AMD Reports Second Quarter 2020 Financial Results
July 28 2020 - 4:15PM
AMD (NASDAQ:AMD) today announced revenue for the second quarter of
2020 of $1.93 billion, operating income of $173 million, net income
of $157 million and diluted earnings per share of $0.13. On a
non-GAAP* basis, operating income was $233 million, net income was
$216 million and diluted earnings per share was $0.18.
GAAP Quarterly Financial
Results
|
Q2 2020 |
|
Q2 2019 |
|
Y/Y |
Q1 2020 |
|
Q/Q |
Revenue ($B) |
$1.93 |
|
$1.53 |
|
Up 26% |
$1.79 |
|
Up 8% |
Gross margin |
44% |
|
41% |
|
Up 3pp |
46% |
|
Down 2pp |
Operating expenses ($M) |
$675 |
|
$562 |
|
Up $113 |
$641 |
|
Up $34 |
Operating income ($M) |
$173 |
|
$59 |
|
Up $114 |
$177 |
|
Down $4 |
Net income ($M) |
$157 |
|
$35 |
|
Up $122 |
$162 |
|
Down $5 |
Earnings per share |
$0.13 |
|
$0.03 |
|
Up $0.10 |
$0.14 |
|
Down $0.01 |
Non-GAAP* Quarterly Financial
Results
|
Q2 2020 |
Q2 2019 |
Y/Y |
Q1 2020 |
Q/Q |
Revenue ($B) |
$1.93 |
|
$1.53 |
|
Up 26% |
$1.79 |
|
Up 8% |
Gross margin |
44% |
|
41% |
|
Up 3pp |
46% |
|
Down 2pp |
Operating expenses ($M) |
$617 |
|
$512 |
|
Up $105 |
$584 |
|
Up $33 |
Operating income ($M) |
$233 |
|
$111 |
|
Up $122 |
$236 |
|
Down $3 |
Net income ($M) |
$216 |
|
$92 |
|
Up $124 |
$222 |
|
Down $6 |
Earnings per share |
$0.18 |
|
$0.08 |
|
Up $0.10 |
$0.18 |
|
Flat |
|
|
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|
“We delivered strong second quarter results, led by record
notebook and server processor sales as Ryzen and EPYC revenue more
than doubled from a year ago,” said Dr. Lisa Su, AMD president and
CEO. “Despite some macroeconomic uncertainty, we are raising
our full-year revenue outlook as we enter our next phase of growth
driven by the acceleration of our business in multiple
markets.”
Q2 2020 Results
- Revenue was $1.93 billion, up 26 percent year-over-year
primarily driven by higher Computing and Graphics segment revenue.
Revenue was up 8 percent quarter-over-quarter primarily driven by
higher Enterprise, Embedded and Semi-Custom segment revenue.
- Gross margin was 44 percent, up 3 percentage points
year-over-year and down 2 percentage points quarter-over-quarter.
The year-over-year increase was primarily driven by Ryzen™ and
EPYC™ processor sales. The quarter-over-quarter decrease was due to
increased semi-custom product sales.
- Operating income was $173 million compared to operating income
of $59 million a year ago and $177 million in the prior quarter.
Non-GAAP operating income was $233 million compared to operating
income of $111 million a year ago and $236 million in the prior
quarter. Operating income improved year-over-year primarily driven
by revenue growth and a greater percentage of Ryzen and EPYC
processor sales.
- Net income was $157 million compared to net income of $35
million a year ago and $162 million in the prior quarter. Non-GAAP
net income was $216 million compared to net income of $92 million a
year ago and $222 million in the prior quarter.
- Diluted earnings per share was $0.13 compared to diluted
earnings per share of $0.03 a year ago and $0.14 in the prior
quarter. Non-GAAP diluted earnings per share was $0.18 compared to
diluted earnings per share of $0.08 a year ago and $0.18 in the
prior quarter.
- Cash and cash equivalents were $1.78 billion at the end of the
quarter.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $1.37 billion, up 45
percent year-over-year and down 5 percent quarter-over-quarter.
Revenue was higher year-over-year driven by strong Ryzen processor
sales. The quarter-over-quarter decline was due to lower graphics
processor sales.
- Client processor average selling price (ASP) was up
year-over-year driven by Ryzen processor sales. Client processor
ASP was down quarter-over-quarter due to a higher percentage of
Ryzen mobile processor sales.
- GPU ASP was lower year-over-year and quarter-over-quarter due
to lower channel sales.
- Operating income was $200 million compared to $22 million a
year ago and $262 million in the prior quarter. The year-over-year
increase was driven by higher revenue. The quarter-over-quarter
decline was due to higher operating expenses and lower
revenue.
- Enterprise, Embedded and Semi-Custom segment revenue was $565
million, down 4 percent year-over-year and up 62 percent
quarter-over-quarter. Revenue was lower year-over-year due to lower
semi-custom product sales largely offset by higher EPYC processor
sales. The quarter-over-quarter increase was driven by higher EPYC
processor and semi-custom product sales.
- Operating income was $33 million compared to $89 million a year
ago and an operating loss of $26 million in the prior quarter. The
year-over-year decline was due to higher operating expenses and
lower revenue. The quarter-over-quarter increase was driven by
higher revenue.
- All Other operating loss was $60 million compared to operating
losses of $52 million a year ago and $59 million in the prior
quarter.
Recent PR Highlights
- Data center adoption of 2nd Gen AMD EPYC processors continued
to accelerate with unique cloud, enterprise and high-performance
computing (HPC) wins.
- Google announced new Confidential Virtual Machines for Google
Compute Engine powered exclusively by AMD EPYC processors featuring
AMD Secure Encrypted Virtualization. These Confidential VMs provide
customers with data security and high-performance cloud computing
enabled by advanced security features on AMD EPYC processors.
- Amazon Web Services (AWS) added its sixth AMD EPYC
processor-powered cloud instance family, the new Amazon EC2 C5a
instances for customers running compute intensive workloads.
- Oracle and AMD announced that AMD EPYC processors are bringing
class-leading memory bandwidth and core count to the new Oracle
Cloud Infrastructure Compute E3 platform for general purpose and
high bandwidth workloads.
- Dell Technologies, HPE, IBM Cloud, Nutanix, Supermicro, VMware
and others announced offerings powered by the new AMD EPYC 7Fx2
processor family that bring high-frequency processing power and
per-core performance leadership to enterprise workloads.
- Dell Technologies announced its first hyperconverged
infrastructure system, the VxRail E Series, based on AMD EPYC
processors.
- The new Nvidia DGX A100 system harnesses the performance, core
count and PCIe® 4 support of AMD EPYC processors to accelerate
diverse AI workloads such as data analytics, training and
inference.
- Commercial momentum for AMD client processors is growing,
driven by Ryzen PRO performance, security features and seamless
management for the most demanding business environments.
- Lenovo and AMD announced the Lenovo ThinkStation P620 powered
by AMD Ryzen Threadripper™ PRO processors, including a 64-core
professional workstation CPU. The new AMD Ryzen Threadripper PRO
processor family features leadership performance, unrivalled
bandwidth and AMD PRO technologies which include enterprise-grade
security and manageability features.
- AMD announced the AMD Ryzen PRO 4000 Series mobile processors,
bringing ultimate performance, work anywhere flexibility, security
features and seamless manageability for modern IT infrastructures.
Enterprise notebooks powered by the AMD Ryzen PRO 4000 Series are
available now from HP and Lenovo.
- AMD expanded its desktop processor portfolio with the 3rd Gen
AMD Ryzen 3000XT series desktop processors, featuring higher boost
frequencies that deliver elite performance in gaming and content
creation compared to prior generation.
- Apple announced the latest 16-inch MacBook Pro featuring the
AMD Radeon™ Pro 5600M mobile GPU, bringing desktop-class graphics
performance to users on the go.
- AMD announced the AMD Radeon™ Pro VII workstation graphics card
with AMD Infinity Fabric™ Link technology, delivering exceptional
graphics and computing performance for broadcast and engineering
professionals.
- AMD announced it is contributing cloud-based supercomputing
systems powered by AMD EPYC processors and AMD Radeon Instinct
accelerators as part of the AMD HPC Fund for COVID-19 research. The
systems will be delivered to New York University (NYU),
Massachusetts Institute of Technology (MIT) and Rice University in
partnership with Penguin Computing to provide remote supercomputing
capabilities for selected researchers around the world.
Current Outlook
AMD’s outlook statements are based on current expectations and
contemplate the current COVID-19 environment, global economic
backdrop and customer demand signals. The following statements are
forward-looking, and actual results could differ materially
depending on market conditions, COVID-19 factors and the factors
set forth under “Cautionary Statement” below.
For the third quarter of 2020, AMD expects revenue to be
approximately $2.55 billion, plus or minus $100 million, an
increase of approximately 42 percent year-over-year and 32 percent
sequentially. The year-over-year and sequential increases are
expected to be primarily driven by Ryzen and EPYC processor sales
and next generation semi-custom products. AMD expects non-GAAP
gross margin to be approximately 44 percent in the third quarter of
2020. Gross margin is expected to increase year-over-year primarily
driven by Ryzen and EPYC processor sales.
AMD now expects 2020 revenue to grow by approximately 32 percent
compared to 2019 driven by strength in PC, gaming and data center
products. Non-GAAP gross margin is expected to be approximately 45
percent.
AMD Teleconference
AMD will hold a conference call for the financial community at
2:00 p.m. PT (5:00 p.m. ET) today to discuss its second quarter
2020 financial results. AMD will provide a real-time audio
broadcast of the teleconference on the Investor Relations page of
its website at www.amd.com. The webcast will be available for 12
months after the conference call.
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RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES |
|
|
|
|
|
|
|
(In millions, except per share data) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
June 27, 2020 |
|
March 28, 2020 |
|
June 29, 2019 |
|
|
|
|
|
|
|
GAAP gross margin |
$ |
848 |
|
|
$ |
818 |
|
|
$ |
621 |
|
|
|
|
|
|
|
|
GAAP gross margin % |
|
44% |
|
|
|
46% |
|
|
|
41% |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
Non-GAAP gross margin |
$ |
850 |
|
|
$ |
820 |
|
|
$ |
623 |
|
|
|
|
|
|
|
|
Non-GAAP gross margin % |
|
44% |
|
|
|
46% |
|
|
|
41% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
$ |
675 |
|
|
$ |
641 |
|
|
$ |
562 |
|
|
|
|
|
|
|
|
GAAP operating expenses/revenue % |
|
35% |
|
|
|
36% |
|
|
|
37% |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
58 |
|
|
|
57 |
|
|
|
43 |
|
|
|
|
|
|
|
|
Loss contingency on legal matter |
|
- |
|
|
|
- |
|
|
|
7 |
|
|
|
|
|
|
|
|
Non-GAAP operating expenses |
$ |
617 |
|
|
$ |
584 |
|
|
$ |
512 |
|
|
|
|
|
|
|
|
Non-GAAP operating expenses/revenue% |
|
32% |
|
|
|
33% |
|
|
|
33% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
$ |
173 |
|
|
$ |
177 |
|
|
$ |
59 |
|
|
|
|
|
|
|
|
GAAP operating margin % |
|
9% |
|
|
|
10% |
|
|
|
4% |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
60 |
|
|
|
59 |
|
|
|
45 |
|
|
|
|
|
|
|
|
Loss contingency on legal matter |
|
- |
|
|
|
- |
|
|
|
7 |
|
|
|
|
|
|
|
|
Non-GAAP operating income |
$ |
233 |
|
|
$ |
236 |
|
|
$ |
111 |
|
|
|
|
|
|
|
|
Non-GAAP operating margin % |
|
12% |
|
|
|
13% |
|
|
|
7% |
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months
Ended |
|
|
June 27, 2020 |
|
March 28, 2020 |
|
June 29, 2019 |
|
GAAP
net income / earnings per share |
$ |
157 |
|
|
$ |
0.13 |
|
|
$ |
162 |
|
|
$ |
0.14 |
|
$ |
35 |
|
|
$ |
0.03 |
|
Non-cash interest expense related to convertible debt |
|
2 |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
6 |
|
|
|
- |
|
Stock-based compensation |
|
60 |
|
|
|
0.05 |
|
|
|
59 |
|
|
|
0.04 |
|
|
45 |
|
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|
0.04 |
|
Equity income in investee |
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
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- |
|
Loss contingency on legal matter |
|
- |
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- |
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- |
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- |
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|
7 |
|
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|
0.01 |
|
Income tax provision |
|
(2 |
) |
|
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- |
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(1 |
) |
|
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- |
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(1 |
) |
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- |
|
Non-GAAP net income / earnings per share |
$ |
216 |
|
|
$ |
0.18 |
|
|
$ |
222 |
|
|
$ |
0.18 |
|
$ |
92 |
|
|
$ |
0.08 |
|
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Shares used and net income adjustment in earnings per
share calculation (1) |
|
|
|
|
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|
|
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|
Shares used in per share calculation (GAAP) |
|
1,227 |
|
|
|
1,224 |
|
|
1,109 |
|
Interest expense add-back to GAAP net income |
$ |
3 |
|
|
$ |
4 |
|
$ |
- |
|
Shares used in per share
calculation (Non-GAAP) |
|
1,227 |
|
|
|
1,224 |
|
|
1,210 |
|
Interest expense add-back to Non-GAAP net income |
$ |
1 |
|
|
$ |
2 |
|
$ |
5 |
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(1 |
) |
For the three months
ended June 27, 2020 and March 28, 2020, GAAP diluted EPS
calculations include 31 million shares related to the Company's
2026 Convertible Notes and the associated $3 million and $4 million
interest expense, respectively, add-back to net income under the
"if converted" method. |
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For the three months
ended June 29, 2019, the 100.6 million shares related to the
Company's 2026 Convertible Notes were not included in the GAAP
diluted EPS calculations as their inclusion would have been
anti-dilutive. |
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For the three months
ended June 27, 2020, March 28, 2020 and June 29, 2019,
Non-GAAP diluted EPS calculations include 31 million, 31 million
and 100.6 million shares, respectively, related to the Company's
2026 Convertible Notes and the associated $1 million, $2 million
and $5 million interest expense, respectively, add-back to net
income under the "if converted" method. |
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About AMD
For 50 years, AMD has driven innovation in
high-performance computing, graphics and visualization technologies
– the building blocks for gaming, immersive platforms and the data
center. Hundreds of millions of consumers, leading Fortune 500
businesses and cutting-edge scientific research facilities around
the world rely on AMD technology daily to improve how they live,
work and play. AMD employees around the world are focused on
building great products that push the boundaries of what is
possible. For more information about how AMD is enabling today and
inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog,
Facebook and Twitter pages.
Cautionary Statement
This press release contains forward-looking
statements concerning Advanced Micro Devices, Inc. (AMD) such as
AMD’s expectations regarding its next phase of growth; the
features, functionality, performance, availability, timing and
expected benefits of AMD products; and AMD’s expected third quarter
of 2020 outlook including, revenue and non-GAAP gross margin and
the expected drivers and AMD’s expected fiscal 2020 financial
outlook, including revenue and non-GAAP gross margin and expected
drivers, based on current expectations and contemplated current
COVID-19 environment, global economic backdrop and customer demand
signals, 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
"would," "may," "expects," "believes," "plans," "intends,"
"projects" and other terms with similar meaning. Investors are
cautioned that the forward-looking statements in this press release
are based on current beliefs, assumptions and expectations, speak
only as of the date of this press release and involve risks and
uncertainties that could cause actual results to differ materially
from current expectations. Such statements are subject to certain
known and unknown risks and uncertainties, many of which are
difficult to predict and generally beyond AMD's control, that could
cause actual results and other future events to differ materially
from those expressed in, or implied or projected by, the
forward-looking information and statements. Material factors that
could cause actual results to differ materially from current
expectations include, without limitation, the following: Intel
Corporation’s dominance of the microprocessor market and its
aggressive business practices; the ability of third party
manufacturers to manufacture AMD's products on a timely basis in
sufficient quantities and using competitive technologies; expected
manufacturing yields for AMD’s products; AMD's ability to introduce
products on a timely basis with features and performance levels
that provide value to its customers; AMD's ability to generate
sufficient revenue and operating cash flow or obtain external
financing for research and development or other strategic
investments; the loss of a significant customer; AMD's ability to
generate revenue from its semi-custom SoC products; global economic
uncertainty; the impact of the COVID-19 pandemic on AMD’s business,
financial condition and results of operations; political, legal,
economic risks and natural disasters; the impact of government
actions and regulations such as export administration regulations,
tariffs and trade protection measures; potential security
vulnerabilities; potential IT outages, data loss, data breaches and
cyber-attacks; uncertainties involving the ordering and shipment of
AMD’s products; quarterly and seasonal sales patterns; the
restrictions imposed by agreements governing AMD’s notes and the
secured credit facility; the competitive markets in which AMD’s
products are sold; the potential dilutive effect if the 2.125%
Convertible Senior Notes due 2026 are converted; market conditions
of the industries in which AMD products are sold; AMD’s reliance on
third-party intellectual property to design and introduce new
products in a timely manner; AMD's reliance on third-party
companies for the design, manufacture and supply of motherboards,
software and other computer platform components; AMD's reliance on
Microsoft Corporation and other software vendors' support to design
and develop software to run on AMD’s products; AMD’s reliance on
third-party distributors and add-in-board partners; future
impairments of goodwill and technology license purchases; AMD’s
ability to attract and retain qualified personnel; AMD's
indebtedness; AMD's ability to generate sufficient cash to service
its debt obligations or meet its working capital requirements;
AMD's ability to repurchase its outstanding debt in the event of a
change of control; the cyclical nature of the semiconductor
industry; the impact of acquisitions, joint ventures and/or
investments on AMD's business; the impact of modification or
interruption of AMD’s internal business processes and information
systems; the availability of essential equipment, materials or
manufacturing processes; compatibility of AMD’s products with some
or all industry-standard software and hardware; costs related to
defective products; the efficiency of AMD's supply chain; AMD's
ability to rely on third party supply-chain logistics functions;
AMD’s stock price volatility; worldwide political conditions;
unfavorable currency exchange rate fluctuations; AMD’s ability to
effectively control the sales of its products on the gray market;
AMD's ability to adequately protect its technology or other
intellectual property; current and future claims and litigation;
potential tax liabilities; and the impact of environmental laws,
conflict minerals-related provisions and other laws or regulations.
Investors are urged to review in detail the risks and uncertainties
in AMD’s Securities and Exchange Commission filings, including but
not limited to AMD’s Quarterly Report on Form 10-Q for the quarter
ended March 28, 2020.
* |
|
In this earnings press release, in addition to GAAP financial
results, AMD has provided non-GAAP financial measures including
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
operating income, non-GAAP net income and non-GAAP earnings per
share. These non-GAAP financial measures reflect certain
adjustments as presented in the tables in this earnings press
release. AMD uses a normalized tax rate in its computation of
the non-GAAP income tax provision to provide better consistency
across the reporting periods. For fiscal 2020, AMD uses a projected
non-GAAP tax rate, which excludes the direct tax impacts of pre-tax
non-GAAP adjustments, of approximately 3%, reflecting currently
available information. AMD has also provided adjusted EBITDA and
free cash flow as supplemental non-GAAP 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 press
release. |
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AMD, the AMD Arrow logo, EPYC, Radeon,
Ryzen, Athlon and combinations thereof, are trademarks of Advanced
Micro Devices, Inc.Other names are for
informational purposes only, used to identify companies and
products and may be trademarks of their owner.
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ADVANCED MICRO DEVICES, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
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(Millions
except per share amounts and percentages) (Unaudited) |
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Three Months Ended |
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Six Months Ended |
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|
|
June 27, 2020 |
March 28, 2020 |
June 29, 2019 |
|
June 27, 2020 |
June 29, 2019 |
|
|
Net revenue |
$ |
1,932 |
|
$ |
1,786 |
|
$ |
1,531 |
|
|
$ |
3,718 |
|
$ |
2,803 |
|
|
|
Cost of
sales |
|
1,084 |
|
|
968 |
|
|
910 |
|
|
|
2,052 |
|
|
1,661 |
|
|
|
Gross margin |
|
848 |
|
|
818 |
|
|
621 |
|
|
|
1,666 |
|
|
1,142 |
|
|
|
Gross margin % |
|
44% |
|
|
46% |
|
|
41% |
|
|
|
45% |
|
|
41% |
|
|
|
Research and
development |
|
460 |
|
|
442 |
|
|
373 |
|
|
|
902 |
|
|
746 |
|
|
|
Marketing,
general and administrative |
|
215 |
|
|
199 |
|
|
189 |
|
|
|
414 |
|
|
359 |
|
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Licensing
gain |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(60 |
) |
|
|
Operating income |
|
173 |
|
|
177 |
|
|
59 |
|
|
|
350 |
|
|
97 |
|
|
|
Interest
expense |
|
(14 |
) |
|
(13 |
) |
|
(25 |
) |
|
|
(27 |
) |
|
(52 |
) |
|
|
Other income
(expense), net |
|
1 |
|
|
4 |
|
|
3 |
|
|
|
5 |
|
|
(4 |
) |
|
|
Income before income taxes and equity income (loss) |
|
160 |
|
|
168 |
|
|
37 |
|
|
|
328 |
|
|
41 |
|
|
|
Income tax
provision (benefit) |
|
4 |
|
|
6 |
|
|
2 |
|
|
|
10 |
|
|
(11 |
) |
|
|
Equity
income (loss) in investee |
|
1 |
|
|
- |
|
|
- |
|
|
|
1 |
|
|
(1 |
) |
|
|
Net Income |
$ |
157 |
|
$ |
162 |
|
$ |
35 |
|
|
$ |
319 |
|
$ |
51 |
|
|
|
Earnings per
share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.03 |
|
|
$ |
0.27 |
|
$ |
0.05 |
|
|
|
Diluted |
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.03 |
|
|
$ |
0.27 |
|
$ |
0.05 |
|
|
|
Shares used
in per share calculation |
|
|
|
|
|
|
|
|
Basic |
|
1,174 |
|
|
1,170 |
|
|
1,084 |
|
|
|
1,172 |
|
|
1,064 |
|
|
|
Diluted |
|
1,227 |
|
|
1,224 |
|
|
1,109 |
|
|
|
1,225 |
|
|
1,102 |
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC. |
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
June 27, 2020 |
|
December 28, 2019 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,775 |
|
|
$ |
1,466 |
|
|
|
Marketable securities |
|
- |
|
|
|
37 |
|
|
|
Accounts receivable, net |
|
1,789 |
|
|
|
1,859 |
|
|
|
Inventories |
|
1,324 |
|
|
|
982 |
|
|
|
Receivables from related parties |
|
10 |
|
|
|
20 |
|
|
|
Prepaid expenses and other current assets |
|
211 |
|
|
|
233 |
|
|
|
Total current assets |
|
5,109 |
|
|
|
4,597 |
|
|
|
Property and
equipment, net |
|
585 |
|
|
|
500 |
|
|
|
Operating
lease right-of use assets |
|
215 |
|
|
|
205 |
|
|
|
Goodwill |
|
289 |
|
|
|
289 |
|
|
|
Investment:
equity method |
|
59 |
|
|
|
58 |
|
|
|
Other
non-current assets |
|
326 |
|
|
|
379 |
|
|
|
Total Assets |
$ |
6,583 |
|
|
$ |
6,028 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term debt |
$ |
200 |
|
|
$ |
- |
|
|
|
Accounts payable |
|
802 |
|
|
|
988 |
|
|
|
Payables to related parties |
|
192 |
|
|
|
213 |
|
|
|
Accrued liabilities |
|
1,172 |
|
|
|
1,084 |
|
|
|
Other current liabilities |
|
68 |
|
|
|
74 |
|
|
|
Total current liabilities |
|
2,434 |
|
|
|
2,359 |
|
|
|
Long-term
debt, net |
|
490 |
|
|
|
486 |
|
|
|
Long-term
operating lease liabilities |
|
204 |
|
|
|
199 |
|
|
|
Other
long-term liabilities |
|
150 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Capital
stock: |
|
|
|
|
|
Common stock, par value |
|
12 |
|
|
|
12 |
|
|
|
Additional paid-in capital |
|
10,127 |
|
|
|
9,963 |
|
|
|
Treasury stock, at cost |
|
(54 |
) |
|
|
(53 |
) |
|
|
Accumulated
deficit |
|
(6,776 |
) |
|
|
(7,095 |
) |
|
|
Accumulated
other comprehensive loss |
|
(4 |
) |
|
|
- |
|
|
|
Total stockholders' equity |
$ |
3,305 |
|
|
$ |
2,827 |
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
6,583 |
|
|
$ |
6,028 |
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC. |
|
|
|
|
|
|
SELECTED CASH FLOW INFORMATION |
|
|
|
|
|
|
(Millions) (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months
Ended |
|
|
June 27, 2020 |
June 29, 2019 |
|
June 27, 2020 |
June 29, 2019 |
|
Net
cash provided by (used in) |
|
|
|
|
|
|
Operating activities |
$ |
243 |
|
$ |
30 |
|
|
$ |
178 |
|
$ |
(183 |
) |
|
Investing
activities |
$ |
(36 |
) |
$ |
(7 |
) |
|
$ |
(109 |
) |
$ |
(180 |
) |
|
Financing
activities |
$ |
238 |
|
$ |
(38 |
) |
|
$ |
240 |
|
$ |
248 |
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC. |
|
|
|
|
|
|
|
|
SELECTED CORPORATE DATA |
|
|
|
|
|
|
|
|
(Millions) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Segment and Category Information |
|
June 27, 2020 |
March 28, 2020 |
June 29, 2019 |
|
June 27, 2020 |
June 29, 2019 |
|
|
|
|
|
|
|
|
|
|
Computing and Graphics (1) |
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,367 |
|
$ |
1,438 |
|
$ |
940 |
|
|
$ |
2,805 |
|
$ |
1,771 |
|
|
Operating income |
|
$ |
200 |
|
$ |
262 |
|
$ |
22 |
|
|
$ |
462 |
|
$ |
38 |
|
|
Enterprise, Embedded and Semi-Custom (2) |
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
565 |
|
$ |
348 |
|
$ |
591 |
|
|
$ |
913 |
|
$ |
1,032 |
|
|
Operating income (loss) |
|
$ |
33 |
|
$ |
(26 |
) |
$ |
89 |
|
|
$ |
7 |
|
$ |
157 |
|
|
All Other (3) |
|
|
|
|
|
|
|
|
Net revenue |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
Operating loss |
|
$ |
(60 |
) |
$ |
(59 |
) |
$ |
(52 |
) |
|
$ |
(119 |
) |
$ |
(98 |
) |
|
Total |
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,932 |
|
$ |
1,786 |
|
$ |
1,531 |
|
|
$ |
3,718 |
|
$ |
2,803 |
|
|
Operating income |
|
$ |
173 |
|
$ |
177 |
|
$ |
59 |
|
|
$ |
350 |
|
$ |
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
Capital
expenditures |
|
$ |
91 |
|
$ |
55 |
|
$ |
58 |
|
|
$ |
146 |
|
$ |
120 |
|
|
Adjusted
EBITDA (4) |
|
$ |
305 |
|
$ |
304 |
|
$ |
163 |
|
|
$ |
609 |
|
$ |
293 |
|
|
Cash, cash
equivalents and marketable securities |
|
$ |
1,775 |
|
$ |
1,385 |
|
$ |
1,128 |
|
|
$ |
1,775 |
|
$ |
1,128 |
|
|
Free cash
flow (5) |
|
$ |
152 |
|
$ |
(120 |
) |
$ |
(28 |
) |
|
$ |
32 |
|
$ |
(303 |
) |
|
Total
assets |
|
$ |
6,583 |
|
$ |
5,864 |
|
$ |
5,102 |
|
|
$ |
6,583 |
|
$ |
5,102 |
|
|
Total
debt |
|
$ |
690 |
|
$ |
488 |
|
$ |
1,031 |
|
|
$ |
690 |
|
$ |
1,031 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The Computing and Graphics segment primarily includes desktop and
notebook processors and chipsets, discrete and integrated graphics
processing units (GPUs), data center and professional GPUs, and
development services. The Company also licenses portions of its
intellectual property portfolio. |
|
|
(2) |
The Enterprise, Embedded and Semi-Custom segment primarily includes
server and embedded processors, semi-custom System-on-Chip (SoC)
products, development services and technology for game consoles.
The Company also licenses portions of its intellectual property
portfolio. |
|
|
(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 is stock-based compensation expense. |
|
|
(4) |
Reconciliation of GAAP Net Income to Adjusted
EBITDA* |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 27, 2020 |
March 28, 2020 |
June 29, 2019 |
|
June 27, 2020 |
June 29, 2019 |
|
|
|
GAAP net income |
$ |
157 |
|
$ |
162 |
|
$ |
35 |
|
|
$ |
319 |
|
$ |
51 |
|
|
|
|
Interest expense |
|
14 |
|
|
13 |
|
|
25 |
|
|
|
27 |
|
|
52 |
|
|
|
|
Other (income) expense, net |
|
(1 |
) |
|
(4 |
) |
|
(3 |
) |
|
|
(5 |
) |
|
4 |
|
|
|
|
Income tax provision (benefit) |
|
4 |
|
|
6 |
|
|
2 |
|
|
|
10 |
|
|
(11 |
) |
|
|
|
Equity (income) loss in investee |
|
(1 |
) |
|
- |
|
|
- |
|
|
|
(1 |
) |
|
1 |
|
|
|
|
Stock-based compensation |
|
60 |
|
|
59 |
|
|
45 |
|
|
|
119 |
|
|
86 |
|
|
|
|
Depreciation and amortization |
|
72 |
|
|
68 |
|
|
52 |
|
|
|
140 |
|
|
98 |
|
|
|
|
Loss contingency on legal matter |
|
- |
|
|
- |
|
|
7 |
|
|
|
- |
|
|
12 |
|
|
|
|
Adjusted
EBITDA |
$ |
305 |
|
$ |
304 |
|
$ |
163 |
|
|
$ |
609 |
|
$ |
293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
Free Cash Flow Reconciliation** |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 27, 2020 |
March 28, 2020 |
June 29, 2019 |
|
June 27, 2020 |
June 29, 2019 |
|
|
|
GAAP net
cash provided by (used in) operating activities |
$ |
243 |
|
$ |
(65 |
) |
$ |
30 |
|
|
$ |
178 |
|
$ |
(183 |
) |
|
|
|
Purchases of property and equipment |
|
(91 |
) |
|
(55 |
) |
|
(58 |
) |
|
|
(146 |
) |
|
(120 |
) |
|
|
|
Free cash
flow |
$ |
152 |
|
$ |
(120 |
) |
$ |
(28 |
) |
|
$ |
32 |
|
$ |
(303 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The Company presents “Adjusted EBITDA” as a supplemental measure of
its performance. Adjusted EBITDA for the Company is determined by
adjusting GAAP net income for interest expense, other income
(expense), net, income tax provision (benefit), equity income
(loss) on investee, stock-based compensation, and depreciation and
amortization expense. The Company also included a loss contingency
on legal matter in the three and six months ended June 29, 2019.
The Company calculates and presents Adjusted EBITDA because
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 income 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 that can affect cash flows. |
|
|
|
|
|
|
|
|
|
|
|
|
** |
The Company also presents free cash flow as a supplemental Non-GAAP
measure of its performance. Free cash flow is determined by
adjusting GAAP net cash provided by (used in) operating activities
for capital expenditures. The Company calculates and communicates
free cash flow in the financial earnings press release because
management believes it is of importance to investors to understand
the nature of these cash flows. The Company’s calculation of 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 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. |
|
|
|
|
|
|
|
|
|
|
|
Media Contact:Drew PrairieAMD
Communications512-602-4425drew.prairie@amd.com
Investor Contact:Laura
GravesAMD Investor
Relations408-749-5467laura.graves@amd.com
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