AMD Reports Fourth Quarter and Full Year 2020 Financial Results
January 26 2021 - 04:10PM
AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of
2020 of $3.24 billion, operating income of $570 million, net income
of $1.78 billion and diluted earnings per share of $1.45. Fourth
quarter net income included an income tax benefit of $1.30 billion
associated with a valuation allowance release, which contributed
$1.06 to EPS. On a non-GAAP(*) basis, operating income was $663
million, net income was $636 million and diluted earnings per share
was $0.52.
For full year 2020, the company reported revenue of $9.76
billion, operating income of $1.37 billion, net income of $2.49
billion and diluted earnings per share of $2.06. Full year results
included a fourth quarter income tax benefit of $1.30 billion
associated with a valuation allowance release, which contributed
$1.07 to annual EPS. On a non-GAAP(*) basis, operating income was
$1.66 billion, net income was $1.58 billion and diluted earnings
per share was $1.29.
GAAP Quarterly Financial
Results
|
Q4 2020 |
Q4 2019 |
Y/Y |
Q3 2020 |
Q/Q |
Revenue ($M) |
$3,244 |
$2,127 |
Up 53% |
$2,801 |
Up 16% |
Gross profit ($M) |
$1,451 |
$949 |
Up 53% |
$1,230 |
Up 18% |
Gross margin |
45% |
45% |
Flat |
44% |
Up 1pp |
Operating expenses ($M) |
$881 |
$601 |
Up 47% |
$781 |
Up 13% |
Operating income ($M) |
$570 |
$348 |
Up 64% |
$449 |
Up 27% |
Tax Valuation Allowance Release Benefit ($M) |
$1,301 |
-- |
-- |
-- |
-- |
Net income ($M) |
$1,781 |
$170 |
Up 948% |
$390 |
Up 357% |
Earnings per share |
$1.45 |
$0.15 |
Up 867% |
$0.32 |
Up 353% |
Non-GAAP(*)
Quarterly Financial Results
|
Q4 2020 |
Q4 2019 |
Y/Y |
Q3 2020 |
Q/Q |
Revenue ($M) |
$3,244 |
$2,127 |
Up 53% |
$2,801 |
Up 16% |
Gross profit ($M) |
$1,452 |
$950 |
Up 53% |
$1,231 |
Up 18% |
Gross margin |
45% |
45% |
Flat |
44% |
Up 1pp |
Operating expenses ($M) |
$789 |
$545 |
Up 45% |
$706 |
Up 12% |
Operating income ($M) |
$663 |
$405 |
Up 64% |
$525 |
Up 26% |
Net income ($M) |
$636 |
$383 |
Up 66% |
$501 |
Up 27% |
Earnings per share |
$0.52 |
$0.32 |
Up 63% |
$0.41 |
Up 27% |
Annual Financial Results
|
GAAP |
Non-GAAP(*) |
|
2020 |
2019 |
Y/Y |
2020 |
2019 |
Y/Y |
Revenue ($M) |
$9,763 |
$6,731 |
Up 45% |
$9,763 |
$6,731 |
Up 45% |
Gross profit ($M) |
$4,347 |
$2,868 |
Up 52% |
$4,353 |
$2,874 |
Up 51% |
Gross margin |
45% |
43% |
Up 2pp |
45% |
43% |
Up 2pp |
Operating expenses ($M) |
$2,978 |
$2,297 |
Up 30% |
$2,696 |
$2,094 |
Up 29% |
Operating income ($M) |
$1,369 |
$631 |
Up 117% |
$1,657 |
$840 |
Up 97% |
Tax Valuation Allowance Release Benefit ($M) |
$1,301 |
-- |
-- |
-- |
-- |
-- |
Net income ($M) |
$2,490 |
$341 |
Up 630% |
$1,575 |
$756 |
Up 108% |
Earnings per share |
$2.06 |
$0.30 |
Up 587% |
$1.29 |
$0.64 |
Up 102% |
“We significantly accelerated our business in 2020, delivering
record annual revenue while expanding gross margin and more than
doubling net income from 2019,” said Dr. Lisa Su, AMD president and
CEO. “Our 2021 financial outlook highlights the strength of our
product portfolio and robust demand for high-performance computing
across the PC, gaming and data center markets. We are excited about
the opportunities ahead and very confident in our long-term
strategy as we continue executing our leadership product
roadmaps.”
Q4 2020 Results
- Revenue of $3.24 billion was up 53 percent year-over-year and
16 percent quarter-over-quarter driven by both the Computing and
Graphics segment and the Enterprise, Embedded and Semi-Custom
segment.
- Gross margin was 45 percent, flat year-over-year and up 1
percentage point quarter-over-quarter.
- Operating income was $570 million compared to $348 million a
year ago and operating income of $449 million in the prior quarter.
Non-GAAP operating income was $663 million compared to $405 million
a year ago and $525 million in the prior quarter. Operating income
improvements were primarily driven by revenue growth.
- Net income was $1.78 billion, including an income tax benefit
of $1.30 billion associated with a valuation allowance release, as
compared to $170 million a year ago and $390 million in the prior
quarter. Non-GAAP net income was $636 million compared to $383
million a year ago and $501 million in the prior quarter.
- Diluted earnings per share was $1.45, including an income tax
benefit that contributed $1.06 to earnings per share, as compared
to $0.15 a year ago and $0.32 in the prior quarter. Non-GAAP
diluted earnings per share was $0.52 compared to $0.32 a year ago
and $0.41 in the prior quarter.
- Cash, cash equivalents and short-term investments were $2.29
billion at the end of the quarter.
- Operating cash flow was $554 million in the quarter compared to
$442 million a year ago and $339 million in the prior quarter. Free
cash flow was $480 million in the quarter compared to $400 million
a year ago and $265 million in the prior quarter.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $1.96 billion, up 18
percent year-over-year and quarter-over-quarter primarily driven by
strong sales of Ryzen™ processors.
- Client processor average selling price (ASP) was lower
year-over-year due to a higher mix of Ryzen mobile processor sales.
Client processor ASP was higher quarter-over-quarter driven by
Ryzen desktop processor sales.
- Radeon™ graphics product ASPs were higher year-over-year and
quarter-over-quarter.
- Operating income was $420 million compared to $360 million a
year ago and $384 million in the prior quarter. The year-over-year
and quarter-over-quarter increases were primarily driven by higher
Ryzen processor sales.
- Enterprise, Embedded and Semi-Custom segment revenue was $1.28
billion, up 176 percent year-over-year and 13 percent
quarter-over-quarter driven by higher semi-custom and EPYC™
processor sales.
- Operating income was $243 million compared to $45 million a
year ago and $141 million in the prior quarter. Operating income
improvements were primarily driven by higher revenue.
- All Other operating loss was $93 million, including $14 million
acquisition-related costs, as compared to operating losses of $57
million a year ago and $76 million in the prior quarter.
2020 Annual Results
- Revenue of $9.76 billion was up 45 percent over 2019 driven by
significantly higher revenue in both the Computing and Graphics
segment and the Enterprise, Embedded and Semi-Custom segment.
- Gross margin was 45 percent, up 2 percentage points over 2019.
Gross margin expansion was primarily driven by Ryzen and EPYC
processor sales.
- Operating income was $1.37 billion compared to $631 million in
the prior year. Non-GAAP operating income was $1.66 billion
compared to $840 million in the prior year. The operating income
improvement was primarily driven by higher revenue and gross margin
expansion.
- Net income was $2.49 billion, including a $1.30 billion income
tax benefit recorded in the fourth quarter, as compared to $341
million in the prior year. Non-GAAP net income was $1.58 billion
compared to $756 million in the prior year.
- Diluted earnings per share was $2.06, including an income tax
benefit contribution of $1.07 per share, as compared to $0.30 in
the prior year. Non-GAAP diluted earnings per share was $1.29
compared to $0.64 in the prior year.
- Operating cash flow was $1.07 billion for the year compared to
$493 million in the prior year. Free cash flow was $777 million for
the year compared to $276 million in the prior year.
Recent PR Highlights
- At CES 2021, AMD announced the world’s best processors for
laptops, the AMD Ryzen 5000 Series Mobile Processors. With the “Zen
3” core architecture, AMD Ryzen 5000 Series Mobile Processors
provide unprecedented performance and battery life. AMD also
announced the AMD Ryzen PRO 5000 Series Mobile processors for
enterprise, expected to be available in the first half of
2021.
- AMD launched the AMD Radeon RX 6000 Series of GPUs for
next-generation PC gaming, including the fastest AMD gaming
graphics card ever, the AMD Radeon RX 6900 XT GPU. The new graphics
cards are built upon the groundbreaking AMD RDNA™ 2 gaming
architecture, which delivers up to 2x higher performance and up to
54 percent higher performance-per-watt compared to Radeon graphics
cards built on AMD RDNA architecture.
- AMD publicly demonstrated the 3rd Generation AMD EPYC
processors, codenamed “Milan,” for the first time at CES 2021.
Running WRF, a tool for climate research and weather forecasting,
the 3rd Gen AMD EPYC processor-powered server completed the
forecast approximately 68 percent faster than the competition.
- Amazon Web Services (AWS) expanded its AMD-powered cloud
offerings with the new Amazon Elastic Compute Cloud (EC2) G4ad
instances for graphics-optimized workloads. Using 2nd Gen AMD EPYC
CPUs and AMD Radeon Pro V520 GPUs, the instances deliver up to 40
percent better graphics performance compared to existing AWS GPU
offerings.
- Microsoft Azure is using 2nd Gen AMD EPYC processors to power
its HBv2 virtual machines (VMs) for high performance computing
(HPC) workloads and announced plans to utilize the upcoming 3rd
generation AMD EPYC processors for future HB-series VM products for
HPC.
- HPE, CSC Finland and EuroHPC introduced the
upcoming pre-exascale LUMI supercomputer in
Finland, which will be powered by AMD EPYC CPUs and AMD Instinct™
accelerators. LUMI is expected to deliver 551 petaflops of
performance when it comes online in 2021.
- AMD announced the AMD Instinct MI100
accelerator, built on the all-new AMD CDNA architecture.
The MI100 is the world’s fastest HPC GPU for
scientific research and is supported by new accelerated
compute platforms from Dell, GIGABYTE, HPE and
Supermicro.
- IBM and AMD announced a multi-year joint development
agreement to drive confidential computing in hybrid cloud
environments through open source software, open standards and open
system architectures.
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 the first quarter
of 2021, AMD expects revenue to be approximately $3.2 billion, plus
or minus $100 million, an increase of approximately 79 percent
year-over-year and down 1 percent sequentially. The year-over-year
increase is expected to be driven by growth in all businesses. AMD
expects non-GAAP gross margin to be approximately 46 percent in the
first quarter of 2021.
For the full year 2021, AMD expects revenue growth of
approximately 37 percent over 2020 driven by growth in all
businesses. AMD expects non-GAAP gross margin to be approximately
47 percent for 2021.
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 fourth quarter and
full year 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.
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
|
|
|
|
(In millions, except per share
data) (Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
GAAP gross profit |
|
$ |
1,451 |
|
|
$ |
1,230 |
|
|
$ |
949 |
|
|
$ |
4,347 |
|
|
$ |
2,868 |
|
GAAP gross margin % |
|
45 |
% |
|
44 |
% |
|
45 |
% |
|
45 |
% |
|
43 |
% |
Stock-based compensation |
|
1 |
|
|
1 |
|
|
1 |
|
|
6 |
|
|
6 |
|
Non-GAAP gross
profit |
|
$ |
1,452 |
|
|
$ |
1,231 |
|
|
$ |
950 |
|
|
$ |
4,353 |
|
|
$ |
2,874 |
|
Non-GAAP gross margin % |
|
45 |
% |
|
44 |
% |
|
45 |
% |
|
45 |
% |
|
43 |
% |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses |
|
$ |
881 |
|
|
$ |
781 |
|
|
$ |
601 |
|
|
$ |
2,978 |
|
|
$ |
2,297 |
|
GAAP operating expenses/revenue % |
|
27 |
% |
|
28 |
% |
|
28 |
% |
|
31 |
% |
|
34 |
% |
Stock-based compensation |
|
78 |
|
|
75 |
|
|
56 |
|
|
268 |
|
|
191 |
|
Loss contingency on legal matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
Acquisition-related costs |
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
— |
|
Non-GAAP operating
expenses |
|
$ |
789 |
|
|
$ |
706 |
|
|
$ |
545 |
|
|
$ |
2,696 |
|
|
$ |
2,094 |
|
Non-GAAP operating expenses/revenue% |
|
24 |
% |
|
25 |
% |
|
26 |
% |
|
28 |
% |
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income |
|
$ |
570 |
|
|
$ |
449 |
|
|
$ |
348 |
|
|
$ |
1,369 |
|
|
$ |
631 |
|
GAAP operating margin % |
|
18 |
% |
|
16 |
% |
|
16 |
% |
|
14 |
% |
|
9 |
% |
Stock-based compensation |
|
79 |
|
|
76 |
|
|
57 |
|
|
274 |
|
|
197 |
|
Loss contingency on legal matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
Acquisition-related costs |
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
— |
|
Non-GAAP operating
income |
|
$ |
663 |
|
|
$ |
525 |
|
|
$ |
405 |
|
|
$ |
1,657 |
|
|
$ |
840 |
|
Non-GAAP operating margin % |
|
20 |
% |
|
19 |
% |
|
19 |
% |
|
17 |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
GAAP net income / earnings per share |
|
$ |
1,781 |
|
|
$ |
1.45 |
|
|
$ |
390 |
|
|
$ |
0.32 |
|
|
$ |
170 |
|
|
$ |
0.15 |
|
|
$ |
2,490 |
|
|
$ |
2.06 |
|
|
$ |
341 |
|
|
$ |
0.30 |
|
Loss on debt redemption/conversion |
|
16 |
|
|
0.01 |
|
|
38 |
|
|
0.03 |
|
|
128 |
|
|
0.10 |
|
|
54 |
|
|
0.04 |
|
|
176 |
|
|
0.15 |
|
Non-cash interest expense related to convertible debt |
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
4 |
|
|
— |
|
|
6 |
|
|
— |
|
|
22 |
|
|
0.02 |
|
Stock-based compensation |
|
79 |
|
|
0.06 |
|
|
76 |
|
|
0.06 |
|
|
57 |
|
|
0.05 |
|
|
274 |
|
|
0.22 |
|
|
197 |
|
|
0.16 |
|
Equity income in investee |
|
(3 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss contingency on legal matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
0.01 |
|
Acquisition-related costs |
|
14 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
14 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Release of valuation allowance on deferred tax assets |
|
(1,301 |
) |
|
(1.06 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,301 |
) |
|
(1.07 |
) |
|
— |
|
|
— |
|
Income tax provision (benefit) |
|
50 |
|
|
0.05 |
|
|
(4 |
) |
|
— |
|
|
24 |
|
|
0.02 |
|
|
43 |
|
|
0.03 |
|
|
8 |
|
|
— |
|
Non-GAAP net income /
earnings per share |
|
$ |
636 |
|
|
$ |
0.52 |
|
|
$ |
501 |
|
|
$ |
0.41 |
|
|
$ |
383 |
|
|
$ |
0.32 |
|
|
$ |
1,575 |
|
|
$ |
1.29 |
|
|
$ |
756 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used and net
income adjustment in earnings per share calculation
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculation (GAAP) |
|
|
1,226 |
|
|
|
1,215 |
|
|
|
1,188 |
|
|
|
1,207 |
|
|
|
1,120 |
|
Interest expense add-back to GAAP net income |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
— |
|
Shares used in per share calculation (Non-GAAP) |
|
|
1,232 |
|
|
|
1,230 |
|
|
|
1,216 |
|
|
|
1,228 |
|
|
|
1,209 |
|
Interest expense add-back to
Non-GAAP net income |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
4 |
|
|
$ |
16 |
|
(1) |
For the three months ended December 26, 2020, September 26, 2020
and December 28, 2019, GAAP diluted EPS calculations include 3
million, 11 million and 31 million shares, respectively, related to
the assumed conversion of the Company's 2026 Convertible Notes and
the associated $0 million, $1 million and $4 million interest
expense, respectively, add-back to net income under the "if
converted" method. |
|
|
|
For the year ended December 26,
2020, GAAP diluted EPS calculations include 3 million shares
related to the assumed conversion of the Company's 2026 Convertible
Notes and the associated $1 million interest expense add-back to
net income under the "if converted" method. For the year ended
December 28, 2019, 89 million shares related to the assumed
conversion of the Company's 2026 Convertible Notes were not
included in the GAAP diluted EPS calculations as their inclusion
would have been anti-dilutive. |
|
|
|
For the three months ended
December 26, 2020, September 26, 2020 and December 28, 2019,
Non-GAAP diluted EPS calculations include 9 million, 26 million and
59 million shares, respectively, related to the assumed conversion
of the Company's 2026 Convertible Notes and the associated $0
million, $1 million and $2 million interest expense, respectively,
add-back to net income under the "if converted" method. |
|
|
|
For the year ended December 26,
2020 and December 28, 2019, Non-GAAP diluted EPS calculations
include 24 million and 89 million shares, respectively, related to
the assumed conversion of the Company's 2026 Convertible Notes and
the associated $4 million and $16 million interest expense,
respectively, add-back to net income under the "if converted"
method. |
|
|
About AMD
For more than 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 strong growth opportunities; the features, functionality,
performance, availability, timing and expected benefits of AMD
products; and AMD’s expected first quarter 2021 and fiscal 2021
financial outlook, including revenue and non-GAAP gross margin and
expected drivers based on current expectations 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; the
availability of essential equipment, materials or manufacturing
processes; AMD's ability to introduce products on a timely basis
with features and performance levels that provide value to its
customers; global economic uncertainty; the loss of a significant
customer; AMD's ability to generate revenue from its semi-custom
SoC products; 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; the impact of
acquisitions, joint ventures and/or investments on AMD's business,
including the announced acquisition of Xilinx, Inc. (Xilinx), and
the failure to integrate acquired businesses; AMD’s ability to
complete the Xilinx merger; the impact of the announcement and
pendency of the Xilinx merger on AMD’s business; 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
revolving credit facility; the competitive markets in which AMD’s
products are sold; 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; the potential dilutive effect if the 2.125%
Convertible Senior Notes due 2026 are converted; future impairments
of goodwill and technology license purchases; AMD’s ability to
attract and retain qualified personnel; AMD's ability to generate
sufficient revenue and operating cash flow or obtain external
financing for research and development or other strategic
investments; 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 modification or
interruption of AMD’s internal business processes and information
systems; 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 September 26, 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. 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 full year 2020, AMD uses a non-GAAP tax
rate of 3%, which excludes the direct tax impacts of pre-tax
non-GAAP adjustments. AMD 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. The
non-GAAP financial measures disclosed in this earnings press
release should be viewed in addition to and not as a substitute for
or superior to AMD’s reported results prepared in accordance with
GAAP and should be read only in conjunction with AMD’s Consolidated
Financial Statements prepared in accordance with GAAP. These
non-GAAP financial measures referenced are reconciled to their most
directly comparable GAAP financial measures in the data tables at
the end of this earnings press release. This earnings press release
also contains forward-looking non-GAAP gross margin concerning
AMD’s financial outlook, which is based on current expectations as
of January 26, 2021 and assumptions and beliefs that involve
numerous risks and uncertainties. AMD undertakes no intent or
obligation to publicly update or revise its outlook statements as a
result of new information, future events or otherwise, except as
may be required by law. |
AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Instinct,
Threadripper 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.
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Millions except per share
amounts and percentages) (Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
Net revenue |
|
$ |
3,244 |
|
|
|
$ |
2,801 |
|
|
|
$ |
2,127 |
|
|
|
$ |
9,763 |
|
|
|
$ |
6,731 |
|
|
Cost of sales |
|
1,793 |
|
|
|
1,571 |
|
|
|
1,178 |
|
|
|
5,416 |
|
|
|
3,863 |
|
|
Gross profit |
|
1,451 |
|
|
|
1,230 |
|
|
|
949 |
|
|
|
4,347 |
|
|
|
2,868 |
|
|
Gross margin % |
|
45 |
|
% |
|
44 |
|
% |
|
45 |
|
% |
|
45 |
|
% |
|
43 |
|
% |
Research and development |
|
573 |
|
|
|
508 |
|
|
|
395 |
|
|
|
1,983 |
|
|
|
1,547 |
|
|
Marketing, general and
administrative |
|
308 |
|
|
|
273 |
|
|
|
206 |
|
|
|
995 |
|
|
|
750 |
|
|
Licensing gain |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(60 |
) |
|
Operating income |
|
570 |
|
|
|
449 |
|
|
|
348 |
|
|
|
1,369 |
|
|
|
631 |
|
|
Interest expense |
|
(9 |
) |
|
|
(11 |
) |
|
|
(18 |
) |
|
|
(47 |
) |
|
|
(94 |
) |
|
Other expense, net |
|
(15 |
) |
|
|
(37 |
) |
|
|
(125 |
) |
|
|
(47 |
) |
|
|
(165 |
) |
|
Income before income taxes and equity income |
|
546 |
|
|
|
401 |
|
|
|
205 |
|
|
|
1,275 |
|
|
|
372 |
|
|
Income tax provision
(benefit) |
|
(1,232 |
) |
|
|
12 |
|
|
|
35 |
|
|
|
(1,210 |
) |
|
|
31 |
|
|
Equity income in investee |
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
Net Income |
|
$ |
1,781 |
|
|
|
$ |
390 |
|
|
|
$ |
170 |
|
|
|
$ |
2,490 |
|
|
|
$ |
341 |
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.48 |
|
|
|
$ |
0.33 |
|
|
|
$ |
0.15 |
|
|
|
$ |
2.10 |
|
|
|
$ |
0.31 |
|
|
Diluted |
|
$ |
1.45 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.15 |
|
|
|
$ |
2.06 |
|
|
|
$ |
0.30 |
|
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,205 |
|
|
|
1,184 |
|
|
|
1,140 |
|
|
|
1,184 |
|
|
|
1,091 |
|
|
Diluted |
|
1,226 |
|
|
|
1,215 |
|
|
|
1,188 |
|
|
|
1,207 |
|
|
|
1,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS (Millions) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
December 26,2020 |
|
December 28,2019 |
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,595 |
|
|
$ |
1,466 |
|
Short-term investments |
|
695 |
|
|
37 |
|
Accounts receivable, net |
|
2,066 |
|
|
1,859 |
|
Inventories |
|
1,399 |
|
|
982 |
|
Receivables from related parties |
|
10 |
|
|
20 |
|
Prepaid expenses and other current assets |
|
378 |
|
|
233 |
|
Total current
assets |
|
6,143 |
|
|
4,597 |
|
Property and equipment,
net |
|
641 |
|
|
500 |
|
Operating lease right-of-use
assets |
|
208 |
|
|
205 |
|
Goodwill |
|
289 |
|
|
289 |
|
Investment: equity method |
|
63 |
|
|
58 |
|
Deferred tax assets |
|
1,245 |
|
|
22 |
|
Other non-current assets |
|
373 |
|
|
357 |
|
Total
Assets |
|
$ |
8,962 |
|
|
$ |
6,028 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
468 |
|
|
988 |
|
Payables to related parties |
|
78 |
|
|
213 |
|
Accrued liabilities |
|
1,796 |
|
|
1,084 |
|
Other current liabilities |
|
75 |
|
|
74 |
|
Total current
liabilities |
|
2,417 |
|
|
2,359 |
|
Long-term debt, net |
|
330 |
|
|
486 |
|
Long-term operating lease liabilities |
|
201 |
|
|
199 |
|
Other long-term
liabilities |
|
177 |
|
|
157 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
12 |
|
|
12 |
|
Additional paid-in capital |
|
10,544 |
|
|
9,963 |
|
Treasury stock, at cost |
|
(131 |
) |
|
(53 |
) |
Accumulated deficit |
|
(4,605 |
) |
|
(7,095 |
) |
Accumulated other comprehensive income |
|
17 |
|
|
— |
|
Total stockholders'
equity |
|
$ |
5,837 |
|
|
$ |
2,827 |
|
Total Liabilities and
Stockholders' equity |
|
$ |
8,962 |
|
|
$ |
6,028 |
|
|
|
|
|
|
|
|
|
|
ADVANCED
MICRO DEVICES, INC.SELECTED CASH FLOW
INFORMATION(Millions) (Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
Net cash provided by
(used in) |
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
554 |
|
|
$ |
339 |
|
|
$ |
442 |
|
|
$ |
1,071 |
|
|
$ |
493 |
|
Investing activities |
|
$ |
(294 |
) |
|
$ |
(549 |
) |
|
$ |
(26 |
) |
|
$ |
(952 |
) |
|
$ |
(149 |
) |
Financing activities |
|
$ |
35 |
|
|
$ |
(269 |
) |
|
$ |
(107 |
) |
|
$ |
6 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
CORPORATE DATA(Millions) (Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
Segment and Category
Information |
|
|
|
|
|
|
|
|
|
|
Computing and Graphics(1) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,960 |
|
|
$ |
1,667 |
|
|
$ |
1,662 |
|
|
$ |
6,432 |
|
|
$ |
4,709 |
|
Operating income |
|
$ |
420 |
|
|
$ |
384 |
|
|
$ |
360 |
|
|
$ |
1,266 |
|
|
$ |
577 |
|
Enterprise, Embedded and Semi-Custom(2) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,284 |
|
|
$ |
1,134 |
|
|
$ |
465 |
|
|
$ |
3,331 |
|
|
$ |
2,022 |
|
Operating income |
|
$ |
243 |
|
|
$ |
141 |
|
|
$ |
45 |
|
|
$ |
391 |
|
|
$ |
263 |
|
All Other(3) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
|
$ |
(93 |
) |
|
$ |
(76 |
) |
|
$ |
(57 |
) |
|
$ |
(288 |
) |
|
$ |
(209 |
) |
Total |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
3,244 |
|
|
$ |
2,801 |
|
|
$ |
2,127 |
|
|
$ |
9,763 |
|
|
$ |
6,731 |
|
Operating income |
|
$ |
570 |
|
|
$ |
449 |
|
|
$ |
348 |
|
|
$ |
1,369 |
|
|
$ |
631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
74 |
|
|
$ |
74 |
|
|
$ |
42 |
|
|
$ |
294 |
|
|
$ |
217 |
|
Adjusted EBITDA(4) |
|
$ |
753 |
|
|
$ |
607 |
|
|
$ |
469 |
|
|
$ |
1,969 |
|
|
$ |
1,062 |
|
Cash, cash equivalents and
short-term investments |
|
$ |
2,290 |
|
|
$ |
1,771 |
|
|
$ |
1,503 |
|
|
$ |
2,290 |
|
|
$ |
1,503 |
|
Free cash flow(5) |
|
$ |
480 |
|
|
$ |
265 |
|
|
$ |
400 |
|
|
$ |
777 |
|
|
$ |
276 |
|
Total assets |
|
$ |
8,962 |
|
|
$ |
7,023 |
|
|
$ |
6,028 |
|
|
$ |
8,962 |
|
|
$ |
6,028 |
|
Total debt |
|
$ |
330 |
|
|
$ |
373 |
|
|
$ |
486 |
|
|
$ |
330 |
|
|
$ |
486 |
|
(1) |
The Computing and Graphics segment, which primarily includes
desktop and notebook processors and chipsets, discrete and
integrated graphics processing units (GPUs), data center and
professional GPUs and development services. From time to time, the
Company may also sell or license portions of its IP portfolio. |
|
|
(2) |
The Enterprise, Embedded and
Semi-Custom segment, which primarily includes server and embedded
processors, semi-custom System-on-Chip (SoC) products, development
services and technology for game consoles. From time to time, the
Company may also sell or license portions of its IP 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 and acquisition-related
costs. |
|
|
(4) |
Reconciliation of GAAP
Net Income to Adjusted EBITDA* |
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
GAAP net income |
|
$ |
1,781 |
|
|
$ |
390 |
|
|
$ |
170 |
|
|
$ |
2,490 |
|
|
$ |
341 |
|
Interest expense |
|
9 |
|
|
11 |
|
|
18 |
|
|
47 |
|
|
94 |
|
Other expense, net |
|
15 |
|
|
37 |
|
|
125 |
|
|
47 |
|
|
165 |
|
Income tax provision (benefit) |
|
(1,232 |
) |
|
12 |
|
|
35 |
|
|
(1,210 |
) |
|
31 |
|
Equity income in investee |
|
(3 |
) |
|
(1 |
) |
|
— |
|
|
(5 |
) |
|
— |
|
Stock-based compensation |
|
79 |
|
|
76 |
|
|
57 |
|
|
274 |
|
|
197 |
|
Depreciation and amortization |
|
90 |
|
|
82 |
|
|
64 |
|
|
312 |
|
|
222 |
|
Acquisition-related costs |
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
— |
|
Loss contingency on legal matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
Adjusted EBITDA |
|
$ |
753 |
|
|
$ |
607 |
|
|
$ |
469 |
|
|
$ |
1,969 |
|
|
$ |
1,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Free Cash Flow Reconciliation**
|
|
Three Months Ended |
|
Year Ended |
|
|
December 26,2020 |
|
September 26,2020 |
|
December 28,2019 |
|
December 26,2020 |
|
December 28,2019 |
GAAP net cash provided by operating activities |
|
$ |
554 |
|
|
$ |
339 |
|
|
$ |
442 |
|
|
$ |
1,071 |
|
|
$ |
493 |
|
Purchases of property and equipment |
|
(74 |
) |
|
(74 |
) |
|
(42 |
) |
|
(294 |
) |
|
(217 |
) |
Free cash flow |
|
$ |
480 |
|
|
$ |
265 |
|
|
$ |
400 |
|
|
$ |
777 |
|
|
$ |
276 |
|
* |
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 expense, net,
income tax provision (benefit), equity income on investee,
stock-based compensation, and depreciation and amortization
expense. The Company also included acquisition-related costs for
the quarter and the year ended December 26, 2020, and a loss
contingency on legal matter for the year ended December 28, 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 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
Advanced Micro Devices (NASDAQ:AMD)
Historical Stock Chart
From Feb 2024 to Mar 2024
Advanced Micro Devices (NASDAQ:AMD)
Historical Stock Chart
From Mar 2023 to Mar 2024