AMD announced revenue of $4.3 billion, operating profit of $948 million, net income of $923 million in the third quarter of 2021.
AMD President and CEO Dr. Lisa Su said, “We’ve had another record quarter where AMD’s revenues increased 54 percent and operating profit more than doubled compared to last year. Our 3rd Gen EPYC processor and data center sales increased significantly, more than doubled from last year. Our leading products and consistent “Our business, which accelerated significantly in 2021 based on our practices, grew faster in the market.”
EPYC processors are more adopted
The third quarter saw greater adoption of AMD EPYC processors.
Argonne National Labs has selected AMD EPYC processors to power a new supercomputer known as Polaris to enable scientists and developers to test and optimize software code and applications for artificial intelligence, engineering and scientific projects.
Google Cloud announced the public preview of N2D Virtual Machines powered by AMD EPYC™ 7003 Series processors.
AMD announced that 2nd Gen AMD EPYC CPUs and AMD Radeon Pro V520 GPUs will empower new dimensions for Amazon EC2 G4ad instances, giving customers the flexibility to provision on-demand as needs require, rather than being limited to their physical inventory.
Cloudflare has selected 3rd Gen AMD EPYC processors for its 11th Gen servers that power the company’s DNS network.
Collaborated with Microsoft
AMD partnered with Microsoft to provide users with a more powerful, reliable computing service on the Windows 11 operating system and powered the system with Ryzen processors and Radeon graphics cards. Thanks to this collaboration, over 175 AMD processors are now compatible with Windows 11 to deliver an optimal PC and gaming experience.
Lenovo’s announcement of the Ryzen-powered Yoga Slim 7 Carbon and Yoga Slim 7 Pro and the start of distribution of Thinkbook and Thinkpad E enterprise laptops with Windows 11 operating system, HP’s launch of two Ryzen-powered artificial intelligence devices, and ASUS’ With the launch of the Zenbook with the Ryzen 5000 series installed, the Zenbook PRO, ProArt StudioBook, and VivoBook, Ryzen processors are more embraced by customers
High-performance products for gamers
AMD has launched its Ryzen 5000 G-Series PC processors with Radeon graphics, bringing high-performance integrated graphics and powerful features that will delight demanding gamers, game developers and gamers.
AMD has also launched the Radeon RX 6600 XT graphics card, which is designed to deliver high-framerate, high-quality 1080p gaming experiences. Based on the groundbreaking AMD RDNA™ 2 gaming architecture, the graphics card delivers an average of 11 percent higher gaming performance than competitors with Intelligent Access Memory enabled across a range of popular games.
AMD also announced that the Radeon PRO W6000X series for Mac Pro processors will be compatible. In this series, the company combines high-performance AMD RDNA 2 architecture with AMD Infinity Cache and other advanced technologies to lighten the workloads of demanding professional designers and content creators.
Became one of the top employers of 2021
AMD was also named one of the World’s Best Employers in 2021 by Forbes magazine.
AMD also announced its 26th Corporate Social Responsibility Report, highlighting its achievements in the previous year and announcing its new targets for 2025-2030. This year’s report also included a new target to increase the energy efficiency of processors running AI training and high-performance computing applications by a factor of 30 by 2025.
3rd quarter in numbers
Firm revenue was $4.3 billion, up 54 percent year-on-year and 12 percent quarter-on-quarter, driven by higher revenues in the Computing, Graphics Segment, Enterprise, Embedded Systems and Semi-Custom Manufacturing segments.
Gross margin increased by more than 400 percentage points year-on-year and reached 48 percent, up 80 basis points from the previous quarter. Increased sales of EPYC™, Ryzen™ and Radeon™ processors resulted in a significant increase over the previous year and quarter.
Net income was $923 million compared to $390 million a year ago and $710 million in the prior quarter. Non-GAAP (Generally Accepted Accounting Rules) net income was $893 million, up from $501 million in the same period last year and $778 million in the prior quarter.
Cash, cash equivalents and short-term investments amounted to $3.6 billion at the end of the quarter. The company repurchased more than 7 million common stock for $750 million during the quarter.
Cash from operations reached $849 million this quarter, up from $339 million last year and $952 million in the previous quarter.
Free cash flow, which was $265 million last year and $888 million in the previous quarter, was $764 million. Cash from operations and free cash flow in the third quarter of 2021 were supported by strategic investments in long-term supply chain capacity to support future revenue growth.
Quarterly Financial Summary
Computing and Graphics card segment revenue reached $2.4 billion, up 44 percent year-on-year and 7% quarter-on-quarter. The growth compared to the same period last year and the same quarter last year was driven by increased sales of Ryzen, Radeon and AMD Instinct processors.
As Ryzen processor sales increased, client processor average selling price (ASP) increased compared to previous years and quarter.
GPU ASP sales grew from the prior year and quarter, driven by Radeon graphics card sales and AMD Instinct data center GPU sales.
Operating income was $513 million this quarter, up from $384 million last year and $526 million in the prior quarter. The annual increase was mainly driven by higher revenue, partially offset by higher operating expenses. The quarter-to-quarter decrease was mainly driven by higher operating expenses.
Corporate, Embedded and Semi-Custom Manufacturing segment revenue reached $1.9 billion, up 69 percent compared to the same period last year and 20 percent compared to the previous quarter. Increases in this segment were driven by higher EPYC processor and semi-custom product sales.
Operating income increased to $542 million this quarter, from $141 million a year ago and $398 million in the previous quarter. The increases were primarily driven by higher revenue and a broader product line, partially offset by higher operating expenses.
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