As the COVID-19 pandemic continues to expand across the globe, companies are facing a lot of economic shifts. Companies like Apple are pushing back their product launches. And almost every product is getting released online.
Amid the chaos, AMD, a multinational semiconductor company, has released its financial results for Q1 2020. And things aren’t looking that well.
AMD’s Quarterly Financial Result
The Advanced Micro Devices (AMD) saw a 40% rise compared to last year in the year-to-year revenue. However, its quarter-to-quarter revenue is what took a hit. For the first quarter, AMD’s quarter-to-quarter was down 16% as the R&D costs increased.
Dr. Lisa Su, AMD’s CEO, said that reason behind the sales drop is the downturn of retail and reduced supply chains in China. Though the company hasn’t directly blamed the global pandemic for its financial fall, it did mention the fact during an investor call.
AMD collected $1.79 billion in revenue that was primarily driven by a higher revenue form Computing and Graphics segment.
In year-to-year revenue, AMD’s gross margin saw a 5% increase with 46 %. It was possible due to a high Ryzen and EPYC processor sale.
AMD’s Current Outlook
Despite a weaker beginning, AMD still believes that its financial report will look better in the coming quarters. There might be a 16% drop on the quarterly revenue, but AMD still has a lot of expectations.
The first thing is that the company expects a weaker second half of the year. It is due to a weaker consumer demand thanks to coronavirus. However, it expects the Q2 revenue to be approximately $1.85 billion. And about 4% quarter-to-quarter and a 21% year-over-year increase.
And for the second half of 2020, AMD expects the revenue to grow by approximately. 25%. And the non-GAAP gross margin by 45%.