AMD Reports First Quarter 2024 Financial Results
April 30 2024 - 4:15PM
AMD (NASDAQ:AMD) today announced revenue for the first quarter of
2024 of $5.5 billion, gross margin of 47%, operating income of $36
million, net income of $123 million and diluted earnings per share
of $0.07. On a non-GAAP(*) basis, gross margin was 52%, operating
income was $1.1 billion, net income was $1.0 billion and diluted
earnings per share was $0.62.
“We delivered strong first quarter results with
our Data Center and Client segments each growing more than 80%
year-over-year driven by the ramp of MI300 AI accelerator shipments
and the adoption of our Ryzen and EPYC processors,” said AMD Chair
and CEO Dr. Lisa Su. “This is an incredibly exciting time for
the industry as widespread deployment of AI is driving demand for
significantly more compute across a broad range of markets. We are
executing very well as we ramp our data center business and enable
AI capabilities across our product portfolio.”
“AMD started the year strong, delivering record
quarterly Data Center segment revenue,” said AMD EVP, CFO and
Treasurer Jean Hu. “In addition, we drove solid gross margin
expansion. Moving forward, we are well positioned to continue
driving revenue growth and margin improvement while investing in
the large AI opportunities ahead.”
GAAP Quarterly Financial
Results
|
Q1 2024 |
Q1 2023 |
Y/Y |
Q4 2023 |
Q/Q |
Revenue ($M) |
$ |
5,473 |
|
$ |
5,353 |
|
Up 2% |
$ |
6,168 |
|
Down 11% |
Gross profit ($M) |
$ |
2,560 |
|
$ |
2,359 |
|
Up 9% |
$ |
2,911 |
|
Down 12% |
Gross margin |
|
47 |
% |
|
44 |
% |
Up 3 ppts |
|
47 |
% |
Flat |
Operating expenses ($M) |
$ |
2,537 |
|
$ |
2,514 |
|
Flat |
$ |
2,575 |
|
Flat |
Operating income (loss) ($M) |
$ |
36 |
|
$ |
(145 |
) |
Up 125% |
$ |
342 |
|
Down 89% |
Operating margin |
|
1 |
% |
|
(3 |
)% |
Up 4 ppts |
|
6 |
% |
Down 5 ppts |
Net income (loss) ($M) |
$ |
123 |
|
$ |
(139 |
) |
Up 188% |
$ |
667 |
|
Down 82% |
Diluted earnings (loss) per share |
$ |
0.07 |
|
$ |
(0.09 |
) |
Up 178% |
$ |
0.41 |
|
Down 83% |
Non-GAAP(*) Quarterly Financial
Results
|
Q1 2024 |
Q1 2023 |
Y/Y |
Q4 2023 |
Q/Q |
Revenue ($M) |
$ |
5,473 |
|
$ |
5,353 |
|
Up 2% |
$ |
6,168 |
|
Down 11% |
Gross profit ($M) |
$ |
2,861 |
|
$ |
2,675 |
|
Up 7% |
$ |
3,133 |
|
Down 9% |
Gross margin |
|
52 |
% |
|
50 |
% |
Up 2 ppts |
|
51 |
% |
Up 1 ppt |
Operating expenses ($M) |
$ |
1,741 |
|
$ |
1,587 |
|
Up 10% |
$ |
1,727 |
|
Flat |
Operating income ($M) |
$ |
1,133 |
|
$ |
1,098 |
|
Up 3% |
$ |
1,412 |
|
Down 20% |
Operating margin |
|
21 |
% |
|
21 |
% |
Flat |
|
23 |
% |
Down 2 ppts |
Net income ($M) |
$ |
1,013 |
|
$ |
970 |
|
Up 4% |
$ |
1,249 |
|
Down 19% |
Diluted earnings per share |
$ |
0.62 |
|
$ |
0.60 |
|
Up 3% |
$ |
0.77 |
|
Down 19% |
Segment Summary
- Record Data
Center segment revenue of $2.3 billion was up 80% year-over-year
driven by growth in both AMD Instinct™ GPUs and 4th Gen AMD EPYC™
CPUs. Revenue increased 2% sequentially driven by the first full
quarter of AMD Instinct GPU sales, partially offset by a seasonal
decline in server CPU sales.
- Client segment
revenue was $1.4 billion, up 85% year-over-year driven primarily by
AMD Ryzen™ 8000 Series processor sales. Revenue decreased 6%
sequentially.
- Gaming segment
revenue was $922 million, down 48% year-over-year and 33%
sequentially due to a decrease in semi-custom revenue and lower AMD
Radeon™ GPU sales.
- Embedded segment
revenue was $846 million, down 46% year-over-year and 20%
sequentially as customers continued to manage their inventory
levels.
Recent PR Highlights
- AMD expanded its
AI solutions for cloud, enterprise, embedded and PC markets:
- Lenovo announced the highly
performant ThinkSystem SR685a V3 8GPU server with AMD Instinct
MI300X for both enterprise on-premise AI and public AI cloud
service providers. Dell Technologies and Supermicro also showcased
early performance of their AMD Instinct MI300X systems.
- The AMD AI software ecosystem
continues to mature with several key optimizations and additional
features in the latest AMD ROCm™ 6.1 software stack that enable
native support for additional generative AI tools and frameworks,
further extend the leadership performance of AMD Instinct MI300X
solutions and expand support for AMD Radeon PRO W7800 and Radeon RX
7900 GRE workstation and desktop GPUs.
- AMD expanded its commercial AI PC
processor portfolio with the launch of new AMD Ryzen™ PRO notebook
and desktop processors with leadership AI and compute performance
and advanced security. HP and Lenovo announced new enterprise PCs
powered by Ryzen PRO 8000 Series processors.
- At the “Advancing AI PC Innovation
Summit,” a broad set of partners joined AMD to showcase how AMD is
enabling emerging AI experiences. OEMs including Lenovo and HP
showcased over 100 AI experiences already available through AMD
platforms, and AMD expects to have more than 150 ISVs developing
for Ryzen AI by the end of the year.
- AMD launched new Versal™ Series Gen
2 devices, including the Versal AI Edge Series Gen 2 SoCs that
combine multiple compute engines on a single chip for highly
efficient end-to-end acceleration of AI-driven embedded systems.
Subaru plans to deploy Versal AI Edge Series Gen 2 to power their
next-gen EyeSight ADAS vision system.
- The new AMD Embedded+ architecture
combines x86 embedded processors with adaptive SoCs to accelerate
time to market for edge AI applications.
- Japanese bullet train operator JR
Kyushu is using the AMD Kria™ K26 System-on-Module AI-based
solution to automate track inspection.
- Sony Semiconductor Solutions
selected the AMD Artix™-7 FPGA and Zynq™ UltraScale+™ MPSoC for its
LiDAR automotive reference design.
- Leading partners expanded their
application-optimized solutions powered by AMD EPYC processors:
- Lenovo announced
two new platforms powered by 4th Gen AMD EPYC processors, the
ThinkAgile MX455 V3 Edge Premier Solution, an AI-optimized fully
integrated solution with the Microsoft Azure Stack HCI, and the
ThinkSystem SD535 V3, which is tailor made for mixed enterprise
workloads.
- AMD, Samsung and
Vodafone demonstrated virtualized RAN solutions powered by AMD EPYC
CPUs.
- Ericsson and
Telstra are using 4th Gen AMD EPYC processors to deliver energy
efficiency and modernization for innovative 5G core functions.
- AMD continues to
enhance its software offerings for gamers with AMD FidelityFX™
Super Resolution 3.1 that brings significant image quality
improvements and expanded developer support, as well as AMD Fluid
Motion Frames, increasing frame generation for thousands of
games.
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 second quarter of 2024, AMD expects
revenue to be approximately $5.7 billion, plus or minus $300
million. At the mid-point of the revenue range, this represents
year-over-year growth of approximately 6% and sequential growth of
approximately 4%. Non-GAAP gross margin is expected to be
approximately 53%.
AMD TeleconferenceAMD will hold
a conference call for the financial community at 2:00 p.m. PT (5:00
p.m. ET) today to discuss its first quarter 2024 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 |
|
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
|
GAAP gross profit |
|
$ |
2,560 |
|
|
$ |
2,911 |
|
|
$ |
2,359 |
|
GAAP gross margin |
|
|
47 |
% |
|
|
47 |
% |
|
|
44 |
% |
Stock-based compensation |
|
|
6 |
|
|
|
6 |
|
|
|
8 |
|
Amortization of acquisition-related intangibles |
|
|
230 |
|
|
|
215 |
|
|
|
305 |
|
Acquisition-related and other costs (1) |
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
Inventory loss at contract manufacturer (2) |
|
|
65 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP gross
profit |
|
$ |
2,861 |
|
|
$ |
3,133 |
|
|
$ |
2,675 |
|
Non-GAAP gross margin |
|
|
52 |
% |
|
|
51 |
% |
|
|
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses |
|
$ |
2,537 |
|
|
$ |
2,575 |
|
|
$ |
2,514 |
|
GAAP operating expenses/revenue % |
|
|
46 |
% |
|
|
42 |
% |
|
|
47 |
% |
Stock-based compensation |
|
|
365 |
|
|
|
368 |
|
|
|
297 |
|
Amortization of acquisition-related intangibles |
|
|
392 |
|
|
|
420 |
|
|
|
518 |
|
Acquisition-related and other costs (1) |
|
|
39 |
|
|
|
60 |
|
|
|
112 |
|
Non-GAAP operating
expenses |
|
$ |
1,741 |
|
|
$ |
1,727 |
|
|
$ |
1,587 |
|
Non-GAAP operating expenses/revenue % |
|
|
32 |
% |
|
|
28 |
% |
|
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
$ |
36 |
|
|
$ |
342 |
|
|
$ |
(145 |
) |
GAAP operating margin |
|
|
1 |
% |
|
|
6 |
% |
|
|
(3 |
)% |
Stock-based compensation |
|
|
371 |
|
|
|
374 |
|
|
|
305 |
|
Amortization of acquisition-related intangibles |
|
|
622 |
|
|
|
635 |
|
|
|
823 |
|
Acquisition-related and other costs (1) |
|
|
39 |
|
|
|
61 |
|
|
|
115 |
|
Inventory loss at contract manufacturer (2) |
|
|
65 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP operating
income |
|
$ |
1,133 |
|
|
$ |
1,412 |
|
|
$ |
1,098 |
|
Non-GAAP operating margin |
|
|
21 |
% |
|
|
23 |
% |
|
|
21 |
% |
|
|
Three Months Ended |
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
GAAP net income (loss) / earnings (loss) per
share |
|
$ |
123 |
|
|
$ |
0.07 |
|
|
$ |
667 |
|
|
$ |
0.41 |
|
|
$ |
(139 |
) |
|
$ |
(0.09 |
) |
(Gains) losses on equity investments, net |
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Stock-based compensation |
|
|
371 |
|
|
|
0.23 |
|
|
|
374 |
|
|
|
0.23 |
|
|
|
305 |
|
|
|
0.19 |
|
Equity income in investee |
|
|
(7 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Amortization of acquisition-related intangibles |
|
|
622 |
|
|
|
0.38 |
|
|
|
635 |
|
|
|
0.39 |
|
|
|
823 |
|
|
|
0.51 |
|
Acquisition-related and other costs (1) |
|
|
39 |
|
|
|
0.02 |
|
|
|
61 |
|
|
|
0.04 |
|
|
|
115 |
|
|
|
0.07 |
|
Inventory loss at contract manufacturer (2) |
|
|
65 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax provision |
|
|
(203 |
) |
|
|
(0.12 |
) |
|
|
(483 |
) |
|
|
(0.30 |
) |
|
|
(132 |
) |
|
|
(0.08 |
) |
Non-GAAP net income /
earnings per share |
|
$ |
1,013 |
|
|
$ |
0.62 |
|
|
$ |
1,249 |
|
|
$ |
0.77 |
|
|
$ |
970 |
|
|
$ |
0.60 |
|
(1 |
) |
|
Acquisition-related and other
costs primarily comprised of transaction costs, purchase price
adjustments for inventory, certain compensation charges, contract
termination and workforce rebalancing charges. |
(2 |
) |
|
Inventory loss at contract
manufacturer is related to an incident at a third-party contract
manufacturing facility. |
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,
LinkedIn and X pages.
Cautionary Statement
This press release contains forward-looking
statements concerning Advanced Micro Devices, Inc. (AMD) such as
expected AI opportunities; AMD’s ability to ramp its Data Center
business and enable AI capabilities across its product portfolio;
AMD’s ability to drive revenue growth and margin improvement while
investing in future AI opportunities; the features, functionality,
performance, availability, timing and expected benefits of AMD
products; and AMD’s expected second quarter 2024 financial outlook,
including revenue and non-GAAP gross margin, 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;
economic and market uncertainty; cyclical nature of the
semiconductor industry; market conditions of the industries in
which AMD products are sold; loss of a significant customer; public
health crises, such as pandemics and epidemics; competitive markets
in which AMD’s products are sold; 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 cyberattacks; potential difficulties
in operating AMD’s newly upgraded enterprise resource planning
system; 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, memory 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;
long-term impact of climate change on AMD’s business; impact of
government actions and regulations such as export 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;
evolving expectations from governments, investors, customers
and other stakeholders regarding corporate responsibility matters;
issues related to the responsible use of AI; impact of
acquisitions, joint ventures and/or investments on AMD’s business
and AMD’s ability to integrate acquired businesses; impact of any
impairment of the combined company’s assets; 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 and economic risks and natural disasters; future
impairments of technology license purchases; AMD’s ability to
attract and retain qualified personnel; and AMD’s stock price
volatility. 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 diluted 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 2024, 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 in 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 April 30,
2024 and assumptions and beliefs that involve numerous risks and
uncertainties. Adjustments to arrive at the GAAP gross margin
outlook typically include stock-based compensation, amortization of
acquired intangible assets and acquisition-related and other costs.
The timing and impact of such adjustments are dependent on future
events that are typically uncertain or outside of AMD's control,
therefore, a reconciliation to equivalent GAAP measures is not
practicable at this time. AMD undertakes no intent or obligation to
publicly update or revise its outlook statements as a result of new
information, future events or otherwise, except as may be required
by law. |
AMD, the AMD Arrow logo, EPYC,
Radeon, Ryzen, Instinct, Versal, Alveo, Kria, FidelityFX, 3D
V-Cache, Ultrascale+, Zynq, Threadripper and combinations thereof,
are trademarks of Advanced Micro Devices,
Inc.
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Millions except per share
amounts and percentages) (Unaudited) |
|
|
|
Three Months Ended |
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
Net revenue |
|
$ |
5,473 |
|
|
$ |
6,168 |
|
|
$ |
5,353 |
|
Cost of sales |
|
|
2,683 |
|
|
|
3,042 |
|
|
|
2,689 |
|
Amortization of
acquisition-related intangibles |
|
|
230 |
|
|
|
215 |
|
|
|
305 |
|
Total cost of sales |
|
|
2,913 |
|
|
|
3,257 |
|
|
|
2,994 |
|
Gross profit |
|
|
2,560 |
|
|
|
2,911 |
|
|
|
2,359 |
|
Gross margin |
|
|
47 |
% |
|
|
47 |
% |
|
|
44 |
% |
Research and development |
|
|
1,525 |
|
|
|
1,511 |
|
|
|
1,411 |
|
Marketing, general and
administrative |
|
|
620 |
|
|
|
644 |
|
|
|
585 |
|
Amortization of
acquisition-related intangibles |
|
|
392 |
|
|
|
420 |
|
|
|
518 |
|
Licensing gain |
|
|
(13 |
) |
|
|
(6 |
) |
|
|
(10 |
) |
Operating income (loss) |
|
|
36 |
|
|
|
342 |
|
|
|
(145 |
) |
Interest expense |
|
|
(25 |
) |
|
|
(27 |
) |
|
|
(25 |
) |
Other income (expense),
net |
|
|
53 |
|
|
|
49 |
|
|
|
43 |
|
Income (loss) before income taxes and equity income |
|
|
64 |
|
|
|
364 |
|
|
|
(127 |
) |
Income tax provision
(benefit) |
|
|
(52 |
) |
|
|
(297 |
) |
|
|
13 |
|
Equity income in investee |
|
|
7 |
|
|
|
6 |
|
|
|
1 |
|
Net income (loss) |
|
$ |
123 |
|
|
$ |
667 |
|
|
$ |
(139 |
) |
Earnings (loss) per share |
|
|
|
|
|
|
Basic |
|
$ |
0.08 |
|
|
$ |
0.41 |
|
|
$ |
(0.09 |
) |
Diluted |
|
$ |
0.07 |
|
|
$ |
0.41 |
|
|
$ |
(0.09 |
) |
Shares used in per share
calculation |
|
|
|
|
|
|
Basic |
|
|
1,617 |
|
|
|
1,616 |
|
|
|
1,611 |
|
Diluted |
|
|
1,639 |
|
|
|
1,628 |
|
|
|
1,611 |
|
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Millions) |
|
|
|
March 30,2024 |
|
December 30,2023 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
4,190 |
|
|
$ |
3,933 |
|
Short-term investments |
|
|
1,845 |
|
|
|
1,840 |
|
Accounts receivable, net |
|
|
5,038 |
|
|
|
5,376 |
|
Inventories |
|
|
4,652 |
|
|
|
4,351 |
|
Receivables from related parties |
|
|
31 |
|
|
|
9 |
|
Prepaid expenses and other current assets |
|
|
1,328 |
|
|
|
1,259 |
|
Total current
assets |
|
|
17,084 |
|
|
|
16,768 |
|
Property and equipment,
net |
|
|
1,624 |
|
|
|
1,589 |
|
Operating lease right-of-use
assets |
|
|
632 |
|
|
|
633 |
|
Goodwill |
|
|
24,262 |
|
|
|
24,262 |
|
Acquisition-related
intangibles, net |
|
|
20,741 |
|
|
|
21,363 |
|
Investment: equity method |
|
|
106 |
|
|
|
99 |
|
Deferred tax assets |
|
|
433 |
|
|
|
366 |
|
Other non-current assets |
|
|
3,013 |
|
|
|
2,805 |
|
Total
Assets |
|
$ |
67,895 |
|
|
$ |
67,885 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,418 |
|
|
$ |
2,055 |
|
Payables to related parties |
|
|
438 |
|
|
|
363 |
|
Accrued liabilities |
|
|
3,444 |
|
|
|
3,082 |
|
Current portion of long-term debt, net |
|
|
750 |
|
|
|
751 |
|
Other current liabilities |
|
|
424 |
|
|
|
438 |
|
Total current
liabilities |
|
|
6,474 |
|
|
|
6,689 |
|
Long-term debt, net of current
portion |
|
|
1,718 |
|
|
|
1,717 |
|
Long-term operating lease
liabilities |
|
|
530 |
|
|
|
535 |
|
Deferred tax liabilities |
|
|
1,199 |
|
|
|
1,202 |
|
Other long-term
liabilities |
|
|
1,776 |
|
|
|
1,850 |
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
60,053 |
|
|
|
59,676 |
|
Treasury stock, at cost |
|
|
(4,690 |
) |
|
|
(4,514 |
) |
Retained earnings |
|
|
846 |
|
|
|
723 |
|
Accumulated other
comprehensive loss |
|
|
(28 |
) |
|
|
(10 |
) |
Total stockholders'
equity |
|
$ |
56,198 |
|
|
$ |
55,892 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
67,895 |
|
|
$ |
67,885 |
|
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(Millions)
(Unaudited) |
|
|
Three Months Ended |
|
March 30,2024 |
|
April 1,2023 |
Cash flows from operating
activities: |
|
|
|
Net income (loss) |
$ |
123 |
|
|
$ |
(139 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
784 |
|
|
|
982 |
|
Stock-based compensation |
|
371 |
|
|
|
309 |
|
Amortization of operating lease right-of-use assets |
|
26 |
|
|
|
24 |
|
Deferred income taxes |
|
(66 |
) |
|
|
(308 |
) |
Inventory loss at contract manufacturer |
|
65 |
|
|
|
— |
|
Other |
|
(22 |
) |
|
|
5 |
|
Changes in operating assets and liabilities |
|
|
|
Accounts receivable, net |
|
338 |
|
|
|
86 |
|
Inventories |
|
(368 |
) |
|
|
(464 |
) |
Prepaid expenses and other assets |
|
(322 |
) |
|
|
(191 |
) |
Receivables from and payables to related parties, net |
|
53 |
|
|
|
(109 |
) |
Accounts payable |
|
(636 |
) |
|
|
73 |
|
Accrued and other liabilities |
|
175 |
|
|
|
218 |
|
Net cash provided by operating
activities |
|
521 |
|
|
|
486 |
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
|
(142 |
) |
|
|
(158 |
) |
Purchases of short-term investments |
|
(433 |
) |
|
|
(1,703 |
) |
Proceeds from maturity of short-term investments |
|
441 |
|
|
|
473 |
|
Proceeds from sale of short-term investments |
|
2 |
|
|
|
145 |
|
Other |
|
(3 |
) |
|
|
6 |
|
Net cash used in investing
activities |
|
(135 |
) |
|
|
(1,237 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from sales of common stock through employee equity
plans |
|
5 |
|
|
|
3 |
|
Repurchases of common stock |
|
(4 |
) |
|
|
(241 |
) |
Common stock repurchases for tax withholding on employee equity
plans |
|
(129 |
) |
|
|
(21 |
) |
Other |
|
(1 |
) |
|
|
— |
|
Net cash used in financing
activities |
|
(129 |
) |
|
|
(259 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
257 |
|
|
|
(1,010 |
) |
Cash and cash equivalents at
beginning of period |
|
3,933 |
|
|
|
4,835 |
|
Cash and cash equivalents at
end of period |
$ |
4,190 |
|
|
$ |
3,825 |
|
|
ADVANCED
MICRO DEVICES, INC.SELECTED CORPORATE
DATA(Millions) (Unaudited) |
|
|
|
Three Months Ended |
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
Segment and Category
Information(1) |
|
|
|
|
|
|
Data Center |
|
|
|
|
|
|
Net revenue |
|
$ |
2,337 |
|
|
$ |
2,282 |
|
|
$ |
1,295 |
|
Operating income |
|
$ |
541 |
|
|
$ |
666 |
|
|
$ |
148 |
|
Client |
|
|
|
|
|
|
Net revenue |
|
$ |
1,368 |
|
|
$ |
1,461 |
|
|
$ |
739 |
|
Operating income (loss) |
|
$ |
86 |
|
|
$ |
55 |
|
|
$ |
(172 |
) |
Gaming |
|
|
|
|
|
|
Net revenue |
|
$ |
922 |
|
|
$ |
1,368 |
|
|
$ |
1,757 |
|
Operating income |
|
$ |
151 |
|
|
$ |
224 |
|
|
$ |
314 |
|
Embedded |
|
|
|
|
|
|
Net revenue |
|
$ |
846 |
|
|
$ |
1,057 |
|
|
$ |
1,562 |
|
Operating income |
|
$ |
342 |
|
|
$ |
461 |
|
|
$ |
798 |
|
All Other |
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
|
$ |
(1,084 |
) |
|
$ |
(1,064 |
) |
|
$ |
(1,233 |
) |
Total |
|
|
|
|
|
|
Net revenue |
|
$ |
5,473 |
|
|
$ |
6,168 |
|
|
$ |
5,353 |
|
Operating income (loss) |
|
$ |
36 |
|
|
$ |
342 |
|
|
$ |
(145 |
) |
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
Capital expenditures |
|
$ |
142 |
|
|
$ |
139 |
|
|
$ |
158 |
|
Adjusted EBITDA (2) |
|
$ |
1,295 |
|
|
$ |
1,576 |
|
|
$ |
1,257 |
|
Cash, cash equivalents and
short-term investments |
|
$ |
6,035 |
|
|
$ |
5,773 |
|
|
$ |
5,939 |
|
Free cash flow (3) |
|
$ |
379 |
|
|
$ |
242 |
|
|
$ |
328 |
|
Total assets |
|
$ |
67,895 |
|
|
$ |
67,885 |
|
|
$ |
67,634 |
|
Total debt |
|
$ |
2,468 |
|
|
$ |
2,468 |
|
|
$ |
2,467 |
|
(1) |
|
The Data Center segment primarily includes server microprocessors
(CPUs), graphics processing units (GPUs), accelerated processing
units (APUs), data processing units (DPUs), Field Programmable Gate
Arrays (FPGAs), Smart Network Interface Cards (SmartNICs),
Artificial Intelligence (AI) accelerators and Adaptive
System-on-Chip (SoC) products for data centers. |
|
|
|
|
|
The Client segment primarily
includes CPUs, APUs, and chipsets for desktop, notebook and
handheld personal computers. |
|
|
|
|
|
The Gaming segment primarily
includes discrete GPUs, and semi-custom SoC products and
development services. |
|
|
|
|
|
The Embedded segment primarily
includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules
(SOMs), and Adaptive SoC 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, such as amortization of
acquisition-related intangible asset, employee stock-based
compensation expense, acquisition-related and other costs,
inventory loss at contract manufacturer, and licensing gain. |
(2) |
|
Reconciliation of GAAP Net Income (loss) to Adjusted
EBITDA |
|
|
Three Months Ended |
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
GAAP net income (loss) |
|
$ |
123 |
|
|
$ |
667 |
|
|
$ |
(139 |
) |
Interest expense |
|
|
25 |
|
|
|
27 |
|
|
|
25 |
|
Other (income) expense, net |
|
|
(53 |
) |
|
|
(49 |
) |
|
|
(43 |
) |
Income tax provision (benefit) |
|
|
(52 |
) |
|
|
(297 |
) |
|
|
13 |
|
Equity income in investee |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(1 |
) |
Stock-based compensation |
|
|
371 |
|
|
|
374 |
|
|
|
305 |
|
Depreciation and amortization |
|
|
162 |
|
|
|
164 |
|
|
|
159 |
|
Amortization of acquisition-related intangibles |
|
|
622 |
|
|
|
635 |
|
|
|
823 |
|
Inventory loss at contract manufacturer |
|
|
65 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related and other costs |
|
|
39 |
|
|
|
61 |
|
|
|
115 |
|
Adjusted EBITDA |
|
$ |
1,295 |
|
|
$ |
1,576 |
|
|
$ |
1,257 |
|
The Company presents “Adjusted EBITDA” as a supplemental measure of
its performance. Adjusted EBITDA for the Company is determined by
adjusting GAAP net income (loss) for interest expense, other income
(expense), net, income tax provision (benefit), equity income in
investee, stock-based compensation, depreciation and amortization
expense (including amortization of acquisition-related
intangibles), inventory loss at contract manufacturer,
acquisition-related and other costs. 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 |
|
|
March 30,2024 |
|
December 30,2023 |
|
April 1,2023 |
GAAP net cash provided by operating activities |
|
$ |
521 |
|
|
$ |
381 |
|
|
$ |
486 |
|
Operating cash flow margin % |
|
|
10 |
% |
|
|
6 |
% |
|
|
9 |
% |
Purchases of property and equipment |
|
$ |
(142 |
) |
|
$ |
(139 |
) |
|
$ |
(158 |
) |
Free cash flow |
|
$ |
379 |
|
|
$ |
242 |
|
|
$ |
328 |
|
Free cash flow margin % |
|
|
7 |
% |
|
|
4 |
% |
|
|
6 |
% |
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, and free cash flow margin % is free cash flow
expressed as a percentage of the Company's net revenue. 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:Mitch HawsAMD Investor
Relations408-749-3124mitch.haws@amd.com
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