Advanced Micro Devices, (NASDAQ:AMD) Naples launch and Fourth-quarter 2016 earnings and full-year 2016 report
On March 8, 2017, At the 2017 Open Compute Project U.S. Summit, AMD ( NASDAQ : AMD ) declared their partnership with Microsoft to incorporate the cloud delivery features of AMD’s next-generation “Naples” processor with Microsoft’s Project Olympus — Microsoft’s next-generation hyperscale cloud hardware design and a new model for open source hardware development with the OCP community.
“Next quarter AMD will bring hardware innovation back into the datacenter and server markets with our high-performance ‘Naples’ x86 CPU, that was designed with the needs of cloud providers, enterprise OEMs and customers in mind,” said Scott Aylor, corporate vice president of enterprise systems, AMD. “Recently we are proud to continue our support for the Open Compute Project by announcing our partnership on Microsoft’s Project Olympus.”
AMD Naples launch
The recent launch of AMD’s Ryzen line up of CPUs didn’t go exactly as planned. After initial specs and benchmark tests earned the company rave reviews, the actual user reviews were mixed. Mark Walton of Ars Technica summarized the Ryzen launch in just one statement, which read “Ryzen is an excellent workstation CPU, but gamers should look elsewhere.” While the Ryzen launch was not up there with expectations, it’s very likely that AMD did just enough to gain some market share. Not good enough to blow away Intel (NASDAQ:INTC), but probably good enough to take a few percentage points off its bigger rivals share. And, given that Ryzen is the first of the Summit Ridge launches, the solution is likely to get better with future offerings. Amigobulls.com
Fourth-quarter 2016 earnings and full-year 2016 report:
Advanced Micro Devices, Inc (NASDAQ:AMD) said its revenue hit $1.11 billion for the quarter, up 15% year over year, due to strong sales of the company’s GPUs. Investors were also likely pleased to see the AMD’s gross margin improve to 32%, a year-over-year increase of 2 percentage points.
Adding to the excitement was AMD’s full-year revenue of $4.27 billion, up 7% from 2015. Net losses for the year subsided from $419 million in 2015 to just $117 million for the full-year 2016.
On the company’s earnings call, AMD CEO Lisa Su said, “As we look back on 2016, we successfully accomplished our key priorities, including growing discrete graphic share led by Polaris GPU adoption [and] regaining client compute share led by our seventh generation APUs,” and added that the company also reduced debt and increased its cash.
Su went on to say that as the company heads into 2017 it’s seeing “strong revenue growth and margin expansion opportunities” from its Zen-based CPUs and Vega GPUs.”