Q3 2013 Results
- AMD revenue $1.46 billion, increased 26 percent sequentially and 15 percent year-over-year
- Gross margin 36 percent
- Operating income of $95 million and non-GAAP(1) operating income of $78 million
- Net income of $48 million, earnings per share of $0.06 and non-GAAP(1) net income of $31 million, earnings per share of $0.04
AMD (
"AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago," said Rory Read, AMD president and CEO. "We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets."
GAAP Financial Results
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Q3-13 Q2-13 Q3-12
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Revenue $1.46B $1.16B $1.27B
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Operating income (loss) $95M $(29)M $(131)M
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Net income (loss) / Earnings $48M/$0.06 $(74)M/$(0.10) $(157)M/$(0.21)
(loss) per share
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Non-GAAP Financial Results (1)
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Q3-13 Q2-13 Q3-12
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Revenue $1.46B $1.16B $1.27B
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Operating income (loss) $78M $(20)M $(124)M
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Net income (loss) / Earnings $31M/$0.04 $(65)M/$(0.09) $(150)M/$(0.20)
(loss) per share
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Quarterly Financial Summary
- Gross margin was 36 percent in Q3 2013.
- Gross margin decreased sequentially. Q3 2013 gross margin included a $19 million benefit, approximately 1 percentage point, from the sale of inventory that had been previously reserved in Q3 2012 as compared to a similar $11 million benefit, approximately 1 percentage point, in Q2 2013.
- Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion at the end of the quarter, slightly above our targeted optimal level of $1.1 billion.
- Computing Solutions segment revenue decreased 6 percent sequentially and decreased 15 percent year-over-year. The sequential and year-over-year declines were due to decreased notebook and chipset unit shipments, partially offset by an increase in desktop unit shipments.
- Operating income was $22 million, compared with operating income of $2 million in Q2 2013 and an operating loss of $114 million in Q3 2012. The Q3 2012 operating loss included an inventory write-down of approximately $100 million primarily consisting of first generation A-Series accelerated processing units (APUs).
- Microprocessor Average Selling Price (ASP) was flat sequentially and decreased year-over-year.
- Graphics and Visual Solutions (GVS) is comprised of graphics processing units (GPUs), including professional graphics, as well as semi-custom products and development and game console royalties.
- GVS segment revenue increased 110 percent sequentially and increased 96 percent year-over-year driven largely by our semi-custom business. GPU revenue declined sequentially and year-over-year. In the third quarter customers began transitioning to our new products late in the quarter.
- Operating income was $79 million compared with breakeven in Q2 2013 and $18 million in Q3 2012.
- GPU ASP decreased sequentially and year-over-year.
