On January 29, Advanced Micro Devices (AMD), a US-based multinational IT company, published its fourth quarter earnings report, which showed a significant drop in profits — as reported by the CoinTelegraph news agency.
The AMD company, the manufacturer of video cards (GPU), published a report on profit in the fourth quarter of the fiscal year. According to the report, profitability fell by 14 percent compared to the third quarter.
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AMD company: report on the fourth fiscal quarter
According to a report released by AMD on January 29, net profit from graphics processor production in the fourth quarter was $ 38 million, compared with $ 122 million in the third. The gross profit margin of the manufacturer decreased by two percent, while the overall level fell by 14 percent. The main reason for the fall in profits, according to the report, is the situation in the cryptocurrency market, since the main potential customers of AMD were miners.
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Recall that the company had already several times informed its investors about a difficult situation and possible losses. Although Lisa Su, CEO of Advanced Micro Devices (AMD), is still quite optimistic. She commented on the situation with the report for the fourth quarter and invited investors to pay attention to positive changes.
"In 2018, we repeatedly achieved a significant increase in revenue (...). Even with today's lower profit margins, we achieved an increase in market share (...). It is important to note that we more than doubled the supply of EPYC processors (... ) Despite the short-term problems with the GPU, 2019 will be another exciting year caused by the launch of our widest and most competitive product range of the next generation – 7nm Ryzen, Radeon and EPYC." – Lisa Su.
AMD has published a report on the decrease in profits by 14% in Q4. Recall that the Nvidia company also reported a significant reduction in revenue in the fourth quarter of the fiscal year.
Editor: Yuliya Soroka