AMD announced second-quarter revenues of $1.53 billion, down 13% from a year ago with net income of $35 million.
Third-quarter revenues are expected to grow about 9% year over year, reaching about $1.8 billion. For all of 2019, revenues are expected to increase by a mid-single-digit percentage.
The company ramped up production of three 7nm product lines in the second quarter for use in PCs, gaming and data centers. They were the Ryzen 3000 desktop processors, Radeon 5700 series GPUs and second-generation EPYC Rome data center CPUs. A Rome launch event will be held Aug. 7.
Growth in the third quarter will be driven by the company’s new Ryzen, Radeon and second generation EPYC processors which “form the most competitive product portfolio in our history,” CEO Lisa Su said in a statement on Tuesday. “We are well positioned to drive significant growth in the second half of the year.”
The computing and graphics segment revenue was $940 million, down by 13% year over year. Enterprise, embedded and semicustom revenue was $591 million, down 12%.
In a conference call with analysts, Su said Rome production is on time and delivering superior performance to cloud and enterprise customer workloads. Compared to the first generation of EPYC, twice the number of platforms are in development and four times the number of enterprise cloud customers. “Rome will track significantly faster than the first generation,” she said.
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She also noted that both Microsoft and Sony are using AMD SoC’s for their gaming consoles.
AMD’s stock price was $33.87 at market close on Tuesday.