AMD (NASDAQ:AMD) today announced revenue for the second quarter of
2022 of $6.6 billion, gross margin of 46%, operating income of $526
million, operating margin of 8%, net income of $447 million and
diluted earnings per share of $0.27. On a non-GAAP(*) basis, gross
margin was 54%, operating income was $2.0 billion, operating margin
was 30%, net income was $1.7 billion and diluted earnings per share
was $1.05.
GAAP Quarterly Financial
Results
|
Q2 2022 |
Q2 2021 |
Y/Y |
Revenue ($M) |
$6,550 |
$3,850 |
Up 70% |
Gross profit ($M) |
$3,028 |
$1,830 |
Up 65% |
Gross margin % |
46% |
48% |
Down 140 bps |
Operating expenses ($M) |
$2,508 |
$1,000 |
Up 151% |
Operating income ($M) |
$526 |
$831 |
Down 37% |
Operating margin % |
8% |
22% |
Down 14 pp |
Net income ($M) |
$447 |
$710 |
Down 37% |
Earnings per share |
$0.27 |
$0.58 |
Down 53% |
Non-GAAP(*) Quarterly Financial
Results
|
Q2 2022 |
Q2 2021 |
Y/Y |
Revenue ($M) |
$6,550 |
$3,850 |
Up 70% |
Gross profit ($M) |
$3,538 |
$1,832 |
Up 93% |
Gross margin % |
54% |
48% |
Up 640 bps |
Operating expenses ($M) |
$1,562 |
$909 |
Up 72% |
Operating income ($M) |
$1,982 |
$924 |
Up 115% |
Operating margin % |
30% |
24% |
Up 6 pp |
Net income ($M) |
$1,707 |
$778 |
Up 119% |
Earnings per share |
$1.05 |
$0.63 |
Up 67% |
“We delivered our eighth straight quarter of
record revenue based on our strong execution and expanded product
portfolio,” said AMD Chair and CEO Dr. Lisa Su. “Each of our
segments grew significantly year-over-year, led by higher sales of
our data center and embedded products. We see continued growth in
the back half of the year highlighted by our next generation 5nm
product shipments and supported by our diversified business
model.”
Q2 2022 Financial Summary
- Revenue of $6.6 billion increased
70% year-over-year driven by growth across all segments and the
inclusion of Xilinx revenue.
- Gross margin was 46%, a decrease of
2 percentage points year-over-year, primarily due to amortization
of intangible assets associated with the Xilinx acquisition.
Non-GAAP gross margin was 54%, an increase of 6 percentage points
year-over-year, primarily driven by higher Data Center and Embedded
segment revenue.
- Operating income was $526 million,
or 8% of revenue, compared to $831 million or 22% a year ago
primarily due to amortization of intangible assets associated with
the Xilinx acquisition. Record non-GAAP operating income was $2.0
billion, or 30% of revenue, up from $924 million or 24% a year ago
primarily driven by higher revenue and gross profit.
- Net income was $447 million
compared to $710 million a year ago primarily due to lower
operating income. Record non-GAAP net income was $1.7 billion, up
from $778 million a year ago primarily driven by higher operating
income.
- Diluted earnings per share was
$0.27 compared to $0.58 a year ago primarily due to lower net
income and a higher share count as a result of the Xilinx
acquisition. Non-GAAP diluted earnings per share was $1.05 compared
to $0.63 a year ago primarily driven by higher net income.
- Cash, cash equivalents and
short-term investments were $6.0 billion at the end of the quarter
and debt was $2.8 billion. AMD repurchased $920 million of common
stock during the quarter.
- Cash from operations was a record
$1.04 billion in the quarter, compared to $952 million a year ago.
Free cash flow was $906 million in the quarter compared to $888
million a year ago.
- Goodwill and acquisition-related
intangible assets associated with the acquisitions of Xilinx and
Pensando were $50.4 billion.
Quarterly Segment Financial
Summary
- AMD previously announced new
segments beginning the second quarter to align financial reporting
with the way AMD now manages its business in strategic end markets.
- Data Center segment includes server CPUs, data center GPUs,
Pensando and Xilinx data center products.
- Client segment includes desktop and notebook PC processors and
chipsets.
- Gaming segment includes discrete graphics processors and
semi-custom game console products.
- Embedded segment includes AMD and Xilinx embedded
products.
- Prior period results have been
conformed to the new reporting segments for comparison
purposes.
- Data Center segment revenue was
$1.5 billion, up 83% year-over-year driven by strong sales of EPYC™
server processors. Operating income was $472 million, or 32% of
revenue, compared to $204 million or 25% a year ago. Operating
income improvement was primarily driven by higher revenue,
partially offset by higher operating expenses.
- Client segment revenue was $2.2
billion, up 25% year-over-year driven by Ryzen™ mobile processor
sales. Client processor ASP increased year-over-year driven by a
richer mix of Ryzen mobile processor sales. Operating income was
$676 million, or 32% of revenue, compared to $538 million or 31% a
year ago. Operating income improvement was primarily driven by
higher revenue, partially offset by higher operating expenses.
- Gaming segment revenue was $1.7
billion, up 32% year-over-year driven by higher semi-custom product
sales, partially offset by a decline in gaming graphics revenue.
Operating income was $187 million, or 11% of revenue, compared to
$175 million or 14% a year ago. Operating income improvement was
primarily driven by higher revenue, partially offset by higher
operating expenses. Operating margin was lower primarily due to
lower graphics revenue and higher operating expenses.
- Embedded segment revenue was $1.3
billion, up 2,228% year-over-year driven by the inclusion of Xilinx
embedded revenue. Operating income was $641 million, or 51% of
revenue, compared to $6 million or 11% a year ago. Operating income
and margin improvement was primarily driven by the inclusion of
Xilinx revenue.
- All Other operating loss was $1.5
billion as compared to $92 million a year ago due to amortization
of intangible assets largely associated with the Xilinx
acquisition.
Recent PR Highlights
- At its Financial Analyst Day, AMD
detailed leadership roadmaps and an expanded product portfolio to
deliver its next phase of growth across the estimated $300 billion
market for high-performance and adaptive computing solutions,
including:
- New details on the “Zen 4” core architecture, expected to
deliver significant performance and power efficiency improvements
over the previous generation.
- The “Zen 5” core planned for 2024, which is built from the
ground up to extend performance and efficiency leadership across a
broad range of workloads.
- AMD CDNA™ 3 graphics architecture featuring 3D die stacking,
4th generation Infinity Architecture, next-generation AMD Infinity
Cache™ technology and HBM memory in a single package to power what
are expected to be the world’s first data center APUs, AMD
Instinct™ MI300 accelerators.
- AMD RDNA™ 3 next generation graphics architecture expected to
deliver more than 50% greater performance-per-watt compared to the
prior generation.
- AMD XDNA™ technology, the foundational architecture IP from
Xilinx that consists of key technologies including the FPGA fabric
and AI Engine (AIE), which is planned to be integrated across the
AMD product lineup starting with the “Zen 4”-architecture based
“Phoenix Point” mobile processors planned for 2023.
- An expanded data center CPU portfolio, including the first AMD
EPYC processor optimized for intelligent edge and communications
deployments, codenamed “Siena,” and the “Bergamo” processors,
expected to be the highest performance server processors for cloud
native computing at their launch planned for the first half of
2023.
- AMD completed the acquisition of
Pensando Systems in a transaction valued at approximately $1.9
billion to expand AMD’s data center product portfolio with a
high-performance data processing unit (DPU) and software
stack. Pensando DPUs are already deployed at scale across cloud and
enterprise customers including Goldman Sachs, IBM Cloud, Microsoft
Azure and Oracle Cloud.
- The Frontier supercomputer, powered
by AMD EPYC CPUs and AMD Instinct Accelerators, achieved number one
spots on the latest TOP500, GREEN500 and HPL-AI performance lists,
an industry first, and was the first supercomputer to surpass the
exaflop barrier.
- The HPC industry continues to show
rapidly growing preference for AMD solutions, with a 95%
year-over-year increase in the number of AMD-powered systems on the
TOP500 list.
- The cloud computing industry
continues to show growing preference for AMD products.
- Google Cloud N2D and C2D virtual machines (VMs) are enabling
enhanced security offerings with 3rd Gen AMD EPYC processors
- As part of the Oracle Cloud VMware® solution product
offering, new Oracle Cloud Infrastructure E4 Dense instances
leverage AMD EPYC processors to deliver ideal performance for
hybrid cloud environments
- Microsoft Azure is the first public cloud provider to deploy
AMD Instinct MI200 accelerators for large scale AI training.
- Canon selected the Versal™ AI Core
series for the Canon Free Viewpoint Video System to power real-time
AI processing at the edge, transforming live sports
broadcasts.
- AMD introduced the Versal Premium
series with AI Engines, optimized for signal processing-intensive
applications in the aerospace and defense and test and measurement
markets.
- AMD announced that its Xilinx®
Zynq® UltraScale+™ RFSoC is enabling 4G/5G radio access network
solutions to support the Meta Connectivity Evenstar Program.
- At COMPUTEX 2022, AMD provided new
details on the new Ryzen 7000 Series desktop processors, based on
the 5nm “Zen 4” architecture, expected to launch this fall; the AMD
Socket AM5 platform, providing advanced connectivity for the most
demanding enthusiasts and gamers; and new “Mendocino” processors
bringing together “Zen 2” cores and AMD RDNA 2 architecture-based
graphics to deliver great everyday performance in notebooks,
available from OEM partners starting in Q4 2022.
- AMD announced the Radeon™ RX 6950
XT, RX 6750 XT and RX 6650 XT graphics cards, featuring faster game
clocks, faster GDDR6 memory and enhanced software and firmware
compared to previous-generation products.
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 third quarter of 2022, AMD expects
revenue to be approximately $6.7 billion, plus or minus $200
million, an increase of approximately 55% year-over-year led by
growth in the Data Center and Embedded segments. AMD expects
non-GAAP gross margin to be approximately 54% in the third quarter
of 2022.
For the full year 2022, AMD continues to
expect revenue to be approximately $26.3 billion, plus or minus
$300 million, an increase of approximately 60% over 2021 led by
growth in the Data Center and Embedded segments. AMD continues to
expect non-GAAP gross margin to be approximately 54% for 2022.
AMD Teleconference
AMD will hold a conference call for the
financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss
its second quarter 2022 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 |
|
|
June 25,2022 |
|
June 26,2021 |
|
GAAP gross profit |
|
$ |
3,028 |
|
|
$ |
1,830 |
|
|
GAAP gross margin % |
|
|
46 |
% |
|
|
48 |
% |
|
Stock-based compensation |
|
|
8 |
|
|
|
2 |
|
|
Acquisition-related costs (1) |
|
|
95 |
|
|
|
— |
|
|
Amortization of acquired intangible assets |
|
|
407 |
|
|
|
— |
|
|
Non-GAAP gross
profit |
|
$ |
3,538 |
|
|
$ |
1,832 |
|
|
Non-GAAP gross margin % |
|
|
54 |
% |
|
|
48 |
% |
|
|
|
|
|
|
|
GAAP operating
expenses |
|
$ |
2,508 |
|
|
$ |
1,000 |
|
|
GAAP operating expenses/revenue % |
|
|
38 |
% |
|
|
26 |
% |
|
Stock-based compensation |
|
|
251 |
|
|
|
81 |
|
|
Acquisition-related costs (1) |
|
|
79 |
|
|
|
10 |
|
|
Amortization of acquired intangible assets |
|
|
616 |
|
|
|
— |
|
|
Non-GAAP operating
expenses |
|
$ |
1,562 |
|
|
$ |
909 |
|
|
Non-GAAP operating expenses/revenue % |
|
|
24 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
GAAP operating
income |
|
$ |
526 |
|
|
$ |
831 |
|
|
GAAP operating margin % |
|
|
8 |
% |
|
|
22 |
% |
|
Stock-based compensation |
|
|
259 |
|
|
|
83 |
|
|
Acquisition-related costs (1) |
|
|
174 |
|
|
|
10 |
|
|
Amortization of acquired intangible assets |
|
|
1,023 |
|
|
|
— |
|
|
Non-GAAP operating
income |
|
$ |
1,982 |
|
|
$ |
924 |
|
|
Non-GAAP operating margin % |
|
|
30 |
% |
|
|
24 |
% |
|
|
|
Three Months Ended |
|
|
June 25,2022 |
|
June 26,2021 |
|
GAAP net income / earnings per share |
|
$ |
447 |
|
|
$ |
0.27 |
|
|
$ |
710 |
|
|
$ |
0.58 |
|
|
Loss on debt redemption/conversion |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
(Gains) losses on equity investments, net |
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Stock-based compensation |
|
|
259 |
|
|
|
0.16 |
|
|
|
83 |
|
|
|
0.06 |
|
|
Equity income in investee |
|
|
(4 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
Acquisition-related costs (1) |
|
|
174 |
|
|
|
0.11 |
|
|
|
10 |
|
|
|
0.01 |
|
|
Amortization of acquired intangible assets |
|
|
1,023 |
|
|
|
0.63 |
|
|
|
— |
|
|
|
— |
|
|
Income tax provision |
|
|
(202 |
) |
|
|
(0.12 |
) |
|
|
(24 |
) |
|
|
(0.02 |
) |
|
Non-GAAP net income /
earnings per share |
|
$ |
1,707 |
|
|
$ |
1.05 |
|
|
$ |
778 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
Acquisition-related
costs primarily comprised of transaction costs, purchase price
adjustments for inventory and certain compensation
charges |
|
About AMD
For more than 50 years AMD has driven innovation
in high-performance computing, graphics and visualization
technologies. AMD employees are focused on building leadership
high-performance and adaptive products that push the boundaries of
what is possible. Billions of people, leading Fortune 500
businesses and cutting-edge scientific research institutions around
the world rely on AMD technology daily to improve how they live,
work and play. 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 expected growth in the back half of the year; the features,
functionality, performance, availability, timing and expected
benefits of AMD products; the estimated market for high-performance
and adaptive computing solutions; and AMD’s expected third quarter
2022 and fiscal 2022 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; global economic uncertainty; loss of
a significant customer; impact of the COVID-19 pandemic on AMD’s
business, financial condition and results of operations;
competitive markets in which AMD’s products are sold; market
conditions of the industries in which AMD products are sold;
cyclical nature of the semiconductor industry; quarterly and
seasonal sales patterns; AMD's ability to adequately protect its
technology or other intellectual property; unfavorable currency
exchange rate fluctuations; ability of third party manufacturers to
manufacture AMD's products on a timely basis in sufficient
quantities and using competitive technologies; availability of
essential equipment, materials, substrates or manufacturing
processes; ability to achieve expected manufacturing yields for
AMD’s products; AMD's ability to introduce products on a timely
basis with expected features and performance levels; AMD's ability
to generate revenue from its semi-custom SoC products; potential
security vulnerabilities; potential security incidents including 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 design, manufacture and supply of
motherboards, software and other computer platform components;
AMD's reliance on Microsoft 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;
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; efficiency of AMD's supply chain;
AMD's ability to rely on third party supply-chain logistics
functions; AMD’s ability to effectively control sales of its
products on the gray market; 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; impact of environmental laws, conflict
minerals-related provisions and other laws or regulations; impact
of acquisitions, joint ventures and/or investments on AMD's
business, and ability to integrate acquired businesses, such as
Xilinx and Pensando; impact of any impairment of the combined
company’s assets on the combined company’s financial position and
results of operation; restrictions imposed by agreements governing
AMD’s notes, the guarantees of Xilinx’s notes and the revolving
credit facility; AMD's indebtedness; AMD's ability to generate
sufficient cash to meet its working capital requirements or
generate sufficient revenue and operating cash flow to make all of
its planned R&D or 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, 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 2022, AMD uses a projected non-GAAP
tax rate of 13%, 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 August 2, 2022 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, Threadripper, Versal 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 |
|
Six Months Ended |
|
|
|
June 25,2022 |
|
June 26,2021 |
|
June 25,2022 |
|
June 26,2021 |
|
Net revenue |
|
$ |
6,550 |
|
|
$ |
3,850 |
|
|
$ |
12,437 |
|
|
$ |
7,295 |
|
|
Cost of sales |
|
|
3,115 |
|
|
|
2,020 |
|
|
|
5,998 |
|
|
|
3,878 |
|
|
Amortization of
acquisition-related intangibles |
|
|
407 |
|
|
|
— |
|
|
|
593 |
|
|
|
— |
|
|
Total cost of sales |
|
|
3,522 |
|
|
|
2,020 |
|
|
|
6,591 |
|
|
|
3,878 |
|
|
Gross profit |
|
|
3,028 |
|
|
|
1,830 |
|
|
|
5,846 |
|
|
|
3,417 |
|
|
Gross margin % |
|
|
46 |
% |
|
|
48 |
% |
|
|
47 |
% |
|
|
47 |
% |
|
Research and development |
|
|
1,300 |
|
|
|
659 |
|
|
|
2,360 |
|
|
|
1,269 |
|
|
Marketing, general and
administrative |
|
|
592 |
|
|
|
341 |
|
|
|
1,189 |
|
|
|
660 |
|
|
Amortization of
acquisition-related intangibles |
|
|
616 |
|
|
|
— |
|
|
|
909 |
|
|
|
— |
|
|
Licensing gain |
|
|
(6 |
) |
|
|
(1 |
) |
|
|
(89 |
) |
|
|
(5 |
) |
|
Operating income |
|
|
526 |
|
|
|
831 |
|
|
|
1,477 |
|
|
|
1,493 |
|
|
Interest expense |
|
|
(25 |
) |
|
|
(10 |
) |
|
|
(38 |
) |
|
|
(19 |
) |
|
Other income (expense),
net |
|
|
(4 |
) |
|
|
— |
|
|
|
(46 |
) |
|
|
(11 |
) |
|
Income before income taxes and equity income |
|
|
497 |
|
|
|
821 |
|
|
|
1,393 |
|
|
|
1,463 |
|
|
Income tax provision |
|
|
54 |
|
|
|
113 |
|
|
|
167 |
|
|
|
202 |
|
|
Equity income in investee |
|
|
4 |
|
|
|
2 |
|
|
|
7 |
|
|
|
4 |
|
|
Net income |
|
$ |
447 |
|
|
$ |
710 |
|
|
$ |
1,233 |
|
|
$ |
1,265 |
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.28 |
|
|
$ |
0.58 |
|
|
$ |
0.82 |
|
|
$ |
1.04 |
|
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.58 |
|
|
$ |
0.81 |
|
|
$ |
1.03 |
|
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
Basic |
|
|
1,618 |
|
|
|
1,216 |
|
|
|
1,506 |
|
|
|
1,214 |
|
|
Diluted |
|
|
1,632 |
|
|
|
1,232 |
|
|
|
1,521 |
|
|
|
1,231 |
|
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(Millions)
|
|
June 25,2022 |
|
December 25,2021 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
4,964 |
|
|
$ |
2,535 |
|
Short-term investments |
|
|
1,028 |
|
|
|
1,073 |
|
Accounts receivable, net |
|
|
4,050 |
|
|
|
2,706 |
|
Inventories |
|
|
2,648 |
|
|
|
1,955 |
|
Receivables from related parties |
|
|
3 |
|
|
|
2 |
|
Prepaid expenses and other current assets |
|
|
769 |
|
|
|
312 |
|
Total current
assets |
|
|
13,462 |
|
|
|
8,583 |
|
Property and equipment,
net |
|
|
1,441 |
|
|
|
702 |
|
Operating lease right-of use
assets |
|
|
482 |
|
|
|
367 |
|
Goodwill |
|
|
24,193 |
|
|
|
289 |
|
Acquisition-related
intangibles, net |
|
|
26,159 |
|
|
|
— |
|
Investment: equity method |
|
|
76 |
|
|
|
69 |
|
Deferred tax assets |
|
|
32 |
|
|
|
931 |
|
Other non-current assets |
|
|
1,657 |
|
|
|
1,478 |
|
Total
Assets |
|
$ |
67,502 |
|
|
$ |
12,419 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,518 |
|
|
$ |
1,321 |
|
Payables to related parties |
|
|
361 |
|
|
|
85 |
|
Accrued liabilities |
|
|
3,074 |
|
|
|
2,424 |
|
Short-term debt |
|
|
312 |
|
|
|
312 |
|
Other current liabilities |
|
|
258 |
|
|
|
98 |
|
Total current
liabilities |
|
|
5,523 |
|
|
|
4,240 |
|
Long-term debt, net |
|
|
2,465 |
|
|
|
1 |
|
Long-term operating lease
liabilities |
|
|
422 |
|
|
|
348 |
|
Deferred tax liabilities |
|
|
2,805 |
|
|
|
— |
|
Other long-term
liabilities |
|
|
1,118 |
|
|
|
333 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
|
16 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
57,297 |
|
|
|
11,069 |
|
Treasury stock, at cost |
|
|
(1,893 |
) |
|
|
(2,130 |
) |
Accumulated deficit |
|
|
(218 |
) |
|
|
(1,451 |
) |
Accumulated other
comprehensive income |
|
|
(33 |
) |
|
|
(3 |
) |
Total stockholders'
equity |
|
$ |
55,169 |
|
|
$ |
7,497 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
67,502 |
|
|
$ |
12,419 |
|
ADVANCED MICRO DEVICES, INC.SELECTED
CASH FLOW INFORMATION(Millions)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 25,2022 |
|
June 26,2021 |
|
June 25,2022 |
|
June 26,2021 |
|
Net cash provided by
(used in) |
|
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
1,038 |
|
|
$ |
952 |
|
|
$ |
2,033 |
|
|
$ |
1,850 |
|
|
Investing activities |
|
$ |
(928 |
) |
|
$ |
119 |
|
|
$ |
2,230 |
|
|
$ |
(603 |
) |
|
Financing activities |
|
$ |
114 |
|
|
$ |
(211 |
) |
|
$ |
(1,834 |
) |
|
$ |
(219 |
) |
|
SELECTED CORPORATE DATA(Millions)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 25,2022 |
|
June 26, 2021 |
|
June 25,2022 |
|
June 26,2021 |
|
Segment and Category
Information(1) |
|
|
|
|
|
|
|
|
|
Data Center |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,486 |
|
|
$ |
813 |
|
|
$ |
2,779 |
|
|
$ |
1,423 |
|
|
Operating income |
|
$ |
472 |
|
|
$ |
204 |
|
|
$ |
899 |
|
|
$ |
314 |
|
|
Client |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
2,152 |
|
|
$ |
1,728 |
|
|
$ |
4,276 |
|
|
$ |
3,366 |
|
|
Operating income |
|
$ |
676 |
|
|
$ |
538 |
|
|
$ |
1,368 |
|
|
$ |
1,068 |
|
|
Gaming |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,655 |
|
|
$ |
1,255 |
|
|
$ |
3,530 |
|
|
$ |
2,410 |
|
|
Operating income |
|
$ |
187 |
|
|
$ |
175 |
|
|
$ |
545 |
|
|
$ |
296 |
|
|
Embedded |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,257 |
|
|
$ |
54 |
|
|
$ |
1,852 |
|
|
$ |
96 |
|
|
Operating income |
|
$ |
641 |
|
|
$ |
6 |
|
|
$ |
918 |
|
|
$ |
3 |
|
|
All Other |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Operating loss |
|
$ |
(1,450 |
) |
|
$ |
(92 |
) |
|
$ |
(2,253 |
) |
|
$ |
(188 |
) |
|
Total |
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
6,550 |
|
|
$ |
3,850 |
|
|
$ |
12,437 |
|
|
$ |
7,295 |
|
|
Operating income |
|
$ |
526 |
|
|
$ |
831 |
|
|
$ |
1,477 |
|
|
$ |
1,493 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
132 |
|
|
$ |
64 |
|
|
$ |
203 |
|
|
$ |
130 |
|
|
Adjusted EBITDA (2) |
|
$ |
2,139 |
|
|
$ |
1,021 |
|
|
$ |
4,106 |
|
|
$ |
1,878 |
|
|
Cash, cash equivalents and
short-term investments |
|
$ |
5,992 |
|
|
$ |
3,793 |
|
|
$ |
5,992 |
|
|
$ |
3,793 |
|
|
Free cash flow (3) |
|
$ |
906 |
|
|
$ |
888 |
|
|
$ |
1,830 |
|
|
$ |
1,720 |
|
|
Total assets |
|
$ |
67,502 |
|
|
$ |
10,691 |
|
|
$ |
67,502 |
|
|
$ |
10,691 |
|
|
Total debt |
|
$ |
2,777 |
|
|
$ |
313 |
|
|
$ |
2,777 |
|
|
$ |
313 |
|
|
(1 |
) |
|
The Data Center segment primarily
includes server microprocessors, GPUs, data processing units
(DPUs), Field Programmable Gate Arrays (FPGAs) and adaptive SoC
products for data centers. |
|
|
The Client segment primarily
includes microprocessors, accelerated processing units (APUs) that
integrate microprocessors and graphics, and chipsets for desktop
and notebook personal computers. |
|
|
The Gaming segment primarily
includes discrete graphics processing units (GPUs), semi-custom
System-on-Chip (SoC) products and development services. |
|
|
The Embedded segment primarily
includes embedded microprocessors, GPUs, FPGAs, adaptive SoC
products, and Adaptive Compute Acceleration Platform (ACAP)
products. |
|
|
From time to time, the Company
may also sell or license portions of its IP portfolio. |
|
|
All Other category primarily
includes certain expenses and credits that are not allocated to any
of the operating segments. Also included in this category are
acquisition-related intangible asset amortization expense,
stock-based compensation expense, acquisition-related costs and
licensing gain. |
|
|
|
(2 |
) |
|
Reconciliation of GAAP
Net Income to Adjusted EBITDA |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 25,2022 |
|
June 26,2021 |
|
June 25,2022 |
|
June 26,2021 |
|
GAAP net income |
|
$ |
447 |
|
|
$ |
710 |
|
|
$ |
1,233 |
|
|
$ |
1,265 |
|
|
Interest expense |
|
|
25 |
|
|
|
10 |
|
|
|
38 |
|
|
|
19 |
|
|
Other (income) expense, net |
|
|
4 |
|
|
|
— |
|
|
|
46 |
|
|
|
11 |
|
|
Income tax provision |
|
|
54 |
|
|
|
113 |
|
|
|
167 |
|
|
|
202 |
|
|
Equity income in investee |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
|
Stock-based compensation |
|
|
259 |
|
|
|
83 |
|
|
|
433 |
|
|
|
168 |
|
|
Depreciation and amortization |
|
|
157 |
|
|
|
97 |
|
|
|
287 |
|
|
|
192 |
|
|
Amortization of acquired intangible assets |
|
|
1,023 |
|
|
|
— |
|
|
|
1,502 |
|
|
|
— |
|
|
Acquisition-related costs |
|
|
174 |
|
|
|
10 |
|
|
|
407 |
|
|
|
25 |
|
|
Adjusted EBITDA |
|
$ |
2,139 |
|
|
$ |
1,021 |
|
|
$ |
4,106 |
|
|
$ |
1,878 |
|
|
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,
depreciation and amortization expense and acquisition-related
costs. The Company also included amortization of acquired
intangible assets for the three months and six months ended June
25, 2022. 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. |
(3 |
) |
|
Reconciliation of GAAP
Net Cash Provided by Operating Activities to Free Cash
Flow |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 25, 2022 |
|
June 26, 2021 |
|
June 25, 2022 |
|
June 26, 2021 |
|
GAAP net cash provided by operating activities |
|
$ |
1,038 |
|
|
$ |
952 |
|
|
$ |
2,033 |
|
|
$ |
1,850 |
|
|
Operating cash flow margin % |
|
|
16 |
% |
|
|
25 |
% |
|
|
16 |
% |
|
|
25 |
% |
|
Purchases of property and equipment |
|
$ |
(132 |
) |
|
$ |
(64 |
) |
|
$ |
(203 |
) |
|
$ |
(130 |
) |
|
Free cash flow |
|
$ |
906 |
|
|
$ |
888 |
|
|
$ |
1,830 |
|
|
$ |
1,720 |
|
|
Free cash flow margin % |
|
|
14 |
% |
|
|
23 |
% |
|
|
15 |
% |
|
|
24 |
% |
|
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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