1. In this earnings press release, in addition to GAAP financial results,
AMD has provided non-GAAP financial measures including non-GAAP
operating income, non-GAAP net income (loss) and non-GAAP earnings
(loss) per share. These non-GAAP financial measures reflect certain
adjustments as presented in the tables in this earnings press release.
AMD also provided Adjusted EBITDA and non-GAAP free cash flow as
supplemental 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. Refer to the data tables at the
end of this earnings.
2. Compared to the previous generation of AMD FirePro™ professional
graphics.
3. AMD FirePro™ S9150 max power is 235W and delivers up to 2.53 TFLOPS peak
double and up to 5.07 peak single precision floating point performance.
Nvidia's highest performing server cards in the market as of June 2014
are the Tesla K40, max power of 235W, with up to 1.43 TFLOPS peak double
and up to 4.29 peak single, and the K10, max power 225W, with up to 4.58
TFLOPS peak single and 190 GFLOPS peak double precision. Visit
www.nvidia.com/object/tesla-servers.html for Nvidia product
specs. FP-97
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Three Months Ended Nine Months Ended
---------------------------- ------------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
Net revenue $ 1,429 $ 1,441 $ 1,461 $ 4,267 $ 3,710
Cost of sales 935 943 940 $ 2,788 2,285
-------- -------- -------- -------- --------
Gross margin 494 498 521 1,479 1,425
Gross margin% 35% 35% 36% 35% 38%
Research and development 278 277 288 834 908
Marketing, general and
administrative 150 154 155 460 505
Amortization of acquired
intangible assets 3 4 5 10 14
Restructuring and other
special charges (gains),
net - - (22) - 30
-------- -------- -------- -------- --------
Operating income (loss) 63 63 95 175 (32)
Interest income 1 - 1 2 4
Interest expense (43) (46) (47) (136) (133)
Other income (expense),
net (2) (49) 2 (72) (3)
-------- -------- -------- -------- --------
Income (loss) before
income taxes 19 (32) 51 (31) (164)
Provision for income taxes 2 4 3 8 8
-------- -------- -------- -------- --------
Net income (loss) $ 17 $ (36) $ 48 $ (39) $ (172)
Net income (loss) per
share
Basic $ 0.02 $ (0.05) $ 0.06 $ (0.05) $ (0.23)
Diluted $ 0.02 $ (0.05) $ 0.06 $ (0.05) $ (0.23)
-------- -------- -------- -------- --------
Shares used in per share
calculation
Basic 770 764 757 765 753
Diluted 785 764 764 765 753
-------- -------- -------- -------- --------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)
Three Months Ended Nine Months Ended
---------------------------- ------------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
Total comprehensive income
(loss) $ 15 $ (32) $ 52 $ (38) $ (171)
-------- -------- -------- -------- --------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
--------- --------- ---------
Sep. 27, Jun. 28, Dec. 28,
2014 2014 2013
--------- --------- ---------
Assets
Current assets:
Cash and cash equivalents $ 640 $ 503 $ 869
Marketable securities 298 445 228
Accounts receivable, net 973 872 832
Inventories, net 897 960 884
Prepaid expenses and other current assets 212 152 71
--------- --------- ---------
Total current assets 3,020 2,932 2,884
Long-term marketable securities - - 90
Property, plant and equipment, net 328 329 346
Acquisition related intangible assets, net 69 72 78
Goodwill 553 553 553
Other assets 355 360 386
--------- --------- ---------
Total Assets $ 4,325 $ 4,246 $ 4,337
========= ========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt $ 102 $ 101 $ 60
Accounts payable 498 511 519
Payable to GLOBALFOUNDRIES 317 295 364
Accrued and other current liabilities 555 480 530
Deferred income on shipments to
distributors 94 118 145
--------- --------- ---------
Total current liabilities 1,566 1,505 1,618
Long-term debt 2,106 2,109 1,998
Other long-term liabilities 118 131 177
Stockholders' equity:
Capital stock:
Common stock, par value 8 8 7
Additional paid-in capital 6,928 6,905 6,894
Treasury stock, at cost (118) (114) (112)
Accumulated deficit (6,282) (6,299) (6,243)
Accumulated other comprehensive income
(loss) (1) 1 (2)
--------- --------- ---------
Total stockholders' equity 535 501 544
--------- --------- ---------
Total Liabilities and Stockholders' Equity $ 4,325 $ 4,246 $ 4,337
========= ========= =========
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months Ended Nine Months Ended
------------------ ------------------
Sep. 27, Sep. 27,
2014 2014
------------------ ------------------
Cash flows from operating
activities:
Net Income (loss) $ 17 $ (39)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization 49 155
Employee stock-based
compensation expense 21 65
Non-cash interest expense 2 11
Loss on debt redemptions - 64
Other (6) (9)
Changes in operating assets and
liabilities:
Accounts receivable (104) (144)
Inventories 62 (14)
Prepaid expenses and other
assets (71) (156)
Payable to GLOBALFOUNDRIES 22 (47)
Accounts payable, accrued
liabilities and other 26 (100)
------------------ ------------------
Net cash provided by (used in)
operating activities $ 18 $ (214)
------------------ ------------------
Cash flows from investing
activities:
Purchases of property, plant and
equipment (29) (73)
Purchases of available-for-sale
securities (28) (646)
Proceeds from sale and maturity of
available-for-sale securities 176 664
------------------ ------------------
Net cash provided by (used in)
investing activities $ 119 $ (55)
------------------ ------------------
Cash flows from financing
activities:
Net proceeds from foreign grants
and allowances $ 3 $ 5
Proceeds from issuance of common
stock 2 4
Proceeds from borrowings, net - 1,080
Repayments of long-term debt and
capital lease obligations (1) (1,043)
Other (4) (6)
------------------ ------------------
Net cash provided by financing
activities $ - $ 40
------------------ ------------------
Net increase (decrease) in cash and
cash equivalents 137 (229)
------------------ ------------------
Cash and cash equivalents at
beginning of period $ 503 $ 869
------------------ ------------------
Cash and cash equivalents at end of
period $ 640 $ 640
------------------ ------------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Three Months Ended Nine Months Ended
---------------------------------------------------- -------------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
Segment and Category
Information 2014 2014 2013 2014 2013
---------------------------------------------------- -------------------
Computing and
Graphics (1)
Net revenue $ 781 $ 828 $ 925 $ 2,470 $ 2,832
Operating income
(loss) $ (17) $ (6) $ 9 $ (20) $ (86)
Enterprise, Embedded
and Semi-Custom (2)
Net revenue 648 613 536 1,797 878
Operating income 108 97 92 290 166
All Other (3)
Operating loss (28) (28) (6) (95) (112)
Total
Net revenue $ 1,429 $ 1,441 $ 1,461 $ 4,267 $ 3,710
Operating income
(loss) $ 63 $ 63 $ 95 $ 175 $ (32)
---------------------------------------------------- -------------------
Other Data
Depreciation and
amortization,
excluding
amortization of
acquired intangible
assets $ 46 $ 49 $ 52 $ 145 $ 168
Capital additions $ 29 $ 23 $ 15 $ 73 $ 63
Adjusted EBITDA (4) $ 133 $ 137 $ 153 $ 409 $ 247
Cash, cash
equivalents and
marketable
securities,
including long-term
marketable
securities $ 938 $ 948 $ 1,181 $ 938 $ 1,181
Non-GAAP free cash
flow (5) $ (11) $ (51) $ 6 $ (287) $ (232)
Total assets $ 4,325 $ 4,246 $ 4,317 $ 4,325 $ 4,317
Total debt $ 2,208 $ 2,210 $ 2,049 $ 2,208 $ 2,049
Headcount 10,149 10,300 10,330 10,149 10,330
---------------------------------------------------- -------------------
(1) Computing and Graphics segment primarily includes desktop and notebook
processors and chipsets, discrete graphics processing units (GPUs) and
professional graphics.
(2) Enterprise, Embedded and Semi-Custom segment primarily includes server
and embedded processors, dense servers, semi-custom System-on-Chip
(SoC) products, engineering services and royalties.
(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 are amortization of acquired intangible assets and
employee stock-based compensation expense. In addition, the Company
also included the following adjustments for the indicated periods: for
the nine months ended September 27, 2014, the Company included an
adjustment for workforce rebalancing severance charges; and for the
third quarter of 2013 and nine months ended September 28, 2013, the
Company included an adjustment for net restructuring and other special
charges (gains.)
(4) Reconciliation of GAAP operating income (loss) to Adjusted EBITDA*
Three Months Ended Nine Months Ended
--------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
GAAP operating income
(loss) $ 63 $ 63 $ 95 $ 175 $ (32)
Workforce rebalancing
severance charges - - - 14 -
Depreciation and
amortization 46 49 52 145 168
Employee stock-based
compensation expense 21 21 23 65 67
Amortization of acquired
intangible assets 3 4 5 10 14
Restructuring and other
special charges
(gains), net - - (22) - 30
-------- -------- -------- -------- --------
Adjusted EBITDA $ 133 $ 137 $ 153 $ 409 $ 247
======== ======== ======== ======== ========
(5) Non-GAAP free cash flow reconciliation**
Three Months Ended Nine Months Ended
--------------------------- -----------------
Sep. 27, Jun. 28, Sep. 28, Sep. 27, Sep. 28,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
GAAP net cash provided by
(used in) operating
activities $ 18 $ (28) $ 21 $ (214) $ (169)
Purchases of property,
plant and equipment (29) (23) (15) (73) (63)
-------- -------- -------- -------- --------
Non-GAAP free cash flow $ (11) $ (51) $ 6 $ (287) $ (232)
======== ======== ======== ======== ========
* The Company presents Adjusted EBITDA as a supplemental measure of its
performance. Adjusted EBITDA for the Company is determined by adjusting
operating income (loss) for depreciation and amortization, employee
stock-based compensation expense and amortization of acquired
intangible assets. In addition, the Company also included the following
adjustments for the indicated periods: for the nine months ended
September 27, 2014, the Company included an adjustment for workforce
rebalancing severance charges; and for the third quarter of 2013 and
nine months ended September 28, 2013, the Company included an
adjustment for net restructuring and other special charges (gains). The
Company calculates and communicates Adjusted EBITDA in the earnings
press release because the Company's 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 operating income (loss) 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 as well as interest and income taxes that can
affect cash flows.
** The Company also presents non-GAAP free cash flow in the earnings
press release as a supplemental measure of its performance. Non-GAAP
free cash flow is determined by adjusting GAAP net cash used in
operating activities for capital expenditures. The Company calculates
and communicates non-GAAP free cash flow in the financial earnings
press release because the Company's management believes it is of
importance to investors to understand the nature of these cash flows.
The Company's calculation of non-GAAP 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 non-GAAP 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.
AMD Reports 2014 Third Quarter Results
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