AMD recently released its Q4 quarter lying and full-year results, with revenue of $2.13 billion in the q4 quarter last year, up 50% YoY, 18% YoY, and gross margin of 45%, thanks to AMD’s three products of 7nm process, Radeon Graphics, Ryzen processor and EPYC Dragon server processor.
AMD recorded a net profit of $170 million in Q4, up 3.5 times yoyo year-on-year, up 42% YoY, while total revenue for the full year 2019 was $6.73 billion, up 4% YoY, gross margin of 43%, up 5 percent YoY, and net profit of $341 million, up 1% YoY.
AMD’s performance over the past quarter has undoubtedly been very good, but many people don’t understand why AMD’s big increase in revenue did not rise in full-year net profit. That’s the old problem with AMD, where years of losses leave debt heavily and annual interest payments are a big expense.
AMD has been frantically repaying debt because of the good financial performance of the year, paying off $524 million in Q4 debt last year, which resulted in a $128 million loss under GAAP rules, but a $16 million loss on interest.
According to AMD’s financial results, the company has repaid about $1 billion in debt in 2019, leaving about $563 million in remaining debt, and AMD held about $1.5 billion in cash, equivalent cash and securities at the end of last year. This is AMD’s free-flow ingest edified day since Q3 in 2006.
In other words, 14 years after AMD acquired ATI, it is now the richest in more than a decade, with leverage falling to 0.5 times from 1.9 times at the end of 2018.
As long as AMD is willing, the remaining less than $600 million of debt can be completed in the first half of this year, but debt is good and bad for the business, AMD is now able to fully repay the debt, but in fact does not necessarily have this need, anyway, the economy has changed from years ago.