AMD Reports First Quarter 2018 Financial Results

  • AMD continued returning innovation and excitement to the PC market with the introduction of new consumer-focused desktop processors.
     ◦ AMD introduced the first AMD Ryzen desktop APUs, combining the high-performance Radeon “Vega” graphics architecture with revolutionary “Zen” CPU cores on a single chip.
     ◦ AMD also delivered the next products in the Company’s strong multi-generational roadmap with the launch of its 2nd Generation Ryzen desktop CPUs just over one year after bringing the first Ryzen processors to market. The new 2nd Generation Ryzen processors can deliver up to 15% higher gaming performance compared to 1st Generation Ryzen processors, with the Ryzen 7 2700X processor delivering the highest multiprocessing performance available on a mainstream desktop PC.
  • Adoption of AMD products for the datacenter continued with new AMD EPYC processor-powered platforms and deployments.
     ◦ Dell EMC introduced three new PowerEdge platforms powered by AMD EPYC 7000 series server processors.
     ◦  Yahoo Japan Corporation and Packet joined the expanding list of global businesses deploying EPYC processors to enhance the performance and efficiency of their datacenters.
     ◦ Supercomputing leader Cray announced that it added EPYC processors to its Cray CS500 line of HPC offerings.
  • AMD brought the powerful “Zen” architecture to a variety of new embedded markets with the launch of EPYC Embedded and Ryzen Embedded processors.
  • AMD released new Radeon Software Adrenalin Edition updates to optimize the performance of some of the most popular PC games and improve the eSports experience for Radeon graphics card owners.
  • AMD and Microsoft announced support for Radeon FreeSync™ technology in Microsoft’s Xbox One™ S and Xbox One™ X consoles, bringing the exceptional tear-free gaming experience to a broader base of gamers.
  • Adobe announced a new version of Adobe® Premiere Pro® CC with native support for AMD Radeon Pro SSG graphics to dramatically accelerate 4K and 8K workflows for popular native camera formats.
  • Steam launched support for AMD TrueAudio Next in Steam Audio, offering Steam users a more immersive audio experience.
  • AMD was included in Fast Company’s “World’s Most Innovative Companies” 2018 edition, ranking in the top ten Most Innovative Companies in the Consumer Electronics sector.

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 second quarter of 2018, AMD expects revenue to be approximately $1.725 billion, plus or minus $50 million, an increase of 50 percent year-over-year, and non-GAAP gross margin of approximately 37 percent.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its first quarter 2018 financial results and forward looking financial guidance. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com. The webcast will be available for 12 months after the conference call.  A slide presentation of quarterly financial results can be found at ir.amd.com.


     
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES    
 (In millions, except per share data)  Three Months Ended
   March 31,
2018
  December 30,
2017
  April 1,
2017
GAAP Gross Margin  $ 597   $ 452   $ 378 
GAAP Gross Margin %  36 %  34 %  32 %
Stock-based compensation 1     
Non-GAAP Gross Margin  $ 598   $ 452   $ 378 
Non-GAAP Gross Margin %  36 %  34 %  32 %
       
GAAP operating expenses  $
477    $
454    $
394 
Stock-based compensation  31   21   23 
Non-GAAP operating expenses   $
446     $
433     $
371  
             
GAAP operating income (loss)   $ 120     $ (2 )   $ 11  
Stock-based compensation   32     21     23  
Non-GAAP operating income   $ 152     $ 19     $ 34  

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