AMD (NASDAQ: AMD) today announced record revenue for the third
quarter of 2020 of $2.80 billion, operating income of $449 million,
net income of $390 million and diluted earnings per share of $0.32.
On a non-GAAP* basis, operating income was $525 million, net income
was $501 million and diluted earnings per share was $0.41.
GAAP Quarterly Financial
Results
|
Q3 2020 |
Q3 2019 |
Y/Y |
Q2 2020 |
Q/Q |
Revenue ($M) |
$2,801 |
$1,801 |
Up 56% |
$1,932 |
Up 45% |
Gross profit ($M) |
$1,230 |
$777 |
Up 58% |
$848 |
Up 45% |
Gross margin |
44% |
43% |
Up 1pp |
44% |
Flat |
Operating expenses ($M) |
$781 |
$591 |
Up 32% |
$675 |
Up 16% |
Operating income ($M) |
$449 |
$186 |
Up 141% |
$173 |
Up 160% |
Net income ($M) |
$390 |
$120 |
Up 225% |
$157 |
Up 148% |
Earnings per share |
$0.32 |
$0.11 |
Up 191% |
$0.13 |
Up 146% |
Non-GAAP* Quarterly Financial
Results
|
Q3 2020 |
Q3 2019 |
Y/Y |
Q2 2020 |
Q/Q |
Revenue ($M) |
$2,801 |
$1,801 |
Up 56% |
$1,932 |
Up 45% |
Gross profit ($M) |
$1,231 |
$779 |
Up 58% |
$850 |
Up 45% |
Gross margin |
44% |
43% |
Up 1pp |
44% |
Flat |
Operating expenses ($M) |
$706 |
$539 |
Up 31% |
$617 |
Up 14% |
Operating income ($M) |
$525 |
$240 |
Up 119% |
$233 |
Up 125% |
Net income ($M) |
$501 |
$219 |
Up 129% |
$216 |
Up 132% |
Earnings per share |
$0.41 |
$0.18 |
Up 128% |
$0.18 |
Up 128% |
“Our business accelerated in the third quarter as strong demand
for our PC, gaming and data center products drove record quarterly
revenue,” said Dr. Lisa Su, AMD president and CEO. “We reported our
fourth straight quarter with greater than 25 percent year-over-year
revenue growth, highlighting our significant customer momentum. We
are well positioned to continue delivering best-in-class growth as
we further extend our leadership product portfolio with the
launches of our next generation Ryzen, Radeon and EPYC
processors.”
Q3
2020
Results
- Revenue was $2.80 billion, up 56 percent year-over-year and 45
percent quarter-over-quarter driven by higher revenue in both the
Enterprise, Embedded and Semi-Custom and Computing and Graphics
segments.
- Gross margin was 44 percent, up 1 percentage point
year-over-year and flat quarter-over-quarter. The year-over-year
increase was primarily driven by EPYC™ and Ryzen™ processor sales.
Gross margin was flat quarter-over-quarter as an increase of Ryzen
and EPYC processor sales was offset by a higher percentage of
semi-custom revenue.
- Operating income was $449 million compared to $186 million a
year ago and $173 million in the prior quarter. Non-GAAP operating
income was $525 million compared to $240 million a year ago and
$233 million in the prior quarter. Operating income improvements
were primarily driven by revenue growth, including an increase in
Ryzen and EPYC processor sales and semi-custom product sales.
- Net income was $390 million compared to $120 million a year ago
and $157 million in the prior quarter. Non-GAAP net income was $501
million compared to $219 million a year ago and $216 million in the
prior quarter.
- Diluted earnings per share was $0.32 compared to $0.11 a year
ago and $0.13 in the prior quarter. Non-GAAP diluted earnings per
share was $0.41 compared to $0.18 a year ago and $0.18 in the prior
quarter.
- Cash, cash equivalents and short-term investments were $1.77
billion at the end of the quarter.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $1.67 billion, up 31
percent year-over-year and 22 percent quarter-over-quarter. Revenue
was higher year-over-year driven by a significant increase in Ryzen
processor sales partially offset by lower graphics revenue. Revenue
was higher quarter-over-quarter driven by a significant increase in
Ryzen processor sales and an increase in graphics revenue.
- Client processor average selling price (ASP) was lower
year-over-year due to a higher mix of mobile processor sales.
Client processor ASP was higher quarter-over-quarter driven by
higher desktop and mobile processor ASPs.
- GPU ASP was lower year-over-year due to product cycle timing
and higher quarter-over-quarter due to product mix.
- Operating income was $384 million compared to $179 million a
year ago and $200 million in the prior quarter. The year-over-year
and quarter-over-quarter increases were driven by higher Ryzen
revenue.
- Enterprise, Embedded and Semi-Custom segment revenue was $1.13
billion, up 116 percent year-over-year and 101 percent
quarter-over-quarter. Revenue was higher year-over-year and
quarter-over-quarter due to higher semi-custom product sales and
increased EPYC processor sales.
- Operating income was $141 million compared to $61 million a
year ago and $33 million in the prior quarter. The year-over-year
and quarter-over-quarter increases were primarily driven by higher
revenue.
- All Other operating loss was $76 million compared to operating
losses of $54 million a year ago and $60 million in the prior
quarter.
Recent PR Highlights
- AMD introduced the AMD Ryzen 5000 Series desktop processors,
extending AMD leadership across gaming, single-threaded, and
multi-threaded performance as well as power efficiency. Powered by
the new “Zen 3” core architecture, the new processors deliver a 19
percent generational increase in instructions per cycle (IPC), the
largest since the introduction of “Zen” processors in 2017.
- AMD EPYC processor adoption continues to grow as data center
customers harness our differentiated performance and features for
cloud computing, high-performance computing (HPC), hyperconverged
infrastructure (HCI), virtualization and more.
- AMD EPYC processors are now being used by the Azure Data
Explorer data analytics platform to improve real-time analysis on
large volumes of data streaming from applications, websites, IoT
devices and more.
- Oracle announced plans to offer cloud instances based on
next-generation AMD EPYC processors, codenamed “Milan.”
- Cloud service providers continued to announce the availability
of new instances based on AMD EPYC processors, including AWS C5ad
instances for compute intensive workloads, Google Cloud
Confidential VMs featuring AMD Secure Encrypted Virtualization, and
Microsoft Azure VMs which use AMD EPYC processors to power Office
365 applications.
- AMD announced growing ecosystem support for virtualization
solutions based on VMware® and Nutanix™ software from Dell, HPE and
Lenovo.
- VMware announced support for AMD Secure Encrypted
Virtualization – Encrypted State technology in its latest version
of vSphere®.
- Northern Data is leveraging AMD EPYC and AMD Radeon Instinct™
processors for one of the world's largest GPU-based distributed
computing clusters for HPC applications at sites across Norway,
Sweden and Canada.
- AMD expanded its position in the consumer and commercial client
markets with new products and growing adoption of AMD Ryzen
processors by leading OEMs.
- OEM partners continued to launch new AMD-powered notebooks,
desktops and Chromebooks, including new HP and Lenovo notebooks and
desktops for the commercial, consumer and gaming markets and the
first “Zen”-based Chromebooks.
- AMD announced new AMD Ryzen 4000 Series Desktop Processors with
Radeon Graphics and AMD Athlon™ 3000 Series Desktop Processors with
Radeon Graphics for the consumer market, as well as the new AMD
Ryzen PRO 4000 Series and AMD Athlon PRO 3000 Series Desktop
Processors for the commercial market.
- AMD and Apple announced the availability of new AMD Radeon Pro
5000 series GPUs for the updated 27-inch iMac, bringing compute
performance, energy efficiency and features to a wide variety of
graphically intensive applications and workloads.
- AMD announced additional high-performance technology
contributions to assist in the global fight against the COVID-19
pandemic, including high-performance computing systems or access to
cloud-based clusters powered by 2nd Gen AMD EPYC and AMD Radeon
Instinct processors for 21 institutions and research facilities
around the world.
- AMD announced its annual corporate responsibility update,
highlighting how AMD and its technologies are addressing
sustainable technological and scientific advancement, environmental
and supply chain responsibility, workplace inclusion and community
support.
Current OutlookAMD’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 fourth quarter of 2020, AMD expects revenue to be
approximately $3.0 billion, plus or minus $100 million, an increase
of approximately 41 percent year-over-year and 7 percent
sequentially. The year-over-year increase is expected to be
primarily driven by the ramp of new Ryzen, EPYC and semi-custom
products and growing customer momentum. AMD expects non-GAAP gross
margin to be approximately 45 percent in the fourth quarter of
2020.
AMD now expects 2020 revenue to grow by approximately 41 percent
compared to 2019, up from prior guidance of 32 percent. Non-GAAP
gross margin is expected to be approximately 45 percent, consistent
with prior guidance.
AMD Teleconference AMD will hold a conference
call for the financial community at 8:00 a.m. ET (5:00 a.m. PT)
today to discuss its third 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.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(In
millions, except per share data) |
|
Three Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
GAAP gross profit |
|
$ |
1,230 |
|
|
$ |
848 |
|
|
$ |
777 |
|
GAAP gross margin % |
|
44 |
% |
|
44 |
% |
|
43 |
% |
Stock-based compensation |
|
1 |
|
|
2 |
|
|
2 |
|
Non-GAAP
gross profit |
|
$ |
1,231 |
|
|
$ |
850 |
|
|
$ |
779 |
|
Non-GAAP gross margin % |
|
44 |
% |
|
44 |
% |
|
43 |
% |
|
|
|
|
|
|
|
GAAP
operating expenses |
|
$ |
781 |
|
|
$ |
675 |
|
|
$ |
591 |
|
GAAP operating expenses/revenue % |
|
28 |
% |
|
35 |
% |
|
33 |
% |
Stock-based compensation |
|
75 |
|
|
58 |
|
|
52 |
|
Non-GAAP
operating expenses |
|
$ |
706 |
|
|
$ |
617 |
|
|
$ |
539 |
|
Non-GAAP operating expenses/revenue % |
|
25 |
% |
|
32 |
% |
|
30 |
% |
|
|
|
|
|
|
|
GAAP
operating income |
|
$ |
449 |
|
|
$ |
173 |
|
|
$ |
186 |
|
GAAP operating margin % |
|
16 |
% |
|
9 |
% |
|
10 |
% |
Stock-based compensation |
|
76 |
|
|
60 |
|
|
54 |
|
Non-GAAP
operating income |
|
$ |
525 |
|
|
$ |
233 |
|
|
$ |
240 |
|
Non-GAAP operating margin % |
|
19 |
% |
|
12 |
% |
|
13 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
GAAP net income / earnings per share |
|
$ |
390 |
|
|
$ |
0.32 |
|
$ |
157 |
|
|
$ |
0.13 |
|
|
$ |
120 |
|
|
$ |
0.11 |
Loss on debt redemption/conversion |
|
38 |
|
|
0.03 |
|
— |
|
|
— |
|
|
40 |
|
|
0.03 |
Non-cash interest expense related to convertible debt |
|
2 |
|
|
— |
|
2 |
|
|
— |
|
|
6 |
|
|
— |
Stock-based compensation |
|
76 |
|
|
0.06 |
|
60 |
|
|
0.05 |
|
|
54 |
|
|
0.04 |
Equity income in investee |
|
(1 |
) |
|
— |
|
(1 |
) |
|
— |
|
|
(1 |
) |
|
— |
Income tax provision |
|
(4 |
) |
|
— |
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
Non-GAAP net income /
earnings per share |
|
$ |
501 |
|
|
$ |
0.41 |
|
$ |
216 |
|
|
$ |
0.18 |
|
|
$ |
219 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used and net
income adjustment inearnings per share calculation
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculation (GAAP) |
|
1,215 |
|
1,227 |
|
|
1,117 |
Interest expense add-back to GAAP net income |
|
$ |
1 |
|
$ |
3 |
|
|
$ |
— |
Shares used in per share
calculation (Non-GAAP) |
|
1,230 |
|
1,227 |
|
|
1,212 |
Interest expense add-back to
Non-GAAP net income |
|
$ |
1 |
|
$ |
1 |
|
|
$ |
4 |
(1 |
) |
|
For the three months ended
September 26, 2020 and June 27, 2020, GAAP diluted EPS calculations
include 11 million and 31 million shares, respectively, related to
the assumed conversion of the Company's 2026 Convertible Notes and
the associated $1 million and $3 million interest expense,
respectively, add-back to net income under the "if converted"
method. For the three months ended September 26, 2020, 15 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 September 28, 2019, 95 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 September 26, 2020, June 27, 2020 and September 28, 2019,
Non-GAAP diluted EPS calculations include 26 million, 31 million
and 95 million shares, respectively, related to the assumed
conversion of the Company's 2026 Convertible Notes and the
associated $1 million, $1 million and $4 million interest expense,
respectively, add-back to net income under the "if converted"
method. |
About AMDFor 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 ability to continue to deliver best-in-class growth and
extend its leadership product portfolio; the features,
functionality, performance, availability, timing and expected
benefits of AMD products; and AMD’s expected fourth quarter of 2020
outlook including, revenue and non-GAAP gross margin and expected
drivers, based on current expectations, 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; 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; 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; AMD's ability to generate
sufficient revenue and operating cash flow or obtain external
financing for research and development or other strategic
investments; 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 June 27, 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 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. 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 tables in this earnings
press release. Refer to 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 October 27,
2020 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, 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.
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Millions
except per share amounts and percentages) (Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
|
September 26, 2020 |
|
September 28, 2019 |
Net revenue |
|
$ |
2,801 |
|
|
$ |
1,932 |
|
|
$ |
1,801 |
|
|
$ |
6,519 |
|
|
$ |
4,604 |
|
Cost of sales |
|
1,571 |
|
|
1,084 |
|
|
1,024 |
|
|
3,623 |
|
|
2,685 |
|
Gross profit |
|
1,230 |
|
|
848 |
|
|
777 |
|
|
2,896 |
|
|
1,919 |
|
Gross margin |
|
44 |
% |
|
44 |
% |
|
43 |
% |
|
44 |
% |
|
42 |
% |
Research and development |
|
508 |
|
|
460 |
|
|
406 |
|
|
1,410 |
|
|
1,152 |
|
Marketing, general and
administrative |
|
273 |
|
|
215 |
|
|
185 |
|
|
687 |
|
|
544 |
|
Licensing gain |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(60 |
) |
Operating income |
|
449 |
|
|
173 |
|
|
186 |
|
|
799 |
|
|
283 |
|
Interest expense |
|
(11 |
) |
|
(14 |
) |
|
(24 |
) |
|
(38 |
) |
|
(76 |
) |
Other income (expense),
net |
|
(37 |
) |
|
1 |
|
|
(36 |
) |
|
(32 |
) |
|
(40 |
) |
Income before income taxes and equity income |
|
401 |
|
|
160 |
|
|
126 |
|
|
729 |
|
|
167 |
|
Income tax provision
(benefit) |
|
12 |
|
|
4 |
|
|
7 |
|
|
22 |
|
|
(4 |
) |
Equity income in investee |
|
1 |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
— |
|
Net Income |
|
$ |
390 |
|
|
$ |
157 |
|
|
$ |
120 |
|
|
$ |
709 |
|
|
$ |
171 |
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.33 |
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
$ |
0.60 |
|
|
$ |
0.16 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
$ |
0.59 |
|
|
$ |
0.15 |
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,184 |
|
|
1,174 |
|
|
1,097 |
|
|
1,176 |
|
|
1,075 |
|
Diluted |
|
1,215 |
|
|
1,227 |
|
|
1,117 |
|
|
1,208 |
|
|
1,107 |
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS
(Millions)
|
|
September 26, 2020 |
|
December 28, 2019 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,296 |
|
|
$ |
1,466 |
|
Short-term investments |
|
475 |
|
|
37 |
|
Accounts receivable, net |
|
2,134 |
|
|
1,859 |
|
Inventories |
|
1,292 |
|
|
982 |
|
Receivables from related parties |
|
4 |
|
|
20 |
|
Prepaid expenses and other current assets |
|
299 |
|
|
233 |
|
Total current
assets |
|
5,500 |
|
|
4,597 |
|
Property and equipment,
net |
|
595 |
|
|
500 |
|
Operating lease right-of use
assets |
|
215 |
|
|
205 |
|
Goodwill |
|
289 |
|
|
289 |
|
Investment: equity method |
|
60 |
|
|
58 |
|
Other non-current assets |
|
364 |
|
|
379 |
|
Total
Assets |
|
$ |
7,023 |
|
|
$ |
6,028 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
752 |
|
|
$ |
988 |
|
Payables to related parties |
|
115 |
|
|
213 |
|
Accrued liabilities |
|
1,478 |
|
|
1,084 |
|
Other current liabilities |
|
72 |
|
|
74 |
|
Total current
liabilities |
|
2,417 |
|
|
2,359 |
|
Long-term debt, net |
|
373 |
|
|
486 |
|
Long-term operating lease
liabilities |
|
205 |
|
|
199 |
|
Other long-term
liabilities |
|
161 |
|
|
157 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
12 |
|
|
12 |
|
Additional paid-in capital |
|
10,362 |
|
|
9,963 |
|
Treasury stock, at cost |
|
(126 |
) |
|
(53 |
) |
Accumulated deficit |
|
(6,386 |
) |
|
(7,095 |
) |
Accumulated other comprehensive income |
|
5 |
|
|
— |
|
Total stockholders'
equity |
|
$ |
3,867 |
|
|
$ |
2,827 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
7,023 |
|
|
$ |
6,028 |
|
ADVANCED MICRO DEVICES, INC.SELECTED
CASH FLOW INFORMATION(Millions)
(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
|
September 26, 2020 |
|
September 28, 2019 |
Net cash provided by
(used in) |
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
339 |
|
|
$ |
243 |
|
|
$ |
234 |
|
|
$ |
517 |
|
|
$ |
51 |
|
Investing activities |
|
$ |
(549 |
) |
|
$ |
(36 |
) |
|
$ |
57 |
|
|
$ |
(658 |
) |
|
$ |
(123 |
) |
Financing activities |
|
$ |
(269 |
) |
|
$ |
238 |
|
|
$ |
(98 |
) |
|
$ |
(29 |
) |
|
$ |
150 |
|
SELECTED CORPORATE DATA(Millions)
(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
|
September 26, 2020 |
|
September 28, 2019 |
Segment and Category
Information |
|
|
|
|
|
|
|
|
|
|
Computing and Graphics (1) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,667 |
|
|
$ |
1,367 |
|
|
$ |
1,276 |
|
|
$ |
4,472 |
|
|
$ |
3,047 |
|
Operating income |
|
$ |
384 |
|
|
$ |
200 |
|
|
$ |
179 |
|
|
$ |
846 |
|
|
$ |
217 |
|
Enterprise, Embedded and Semi-Custom (2) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,134 |
|
|
$ |
565 |
|
|
$ |
525 |
|
|
$ |
2,047 |
|
|
$ |
1,557 |
|
Operating income |
|
$ |
141 |
|
|
$ |
33 |
|
|
$ |
61 |
|
|
$ |
148 |
|
|
$ |
218 |
|
All Other (3) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
|
$ |
(76 |
) |
|
$ |
(60 |
) |
|
$ |
(54 |
) |
|
$ |
(195 |
) |
|
$ |
(152 |
) |
Total |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
2,801 |
|
|
$ |
1,932 |
|
|
$ |
1,801 |
|
|
$ |
6,519 |
|
|
$ |
4,604 |
|
Operating income |
|
$ |
449 |
|
|
$ |
173 |
|
|
$ |
186 |
|
|
$ |
799 |
|
|
$ |
283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
74 |
|
|
$ |
91 |
|
|
$ |
55 |
|
|
$ |
220 |
|
|
$ |
175 |
|
Adjusted EBITDA (4) |
|
$ |
607 |
|
|
$ |
305 |
|
|
$ |
300 |
|
|
$ |
1,216 |
|
|
$ |
593 |
|
Cash, cash equivalents and
short-term investments |
|
$ |
1,771 |
|
|
$ |
1,775 |
|
|
$ |
1,209 |
|
|
$ |
1,771 |
|
|
$ |
1,209 |
|
Free cash flow (5) |
|
$ |
265 |
|
|
$ |
152 |
|
|
$ |
179 |
|
|
$ |
297 |
|
|
$ |
(124 |
) |
Total assets |
|
$ |
7,023 |
|
|
$ |
6,583 |
|
|
$ |
5,253 |
|
|
$ |
7,023 |
|
|
$ |
5,253 |
|
Total debt |
|
$ |
373 |
|
|
$ |
690 |
|
|
$ |
872 |
|
|
$ |
373 |
|
|
$ |
872 |
|
(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. |
|
|
|
|
(4 |
) |
|
Reconciliation of GAAP
Net Income to Adjusted EBITDA* |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
|
September 26, 2020 |
|
September 28, 2019 |
GAAP net income |
|
$ |
390 |
|
|
$ |
157 |
|
|
$ |
120 |
|
|
$ |
709 |
|
|
$ |
171 |
|
Interest expense |
|
11 |
|
|
14 |
|
|
24 |
|
|
38 |
|
|
76 |
|
Other (income) expense, net |
|
37 |
|
|
(1 |
) |
|
36 |
|
|
32 |
|
|
40 |
|
Income tax provision (benefit) |
|
12 |
|
|
4 |
|
|
7 |
|
|
22 |
|
|
(4 |
) |
Equity income in investee |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|
— |
|
Stock-based compensation |
|
76 |
|
|
60 |
|
|
54 |
|
|
195 |
|
|
140 |
|
Depreciation and amortization |
|
82 |
|
|
72 |
|
|
60 |
|
|
222 |
|
|
158 |
|
Loss contingency on legal matter |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
Adjusted EBITDA |
|
$ |
607 |
|
|
$ |
305 |
|
|
$ |
300 |
|
|
$ |
1,216 |
|
|
$ |
593 |
|
(5 |
) |
|
Reconciliation of GAAP Net Cash Provided by Operating
Activities to Free Cash Flow** |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 26, 2020 |
|
June 27, 2020 |
|
September 28, 2019 |
|
September 26, 2020 |
|
September 28, 2019 |
GAAP net cash provided by operating activities |
|
$ |
339 |
|
|
$ |
243 |
|
|
$ |
234 |
|
|
$ |
517 |
|
|
$ |
51 |
|
Purchases of property and equipment |
|
(74 |
) |
|
(91 |
) |
|
(55 |
) |
|
(220 |
) |
|
(175 |
) |
Free cash flow |
|
$ |
265 |
|
|
$ |
152 |
|
|
$ |
179 |
|
|
$ |
297 |
|
|
$ |
(124 |
) |
* |
|
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 on
investee, stock-based compensation, and depreciation and
amortization expense. The Company also included a loss contingency
on legal matter in the nine months ended September 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
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