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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (82458)	1/29/2019 4:36:23 PM
From: Donald Wennerstrom	2 Recommendations Recommended By Return to Sender Sam Read Replies (2) \| Respond to of 95474

Advanced Micro reports EPS in-line, misses on revs; guides Q1 revs below consensus; sees high single digit FY19 revenue growth 4:23 PM ET 1/29/19 \| Briefing.com Reports Q4 (Dec) earnings of $0.08 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $0.08; revenues rose 5.9% year/year to $1.42 bln vs the $1.45 bln S&P Capital IQ Consensus. Computing and Graphics segment revenue was $986 million, up 9 percent year-over-year and 5 percent compared to the prior quarter driven by strong sales of Ryzen processors. Operating income was $115 million compared to $33 million a year ago and $100 million in the prior quarter. The year-over-year improvement was primarily driven by the ramp of Ryzen processors. The improvement compared to the prior quarter was primarily driven by Ryzen processors and datacenter GPUs, which more than offset the benefit of IP-related revenue in the third quarter of 2018. Client processor average selling price (ASP) was up year-over-year and sequentially driven by Ryzen processor sales. GPU ASP was up year-over-year and sequentially primarily due to higher datacenter GPU sales. Enterprise, Embedded and Semi-Custom segment revenue was $433 million, flat year-over-year. Revenue declined 39 percent compared to the prior quarter driven by seasonally lower semi-custom sales, partially offset by strong EPYC datacenter processor sales. Co issues downside guidance for Q1, sees Q1 revs of $1.20-1.30 bln vs. $1.47 bln S&P Capital IQ Consensus. The sequential decrease is expected to be primarily driven by continued softness in the graphics channel and seasonality across the business. The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales. In addition, semi-custom revenue is expected to be lower year-over-year while Ryzen, EPYC and Radeon datacenter GPU product sales are expected to increase. AMD expects non-GAAP gross margin to be approximately 41 percent in the first quarter of 2019. In addition, the Company expects to record a $60 million IP licensing gain which will be a benefit to operating income and recorded on the licensing gain line of the P&L. For full year 2019, AMD expects high single digit percentage revenue growth vs. +7.5% consensus, driven by Ryzen, EPYC and Radeon datacenter GPU product sales as the Company ramps 7nm products throughout the year. AMD expects non-GAAP gross margin to be greater than 41 percent for 2019.