ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Three Months Ended
--------------------------------------
March 26, December 26, March 28,
2016 2015 2015
----------- ------------ -----------
Net revenue $ 832 $ 958 $ 1,030
Cost of sales 563 675 704
----------- ------------ -----------
Gross margin 269 283 326
Gross margin % 32% 30% 32%
Research and development 242 229 242
Marketing, general and
administrative 105 109 131
Amortization of acquired intangible
assets - - 3
Restructuring and other special
charges, net (3) (6) 87
Licensing gain (7) - -
----------- ------------ -----------
Operating loss (68) (49) (137)
Interest expense (40) (41) (40)
Other expense, net - (2) -
----------- ------------ -----------
Loss before income taxes (108) (92) (177)
Provision for income taxes 1 10 3
----------- ------------ -----------
Net loss $ (109) $ (102) $ (180)
Net loss per share
Basic $ (0.14) $ (0.13) $ (0.23)
Diluted $ (0.14) $ (0.13) $ (0.23)
----------- ------------ -----------
Shares used in per share calculation
Basic 793 791 777
Diluted 793 791 777
----------- ------------ -----------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Millions)
Three Months Ended
--------------------------------------
March 26, December 26, March 28,
2016 2015 2015
----------- ------------ -----------
Total comprehensive loss $ (107) $ (95) $ (187)
----------- ------------ -----------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (1) (2)
(Millions)
March 26, December 26,
2016 2015
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 716 $ 785
Accounts receivable, net 508 533
Inventories, net 675 678
Prepayment and other - GLOBALFOUNDRIES 26 33
Prepaid expenses 49 43
Other current assets 252 248
------------- -------------
Total current assets 2,226 2,320
Property, plant and equipment, net 176 188
Goodwill 278 278
Other assets 301 298
------------- -------------
Total Assets $ 2,981 $ 3,084
============= =============
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Short-term debt $ 230 $ 230
Accounts payable 324 279
Payable to GLOBALFOUNDRIES 233 245
Accrued liabilities 347 472
Other current liabilities 151 124
Deferred income on shipments to distributors 43 53
------------- -------------
Total current liabilities 1,328 1,403
Long-term debt 2,006 2,007
Other long-term liabilities 150 86
Stockholders' equity (deficit):
Capital stock:
Common stock, par value 8 8
Additional paid-in capital 7,033 7,017
Treasury stock, at cost (123) (123)
Accumulated deficit (7,415) (7,306)
Accumulated other comprehensive loss (6) (8)
------------- -------------
Total Stockholders' equity (deficit) (503) (412)
------------- -------------
Total Liabilities and Stockholders' Equity
(Deficit) $ 2,981 $ 3,084
============= =============
(1) Amounts reflected adoption of FASB ASU 2015-17, Balance Sheet
Classification of Deferred Taxes in the first quarter of 2016.
(2) Amounts reflected adoption of FASB ASU 2015-03, Simplifying the
Presentation of Debt Issuance Costs in the first quarter of 2016.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months
Ended
-------------
March 26,
2016
-------------
Cash flows from operating activities:
Net Loss $ (109)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 33
Stock-based compensation expense 16
Non-cash interest expense 4
Other (5)
Changes in operating assets and liabilities:
Accounts receivable 26
Inventories 3
Prepayment and other - GLOBALFOUNDRIES 7
Prepaid expenses and other assets 22
Accounts payable, accrued liabilities and other (27)
Payable to GLOBALFOUNDRIES (12)
-------------
Net cash used in operating activities $ (42)
-------------
Cash flows from investing activities:
Purchases of property, plant and equipment (26)
-------------
Net cash used in investing activities $ (26)
-------------
Cash flows from financing activities:
Other (1)
-------------
Net cash used in financing activities $ (1)
-------------
Net decrease in cash and cash equivalents (69)
-------------
Cash and cash equivalents at beginning of period $ 785
-------------
Cash and cash equivalents at end of period $ 716
-------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Three Months Ended
----------------------------------------------------------------------------
March 26, December 26, March 28,
Segment and Category Information 2016 2015 2015
----------------------------------------------------------------------------
Computing and Graphics (1)
Net revenue $ 460 $ 470 $ 532
Operating loss $ (70) $ (99) $ (75)
Enterprise, Embedded and Semi-
Custom (2)
Net revenue $ 372 $ 488 $ 498
Operating income $ 16 $ 59 $ 45
All Other (3)
Net revenue - - -
Operating loss $ (14) $ (9) $ (107)
Total
Net revenue $ 832 $ 958 $ 1,030
Operating loss $ (68) $ (49) $ (137)
----------------------------------------------------------------------------
Other Data
Depreciation and amortization,
excluding amortization of
acquired intangible assets $ 33 $ 34 $ 43
Capital additions $ 26 $ 32 $ 22
Adjusted EBITDA (4) $ (22) $ (5) $ 13
Cash and cash equivalents $ 716 $ 785 $ 906
Non-GAAP free cash flow (5) $ (68) $ 27 $ (194)
Total assets $ 2,981 $ 3,084 $ 3,399
Total debt $ 2,236 $ 2,237 $ 2,239
Headcount 9,047 9,139 9,583
----------------------------------------------------------------------------
See footnotes on the next page
(1) Computing and Graphics segment primarily includes desktop and notebook
processors, chipsets, discrete graphics processing units (GPUs) and
professional graphics.
(2) Enterprise, Embedded and Semi-Custom segment primarily includes server
and embedded processors, semi-custom System-on-Chip (SoC) products,
development services, technology for game consoles and licensing gain.
(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 stock-based compensation expense and restructuring
and other special charges, net. In addition, the Company also included
amortization of acquired intangible assets for the first quarter of
2015.
(4) Reconciliation of GAAP Operating Loss to Adjusted EBITDA*
Three Months Ended
-------------------------------------
March 26, December 26, March 28,
2016 2015 2015
---------- ------------- ----------
GAAP operating loss $ (68) $ (49) $ (137)
Restructuring and other special
charges, net (3) (6) 87
Stock-based compensation expense 16 16 17
Amortization of acquired
intangible assets - - 3
Depreciation and amortization 33 34 43
---------- ------------- ----------
Adjusted EBITDA $ (22) $ (5) $ 13
========== ============= ==========
(5) Non-GAAP free cash flow reconciliation**
Three Months Ended
-------------------------------------
March 26, December 26, March 28,
2016 2015 2015
---------- ------------- ----------
GAAP net cash provided by (used
in) operating activities $ (42) $ 59 $ (172)
Purchases of property, plant and
equipment (26) (32) (22)
---------- ------------- ----------
Non-GAAP free cash flow $ (68) $ 27 $ (194)
========== ============= ==========
* 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, stock-based
compensation expense and restructuring and other special charges, net.
In addition, the company excluded amortization of acquired intangible
assets for the first quarter of 2015. The Company calculates and
communicates Adjusted EBITDA 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 as a supplemental
measure of its performance. Non-GAAP free cash flow is determined by
adjusting GAAP net cash provided by (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 2016 First Quarter Results
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