AMD's second quarter financial results just hit the wire and the company beat Wall Street expectations by a small margin. Starting with the GAAP numbers, AMD achieved quarterly revenue of $1.22 billion and a net loss of $16 million, or 2 cents per share. On an adjusted basis, AMD pulled in net income of $19 million, or 2 cents per share.
The adjusted figures are typically higher then the GAAP figures as this is where the financial magic happens to filter out so-called one-time expenses and other special items. The profit of 2 cents per share compares favorable to the Wall Street expectations of a break-even. AMD's revenue was also about $60 million higher than anticipated.
Compared with the same period in 2016, AMD's sales increased from $1.03 billion to $1.22 billion. The company does not provide a lot of granularity so it's not possible to figure out how much growth the CPU or graphics business saw individually.
The overall Computing and Graphics segment pulled in revenue of $659 million, an increase of 51 percent year-over-year. AMD attributes the rise to strong demand for GPUs and Ryzen desktop processors. The other main business unit is Enterprise, Embedded and Semi-Custom. That segment of AMD's business posted a 5 percent decline year-over-year to $563 million due to lower semi-custom SoC sales.
“Our second quarter results demonstrate strong growth driven by leadership products and focused execution," said Dr. Lisa Su, AMD president and CEO. "Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products.”
For the next quarter, AMD expect revenue to soar by about 23 percent sequentially, plus or minus 3 percent. The midpoint of the guidance implies a Q3 2017 revenue increase of roughly 15 percent year-over-year. At the same time, AMD is also more optimistic about its full-year revenue. The company now provides guidance of a mid to high-teens annual revenue increase, compared with earlier guidance of low double-digit percentage revenue growth.
AMD investors sheer and send the company's stock price 6.38 percent higher in after-hour trading, to a level of $15.01.