Advanced Micro Devices, Inc. (NASDAQ:AMD) Q3 2020 Earnings Conference Call - Final Transcript

Greetings and welcome to the AMD Third Quarter 2020 and Xilinx Acquisition Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Ruth Cotter, Senior Vice President, Worldwide Marketing, Human Resources and Investor Relations. Ruth, please go ahead.

Thank you, and good morning everyone joining our call today. Participants on our conference call are Dr. Lisa Su, our President and Chief Executive Officer; Devinder Kumar, our Senior Vice President, Chief Financial Officer and Treasurer; and Victor Peng, President and Chief Executive Officer of Xilinx.

This is a live call and will be replayed via webcast on our website, amd.com. We've a content-rich call for you this morning. So I refer you to our website ir.amd.com for a copy of our third quarter 2020 financial results, including detailed slideware, our acquisition of Xilinx announcement and other helpful materials, including a presentation outlining the details of the acquisition.

Before we begin, please note that today's discussion contains forward-looking statements 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. Please refer to the cautionary statement in each press release for more information on risks related to any forward-looking statements that we may make. We will refer primarily to non-GAAP financial metrics during this call. The non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in today's press release and slides posted on our website.

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

Thank you, Ruth, and good morning to all those listening in. Today marks a significant milestone in our journey to establish AMD as the industry's high-performance computing leader. Before going into details on our strategic acquisition of Xilinx, I'd like to start with our very strong financial results.

Our business accelerated in the third quarter, resulting in record quarterly revenue with net income and EPS more than doubling year-over-year. Revenue grew 56% year-over-year to $2.8 billion, driven by strong demand for our Ryzen, EPYC and Semi-Custom processors.

Turning to our Computing and Graphics segment, third quarter revenue of $1.67 billion grew 31% year-over-year as higher Ryzen processor sales more than offset lower graphic sales. Our client processor business is performing extremely well. Desktop and notebook processor ASPs increased and total unit shipments grew by a strong double-digit percentage, both on a year-over-year and sequential basis. As a result, we set a record for quarterly client processor revenue and believe we gained client CPU share for the 12th straight quarter.

In mobile, we set records for both quarterly notebook processor unit shipments and revenue as OEM sell-through doubled year-over-year. We have the strongest notebook processor portfolio in our history. More than 105 AMD-based notebooks have launched in 2020 as we expand our presence in segments like gaming, commercial and education, where we have traditionally been underrepresented.

In