AMD Q4 net profit of US$1.78 billion increased by 947% In 2020. The chip manufacturer AMD released its fourth-quarter and full-year performance report for 2020 on the evening of November 26. The report shows that AMD Q4 net profit fourth-quarter revenue was US$3.24 billion, an increase of 53% over the same period last year. Net profit in the fourth quarter was US$1.78 billion, an increase of 947% (income of US$1.3 billion) from a net profit of US$170 million in the same period last year; revenue for the full year of 2020 was US$9.76 billion, an increase of 45% from 2019. Net profit for the whole year of 2020 was US$2.49 billion, an increase of 630.2% from US$341 million in 2019 (including US$1.3 billion in income tax income).
“Our business has accelerated in 2020, achieved record annual revenue, increased gross profit margins, and more than doubled net profit from 2019,” AMD President and CEO Lisa Su (Lisa Su) Said, “Our 2021 financial forecast highlights the strength of our product portfolio and the strong demand for high-performance computing in the personal computer, gaming, and data center markets. We are excited about the future development opportunities and are The long-term strategy is very confident, and we continue to execute our leadership product roadmap.”
On the Nasdaq Stock Exchange in the United States on Tuesday, AMD’s stock price rose by 0.58 US dollars to close at 94.71 US dollars, an increase of 0.62%.
Main results for the fourth quarter of 2020
Revenue in the fourth quarter was US$3.24 billion, an increase of 53% over the same period last year and an increase of 16% over the previous quarter. This was mainly due to the expansion of the computing and graphics division to expand the turnover of the enterprise, embedded and semi-custom divisions Both gain growth.
Fourth-quarter gross margin was 45%, unchanged from a year earlier, an increase of one percentage point from the previous quarter.
Operating profit in the fourth quarter was US$570 million, compared with US$348 million in the same period last year and US$449 million in the previous quarter. Non-US GAAP, operating profit in the fourth quarter was US$663 million, compared with US$405 million in the same period last year and US$525 million in the previous quarter. The increase in operating profit was mainly due to revenue growth.
Net profit for the fourth quarter was $1.78 billion, including income tax income of $1.3 billion. The net profit for the same period last year was US$170 million, compared with US$390 million in the previous quarter. Non-US GAAP net profit in the fourth quarter was US$636 million, compared with US$383 million in the same period last year and US$501 million in the previous quarter.
Diluted earnings per share for the fourth quarter was $1.45, including income tax earnings of $1.06 per share. Diluted earnings per share for the same period last year was US$0.15, and diluted earnings per share for the last quarter was US$0.32. Non-US GAAP, diluted earnings per share in the fourth quarter was US$0.52, diluted earnings per share in the same period last year were US$0.32, and diluted earnings per share in the last quarter were US$0.41.
As of the end of the fourth quarter, AMD Q4 net profit held cash, cash equivalents and short-term investments totalling US$2.29 billion.
Operating cash flow in the fourth quarter was US$554 million, compared with US$442 million in the same period last year and US$339 million in the previous quarter. Free cash flow in the fourth quarter was US$480 million, compared with US$400 million in the same period last year and US$265 million in the previous quarter.
Performance by business unit
Computing and Graphics Division
Revenue for the fourth quarter was $1.96 billion, an increase of 18% from the same period last year and an increase of 18% from the previous quarter. This growth is due to the strong increase in sales of Ryzen processors.
Due to the higher proportion of Ryzen mobile processors in the sales mix, the average selling price (ASP) of client processors fell year-on-year. Driven by sales of Ryzen desktop processors, the average sales price of client processors increased month-on-month.
The average selling price of Radeon graphics chip products has increased compared with the same period last year and the previous quarter.
Operating profit was US$420 million, compared with US$360 million in the same period last year and US$384 million in the previous quarter. The year-on-year and quarter-on-quarter growth benefited from the increase in sales of Ryzen processors.
Enterprise, embedded and semi-custom business units
Revenue in the fourth quarter was US$1.28 billion, an increase of 176% over the same period last year and an increase of 13% over the previous quarter, mainly due to the growth of semi-custom business and EPYC processor sales.
Operating profit in the fourth quarter was US$243 million, compared with US$45 million in the same period last year and US$141 million in the previous quarter. The improvement in operating profit was mainly driven by revenue growth.
All other business operating losses were US$93 million, including US$14 million in acquisition-related losses. All other businesses had an operating loss of US$57 million in the same period last year and an operating loss of US$76 million in the previous quarter.
2020 annual main results
Due to the significant increase in the revenue of the computing and graphics business unit and the enterprise, embedded and semi-custom business business units, the annual revenue was US$9.76 billion, an increase of 45% from 2019.
The gross profit rate for the whole year was 45%, an increase of 2 percentage points from 2019. The increase in gross profit margin throughout the year was mainly driven by sales of Ryzen and EPYC processors.
The operating profit for the year was US$1.37 billion, and it was US$631 million in 2019. Non-US GAAP, operating profit for the year was US$1.66 billion, and it was US$840 million in 2019. The improvement in operating profit was mainly driven by the increase in revenue and the increase in gross profit margin.
The net profit for the year was US$2.49 billion, including the US$1.3 billion in income tax income recorded in the fourth quarter. Net profit in 2019 was US$341 million. Non-US GAAP net profit for the year was US$1.58 billion, and it was US$756 million in 2019.
Diluted earnings per share for the full year was US$2.06, including income tax earnings of US$1.07 per share. Diluted earnings per share in 2019 was $0.30. Non-US GAAP, full-year diluted earnings per share was US$1.29, compared to US$0.64 in 2019.
Operating cash flow for the year was 1.07 billion U.S. dollars, compared with 493 million U.S. dollars in 2019. The full year free cash flow was US$777.0 million, compared with US$276 million in 2019.
Performance expectations
AMD expects revenue in the first quarter of 2021 to be approximately US$3.2 billion, a year-on-year increase of approximately 79% and a month-on-month decrease of 1%. Non-US GAAP, gross profit margin for the first quarter of 2021 is approximately 46%.
AMD expects that, driven by all business growth, revenue will increase by approximately 37% throughout 2021. Non-US GAAP, gross profit margin in 2021 is about 47%.
