AMD's 2018 turnover increased 23% year-on-year, the highest profit rate in 7 years
AMD recently announced a 2018 fiscal year turnover of 6.48 billion US dollars, operating income of 451 million US dollars, net income of 337 million US dollars, diluted earnings per share of 0.32 US dollars. Non-GAAP operating income was $633 million, net income was $514 million, and diluted earnings per share were $0.46.
In the fourth quarter of 2018, the turnover was $1.42 billion, operating income was $28 million, net income was $38 million, and diluted earnings per share were $0.04. Non-GAAP operating income was $109 million, net income was $87 million, and diluted earnings per share were $0.08.
Dr. Lisa Su, President and CEO of AMD, said: "In 2018, based on the release of high-performance products, we have achieved significant growth in turnover for two consecutive years, increasing market share, gross profit. Increased and increased profit margins. More importantly, our Opteron processor shipments have more than doubled, and we completed record data center GPU turnover this quarter, despite recent exposure to graphics card sales. Impact, but 2019 will still be an exciting year, as we will release the next generation 7nm Athlon processor, Radeon graphics card and Opteron processor products, which is a wide-ranging and competitive product portfolio."
2018 annual results
1. Thanks to the growth in turnover of the Computing and Graphics Division, the total turnover in 2018 was US$ 6.48 billion, a year-on-year increase of 23%.
2. Compared with 34% in the same period last year, this year's gross profit was 38%. Based on non-GAAP standards, this year's gross profit was 39% compared to 34% in the same period last year. The increase in gross profit was mainly attributable to the new Ruilong, Xiaolong and Radeon graphics products.
3. Compared with the operating income of US$127 million in the same period last year, this year's operating income was US$451 million. Based on non-GAAP standards, this year's operating income was $633 million compared to $224 million in the same period last year. The increase in operating income was mainly attributable to the increase in turnover and gross profit, which was partially offset by higher operating expenses.
4. Net income for the year was $337 million compared to the net loss of $33 million in the same period last year. Based on non-GAAP standards, this year's net income was $514 million compared to net income of $103 million in the same period last year.
5. Compared to the diluted loss per share of $0.03 in 2017, this year's diluted earnings per share was $0.32. Based on non-GAAP standards, this year's diluted earnings per share were $0.46 compared to $0.10 diluted earnings per share last year.
6. Cash, cash equivalents and marketable securities at the end of the year totaled $1.16 billion, slightly lower than the $1.18 billion at the end of 2017.
7. Higher new product inventory and collection time led to a negative cash flow of $129 million this year.
Wafer Supply Agreement Update
Today, AMD announced its official entry into the seventh revision of the wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). GF will continue to be AMD's long-term strategic partner, providing AMD with 12nm and above node wafers, and the revised terms clarify the purchase commitments from 2019 to 2021 and the pricing of nodes at 12nm and above. The revised terms also give AMD the flexibility to purchase wafers of 7nm and below from any other factory without paying a one-time purchase or patent fee.
Recent company performance highlights
At CES 2019, AMD emphasizes that AMD is expected to achieve a historic leap in computing, gaming and visualization technology in 2019 based on a close integration of the top 7nm process with industry-leading computing and graphics card design.
1. AMD launched the world's first 7nm game graphics card - AMD RadeonTM VII. Compared with the previous generation, AMD RadeonTM VII provides 2 times more memory capacity, 2.1 times more memory bandwidth, and an average game performance increase of 29%. The average performance of professional content creative software increased by 36%. The product is expected to be available in February 2019.
2, AMD first publicly demonstrated the third generation AMD Ruilong processor, this high-performance, high-efficiency Ruilong desktop processor will be launched in mid-2019.
3. AMD has released a full line of notebook processor products to further expand its coverage in the growing PC market:
4, the second generation of AMD Ruilong 3000 series mobile processor for ultra-thin notebook
5. Drive the mainstream notebook computer with "Zen" core AMD Athlon 300 series mobile processor
6, the first benchmark of the Chromebook notebook market, the 7th generation AMD A series processor. Both Acer and HP released products based on these new processors at the show.
7. AMD also demonstrated the next-generation AMD Opteron processor, which has significantly improved data center processing performance over current server processors. The next generation AMD Opteron processor is scheduled to ship in 2019.
Based on market capitalization, AMD ranks among the NASDAQ-100 Index (composed of the top 100 non-financial companies in the NASDAQ stock market).
At the Next Horizon conference in November 2018, AMD demonstrated 7nm computing and graphics products that bring innovation to the data center:
AMD released the world's first 7nm data center GPU, AMD Radeon InstinctTM MI60 and MI50 accelerators designed for deep learning, HPC, cloud computing and rendering workloads.
AMD shares the new details of the upcoming "Zen 2" processor core architecture, detailing its revolutionary x86 CPU design based on "Chiplet", an enhanced version of the AMD Infinity Fabric interconnect in a single processor package Link multiple independent silicon wafers. AMD first publicly demonstrated the next-generation AMD Opteron processor based on the "Zen 2" core, offering up to 64 cores per slot and revolutionary I/O.
AMD announced ROCm 2.0, a new version of an open source software platform that enables customers to deploy high-performance, energy-efficient heterogeneous computing systems in an open environment.
The new win-win and deployment of the data center demonstrates the strength of AMD Opteron processors and AMD Radeon InsTInct products in high-performance computing devices:
1. Amazon Web Services (AWS) announced the first AMD Opteron processor-based Amazon ElasTIc Compute Cloud (EC2) cloud instance to go live.
2. The Lawrence Livermore National Laboratory and the University of Stuttgart High Performance Computing Center selected AMD Opteron processors and AMD Radeon InsTInctTM graphics cards for their supercomputers.
3. The US Department of Energy announced the NERSC-9 supercomputer "Perlmutter" based on the new AMD Opteron processor, which is scheduled to be delivered in 2020.
AMD further expands its sales-first high-end desktop processor family with the new AMD Ruilong Threadripper processor, providing the ultimate computing experience for gamers, professional creators and enthusiasts. At the same time, AMD also released a new AMD Athlon processor combined with Radeon Vega Graphics.
AMD offers powerful new graphics and software solutions for gamers and creators:
1. AMD introduced the AMD Radeon Vega mobile graphics processor, including the AMD Radeon Pro Vega 20 and Radeon Pro Vega 16 graphics cards for Apple's 15-inch MacBook Pro. Radeon Vega mobile graphics give creators amazing performance and incredible 1080p HD gaming experience in creative applications.
2. AMD introduces the RadeonTM RX 590 graphics card, built on an advanced 12nm process, designed to deliver amazing gaming experience and performance for the latest AAA game masterpieces, eSports and virtual reality.
3. AMD released the AMD RadeonTM Software Adrenalin 2019 EdiTIon version driver to bring the next-generation software suite to AMD RadeonTM GPUs. Compared to the previous version, the new drivers have an average performance improvement in the current mainstream game masterpieces. %, new features include PC-to-VR streaming over a standalone device over a Wi-Fi network.