After announcing the acquisition of Xilinx, AMD announced the financial results of the third quarter (Q3 2020) with record income. The company Revenue was no less than 2.8 Billion dollars, which represents a growth of 56 percent compared to the same period last year (Q3 2019) and 45 percent quarter-on-quarter, driven by increased revenues in the Enterprise, Embedded, Semi-Custom chips, and Computing and Graphics segments.
Gross margin was 44 percent, increased by one percentage point from year to year and from quarter to quarter. The year-on-year increase was primarily driven by processor sales from AMD EPYC and Ryzen. Gross margin remained stable quarter over quarter, as increased sales of Ryzen and EPYC processors were offset by a higher percentage of semi-custom revenue.
Operating income was $ 449 million, compared to $ 186 million a year ago and $ 173 million the previous quarter. Non-GAAP operating income was $ 525 million compared to $ 240 million a year ago and $ 233 million in the prior quarter. The improvements in operating income were primarily driven by revenue growth, including an increase in sales of Ryzen and EPYC processors and sales of semi-custom products.
Net income was $ 390 million compared to $ 120 million a year ago (3x) and $ 157 million in the prior quarter. Net income not audited by GAAP was $ 501 million compared to $ 219 million a year ago and $ 216 million in the prior quarter.
Computing and Graphics segment revenues were $ 1.67 billion, 31 percent more than the prior year and 22 percent more than the prior quarter. Revenues were higher year-over-year driven by a significant increase in Ryzen processor sales, partially offset by lower graphics revenue. Revenue was higher quarter-over-quarter driven by a significant increase in Ryzen processor sales and an increase in graphics revenue.
Revenue for the Enterprise, Embedded and Semi-Custom Chips segment was $ 1.13 billion, up 116 percent year- over- year and 101 percent quarter-on-quarter. Revenues were higher year-over-year and quarter-over-quarter due to increased sales of semi-custom products and increased sales from the EPYC processor.
All other segments posted operating losses of $ 76 million compared to operating losses of $ 54 million a year ago and $ 60 million in the prior quarter.