AMD Reports Third Quarter 2021 Financial Results
October 26 2021 - 4:15PM
AMD (NASDAQ: AMD) today announced revenue for the third quarter of
2021 of $4.3 billion, operating income of $948 million, net income
of $923 million and diluted earnings per share of $0.75. On a
non-GAAP* basis, operating income was $1.1 billion, net income was
$893 million and diluted earnings per share were $0.73.
GAAP Quarterly Financial
Results
|
Q3 2021 |
Q3 2020 |
Y/Y |
Q2 2021 |
Q/Q |
Revenue ($M) |
$4,313 |
$2,801 |
Up 54% |
$3,850 |
Up 12% |
Gross profit ($M) |
$2,086 |
$1,230 |
Up 70% |
$1,830 |
Up 14% |
Gross margin % |
48% |
44% |
Up 450 bps |
48% |
Up 80 bps |
Operating expenses ($M) |
$1,141 |
$781 |
Up 46% |
$1,000 |
Up 14% |
Operating income ($M) |
$948 |
$449 |
Up 111% |
$831 |
Up 14% |
Operating margin % |
22% |
16% |
Up 6pp |
22% |
Flat |
Net income ($M) |
$923 |
$390 |
Up 137% |
$710 |
Up 30% |
Earnings per share |
$0.75 |
$0.32 |
Up 134% |
$0.58 |
Up 29% |
Non-GAAP* Quarterly Financial
Results
|
Q3 2021 |
Q3 2020 |
Y/Y |
Q2 2021 |
Q/Q |
Revenue ($M) |
$4,313 |
$2,801 |
Up 54% |
$3,850 |
Up 12% |
Gross profit ($M) |
$2,087 |
$1,231 |
Up 70% |
$1,832 |
Up 14% |
Gross margin % |
48% |
44% |
Up 440 bps |
48% |
Up 80 bps |
Operating expenses ($M) |
$1,035 |
$706 |
Up 47% |
$909 |
Up 14% |
Operating income ($M) |
$1,055 |
$525 |
Up 101% |
$924 |
Up 14% |
Operating margin % |
24% |
19% |
Up 5pp |
24% |
Flat |
Net income ($M) |
$893 |
$501 |
Up 78% |
$778 |
Up 15% |
Earnings per share |
$0.73 |
$0.41 |
Up 78% |
$0.63 |
Up 16% |
“AMD had another record quarter as revenue grew 54% and
operating income doubled year-over-year,” said AMD president and
CEO Dr. Lisa Su. “3rd Gen EPYC processor shipments ramped
significantly in the quarter as our data center sales more than
doubled year-over-year. Our business significantly accelerated in
2021, growing faster than the market based on our leadership
products and consistent execution.”
Q3 2021 Results
- Revenue was $4.3 billion, up 54 percent year-over-year and 12
percent quarter-over-quarter driven by higher revenue in both the
Computing and Graphics segment and Enterprise, Embedded and
Semi-Custom segment.
- Gross margin was 48 percent, up over 400 basis points
year-over-year and up 80 basis points quarter-over-quarter. The
year-over-year and quarter-over-quarter increases were primarily
driven by a richer mix of EPYC™, Ryzen™ and Radeon™ processor
sales.
- Operating income was $948 million compared to operating income
of $449 million a year ago and $831 million in the prior quarter.
Non-GAAP operating income was $1.1 billion compared to $525 million
a year ago and $924 million in the prior quarter. Operating income
improvements were primarily driven by higher revenue.
- Net income was $923 million compared to $390 million a year ago
and $710 million in the prior quarter. Non-GAAP net income was $893
million compared to $501 million a year ago and $778 million in the
prior quarter.
- Diluted earnings per share was $0.75 compared to $0.32 a year
ago and $0.58 in the prior quarter. Non-GAAP diluted earnings per
share was $0.73 compared to $0.41 a year ago and $0.63 in the prior
quarter.
- Cash, cash equivalents and short-term investments were $3.6
billion at the end of the quarter. The Company repurchased more
than 7 million shares of common stock for $750 million during the
quarter.
- Cash from operations was $849 million compared to $339 million
a year ago and $952 million in the prior quarter. Free cash flow
was $764 million compared to $265 million a year ago and $888
million in the prior quarter. Third quarter 2021 cash from
operations and free cash flow included strategic investments in
long-term supply chain capacity to support future revenue
growth.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $2.4 billion, up 44
percent year-over-year and 7 percent quarter-over-quarter. The
year-over-year and quarter-over-quarter increases were driven by
higher Ryzen, Radeon and AMD Instinct processor sales.
- Client processor average selling price (ASP) grew
year-over-year and quarter-over-quarter driven by a richer mix of
Ryzen processor sales.
- GPU ASP grew year-over-year and quarter-over-quarter driven by
high-end Radeon graphics product sales and AMD Instinct data center
GPU sales.
- Operating income was $513 million compared to $384 million a
year ago and $526 million in the prior quarter. The year-over-year
increase was primarily driven by higher revenue, partially offset
by higher operating expenses. The quarter-over-quarter decrease was
primarily due to higher operating expenses.
- Enterprise, Embedded and Semi-Custom segment revenue was $1.9
billion, up 69 percent year-over-year and 20 percent
quarter-over-quarter. The increases were driven by higher EPYC
processor and semi-custom product sales.
- Operating income was $542 million compared to $141 million a
year ago and $398 million in the prior quarter. The increases were
primarily driven by higher revenue and richer product mix,
partially offset by higher operating expenses.
- All Other operating loss was $107 million compared to $76
million a year ago and $93 million in the prior quarter.
Recent PR Highlights
- AMD saw increased adoption of AMD EPYC processors in the third
quarter.
- Argonne National Labs selected AMD EPYC processors to power a
new supercomputer, known as Polaris, to allow scientists and
developers to test and optimize software codes and applications for
AI, engineering, and scientific projects.
- Google Cloud announced the public preview of N2D Virtual
Machines powered by AMD EPYC™ 7003 Series processors.
- AMD announced that 2nd Gen AMD EPYC CPUs and AMD Radeon Pro
V520 GPUs will power new sizes for Amazon EC2 G4ad instances,
giving customers the flexibility to provision resources on demand,
as needs dictate, rather than being limited to their inventory of
physical, on-premise hardware.
- Cloudflare chose 3rd Gen AMD EPYC processors for its 11th Gen
servers, which power the company’s DNS network.
- AMD partnered with Microsoft to bring powerful, reliable
computing to users with Windows 11, powered by Ryzen processors and
Radeon graphics. Through this collaboration, more than 175 AMD CPUs
are now compatible with Windows 11 operating systems to drive
ultimate PC and gaming experiences.
- Customer adoption of Ryzen processors expanded, with Lenovo
starting shipments of the Ryzen-based Thinkbook and Thinkpad E
series business laptops featuring Windows 11 , Lenovo announcing
the Ryzen-powered Yoga Slim 7 Carbon and Yoga Slim 7 Pro, HP
releasing two AiO devices with Ryzen processors and ASUS unveiling
the Ryzen 5000 Series-based Zenbook, Zenbook PRO, ProArt StudioBook
and VivoBook.
- AMD launched Ryzen 5000 G-Series Desktop Processors with Radeon
Graphics, bringing high-performance integrated graphics and
powerful features to satisfy the most demanding gamers, creators
and enthusiasts.
- AMD launched the Radeon RX 6600 XT graphics card, designed to
deliver high-framerate, high-fidelity 1080p gaming experiences.
Built on breakthrough AMD RDNA™ 2 gaming architecture, the
graphics card offers on average 11 percent higher gaming
performance with Smart Access Memory enabled across a range of
popular titles compared to the competition.
- AMD announced availability of the Radeon PRO W6000X series GPUs
for Mac Pro, harnessing the high-performance AMD RDNA 2
architecture, AMD Infinity Cache and other advanced technologies to
power demanding professional design and content creation
workloads.
- AMD was named by Forbes as one of the World’s Best Employers of
2021.
- AMD announced its 26th annual Corporate Responsibility Report
highlighting AMD’s accomplishments from the previous year and
unveiling new goals through 2025 and 2030, including a new goal to
increase energy efficiency of processors running AI training and
high performance computing applications 30x by 2025.
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 2021, AMD expects revenue to be
approximately $4.5 billion, plus or minus $100 million, an increase
of approximately 39 percent year-over-year and approximately 4
percent quarter-over-quarter. The year-over-year increase is
expected to be driven by growth across all businesses. The
quarter-over-quarter increase is expected to be driven by higher
server and semi-custom revenue. AMD expects non-GAAP gross margin
to be approximately 49.5 percent in the fourth quarter 2021.
For the full year 2021, AMD now expects revenue to grow
approximately 65 percent driven by growth across all businesses, up
from prior guidance of 60 percent growth. AMD expects non-GAAP
gross margin to be approximately 48 percent for the full year
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 third quarter 2021 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.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(In millions, except per share
data) (Unaudited) |
|
|
|
|
Three Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
GAAP gross profit |
|
$ |
2,086 |
|
|
$ |
1,830 |
|
|
$ |
1,230 |
|
GAAP gross margin % |
|
48 |
% |
|
48 |
% |
|
44 |
% |
Stock-based compensation |
|
1 |
|
|
2 |
|
|
1 |
|
Non-GAAP gross
profit |
|
$ |
2,087 |
|
|
$ |
1,832 |
|
|
$ |
1,231 |
|
Non-GAAP gross margin % |
|
48 |
% |
|
48 |
% |
|
44 |
% |
|
|
|
|
|
|
|
GAAP operating
expenses |
|
$ |
1,141 |
|
|
$ |
1,000 |
|
|
$ |
781 |
|
GAAP operating expenses/revenue % |
|
26 |
% |
|
26 |
% |
|
28 |
% |
Stock-based compensation |
|
98 |
|
|
81 |
|
|
75 |
|
Acquisition-related costs |
|
8 |
|
|
10 |
|
|
— |
|
Non-GAAP operating
expenses |
|
$ |
1,035 |
|
|
$ |
909 |
|
|
$ |
706 |
|
Non-GAAP operating expenses/revenue% |
|
24 |
% |
|
24 |
% |
|
25 |
% |
|
|
|
|
|
|
|
GAAP operating
income |
|
$ |
948 |
|
|
$ |
831 |
|
|
$ |
449 |
|
GAAP operating margin % |
|
22 |
% |
|
22 |
% |
|
16 |
% |
Stock-based compensation |
|
99 |
|
|
83 |
|
|
76 |
|
Acquisition-related costs |
|
8 |
|
|
10 |
|
|
— |
|
Non-GAAP operating
income |
|
$ |
1,055 |
|
|
$ |
924 |
|
|
$ |
525 |
|
Non-GAAP operating margin % |
|
24 |
% |
|
24 |
% |
|
19 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
GAAP net income / earnings per share |
|
$ |
923 |
|
|
$ |
0.75 |
|
|
$ |
710 |
|
|
$ |
0.58 |
|
|
$ |
390 |
|
|
$ |
0.32 |
|
Loss on debt redemption/conversion |
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
38 |
|
|
0.03 |
|
(Gains) losses on equity investments, net |
|
(60 |
) |
|
(0.05 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Non-cash interest expense related to convertible debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
Stock-based compensation |
|
99 |
|
|
0.08 |
|
|
83 |
|
|
0.06 |
|
|
76 |
|
|
0.06 |
|
Equity income in investee |
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
Acquisition-related costs |
|
8 |
|
|
0.01 |
|
|
10 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Income tax provision |
|
(75 |
) |
|
(0.06 |
) |
|
(24 |
) |
|
(0.02 |
) |
|
(4 |
) |
|
— |
|
Non-GAAP net income /
earnings per share |
|
$ |
893 |
|
|
$ |
0.73 |
|
|
$ |
778 |
|
|
$ |
0.63 |
|
|
$ |
501 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used and net
income adjustment inearnings per share
calculation (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculation (GAAP) |
|
1,230 |
|
|
1,232 |
|
|
1,215 |
|
Interest expense add-back to GAAP net income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
Shares used in per share calculation (Non-GAAP) |
|
1,230 |
|
|
1,232 |
|
|
1,230 |
|
Interest expense add-back to
Non-GAAP net income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
(1 |
) |
|
For the three months ended
September 26, 2020, GAAP diluted EPS calculations include 11
million related to 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 three months ended September 26,
2020, 15 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. For the three months
ended September 26, 2020, Non-GAAP diluted EPS calculations include
26 million shares related to the Company’s 2026 Convertible Notes
and the associated $1 million interest expense 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 the features,
functionality, performance, availability, timing and expected
benefits of AMD products; AMD’s goal to increase energy efficiency
of processors running AI training and high performance computing
applications 30x by 2025; and AMD’s expected fourth 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 presentation 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; global economic uncertainty; the loss of a significant
customer; the impact of the COVID-19 pandemic on AMD’s business,
financial condition and results of operations; the competitive
markets in which AMD’s products are sold; quarterly and seasonal
sales patterns; market conditions of the industries in which AMD
products are sold; the cyclical nature of the semiconductor
industry; AMD’s ability to adequately protect its technology or
other intellectual property; unfavorable currency exchange rate
fluctuations; the ability of third party manufacturers to
manufacture AMD’s products on a timely basis in sufficient
quantities and using competitive technologies; the availability of
essential equipment, materials, substrates or manufacturing
processes; 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 revenue from its semi-custom SoC products;
potential security vulnerabilities; potential IT outages, data
loss, data breaches and cyber-attacks; uncertainties involving the
ordering and shipment of AMD’s products; 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 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 ability to effectively control the sales of its products on
the gray market; the impact of government actions and regulations
such as export administration regulations, tariffs and trade
protection measures; AMD’s ability to realize its deferred tax
assets; potential tax liabilities; current and future claims and
litigation; the impact of environmental laws, conflict
minerals-related provisions and other laws or regulations; the
impact of acquisitions, joint ventures and/or investments on AMD’s
business, including the announced acquisition of 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; the impact of any impairment
of the combined company’s assets on the combined company’s
financial position and results of operation; the restrictions
imposed by agreements governing AMD’s notes and the revolving
credit facility; 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; AMD’s ability to generate
sufficient revenue and operating cash flow or obtain external
financing for research and development or other strategic
investments; political, legal, economic risks and natural
disasters; future impairments of goodwill and technology license
purchases; AMD’s ability to attract and retain qualified personnel;
AMD’s stock price volatility; and worldwide political conditions.
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 most recent reports on Forms 10-K and
10-Q. |
* |
|
In this earnings press release, in addition to GAAP financial
results, AMD has provided non-GAAP financial measures including
non-GAAP gross profit, 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 2021, AMD uses a projected
non-GAAP tax rate of 15%, which excludes the tax impact of pre-tax
non-GAAP adjustments, reflecting currently available information.
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
October 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, AMD 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 |
|
Nine Months Ended |
|
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
|
Net revenue |
|
$ |
4,313 |
|
|
$ |
3,850 |
|
|
$ |
2,801 |
|
|
$ |
11,608 |
|
|
$ |
6,519 |
|
|
Cost of sales |
|
2,227 |
|
|
2,020 |
|
|
1,571 |
|
|
6,105 |
|
|
3,623 |
|
|
Gross profit |
|
2,086 |
|
|
1,830 |
|
|
1,230 |
|
|
5,503 |
|
|
2,896 |
|
|
Gross margin % |
|
48 |
% |
|
48 |
% |
|
44 |
% |
|
47 |
% |
|
44 |
% |
|
Research and development |
|
765 |
|
|
659 |
|
|
508 |
|
|
2,034 |
|
|
1,410 |
|
|
Marketing, general and
administrative |
|
376 |
|
|
341 |
|
|
273 |
|
|
1,036 |
|
|
687 |
|
|
Licensing gain |
|
(3 |
) |
|
(1 |
) |
|
— |
|
|
(8 |
) |
|
— |
|
|
Operating income |
|
948 |
|
|
831 |
|
|
449 |
|
|
2,441 |
|
|
799 |
|
|
Interest expense |
|
(7 |
) |
|
(10 |
) |
|
(11 |
) |
|
(26 |
) |
|
(38 |
) |
|
Other income (expense),
net |
|
62 |
|
|
— |
|
|
(37 |
) |
|
51 |
|
|
(32 |
) |
|
Income before income taxes and equity income |
|
1,003 |
|
|
821 |
|
|
401 |
|
|
2,466 |
|
|
729 |
|
|
Income tax provision |
|
82 |
|
|
113 |
|
|
12 |
|
|
284 |
|
|
22 |
|
|
Equity income in investee |
|
2 |
|
|
2 |
|
|
1 |
|
|
6 |
|
|
2 |
|
|
Net Income |
|
$ |
923 |
|
|
$ |
710 |
|
|
$ |
390 |
|
|
$ |
2,188 |
|
|
$ |
709 |
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.76 |
|
|
$ |
0.58 |
|
|
$ |
0.33 |
|
|
$ |
1.80 |
|
|
$ |
0.60 |
|
|
Diluted |
|
$ |
0.75 |
|
|
$ |
0.58 |
|
|
$ |
0.32 |
|
|
$ |
1.78 |
|
|
$ |
0.59 |
|
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,214 |
|
|
1,216 |
|
|
1,184 |
|
|
1,214 |
|
|
1,176 |
|
|
Diluted |
|
1,230 |
|
|
1,232 |
|
|
1,215 |
|
|
1,231 |
|
|
1,208 |
|
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS (Millions) |
|
|
September 25,2021 |
|
December 26,2020 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
2,440 |
|
|
$ |
1,595 |
|
Short-term investments |
|
1,168 |
|
|
695 |
|
Accounts receivable, net |
|
2,224 |
|
|
2,066 |
|
Inventories |
|
1,902 |
|
|
1,399 |
|
Receivables from related parties |
|
5 |
|
|
10 |
|
Prepaid expenses and other current assets |
|
249 |
|
|
378 |
|
Total current
assets |
|
7,988 |
|
|
6,143 |
|
Property and equipment,
net |
|
717 |
|
|
641 |
|
Operating lease right-of use
assets |
|
284 |
|
|
208 |
|
Goodwill |
|
289 |
|
|
289 |
|
Investment: equity method |
|
69 |
|
|
63 |
|
Deferred tax assets |
|
1,036 |
|
|
1,245 |
|
Other non-current assets |
|
770 |
|
|
373 |
|
Total
Assets |
|
$ |
11,153 |
|
|
$ |
8,962 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,048 |
|
|
$ |
468 |
|
Payables to related parties |
|
36 |
|
|
78 |
|
Accrued liabilities |
|
2,048 |
|
|
1,796 |
|
Short-term debt |
|
312 |
|
|
— |
|
Other current liabilities |
|
120 |
|
|
75 |
|
Total current
liabilities |
|
3,564 |
|
|
2,417 |
|
Long-term debt, net |
|
1 |
|
|
330 |
|
Long-term operating lease
liabilities |
|
269 |
|
|
201 |
|
Other long-term
liabilities |
|
183 |
|
|
177 |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
12 |
|
|
12 |
|
Additional paid-in capital |
|
10,905 |
|
|
10,544 |
|
Treasury stock, at cost |
|
(1,356 |
) |
|
(131 |
) |
Accumulated deficit (1) |
|
(2,425 |
) |
|
(4,605 |
) |
Accumulated other
comprehensive income |
|
— |
|
|
17 |
|
Total stockholders’
equity |
|
$ |
7,136 |
|
|
$ |
5,837 |
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
11,153 |
|
|
$ |
8,962 |
|
(1) |
|
During the first quarter of 2021,
the Company adopted ASU 2019-12, Income Taxes (Topic 740):
Simplifying the Accounting for Income Taxes, using the modified
retrospective adoption method, which resulted in $8 million of
deferred tax liability associated with book-tax differences in a
foreign equity method investment recognized in Accumulated
deficit. |
ADVANCED
MICRO DEVICES, INC.SELECTED CASH FLOW
INFORMATION(Millions) (Unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
Net cash provided by
(used in) |
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
849 |
|
|
$ |
952 |
|
|
$ |
339 |
|
|
$ |
2,699 |
|
|
$ |
517 |
|
Investing activities |
|
$ |
(83 |
) |
|
$ |
119 |
|
|
$ |
(549 |
) |
|
$ |
(686 |
) |
|
$ |
(658 |
) |
Financing activities |
|
$ |
(949 |
) |
|
$ |
(211 |
) |
|
$ |
(269 |
) |
|
$ |
(1,168 |
) |
|
$ |
(29 |
) |
SELECTED
CORPORATE DATA(Millions) (Unaudited) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
Segment
Information |
|
|
|
|
|
|
|
|
|
|
Computing and Graphics (1) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
2,398 |
|
|
$ |
2,250 |
|
|
$ |
1,667 |
|
|
$ |
6,748 |
|
|
$ |
4,472 |
|
Operating income |
|
$ |
513 |
|
|
$ |
526 |
|
|
$ |
384 |
|
|
$ |
1,524 |
|
|
$ |
846 |
|
Enterprise, Embedded and Semi-Custom (2) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,915 |
|
|
$ |
1,600 |
|
|
$ |
1,134 |
|
|
$ |
4,860 |
|
|
$ |
2,047 |
|
Operating income |
|
$ |
542 |
|
|
$ |
398 |
|
|
$ |
141 |
|
|
$ |
1,217 |
|
|
$ |
148 |
|
All Other (3) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
|
$ |
(107 |
) |
|
$ |
(93 |
) |
|
$ |
(76 |
) |
|
$ |
(300 |
) |
|
$ |
(195 |
) |
Total |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
4,313 |
|
|
$ |
3,850 |
|
|
$ |
2,801 |
|
|
$ |
11,608 |
|
|
$ |
6,519 |
|
Operating income |
|
$ |
948 |
|
|
$ |
831 |
|
|
$ |
449 |
|
|
$ |
2,441 |
|
|
$ |
799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
85 |
|
|
$ |
64 |
|
|
$ |
74 |
|
|
$ |
215 |
|
|
$ |
220 |
|
Adjusted EBITDA (4) |
|
$ |
1,152 |
|
|
$ |
1,021 |
|
|
$ |
607 |
|
|
$ |
3,030 |
|
|
$ |
1,216 |
|
Cash, cash equivalents and
short-term investments |
|
$ |
3,608 |
|
|
$ |
3,793 |
|
|
$ |
1,771 |
|
|
$ |
3,608 |
|
|
$ |
1,771 |
|
Free cash flow (5) |
|
$ |
764 |
|
|
$ |
888 |
|
|
$ |
265 |
|
|
$ |
2,484 |
|
|
$ |
297 |
|
Total assets |
|
$ |
11,153 |
|
|
$ |
10,691 |
|
|
$ |
7,023 |
|
|
$ |
11,153 |
|
|
$ |
7,023 |
|
Total debt |
|
$ |
313 |
|
|
$ |
313 |
|
|
$ |
373 |
|
|
$ |
313 |
|
|
$ |
373 |
|
(1) |
|
The Computing and Graphics
segment primarily includes desktop and notebook microprocessors,
accelerated processing units that integrate microprocessors and
graphics, chipsets, discrete 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 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 |
|
Nine Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
GAAP net income |
|
$ |
923 |
|
|
$ |
710 |
|
|
$ |
390 |
|
|
$ |
2,188 |
|
|
$ |
709 |
|
Interest expense |
|
7 |
|
|
10 |
|
|
11 |
|
|
26 |
|
|
38 |
|
Other (income) expense, net |
|
(62 |
) |
|
— |
|
|
37 |
|
|
(51 |
) |
|
32 |
|
Income tax provision |
|
82 |
|
|
113 |
|
|
12 |
|
|
284 |
|
|
22 |
|
Equity income in investee |
|
(2 |
) |
|
(2 |
) |
|
(1 |
) |
|
(6 |
) |
|
(2 |
) |
Stock-based compensation |
|
99 |
|
|
83 |
|
|
76 |
|
|
267 |
|
|
195 |
|
Depreciation and amortization |
|
97 |
|
|
97 |
|
|
82 |
|
|
289 |
|
|
222 |
|
Acquisition-related costs |
|
8 |
|
|
10 |
|
|
— |
|
|
33 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
1,152 |
|
|
$ |
1,021 |
|
|
$ |
607 |
|
|
$ |
3,030 |
|
|
$ |
1,216 |
|
(5)
Reconciliation of GAAP Net Cash Provided by Operating
Activities to Free Cash Flow** |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25,2021 |
|
June 26,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
GAAP net cash provided by operating activities |
|
$ |
849 |
|
|
$ |
952 |
|
|
$ |
339 |
|
|
2,699 |
|
|
517 |
|
Purchases of property and equipment |
|
(85 |
) |
|
(64 |
) |
|
(74 |
) |
|
(215 |
) |
|
(220 |
) |
Free cash flow |
|
$ |
764 |
|
|
$ |
888 |
|
|
$ |
265 |
|
|
2,484 |
|
|
297 |
|
* |
|
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, equity income in investee,
stock-based compensation, and depreciation and amortization
expense. The Company also included acquisition-related costs for
the three months ended September 25, 2021 and June 26, 2021. 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. |
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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