UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
October 10, 2014
Date of Report (Date of earliest event reported)
ADVANCED
MICRO DEVICES, INC.
(Exact name of registrant as specified in its charter)
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| Delaware |
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001-07882 |
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94-1692300 |
| (State of
Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification Number) |
One AMD Place
P.O. Box 3453
Sunnyvale,
California 94088-3453
(Address of principal executive offices) (Zip Code)
(408) 749-4000
(Registrant’s telephone number, including area code)
N/A
(Former Name or
Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 |
Results of Operations and Financial Condition. |
| Item 7.01 |
Regulation FD Disclosure. |
The information in this report furnished pursuant to Items
2.02 and 7.01, including Exhibits 99.1 and 99.2 attached hereto but excluding Exhibit 99.3 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically
references the information furnished pursuant to Items 2.02 and 7.01 of this report. The information in Exhibit 99.3 attached hereto is filed for purposes of Section 18 of the Exchange Act.
On October 16, 2014, Advanced Micro Devices, Inc. (the “Company”) announced its financial position and results of operations as
of and for its fiscal quarter ended September 27, 2014 in an earnings press release that is attached hereto as Exhibit 99.1. Attached hereto as Exhibit 99.2 is financial information and commentary by Devinder Kumar, Senior Vice President and
Chief Financial Officer of the Company, regarding the Company’s fiscal quarter ended September 27, 2014.
Effective as of
July 1, 2014, the Company reorganized into two business groups. As a result of this organizational change, the Company created two new reportable segments. Attached hereto as Exhibit 99.3 is certain quarterly segment data regarding the
Company’s fiscal quarters ended March 30, 2013 through September 27, 2014, reflecting these new reportable segments.
To
supplement the Company’s financial results presented on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis, the Company’s earnings press release and CFO commentary contain non-GAAP financial measures, including
non-GAAP operating expenses, non-GAAP expense to revenue ratio, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share, Adjusted EBITDA and non-GAAP free cash flow.
Specifically, these non-GAAP financial measures reflect adjustments based on the following:
Amortization of acquired intangible assets: represents amortization expenses of acquired identifiable intangible assets in connection
with the Company’s acquisitions of ATI Technologies Inc. and SeaMicro, Inc.
Restructuring and other special charges (gains),
net: represents gains and losses associated with sale and leaseback activities as well as employee severance costs associated with the Company’s restructuring plans.
Workforce rebalancing severance charges: represents employee severance costs associated with a reduction of the Company’s global
workforce as part of the ongoing transformation and diversification strategy.
Loss on debt redemption: represents losses that the
Company incurred as a result of the repurchase of certain outstanding indebtedness in excess of the carrying amount of the debt.
Legal
settlements, net: represents various licenses and settlements regarding patent-related matters.
Item 2.05 Costs Associated with Exit or
Disposal Activities.
On October 10, 2014, the Board of Directors of the Company approved a restructuring plan (the
“Plan”) designed to implement operating efficiencies. Under the Plan, the Company expects to reduce global headcount by 7 percent, largely expected to be completed by the end of the Company’s fourth quarter of fiscal 2014, and to
align the Company’s real estate footprint with its reduced headcount, largely expected to be completed by the end of the Company’s first half of fiscal 2015.
The Company currently estimates that it will record a restructuring and impairment charge of an aggregate amount of approximately $70 million
under the Plan. The Company expects that it will record a restructuring and impairment charge of approximately $57 million in the fourth quarter of fiscal 2014, primarily related to severance, and a restructuring charge of approximately $13 million
in the first half of fiscal 2015, primarily related to real estate actions. The Company expects to make cash payments related to the Plan of approximately $34 million in the fourth quarter of fiscal 2014 and approximately $20 million in the first
half of fiscal 2015.
The Company believes that the restructuring actions will result in operational savings, primarily in operating
expenses, of approximately $9 million in the fourth fiscal quarter of 2014 and approximately $85 million in fiscal 2015.
This report contains forward-looking statements concerning the Company and the Plan, including
the expected benefits of the Plan, the timing of actions implemented in connection with the Plan, and expected restructuring and impairment charges, cash payments and operational savings, which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,”
“intends,” “plans,” “estimates,” “anticipates,” “projects,” “would” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this report are
based on current beliefs, assumptions and expectations, speak only as of the date of this report and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Investors are urged to review in
detail the risks and uncertainties in the Company’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended June 28, 2014.
| Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
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| Exhibit No. |
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Description |
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| 99.1 |
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Press release dated October 16, 2014 (furnished herewith) |
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| 99.2 |
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CFO Commentary on Third Quarter 2014 Results (furnished herewith) |
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| 99.3 |
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Segment Financial Data for Fiscal Quarters ended March 30, 2013 through September 27, 2014 (filed herewith) |
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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ADVANCED MICRO DEVICES, INC. |
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| Date: October 16, 2014 |
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By: |
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/S/ DEVINDER KUMAR |
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Name: |
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Devinder Kumar |
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Title: |
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Senior Vice President and Chief Financial Officer |
INDEX TO EXHIBITS
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| Exhibit No. |
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Description |
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| 99.1 |
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Press release dated October 16, 2014 (furnished herewith) |
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| 99.2 |
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CFO Commentary on Third Quarter 2014 Results (furnished herewith) |
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| 99.3 |
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Segment Financial Data for Fiscal Quarters ended March 30, 2013 through September 27, 2014 (filed herewith) |
Exhibit 99.1
NEWS RELEASE
Media Contact
Drew Prairie
512-602-4425
drew.prairie@amd.com
Investor Contact
Ruth
Cotter
408-749-3887
ruth.cotter@amd.com
AMD
Reports 2014 Third Quarter Results
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Revenue of $1.43 billion, flat sequentially and a decrease of 2 percent year-over-year |
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o |
Gross margin of 35 percent |
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o |
Operating income of $63 million and non-GAAP(1) operating income of $66 million |
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Net income of $17 million, earnings per share of $0.02 and non-GAAP(1) net income of $20 million, non-GAAP earnings per share of $0.03 |
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Announces restructuring plan to better position the company for profitability and long-term growth |
SUNNYVALE, Calif. – Oct. 16, 2014 – AMD (NYSE:AMD) today announced revenue for the third quarter of 2014 of $1.43
billion, operating income of $63 million and net income of $17 million, or $0.02 per share. Non-GAAP (1) operating income was $66 million and non-GAAP (1) net income was $20 million, or $0.03 per share.
“AMD’s third quarter
financial performance reflects progress in diversifying our business,” said Dr. Lisa Su, AMD president and CEO. “Our Enterprise, Embedded and Semi-Custom segment results were strong; however, performance in our Computing and Graphics
segment was mixed based on challenging market conditions that require us to take further steps to evolve and strengthen the financial performance of this business. Our top priority is to deliver leadership technologies and products as we continue to
transform AMD.”
GAAP Financial Results
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Q3-14 |
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Q2-14 |
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Q3-13 |
| Revenue |
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$1.43B |
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$1.44B |
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$1.46B |
| Operating income |
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$63M |
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$63M |
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$95M |
| Net income (loss) / Earnings (loss) per share |
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$17M/$0.02 |
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$(36)M/$(0.05) |
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$48M/$0.06 |
Non-GAAP Financial
Results 1
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Q3-14 |
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Q2-14 |
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Q3-13 |
| Revenue |
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$1.43B |
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$1.44B |
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$1.46B |
| Operating income |
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$66M |
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$67M |
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$78M |
| Net income / Earnings per share |
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$20M/$0.03 |
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$17M/$0.02 |
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$31M/$0.04 |
Effective July 1, 2014, AMD reorganized into two business groups, one focused on the
traditional PC market and the second focused on adjacent high-growth opportunities.
Accordingly, AMD has two reportable segments:
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• |
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Computing and Graphics, which primarily includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics; and |
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Enterprise, Embedded and Semi-Custom, which primarily includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. |
Quarterly Financial Summary
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Gross margin was 35 percent in Q3 2014. |
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Gross margin was flat sequentially and included a $27 million, or 2 percent, benefit from revenue related to technology licensing. |
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Cash, cash equivalents and marketable securities were $938 million at the end of the quarter, essentially flat from the prior quarter. |
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Total debt at the end of the quarter was $2.20 billion. |
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Computing and Graphics segment revenue decreased 6 percent sequentially and decreased 16 percent year-over-year. The sequential decrease was primarily driven by lower chipset and GPU sales. The year-over-year decline
was primarily due to decreased notebook processor and chipset sales. |
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o |
Operating loss was $17 million, compared with an operating loss of $6 million in Q2 2014 and operating income of $9 million in Q3 2013. The sequential decrease was primarily driven by lower revenue while the
year-over-year decrease was primarily driven by lower revenue partially offset by lower operating expenses. |
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o |
Client average selling price (ASP) increased sequentially and year-over-year primarily driven by a richer mix of notebook processor sales. |
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GPU ASP decreased sequentially due to lower desktop GPU ASP and increased year-over-year. |
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Enterprise, Embedded and Semi-Custom segment revenue increased 6 percent sequentially and 21 percent year-over-year primarily driven by increased sales of semi-custom SoCs. |
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Operating income was $108 million compared with $97 million in Q2 2014 and $92 million in Q3 2013. The sequential and year-over-year increase was primarily due to increased sales of semi-custom SoCs. |
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Embedded revenue grew by double digits on a percentage basis sequentially. |
Q4 2014 Restructuring and
Transformation Initiatives
As a part of AMD’s ongoing transformation work, the company has developed a targeted restructuring
plan to better position AMD for profitability and long-term growth while aligning investments and resources with high-priority opportunities.
The restructuring plan, which will be largely implemented in Q4 2014, is expected to:
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Reduce global headcount by 7 percent, largely expected to be completed by the end of Q4 2014; |
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Align AMD’s real estate footprint with its reduced headcount; |
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Result in a restructuring and impairment charge of approximately $57 million in Q4 2014, primarily related to severance, and a restructuring charge of approximately $13 million in 1H 2015, primarily related to real
estate actions; |
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The company expects to make cash payments related to these actions of approximately $34 million in Q4 2014 and $20 million in 1H 2015; |
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Result in operational savings, primarily in operating expenses, of approximately $9 million in Q4 2014 and approximately $85 million in 2015. |
“While decisions that impact the size of our global team are never entered into lightly, this is the right step to ensure we prioritize
our resources and engineering investments in our highest-priority opportunities that can drive improved profitability and long-term growth,” said Dr. Su.
Recent Highlights
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AMD appointed Dr. Lisa Su as president and CEO and a member of the board of directors, succeeding Mr. Rory Read who will remain with the company through 2014 to advise on the transition.
Mr. Joseph Householder was also appointed to the company’s board. Mr. Householder currently serves as executive vice president and chief financial officer of Sempra Energy. |
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AMD and Synopsys announced a multi-year agreement, with Synopsys acquiring rights to AMD’s interface and foundation IP. The IP partnership will provide AMD with access to a range of Synopsys tools and IP for
advanced FinFET process nodes. |
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AMD expanded its award-winning AMD Radeon™ R9 series graphics family with the launch of the AMD Radeon™ R9 285 graphics card designed to run the most demanding games at the highest settings.
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AMD completed its most advanced APU lineup to-date for the component channel with the introduction of new AMD A-Series APUs with HSA features and GCN architecture for the system builder and DIY market, along with
new APUs designed for smaller form factor gaming and home theater PC (HTPC) systems. |
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Demonstrating its leadership in building a robust software ecosystem for 64-bit ARM servers, AMD announced immediate availability of the AMD Opteron™ A1100-Series development kit, featuring AMD’s first
64-bit ARM®-based processor, and showcased the first public demonstration of Apache™ Hadoop® running on an ARM® Cortex®-A57-based AMD Opteron™ A-Series processor. AMD is the first company to provide a standard ARM Cortex®-A57-based server platform for software developers and integrators. |
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AMD expanded its AMD FirePro™ professional graphics offerings with the introduction of 4 new next-generation AMD FirePro™ W-series professional graphics cards that deliver at least 2x2 more graphics memory over the previous generation, multi-display 4K capability and increased compute performance. AMD secured several new design wins with tier-1 OEMs, including multiple HP
mobile and desktop workstations. AMD also introduced the most powerful server GPU ever built for High Performance Computing with the AMD FirePro™ S9150 3. |
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Mentor Graphics announced the availability of commercial Embedded Linux® software enabling developers to easily migrate to new commercially-supported
versions for the AMD Embedded G-Series SoC and CPU, and the AMD Embedded R-Series APU. |
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AMD announced a new technology partnership with OCZ Storage Solutions, a Toshiba Group Company, for AMD Radeon™-branded Solid State Drives (SSDs). |
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In collaboration with Canonical®, AMD announced a ready-to-deploy OpenStack private cloud based on the SeaMicro SM15000™ server. The “out of the
box” experience is meant to ease the complexities of deploying OpenStack technology and automates complex configuration tasks, simplifies management, and provides a graphical user interface to dynamically deploy new services on demand.
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Dow Jones named AMD to the Dow Jones Sustainability Index (DJSI) North America, marking more than a decade-long appearance on the list and exemplifying the company’s legacy of corporate responsibility and
commitment to social, economic and environmental issues. |
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ
materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
For Q4 2014, AMD
expects revenue to decrease 13 percent, plus or minus 3 percent, sequentially.
For additional details regarding AMD’s results and
outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its third quarter financial
results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its web site at www.amd.com. The webcast will be available for 12 months after the conference call.
Reconciliation of GAAP to Non-GAAP Operating Income1
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| (Millions) |
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Q3-14 |
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Q2-14 |
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Q3-13 |
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| GAAP operating income |
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$ |
63 |
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$ |
63 |
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$ |
95 |
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| Amortization of acquired intangible assets |
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3 |
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4 |
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5 |
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| Restructuring and other special charges (gains), net |
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— |
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— |
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(22 |
) |
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| Non-GAAP operating income |
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$ |
66 |
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$ |
67 |
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$ |
78 |
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Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
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| (Millions except per share amounts) |
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Q3-14 |
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Q2-14 |
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Q3-13 |
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| GAAP net income (loss) / Earnings (loss) per share |
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$ |
17 |
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$ |
0.02 |
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$ |
(36 |
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$ |
(0.05 |
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$ |
48 |
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$ |
0.06 |
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| Amortization of acquired intangible assets |
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3 |
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0.00 |
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4 |
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0.01 |
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5 |
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0.01 |
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| Loss on debt redemption |
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— |
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— |
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49 |
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0.06 |
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— |
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| Restructuring and other special charges (gains), net |
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— |
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— |
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— |
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— |
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(22 |
) |
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(0.03 |
) |
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| Non-GAAP net income / Earnings per share |
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$ |
20 |
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$ |
0.03 |
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$ |
17 |
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$ |
0.02 |
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$ |
31 |
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$ |
0.04 |
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About AMD
AMD (NYSE: AMD) designs and integrates technology that powers millions of intelligent devices, including personal computers, tablets, game
consoles and cloud servers that define the new era of surround computing. AMD solutions enable people everywhere to realize the full potential of their favorite devices and applications to push the boundaries of what is possible. For more
information, visit www.amd.com.
Cautionary Statement
This earnings press release and the conference call remarks contain forward-looking statements concerning AMD; its ability to increase
profitability and improve financial performance; its restructuring plan, including the timing of actions implemented in connection with the plan and expected restructuring and impairment charges, cash payments and operational savings; expected
benefits of its restructuring plan and transformation initiatives; its expected fourth quarter of 2014 revenue; and timing of and expected revenue in connection with its future products, which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,”
“intends,” “pro forma,” “estimates,” “anticipates,” “plans,” “projects,” “would” and other terms with similar meaning. Investors are cautioned that the forward-looking statements
in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include
the possibility that Intel Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact AMD’s plans; that AMD will require additional
funding and may be unable to raise sufficient capital on favorable terms, or at all; that customers stop buying AMD’s products or materially reduce their operations or demand for AMD’s products; that AMD may be unable to develop, launch
and ramp new products and technologies in the volumes that are required by the market at mature yields on a timely basis; that AMD’s third-party foundry suppliers will be unable to transition AMD’s products to advanced manufacturing
process technologies in a timely and effective way or to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive process technologies; that AMD will be unable to obtain sufficient manufacturing capacity or
components to meet demand for its products or will not fully utilize its projected manufacturing capacity needs at GLOBALFOUNDRIES, Inc. (GF) microprocessor manufacturing facilities; that AMD’s requirements for wafers will be less than the
fixed number of wafers that it agreed to purchase from GF or GF encounters
problems that significantly reduce the number of functional die it receives from each wafer; that AMD is unable to successfully implement its long-term business strategy; that AMD inaccurately
estimates the quantity or type of products that its customers will want in the future or will ultimately end up purchasing, resulting in excess or obsolete inventory; that AMD is unable to manage the risks related to the use of its third-party
distributors and add-in-board (AIB) partners or offer the appropriate incentives to focus them on the sale of AMD’s products; that AMD may be unable to maintain the level of investment in research and development that is required to remain
competitive; that there may be unexpected variations in market growth and demand for AMD’s products and technologies in light of the product mix that it may have available at any particular time; that global business and economic conditions
will not improve or will worsen; that PC market conditions will not improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or internationally, on
AMD’s sales or supply chain. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended
June 28, 2014.
-30-
AMD, the AMD
Arrow logo, AMD Opteron, AMD Radeon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.
| |
1. |
In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP operating income, non-GAAP net income (loss) and non-GAAP earnings (loss) per share.
These non-GAAP financial measures reflect certain adjustments as presented in the tables in this earnings press release. AMD also provided Adjusted EBITDA and non-GAAP free cash flow as supplemental measures of its performance. These items
are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to
compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are
indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to the data tables at the end of this earnings. |
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Compared to the previous generation of AMD FirePro™ professional graphics. |
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AMD FirePro™ S9150 max power is 235W and delivers up to 2.53 TFLOPS peak double and up to 5.07 peak single precision floating point performance. Nvidia’s highest performing server cards in the market as of
June 2014 are the Tesla K40, max power of 235W, with up to 1.43 TFLOPS peak double and up to 4.29 peak single, and the K10, max power 225W, with up to 4.58 TFLOPS peak single and 190 GFLOPS peak double precision.
Visit http://www.nvidia.com/object/tesla-servers.html for Nvidia product specs. FP-97 |
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
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Three Months Ended |
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Nine Months Ended |
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Sep. 27,
2014 |
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Jun. 28,
2014 |
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Sep. 28,
2013 |
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Sep. 27,
2014 |
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Sep. 28,
2013 |
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| Net revenue |
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$ |
1,429 |
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$ |
1,441 |
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$ |
1,461 |
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$ |
4,267 |
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$ |
3,710 |
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| Cost of sales |
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|
935 |
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943 |
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940 |
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$ |
2,788 |
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2,285 |
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| Gross margin |
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494 |
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498 |
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521 |
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1,479 |
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1,425 |
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| Gross margin % |
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35 |
% |
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35 |
% |
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36 |
% |
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35 |
% |
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38 |
% |
| Research and development |
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278 |
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277 |
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288 |
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|
|
834 |
|
|
|
908 |
|
| Marketing, general and administrative |
|
|
150 |
|
|
|
154 |
|
|
|
155 |
|
|
|
460 |
|
|
|
505 |
|
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
10 |
|
|
|
14 |
|
| Restructuring and other special charges (gains), net |
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
63 |
|
|
|
63 |
|
|
|
95 |
|
|
|
175 |
|
|
|
(32 |
) |
| Interest income |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
| Interest expense |
|
|
(43 |
) |
|
|
(46 |
) |
|
|
(47 |
) |
|
|
(136 |
) |
|
|
(133 |
) |
| Other income (expense), net |
|
|
(2 |
) |
|
|
(49 |
) |
|
|
2 |
|
|
|
(72 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
19 |
|
|
|
(32 |
) |
|
|
51 |
|
|
|
(31 |
) |
|
|
(164 |
) |
| Provision for income taxes |
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
|
|
8 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
17 |
|
|
$ |
(36 |
) |
|
$ |
48 |
|
|
$ |
(39 |
) |
|
$ |
(172 |
) |
| Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.23 |
) |
| Diluted |
|
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in per share calculation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
770 |
|
|
|
764 |
|
|
|
757 |
|
|
|
765 |
|
|
|
753 |
|
| Diluted |
|
|
785 |
|
|
|
764 |
|
|
|
764 |
|
|
|
765 |
|
|
|
753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
Sep. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Sep. 28,
2013 |
|
|
Sep. 27,
2014 |
|
|
Sep. 28,
2013 |
|
| Total comprehensive income (loss) |
|
$ |
15 |
|
|
$ |
(32 |
) |
|
$ |
52 |
|
|
$ |
(38 |
) |
|
$ |
(171 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sep. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Dec. 28,
2013 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
640 |
|
|
$ |
503 |
|
|
$ |
869 |
|
| Marketable securities |
|
|
298 |
|
|
|
445 |
|
|
|
228 |
|
| Accounts receivable, net |
|
|
973 |
|
|
|
872 |
|
|
|
832 |
|
| Inventories, net |
|
|
897 |
|
|
|
960 |
|
|
|
884 |
|
| Prepaid expenses and other current assets |
|
|
212 |
|
|
|
152 |
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
3,020 |
|
|
|
2,932 |
|
|
|
2,884 |
|
| Long-term marketable securities |
|
|
— |
|
|
|
— |
|
|
|
90 |
|
| Property, plant and equipment, net |
|
|
328 |
|
|
|
329 |
|
|
|
346 |
|
| Acquisition related intangible assets, net |
|
|
69 |
|
|
|
72 |
|
|
|
78 |
|
| Goodwill |
|
|
553 |
|
|
|
553 |
|
|
|
553 |
|
| Other assets |
|
|
355 |
|
|
|
360 |
|
|
|
386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
4,325 |
|
|
$ |
4,246 |
|
|
$ |
4,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term debt |
|
$ |
102 |
|
|
$ |
101 |
|
|
$ |
60 |
|
| Accounts payable |
|
|
498 |
|
|
|
511 |
|
|
|
519 |
|
| Payable to GLOBALFOUNDRIES |
|
|
317 |
|
|
|
295 |
|
|
|
364 |
|
| Accrued and other current liabilities |
|
|
555 |
|
|
|
480 |
|
|
|
530 |
|
| Deferred income on shipments to distributors |
|
|
94 |
|
|
|
118 |
|
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
1,566 |
|
|
|
1,505 |
|
|
|
1,618 |
|
| Long-term debt |
|
|
2,106 |
|
|
|
2,109 |
|
|
|
1,998 |
|
| Other long-term liabilities |
|
|
118 |
|
|
|
131 |
|
|
|
177 |
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock, par value |
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
| Additional paid-in capital |
|
|
6,928 |
|
|
|
6,905 |
|
|
|
6,894 |
|
| Treasury stock, at cost |
|
|
(118 |
) |
|
|
(114 |
) |
|
|
(112 |
) |
| Accumulated deficit |
|
|
(6,282 |
) |
|
|
(6,299 |
) |
|
|
(6,243 |
) |
| Accumulated other comprehensive income (loss) |
|
|
(1 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders’ equity |
|
|
535 |
|
|
|
501 |
|
|
|
544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
4,325 |
|
|
$ |
4,246 |
|
|
$ |
4,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
Sep. 27,
2014 |
|
|
Sep. 27,
2014 |
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| Net Income (loss) |
|
$ |
17 |
|
|
$ |
(39 |
) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
49 |
|
|
|
155 |
|
| Employee stock-based compensation expense |
|
|
21 |
|
|
|
65 |
|
| Non-cash interest expense |
|
|
2 |
|
|
|
11 |
|
| Loss on debt redemptions |
|
|
— |
|
|
|
64 |
|
| Other |
|
|
(6 |
) |
|
|
(9 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(104 |
) |
|
|
(144 |
) |
| Inventories |
|
|
62 |
|
|
|
(14 |
) |
| Prepaid expenses and other assets |
|
|
(71 |
) |
|
|
(156 |
) |
| Payable to GLOBALFOUNDRIES |
|
|
22 |
|
|
|
(47 |
) |
| Accounts payable, accrued liabilities and other |
|
|
26 |
|
|
|
(100 |
) |
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
$ |
18 |
|
|
$ |
(214 |
) |
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| Purchases of property, plant and equipment |
|
|
(29 |
) |
|
|
(73 |
) |
| Purchases of available-for-sale securities |
|
|
(28 |
) |
|
|
(646 |
) |
| Proceeds from sale and maturity of available-for-sale securities |
|
|
176 |
|
|
|
664 |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) investing activities |
|
$ |
119 |
|
|
$ |
(55 |
) |
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| Net proceeds from foreign grants and allowances |
|
$ |
3 |
|
|
$ |
5 |
|
| Proceeds from issuance of common stock |
|
|
2 |
|
|
|
4 |
|
| Proceeds from borrowings, net |
|
|
— |
|
|
|
1,080 |
|
| Repayments of long-term debt and capital lease obligations |
|
|
(1 |
) |
|
|
(1,043 |
) |
| Other |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
| Net cash provided by financing activities |
|
$ |
— |
|
|
$ |
40 |
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in cash and cash equivalents |
|
|
137 |
|
|
|
(229 |
) |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at beginning of period |
|
$ |
503 |
|
|
$ |
869 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of period |
|
$ |
640 |
|
|
$ |
640 |
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
Sep. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Sep. 28,
2013 |
|
|
Sep. 27,
2014 |
|
|
Sep. 28,
2013 |
|
| Segment and Category Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Computing and Graphics (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
781 |
|
|
$ |
828 |
|
|
$ |
925 |
|
|
$ |
2,470 |
|
|
$ |
2,832 |
|
| Operating income (loss) |
|
$ |
(17 |
) |
|
$ |
(6 |
) |
|
$ |
9 |
|
|
$ |
(20 |
) |
|
$ |
(86 |
) |
| Enterprise, Embedded and Semi-Custom (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
|
648 |
|
|
|
613 |
|
|
|
536 |
|
|
|
1,797 |
|
|
|
878 |
|
| Operating income |
|
|
108 |
|
|
|
97 |
|
|
|
92 |
|
|
|
290 |
|
|
|
166 |
|
| All Other (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating loss |
|
|
(28 |
) |
|
|
(28 |
) |
|
|
(6 |
) |
|
|
(95 |
) |
|
|
(112 |
) |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
1,429 |
|
|
$ |
1,441 |
|
|
$ |
1,461 |
|
|
$ |
4,267 |
|
|
$ |
3,710 |
|
| Operating income (loss) |
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
95 |
|
|
$ |
175 |
|
|
$ |
(32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization, excluding amortization of acquired intangible assets |
|
$ |
46 |
|
|
$ |
49 |
|
|
$ |
52 |
|
|
$ |
145 |
|
|
$ |
168 |
|
| Capital additions |
|
$ |
29 |
|
|
$ |
23 |
|
|
$ |
15 |
|
|
$ |
73 |
|
|
$ |
63 |
|
| Adjusted EBITDA (4) |
|
$ |
133 |
|
|
$ |
137 |
|
|
$ |
153 |
|
|
$ |
409 |
|
|
$ |
247 |
|
| Cash, cash equivalents and marketable securities, including long-term marketable securities |
|
$ |
938 |
|
|
$ |
948 |
|
|
$ |
1,181 |
|
|
$ |
938 |
|
|
$ |
1,181 |
|
| Non-GAAP free cash flow (5) |
|
$ |
(11 |
) |
|
$ |
(51 |
) |
|
$ |
6 |
|
|
$ |
(287 |
) |
|
$ |
(232 |
) |
| Total assets |
|
$ |
4,325 |
|
|
$ |
4,246 |
|
|
$ |
4,317 |
|
|
$ |
4,325 |
|
|
$ |
4,317 |
|
| Total debt |
|
$ |
2,208 |
|
|
$ |
2,210 |
|
|
$ |
2,049 |
|
|
$ |
2,208 |
|
|
$ |
2,049 |
|
| Headcount |
|
|
10,149 |
|
|
|
10,300 |
|
|
|
10,330 |
|
|
|
10,149 |
|
|
|
10,330 |
|
See footnotes on the next page
| (1) |
Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete graphics processing units (GPUs) and professional graphics. |
| (2) |
Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, dense servers, semi-custom System-on-Chip (SoC) products, engineering services and royalties. |
| (3) |
All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category are amortization of acquired intangible assets and employee
stock-based compensation expense. In addition, the Company also included the following adjustments for the indicated periods: for the nine months ended September 27, 2014, the Company included an adjustment for workforce rebalancing severance
charges; and for the third quarter of 2013 and nine months ended September 28, 2013, the Company included an adjustment for net restructuring and other special charges (gains). |
| (4) |
Reconciliation of GAAP operating income (loss) to Adjusted EBITDA* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
Sep. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Sep. 28,
2013 |
|
|
Sep. 27,
2014 |
|
|
Sep. 28,
2013 |
|
| GAAP operating income (loss) |
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
95 |
|
|
$ |
175 |
|
|
$ |
(32 |
) |
| Workforce rebalancing severance charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
| Depreciation and amortization |
|
|
46 |
|
|
|
49 |
|
|
|
52 |
|
|
|
145 |
|
|
|
168 |
|
| Employee stock-based compensation expense |
|
|
21 |
|
|
|
21 |
|
|
|
23 |
|
|
|
65 |
|
|
|
67 |
|
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
10 |
|
|
|
14 |
|
| Restructuring and other special charges (gains), net |
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
133 |
|
|
$ |
137 |
|
|
$ |
153 |
|
|
$ |
409 |
|
|
$ |
247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (5) |
Non-GAAP free cash flow reconciliation** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
Sep. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Sep. 28,
2013 |
|
|
Sep. 27,
2014 |
|
|
Sep. 28,
2013 |
|
| GAAP net cash provided by (used in) operating activities |
|
$ |
18 |
|
|
$ |
(28 |
) |
|
$ |
21 |
|
|
$ |
(214 |
) |
|
$ |
(169 |
) |
| Purchases of property, plant and equipment |
|
|
(29 |
) |
|
|
(23 |
) |
|
|
(15 |
) |
|
|
(73 |
) |
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP free cash flow |
|
$ |
(11 |
) |
|
$ |
(51 |
) |
|
$ |
6 |
|
|
$ |
(287 |
) |
|
$ |
(232 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
The Company presents Adjusted EBITDA as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting operating income (loss) for depreciation and amortization, employee
stock-based compensation expense and amortization of acquired intangible assets. In addition, the Company also included the following adjustments for the indicated periods: for the nine months ended September 27, 2014, the Company included an
adjustment for workforce rebalancing severance charges; and for the third quarter of 2013 and nine months ended September 28, 2013, the Company included an adjustment for net restructuring and other special charges (gains). The Company
calculates and communicates Adjusted EBITDA in the earnings press release because the Company’s management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional
funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are
indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as
an alternative to the GAAP operating measure of operating income (loss) or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets
and liabilities as well as interest and income taxes that can affect cash flows. |
| ** |
The Company also presents non-GAAP free cash flow in the earnings press release as a supplemental measure of its performance. Non-GAAP free cash flow is determined by adjusting GAAP net cash used in operating activities
for capital expenditures. The Company calculates and communicates non-GAAP free cash flow in the financial earnings press release because the Company’s management believes it is of importance to investors to understand the nature of these cash
flows. The Company’s calculation of non-GAAP free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view non-GAAP free cash flow as an alternative to GAAP
liquidity measures of cash flows from operating activities. The Company has provided reconciliations within the earnings press release of these non-GAAP financial measures to the most directly comparable GAAP financial measures. |
Exhibit 99.2
AMD Reports Third Quarter 2014 Results – CFO Commentary
October 16, 2014
Reconciliation
for all non-GAAP financial measures discussed in this commentary to the most directly comparable GAAP financial measures is included below and in our financial tables that accompany our earnings press release available at quarterlyearnings.amd.com.
Q3 2014 Results
| |
• |
|
Revenue of $1.43 billion, flat sequentially and down 2% year-over-year |
| |
• |
|
Gross margin of 35%, flat sequentially |
| |
• |
|
Operating income of $63 million and non-GAAP operating income of $66 million, compared to operating income of $63 million and non-GAAP operating income of $67 million in Q2 2014 |
| |
• |
|
Net income of $17 million, earnings per share of $0.02 and non-GAAP net income of $20 million, non-GAAP earnings per share of $0.03, which excludes amortization of acquired intangible assets of $3 million, compared to
net loss of $36 million, loss per share of $0.05 and non-GAAP net income of $17 million, non-GAAP earnings per share of $0.02 in Q2 2014 |
Q3 2014 Commentary
Revenue was $1.43
billion, flat sequentially, and included $27 million related to technology licensing. Computing and Graphics segment revenue was down 6% from Q2 2014, primarily due to lower chipset and GPU sales. Enterprise, Embedded and Semi-Custom segment revenue
was up 6% sequentially, primarily due to higher semi-custom SoC sales.
Gross margin was 35% in Q3 2014, flat sequentially, and included a $27
million, or 2% benefit, from revenue related to technology licensing.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 1 |
|
October 16, 2014 |
Operating expenses were $431 million.
| |
• |
|
R&D was $278 million, 19% of revenue. |
| |
• |
|
SG&A was $150 million, 10% of revenue. |
Non-GAAP operating expenses were $428 million or 30%
of revenue.
To derive non-GAAP operating expenses for Q3 2014, we excluded the impact of the amortization of acquired intangible assets of $3 million.
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1-13 |
|
|
Q2-13 |
|
|
Q3-13 |
|
|
Q4-13 |
|
|
Q1-14 |
|
|
Q2-14 |
|
|
Q3-14 |
|
| GAAP |
|
$ |
543M |
|
|
$ |
488M |
|
|
$ |
426M |
|
|
$ |
418M |
|
|
$ |
438M |
|
|
$ |
435M |
|
|
$ |
431M |
|
| Non-GAAP |
|
$ |
491M |
|
|
$ |
479M |
|
|
$ |
443M |
|
|
$ |
462M |
|
|
$ |
421M |
|
|
$ |
431M |
|
|
$ |
428M |
|
Non-GAAP operating income was $66 million.
To derive non-GAAP operating income for Q3 2014, we excluded the impact of the amortization of acquired intangible assets of $3 million.
Non-GAAP net income was $20 million.
To derive
non-GAAP net income for Q3 2014, we excluded the impact of the amortization of acquired intangible assets of $3 million.
Depreciation and
amortization, excluding amortization of acquired intangible assets, was $46 million, compared to $49 million in the prior quarter.
Interest
expense was $43 million, down $3 million from the prior quarter, largely due to savings realized by the new debt issuance and debt redemption that occurred in the prior quarter.
During the quarter, AMD entered into interest rate swap transactions that effectively converted $250 million of AMD’s fixed rate 6.75% Senior
Notes due 2019 to a variable interest rate. Based on current interest rates, we anticipate quarterly interest savings from these transactions will be approximately $1 million per quarter beginning Q4 2014. The remaining $350 million portion of
AMD’s 6.75% Senior Notes due 2019 debt as well as other term debt on the balance sheet has a weighted average fixed interest rate of 7.1%.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 2 |
|
October 16, 2014 |
Tax provision was $2 million in the quarter, down from $4 million in the prior quarter.
Non-GAAP net income per share was $0.03, calculated using 785 million diluted shares.
Adjusted EBITDA was $133 million, down $4 million from the prior quarter, and for the trailing four quarters, adjusted EBITDA was $574 million, as
compared to $594 million for the trailing four quarters beginning Q2 2014.
Q3 2014 Reportable Segment Changes
Effective July 1, 2014, AMD reorganized into two business groups, one focused on the traditional PC market and the second focused on adjacent high-growth
opportunities.
Accordingly, AMD has two reportable segments:
| |
• |
|
Computing and Graphics, which primarily includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics; and |
| |
• |
|
Enterprise, Embedded and Semi-Custom, which primarily includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. |
Q3 2014 Segment Results
Computing and Graphics
segment revenue was $781 million, down 6% sequentially, primarily due to lower chipset and GPU sales.
| |
• |
|
Notebook processor and chipset sales decreased sequentially and desktop processor sales increased. |
| |
• |
|
Client average selling price (ASP) increased sequentially and year-over-year driven by a richer mix of notebook processor sales. |
| |
• |
|
GPU ASP decreased sequentially due to a decrease in desktop GPU ASP and increased year-over-year. |
Computing and Graphics operating loss was $17 million, compared to an operating loss of $6 million in Q2 2014. The sequential decline was driven
primarily by lower revenue.
Enterprise, Embedded and Semi-Custom segment revenue was $648 million, up 6% compared to the prior quarter driven
primarily by increased sales of our semi-custom SoCs.
Enterprise, Embedded and Semi-Custom operating income was $108 million, up from operating
income of $97 million in the prior quarter primarily due to higher sales of our semi-custom SoCs.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 3 |
|
October 16, 2014 |
Balance Sheet
Cash, cash equivalents and marketable securities were $938 million at the end of Q3 2014, compared to $948 million in the prior quarter, essentially
flat from the prior quarter.
Cash, cash equivalents and marketable securities at the end of:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1-13 |
|
Q2-13 |
|
Q3-13 |
|
Q4-13 |
|
Q1-14 |
|
Q2-14 |
|
Q3-14 |
| $1,183M |
|
$1,117M |
|
$1,181M |
|
$1,187M |
|
$982M |
|
$948M |
|
$938M |
Accounts receivable at the end of the quarter was $973 million, up from $872 million at the end of Q2 2014.
Inventory was $897 million exiting the quarter down from $960 million compared to the end of Q2 2014.
Accounts payable was $498 million, down from $511 million in the prior quarter mainly due to the timing of payments and purchases.
Payable to GLOBALFOUNDRIES line item on the Balance Sheet of $317 million includes amounts due to GLOBALFOUNDRIES for wafer purchases.
Total debt at the end of the quarter was $2.20 billion.
Total Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3-14 |
|
|
Q2-14 |
|
| (Millions) |
|
Gross |
|
|
Discount |
|
|
Net |
|
|
Gross |
|
|
Discount |
|
|
Net |
|
| 6.00% Convertible Senior Notes due 2015 |
|
$ |
42 |
|
|
$ |
— |
|
|
$ |
42 |
|
|
$ |
42 |
|
|
$ |
(1 |
) |
|
$ |
41 |
|
| 6.75% Senior Notes due 2019 |
|
|
599 |
|
|
|
— |
|
|
|
599 |
|
|
|
600 |
|
|
|
— |
|
|
|
600 |
|
| 7.75% Senior Notes due 2020 |
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
| 7.50% Senior Notes due 2022 |
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
| 7.00% Senior Notes due 2024 |
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
|
|
500 |
|
|
|
— |
|
|
|
500 |
|
| Capital lease obligations |
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
| Borrowings from secured revolving line of credit, net |
|
|
55 |
|
|
|
— |
|
|
|
55 |
|
|
|
55 |
|
|
|
— |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Debt |
|
$ |
2,208 |
|
|
$ |
— |
|
|
$ |
2,208 |
|
|
$ |
2,211 |
|
|
$ |
(1 |
) |
|
$ |
2,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 4 |
|
October 16, 2014 |
Non-GAAP free cash flow was negative $11 million, with net cash provided by operating activities
of $18 million and capital expenditures of $29 million. Capital expenditures increased $6 million from Q2 2014, and free cash flow was up $40 million from Q2 2014.
Restructuring Plan and Transformation Initiatives
As a part of AMD’s ongoing transformation work, the Company has developed a targeted restructuring plan designed to better position the Company for
profitability and long-term growth while aligning investments and resources with high-priority opportunities. By taking these actions, AMD expects to compete more effectively and drive enhanced returns for shareholders.
The restructuring plan, which will be largely implemented in Q4 2014, is expected to:
| |
• |
|
Reduce global headcount by 7%, largely expected to be completed by the end of Q4 2014; |
| |
• |
|
Align AMD’s real estate footprint with its reduced headcount; |
| |
• |
|
Result in a restructuring and impairment charge of approximately $57 million in Q4 2014, primarily related to severance, and a restructuring charge of approximately $13 million in 1H 2015, primarily related to real
estate actions; |
| |
• |
|
The Company expects to make cash payments related to these actions of approximately $34 million in Q4 2014 and $20 million in 1H 2015 |
| |
• |
|
Realize operational savings, primarily in operating expenses, of approximately $9 million in Q4 2014 and approximately $85 million in 2015. |
Outlook
The following statements concerning AMD
are forward-looking and actual results could differ materially from current expectations. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to the
Quarterly Report on Form 10-Q for the quarter ended June 28, 2014.
For Q4 2014 we expect:
| |
• |
|
Revenue to decrease 13% sequentially, +/- 3%. |
| |
• |
|
Gross margin to be approximately 35%. |
| |
• |
|
Non-GAAP operating expenses to be approximately $385 million, below our previous 2014 quarterly operating expense guidance range of approximately $420 million to $450 million as a result of revenue expectations and our
restructuring, transformation initiatives, and other cost control measures. |
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 5 |
|
October 16, 2014 |
| |
• |
|
Restructuring and impairment charge of approximately $57 million. |
| |
• |
|
Interest expense, taxes and other to be approximately $46 million. |
| |
• |
|
Inventory to decrease from Q3 2014 levels. |
| |
• |
|
Non-GAAP free cash flow to be positive. |
For 2014 we expect:
| |
• |
|
To grow revenue year-over-year. |
| |
• |
|
Taxes of approximately $3 million per quarter. |
| |
• |
|
To be non-GAAP profitable at the net income level for the year. |
| |
• |
|
Inventory to be down year-over-year. |
| |
• |
|
To maintain cash, cash equivalents and marketable securities balances close to our optimal balance of $1 billion and above our target minimum of $600 million. |
| |
• |
|
Capital expenditures of approximately $100 million for the year. |
| |
• |
|
Non-GAAP free cash flow to be negative in the range of $200 to $250 million, including the impact of the $200 million special payment to GLOBALFOUNDRIES earlier this year. |
***********************************************
For more information, contact:
Investor Contact:
Ruth Cotter
408-749-3887
ruth.cotter@amd.com
Media Contact:
Drew Prairie
512-602-4425
drew.prairie@amd.com
***********************************************
Non-GAAP Measures
To supplement the financial results of
Advanced Micro Devices, Inc. (“AMD” or the “Company”) presented on a U.S. GAAP (“GAAP”) basis, this commentary contains non-GAAP financial measures, including non-GAAP operating expenses, non-GAAP expense to revenue
ratio, non-GAAP operating income, non-GAAP net income (loss), non-GAAP earnings (loss) per share, Adjusted EBITDA and non-GAAP free cash flow. These non-GAAP financial measures reflect certain adjustments, and the Company has presented a
reconciliation of GAAP to non-GAAP financial measures in the tables below.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 6 |
|
October 16, 2014 |
The Company presented “Adjusted EBITDA” in this commentary as a supplemental measure of its
performance. Adjusted EBITDA for the Company is determined by adjusting operating income (loss) for depreciation and amortization, employee stock-based compensation expense and amortization of acquired intangible assets. In addition, the Company
also included the following adjustments for the indicated periods: for the first quarter of 2014, the Company included an adjustment for workforce rebalancing severance charges; for the fourth quarter of 2013, the Company included an adjustment for
net legal settlements; and for the third quarter of 2013, the Company included an adjustment for net restructuring and other special charges. The Company calculates and communicates Adjusted EBITDA because the Company’s management believes it
is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its
performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the
calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of operating income (loss) or GAAP liquidity measures of cash flows from operating,
investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows.
The Company also presents non-GAAP free cash flow in this commentary as a supplemental measure of its performance. Non-GAAP free cash flow for the Company was
determined by adjusting GAAP net cash provided by (used in) operating activities less capital expenditures. The Company calculates and communicates non-GAAP free cash flow because the Company’s management believes it is important to investors
to understand the nature of this cash flow. The Company’s calculation of non-GAAP free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view non-GAAP free
cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities. The Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company is
providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because the Company believes it assists investors in
comparing the Company’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected
data tables.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 7 |
|
October 16, 2014 |
Reconciliation of GAAP to Non-GAAP Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions) |
|
Q3-14 |
|
|
Q2-14 |
|
|
Q1-14 |
|
|
Q4-13 |
|
|
Q3-13 |
|
|
Q2-13 |
|
|
Q1-13 |
|
| GAAP operating expenses |
|
$ |
431 |
|
|
$ |
435 |
|
|
$ |
438 |
|
|
$ |
418 |
|
|
$ |
426 |
|
|
$ |
488 |
|
|
$ |
543 |
|
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
5 |
|
| Workforce rebalancing severance charges |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Legal settlements, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Restructuring and other special charges (gains), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
5 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP operating expenses |
|
$ |
428 |
|
|
$ |
431 |
|
|
$ |
421 |
|
|
$ |
462 |
|
|
$ |
443 |
|
|
$ |
479 |
|
|
$ |
491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions) |
|
Q3-14 |
|
|
Q2-14 |
|
|
Q1-14 |
|
|
Q4-13 |
|
|
Q3-13 |
|
| GAAP operating income |
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
49 |
|
|
$ |
135 |
|
|
$ |
95 |
|
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
| Workforce rebalancing severance charges |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
| Legal settlements, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
| Restructuring and other special charges (gains), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP operating income |
|
$ |
66 |
|
|
$ |
67 |
|
|
$ |
66 |
|
|
$ |
91 |
|
|
$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions except per share amounts) |
|
Q3-14 |
|
|
Q2-14 |
|
| GAAP net income (loss) / Earnings (loss) per share |
|
$ |
17 |
|
|
$ |
0.02 |
|
|
$ |
(36 |
) |
|
$ |
(0.05 |
) |
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
0.00 |
|
|
|
4 |
|
|
|
0.01 |
|
| Loss on debt redemption |
|
|
— |
|
|
|
— |
|
|
|
49 |
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income / Earnings per share |
|
$ |
20 |
|
|
$ |
0.03 |
|
|
$ |
17 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Expense to Revenue (E/R) Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions) |
|
Q3-14 |
|
|
Q2-14 |
|
|
Q1-14 |
|
|
Q4-13 |
|
|
Q3-13 |
|
| Net Revenue |
|
$ |
1,429 |
|
|
$ |
1,441 |
|
|
$ |
1,397 |
|
|
$ |
1,589 |
|
|
$ |
1,461 |
|
| GAAP operating expenses |
|
$ |
431 |
|
|
$ |
435 |
|
|
$ |
438 |
|
|
$ |
418 |
|
|
$ |
426 |
|
| GAAP E/R Ratio |
|
|
30 |
% |
|
|
30 |
% |
|
|
31 |
% |
|
|
26 |
% |
|
|
29 |
% |
| Non-GAAP operating expenses |
|
$ |
428 |
|
|
$ |
431 |
|
|
$ |
421 |
|
|
$ |
462 |
|
|
$ |
443 |
|
| Non-GAAP E/R Ratio |
|
|
30 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 8 |
|
October 16, 2014 |
Reconciliation of GAAP Operating Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions) |
|
Q3-14 |
|
|
Q2-14 |
|
|
Q1-14 |
|
|
Q4-13 |
|
|
Q3-13 |
|
| GAAP operating income |
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
49 |
|
|
$ |
135 |
|
|
$ |
95 |
|
| Depreciation and amortization |
|
|
46 |
|
|
|
49 |
|
|
|
50 |
|
|
|
50 |
|
|
|
52 |
|
| Employee stock-based compensation expense |
|
|
21 |
|
|
|
21 |
|
|
|
23 |
|
|
|
24 |
|
|
|
23 |
|
| Amortization of acquired intangible assets |
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
| Workforce rebalancing severance charges |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
| Legal settlements, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
| Restructuring and other special charges (gains), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
133 |
|
|
$ |
137 |
|
|
$ |
139 |
|
|
$ |
165 |
|
|
$ |
153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Free Cash Flow Reconciliation
|
|
|
|
|
|
|
|
|
| |
|
Q3-14 |
|
|
Q2-14 |
|
| GAAP net cash provided by (used in) operating activities |
|
$ |
18 |
|
|
$ |
(28 |
) |
| Purchases of property, plant and equipment |
|
|
(29 |
) |
|
|
(23 |
) |
| Non-GAAP free cash flow |
|
$ |
(11 |
) |
|
$ |
(51 |
) |
Cautionary Statement
This commentary contains forward-looking statements concerning AMD; its financial outlook for the fourth quarter of 2014 and fiscal 2014, including revenue,
gross margin, non-GAAP operating expenses, restructuring and impairment charges, the total of interest expense, taxes and other expense, inventory, non-GAAP free cash flow, taxes and capital expenditures; its targeted and optimal cash, cash
equivalents and marketable securities balances; its ability to be non-GAAP profitable at the net income level in 2014; its restructuring plan, including the timing of actions implemented in connection with the plan and expected restructuring and
impairment charges, cash payments and operational savings; expected benefits of its restructuring plan and transformation initiatives; and expected interest savings, which are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,”
“plans,” “estimates,” “anticipates,” “projects,” “would” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this commentary are based on current
beliefs, assumptions and expectations, speak only as of the date of this commentary and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel
Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities may negatively impact AMD’s plans; that AMD will require additional funding and may be unable to
raise sufficient capital on
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 9 |
|
October 16, 2014 |
favorable terms, or at all; that customers stop buying AMD’s products or materially reduce their operations or demand for AMD’s products; that AMD may be unable to develop, launch and
ramp new products and technologies in the volumes that are required by the market at mature yields on a timely basis; that AMD’s third-party foundry suppliers will be unable to transition AMD’s products to advanced manufacturing process
technologies in a timely and effective way or to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive process technologies; that AMD will be unable to obtain sufficient manufacturing capacity or components
to meet demand for its products or will not fully utilize its projected manufacturing capacity needs at GLOBALFOUNDRIES, Inc. (GF) microprocessor manufacturing facilities; that AMD’s requirements for wafers will be less than the fixed number of
wafers that it agreed to purchase from GF or GF encounters problems that significantly reduce the number of functional die it receives from each wafer; that AMD is unable to successfully implement its long-term business strategy; that AMD
inaccurately estimates the quantity or type of products that its customers will want in the future or will ultimately end up purchasing, resulting in excess or obsolete inventory; that AMD is unable to manage the risks related to the use of its
third-party distributors and add-in-board (AIB) partners or offer the appropriate incentives to focus them on the sale of AMD’s products; that AMD may be unable to maintain the level of investment in research and development that is required to
remain competitive; that there may be unexpected variations in market growth and demand for AMD’s products and technologies in light of the product mix that it may have available at any particular time; that global business and economic
conditions will not improve or will worsen; that PC market conditions will not improve or will worsen; that demand for computers will be lower than currently expected; and the effect of political or economic instability, domestically or
internationally, on AMD’s sales or supply chain. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for
the quarter ended June 28, 2014.
|
|
|
|
|
| AMD Q3-14 CFO Commentary |
|
Page 10 |
|
October 16, 2014 |
Exhibit 99.3
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
Sept. 27,
2014 |
|
|
Jun. 28,
2014 |
|
|
Mar. 29,
2014 |
|
|
Dec. 28,
2013 |
|
|
Sep. 28,
2013 |
|
|
Jun. 29,
2013 |
|
|
Mar. 30,
2013 |
|
| Segment and Category Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Computing and Graphics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
781 |
|
|
$ |
828 |
|
|
$ |
861 |
|
|
$ |
888 |
|
|
$ |
925 |
|
|
$ |
994 |
|
|
$ |
913 |
|
| Operating income (loss) |
|
|
(17 |
) |
|
$ |
(6 |
) |
|
$ |
3 |
|
|
$ |
(15 |
) |
|
$ |
9 |
|
|
$ |
(20 |
) |
|
$ |
(75 |
) |
| Enterprise, Embedded and Semi-Custom |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
|
648 |
|
|
|
613 |
|
|
|
536 |
|
|
|
699 |
|
|
|
536 |
|
|
|
167 |
|
|
|
175 |
|
| Operating income |
|
|
108 |
|
|
|
97 |
|
|
|
85 |
|
|
|
129 |
|
|
|
92 |
|
|
|
22 |
|
|
|
52 |
|
| All Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Operating income (loss) |
|
|
(28 |
) |
|
|
(28 |
) |
|
|
(39 |
) |
|
|
21 |
|
|
|
(6 |
) |
|
|
(31 |
) |
|
|
(75 |
) |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
1,429 |
|
|
$ |
1,441 |
|
|
$ |
1,397 |
|
|
$ |
1,589 |
|
|
$ |
1,461 |
|
|
$ |
1,161 |
|
|
$ |
1,088 |
|
| Operating income (loss) |
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
49 |
|
|
$ |
135 |
|
|
$ |
95 |
|
|
$ |
(29 |
) |
|
$ |
(98 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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