GAAP gross margin | $ | 522 | $ | 583 | $ | 598 | ||||||
| Non-GAAP gross margin % | 41 | % | 41 | % | 36 | % | ||||||
| GAAP operating expenses | $ | 543 | $ | 509 | $ | 477 | ||||||
| Stock-based compensation | 40 | 35 | 31 | |||||||||
| Loss contingency on legal matter | 5 | — | — | |||||||||
| Non-GAAP operating expenses | $ | 498 | $ | 474 | $ | 446 | ||||||
| GAAP operating income | $ | 38 | $ | 28 | $ | 120 | ||||||
| Impairment of technology licenses | — | 45 | — | |||||||||
| Stock-based compensation | 41 | 36 | 32 | |||||||||
| Loss contingency on legal matter | 5 | — | — | |||||||||
| Non-GAAP operating income | $ | 84 | $ | 109 | $ | 152 | ||||||
