News in the early morning of July 29th, Beijing time,AMDThe financial report for the second quarter of FY2020 was announced today. According to the report, AMD's second-quarter revenue was US$1,932 billion, up 26% from US$1,531 billion in the same period last year and 8% from US$1,786 million in the previous quarter; net profit was US$157 million, up 349% from US$35 million in the same period last year, down from US$162 million in the previous quarter. AMD's second-quarter results exceeded Wall Street analysts' previous expectations, and the third-quarter revenue outlook also exceeded expectations, driving its stock price to rise sharply by nearly 10% in after-hours trading.

Main performance:

In the fiscal quarter ending June 30, AMD's net profit was $157 million, up 349% from $35 million in the same period last year, down from $162 million in the previous quarter. AMD's second-quarter earnings per share were $0.13, up from $0.03 in the same period last year, but lower than $0.14 in the previous quarter.

Excluding certain one-time items (not in accordance with US GAAP), AMD's adjusted net profit for the second quarter was US$216 million, compared with adjusted net profit of US$92 million for the same period last year and adjusted net profit of US$222 million for the previous quarter; adjusted earnings per share of US$0.18, compared to adjusted earnings per share of US$0.08 for the same period last year, and adjusted earnings per share for the previous quarter of US$0.18. This performance exceeded analysts' previous expectations. According to data provided by Yahoo Finance Channel, the average of 30 analysts expected AMD's earnings per share to reach $0.16 in the second quarter.

AMD's second-quarter revenue was US$1,932 billion, up 26% from US$1,531 billion in the same period last year, and up 8% from US$1,786 billion in the previous quarter. It also exceeded analysts' expectations. According to data provided by Yahoo Finance Channel, the average of 29 analysts expected AMD's second-quarter revenue to reach 1.86 billion US dollars.

AMD's operating expenses for the second quarter were US$675 million, compared with US$562 million in the same period last year and US$641 million in the previous quarter. Among them, R&D expenditure was US$460 million, compared to US$373 million in the same period last year; marketing, general affairs, and administrative expenses were US$215 million, compared to US$189 million in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), AMD's adjusted operating expenses for the second quarter were US$617 million, compared to US$512 million in the same period last year and US$584 million in the previous quarter.

AMD's operating profit for the second quarter was US$173 million, compared with operating profit of US$59 million for the same period last year and US$177 million for the previous quarter; excluding certain one-time items (not in accordance with US GAAP), AMD's adjusted operating profit for the second quarter was US$233 million, compared with operating profit of US$111 million for the same period last year and US$236 million for the previous quarter. AMD's gross margin for the second quarter was 44%, up 3 percentage points from 41% in the same period last year, and down 2 percentage points from 46% in the previous quarter.

Performance of each department:

By business division, AMD's second-quarter revenue from the computing and graphics division was US$1,367 million, higher than US$940 million in the same period last year, but lower than US$1,438 million in the previous quarter; operating profit was US$200 million, compared with operating profit of US$22 million in the same period last year, and operating profit of US$262 million in the previous quarter.

Revenue from corporate, embedded, and semi-custom businesses was US$565 million, lower than US$591 million in the same period last year, but higher than US$348 million in the previous quarter; operating profit was US$33 million, down from US$89 million in the same period last year, compared with operating losses of US$26 million in the previous quarter.

Operating losses for all other businesses were 60 million US dollars, compared with operating losses of 52 million US dollars in the same period last year and operating losses of 59 million US dollars in the previous quarter.

Performance outlook:

AMD expects revenue for the third quarter of FY2020 to be about US$2.55 billion, with fluctuations of US$100 million, an increase of about 42% over the previous year and an increase of about 32% over the previous year. This performance outlook exceeds Wall Street analysts' expectations; gross margin that does not comply with US GAAP is expected to reach around 44%. According to data provided by Yahoo Finance Channel, the average of 29 analysts expected AMD's third-quarter revenue to reach 2.32 billion US dollars.

AMD also expects that the company's revenue for the full year of FY2020 will increase by about 32% year on year, and gross margin that does not comply with US GAAP is expected to reach around 45%.

Stock price changes:

On the same day, the stock price of AMD wasNASDAQIt fell $1.36 in regular trading to close at $67.61, or 1.97%. In after-hours trading ending at 4:48 p.m. EST on Tuesday (4:48 a.m. Beijing time on Wednesday), AMD shares rose sharply by $6.65 to $74.26, or 9.84%. Over the past 52 weeks, AMD's highest price was $71.63 and the lowest price was $27.43. (Tang Feng)