AMD has announced revenues for the fourth quarter of 2020 of US$3.24 billion, operating income of US$570 million, net income of US$1.78 billion and diluted earnings per share of US$1.45.
Fourth-quarter 2020 net income included an income tax benefit of US$1.30 billion associated with a valuation allowance release, which contributed US$1.06 to EPS. On a non-GAAP basis, operating income was US$663 million, net income was US$636 million and diluted earnings per share was US$0.52.
For full-year 2020, the company reported revenues of US$9.76 billion, operating income of US$1.37 billion, net income of US$2.49 billion and diluted earnings per share of US$2.06. On a non-GAAP basis, operating income was US$1.66 billion, net income was US$1.58 billion and diluted earnings per share was US$1.29.
"We significantly accelerated our business in 2020, delivering record annual revenues while expanding gross margin and more than doubling net income from 2019," said Lisa Su, AMD president and CEO. "Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data center markets. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps."
AMD's Computing and Graphics segment revenues were US$1.96 billion, up 18% both on year and on quarter primarily driven by strong sales of Ryzen processors.
Client processor average selling price (ASP) was lower year-over-year due to a higher mix of Ryzen mobile processor sales. Client processor ASP was higher quarter-over-quarter driven by Ryzen desktop processor sales. Radeon graphics product ASPs were higher year-over-year and quarter-over-quarter.
The segment's operating income was US$420 million compared to US$360 million a year ago and US$384 million in the prior quarter. The on-year and on-quarter increases were primarily driven by higher Ryzen processor sales.
Enterprise, Embedded and Semi-Custom segment revenues were US$1.28 billion, up 176% on year and 13% on quarter driven by higher semi-custom and EPYC processor sales.
The segment's operating income was US$243 million compared to US$45 million a year ago and US$141 million in the prior quarter. Operating income improvements were primarily driven by higher revenues.
AMD GAAP financial results, 4Q20 (US$m) | |||||
4Q20 | 4Q19 | Y/Y | 3Q20 | Q/Q | |
Revenues | 3,244 | 2,127 | 53% | 2,801 | 16% |
Gross profit | 1,451 | 949 | 53% | 1,230 | 18% |
Gross margin | 45% | 45% | Flat | 44% | 1pp |
Operating expenses | 881 | 601 | 47% | 781 | 13% |
Operating income | 570 | 348 | 64% | 449 | 27% |
Tax Valuation Allowance Release Benefit | 1,301 | - | - | - | - |
Net income | 1,781 | 170 | 948% | 390 | 357% |
Earnings per share (US$) | 1.45 | 0.15 | 867% | 0.32 | 353% |
Source: Company, compiled by Digitimes, January 2021
AMD Non-GAAP financial results, 4Q20 (US$m) | |||||
4Q20 | 4Q19 | Y/Y | 3Q20 | Q/Q | |
Revenues | 3,244 | 2,127 | 53% | 2,801 | 16% |
Gross profit | 1,452 | 950 | 53% | 1,231 | 18% |
Gross margin | 45% | 45% | Flat | 44% | 1pp |
Operating expenses | 789 | 545 | 45% | 706 | 12% |
Operating income | 663 | 405 | 64% | 525 | 26% |
Net income | 636 | 383 | 66% | 501 | 27% |
Earnings per share (US$) | 0.52 | 0.32 | 63% | 0.41 | 27% |
Source: Company, compiled by Digitimes, January 2021
AMD financial results, 2020 (US$m) | ||||||
GAAP | Non-GAAP | |||||
2020 | 2019 | Y/Y | 2020 | 2019 | Y/Y | |
Revenues | 9,763 | 6,731 | 45% | 9,763 | 6,731 | 45% |
Gross profit | 4,347 | 2,868 | 52% | 4,353 | 2,874 | 51% |
Gross margin | 45% | 43% | 2pp | 45% | 43% | 2pp |
Operating expenses | 2,978 | 2,297 | 30% | 2,696 | 2,094 | 29% |
Operating income | 1,369 | 631 | 117% | 1,657 | 840 | 97% |
Tax valuation allowance release benefit | 1,301 | - | - | - | - | - |
Net income | 2,490 | 341 | 630% | 1,575 | 756 | 108% |
EPS (US$) | 2.06 | 0.30 | 587% | 1.29 | 0.64 | 102% |
Source: Company, compiled by Digitimes, January 2021
