After the disastrous Intel numbers, AMD's announcement was eagerly awaited in the evening, because the third quarter was already a difficult one here as well. In the fourth quarter of 2022, AMD also struggled, but managed to achieve similar sales as in the third quarter, a good result given the circumstances.
The Ryzen business continues to collapse
The Ryzen division had already slipped into the red with a large loss in sales in the third quarter, but the other areas just caught up, so that in the end there was still a minimal profit. And it continued to go down in this area, with 903 million US dollars not even half of the turnover of the previous year is here, the operating minus is 152 million US dollars.
The gaming division, which runs the Radeon graphics cards and console chips, saw only a minimal drop in sales, but a little more in profit — at least compared to the previous year. At least the division was able to hold its ground and is doing relatively well compared to the third quarter of this year.
Since the last quarter at the latest, the new sales and profit drivers have been the server business, but above all the acquisition of Xilinx for the embedded division. It is precisely this division that makes a profit of one dollar (USD 699 million) for every two dollars in sales (USD 1.399 billion) – the purchase should pay off in the long term. But until the takeover has amortized, AMD still has to make one or two corrections; again more than a billion US dollars were needed in this area.
AMD: Sales and profits since Q4/2003 -2,0001354.4136.550MILLONE Q4/2004Q4/2005Q4/2006Q4/2007Q4/2008Q4/2009Q2/2010Q4/2010Q2/2011Q4/2011Q2/2012Q2/2013Q4/2014Q4/2015/2015Q2/2016Q4/2017Q2/2017Q4/2018Q4/2019Q2/2020Q2/2021Q2/2021Q4/2022
- Revenue (ASC 605)
- Net Profit (ASC 605)
- Revenue (ASC 606)
- Net Profit (ASC 606)
A narrow profit and a modest outlook
The bottom line is sales of 5.6 billion US dollars, an increase of 16 percent over the previous year and a net profit of 21 million US dollars. This in turn is a clear minus of 98 percent, because in the previous year there was almost a billion as a profit.
As is currently the case with many companies in the industry, the outlook is not rosy. AMD expects sales to drop to around $5.3 billion in the first quarter of the new year. The picture will be similar to today: Ryzen and Radeon give way, Epyc and Xilinx hold the flag up.