Advanced Micro Devices, Inc. (NASDAQ:AMD) Q3 2019 Earnings Conference Call - Final Transcript

Oct 29, 2019 • 05:30 pm ET

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Advanced Micro Devices, Inc. (NASDAQ:AMD) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Advanced Micro Devices Third Quarter 2019 Earnings Conference Call. [Operator Instructions] It's now my pleasure to introduce your host, Laura Graves. Please go ahead.

Executive
Laura Graves

Thank you and welcome to AMD's third quarter 2019 financial results conference call. By now, you should have had the opportunity to review a copy of our earnings release and slides. If you have not reviewed these items, they can be found on the Investor Relations page of AMD's website, amd.com.

Participants on today's conference call are Dr. Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on our website.

I would like to highlight some important dates for you. On Wednesday, November 6, Mark Papermaster, Executive Vice President and Chief Technology Officer, will present at that Bernstein Technology Summit in New York City. On Monday, December 9, Ruth Cotter, Senior Vice President of Worldwide Marketing, Human Resources and Investor Relations, will present at the UBS Global Technology Conference also in New York City. On Thursday, December 12, Forrest Norrod, Senior Vice President and General Manager of the Datacenter and Embedded Solutions Group, will present at the Barclays Technology Conference in San Francisco. And our fourth quarter 2019 quiet time is expected to begin at the close of business on Friday, December 13.

Today's discussion contains forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak only as of the current date and as such, involve risks and uncertainties that could cause actual results to differ materially from our current expectations.

We will refer primarily to non-GAAP financial metrics during this call, except for revenue and segment operational results, which are on a GAAP basis. The non-GAAP financial measures referenced today are reconciled on their most -- to their most directly comparable GAAP financial measure in today's press release, which is posted on our website. Please refer to the cautionary statement in our press release for more information. You will also find detailed discussions about our risk factors in our filings with the SEC and, in particular, AMD's quarterly report on Form 10-Q for the quarter ended June 30, 2019.

Now with that, I'll hand the call over to Lisa. Lisa?

Executive
Lisa T. Su

Thank you, Laura, and good afternoon to all those listening in today. I am pleased with our strong third quarter execution and results. We delivered our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and increased net income significantly, all driven by our first full quarter of 7-nanometer Ryzen, Radeon and EPYC processor sales. Third quarter revenue of $1.8 billion, increased 9% year-over-year and 18% sequentially, and we expanded gross margin by 3 percentage points year-over-year.

Turning to our Computing and Graphics segment, revenue increased 36% year-over-year and sequentially. Demand for Ryzen desktop and notebook processors drove a significant increase in unit shipments