- Preliminary third quarter income of roughly $5.6 billion, decrease than prior outlook of $6.7 billion plus or minus $200 million, primarily because of weaker Client section income
- Revenue for Data Center, Gaming, and Embedded Segments every grew considerably year-over-year and in-line with the corporate’s expectations
- Management to debate monetary outcomes and outlook on Nov. 1 earnings name
SANTA CLARA, Calif., Oct. 06, 2022 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) as we speak introduced chosen preliminary monetary outcomes for the third quarter of 2022.
Third quarter income is predicted to be roughly $5.6 billion, a rise of 29% year-over-year. AMD beforehand anticipated income to extend roughly 55% year-over-year on the mid-point of steerage. Preliminary outcomes mirror decrease than anticipated Client section income ensuing from lowered processor shipments because of a weaker than anticipated PC market and important stock correction actions throughout the PC provide chain.
Revenue for the Data Center, Gaming, and Embedded segments every elevated considerably year-over-year in-line with the corporate’s expectations.
Gross margin is predicted to be roughly 42% and non-GAAP(*) gross margin is predicted to be roughly 50%. AMD beforehand anticipated non-GAAP gross margin to be roughly 54%. The gross margin shortfall to expectations was primarily because of decrease income pushed by decrease Client processor unit shipments and common promoting value (ASP). In addition, the third quarter outcomes are anticipated to incorporate roughly $160 million of costs primarily for stock, pricing, and associated reserves within the graphics and shopper companies.
Third quarter working bills are anticipated to be roughly $2.4 billion and non-GAAP working bills are anticipated to be roughly $1.5 billion. Non-GAAP working bills are decrease than earlier expectations of $1.6 billion pushed by decrease variable compensation bills within the quarter.
“The PC market weakened significantly in the quarter,” mentioned AMD Chair and CEO Dr. Lisa Su. “While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5nm data center and graphics products later this quarter.”
| Q3 FY22 Outlook(1) | Q3 FY22 Preliminary Results | |
| Revenue | ~$6.7 billion, plus or minus $200 million | ~$5.6 billion |
| Gross margin – GAAP | – | ~42% |
| Gross margin – non-GAAP | ~54% | ~50% |
| Operating bills – GAAP | – | ~$2.4 billion |
| Operating bills – non-GAAP | ~$1.6 billion | ~$1.5 billion |
(1) Announced with the corporate’s second quarter 2022 monetary leads to August 2022.
| Segment(2) Revenue ($ in billions) |
Q3 FY22 Preliminary Results |
Q/Q | Y/Y |
| Data Center | ~$1.6 | Up 8% | Up 45% |
| Client | ~$1.0 | Down 53% | Down 40% |
| Gaming | ~$1.6 | Flat | Up 14% |
| Embedded | ~$1.3 | Up 4% | Up 1,549% |
| Total | ~$5.6 | Down 15% | Up 29% |
This replace doesn’t current all mandatory data for an understanding of AMD’s monetary situation as of the date of this launch, or its outcomes of operations for the third quarter of 2022. As AMD completes its quarter-end monetary shut course of and finalizes its monetary statements for the quarter, will probably be required to make judgments in quite a lot of areas. It is feasible that AMD could determine objects that require it to make changes to the preliminary monetary data set forth above and people changes might be materials. AMD doesn’t intend to replace any monetary data previous to launch of its ultimate third quarter monetary assertion data, which is at present scheduled for Nov. 1, 2022.
AMD Q3’22 Earnings Conference Call
AMD will maintain a convention name for the monetary group at 2:00 p.m. PT (5:00 p.m. ET) on Nov. 1, 2022 to debate its third quarter 2022 monetary outcomes. AMD will present a real-time audio broadcast of the teleconference on the Investor Relations web page of its web site at www.amd.com.
About AMD
For greater than 50 years AMD has pushed innovation in high-performance computing, graphics and visualization applied sciences. AMD workers are centered on constructing management high-performance and adaptive merchandise that push the boundaries of what’s attainable. Billions of individuals, main Fortune 500 companies and cutting-edge scientific analysis establishments all over the world depend on AMD expertise each day to enhance how they dwell, work and play. For extra details about how AMD is enabling as we speak and provoking tomorrow, go to the AMD (NASDAQ: AMD) web site, weblog, Facebook and Twitter pages.
Cautionary Statement
This press launch incorporates forward-looking statements regarding Advanced Micro Devices, Inc. (AMD) such AMD’s preliminary third quarter 2022 monetary outcomes, anticipated stock, pricing and associated reserve costs within the graphics and shopper companies; AMD’s capacity to ship its management product roadmap; and launching next-generation 5 nm knowledge middle and graphics merchandise within the fourth quarter of 2022, that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally recognized by phrases similar to “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and different phrases with related which means. Investors are cautioned that the forward-looking statements on this press launch are primarily based on present beliefs, assumptions and expectations, converse solely as of the date of this press launch and contain dangers and uncertainties that would trigger precise outcomes to vary materially from present expectations. Such statements are topic to sure recognized and unknown dangers and uncertainties, a lot of that are troublesome to foretell and customarily past AMD’s management, that would trigger precise outcomes and different future occasions to vary materially from these expressed in, or implied or projected by, the forward-looking data and statements. Material elements that would trigger precise outcomes to vary materially from present expectations embrace, with out limitation, the next: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; international financial uncertainty; lack of a big buyer; affect of the COVID-19 pandemic on AMD’s business, monetary situation and outcomes of operations; aggressive markets through which AMD’s merchandise are offered; market circumstances of the industries through which AMD merchandise are offered; cyclical nature of the semiconductor {industry}; quarterly and seasonal gross sales patterns; AMD’s capacity to adequately defend its expertise or different mental property; unfavorable foreign money trade charge fluctuations; capacity of third celebration producers to fabricate AMD’s merchandise on a well timed foundation in enough portions and utilizing aggressive applied sciences; availability of important gear, supplies, substrates or manufacturing processes; capacity to attain anticipated manufacturing yields for AMD’s merchandise; AMD’s capacity to introduce merchandise on a well timed foundation with anticipated options and efficiency ranges; AMD’s capacity to generate income from its semi-custom SoC merchandise; potential safety vulnerabilities; potential safety incidents together with IT outages, knowledge loss, knowledge breaches and cyber-attacks; potential difficulties in upgrading and working AMD’s new enterprise useful resource planning system; uncertainties involving the ordering and cargo of AMD’s merchandise; AMD’s reliance on third-party mental property to design and introduce new merchandise in a well timed method; AMD’s reliance on third-party firms for design, manufacture and provide of motherboards, software program and different pc platform elements; AMD’s reliance on Microsoft and different software program distributors’ help to design and develop software program to run on AMD’s merchandise; AMD’s reliance on third-party distributors and add-in-board companions; affect of modification or interruption of AMD’s inner business processes and data methods; compatibility of AMD’s merchandise with some or all industry-standard software program and {hardware}; prices associated to faulty merchandise; effectivity of AMD’s provide chain; AMD’s capacity to depend on third celebration supply-chain logistics capabilities; AMD’s capacity to successfully management gross sales of its merchandise on the grey market; affect of presidency actions and rules similar to export administration rules, tariffs and commerce safety measures; AMD’s capacity to comprehend its deferred tax property; potential tax liabilities; present and future claims and litigation; affect of environmental legal guidelines, battle minerals-related provisions and different legal guidelines or rules; affect of acquisitions, joint ventures and/or investments, together with acquisitions of Xilinx and Pensando, on AMD’s business and AMD’s capacity to combine acquired companies; affect of any impairment of the mixed firm’s property on the mixed firm’s monetary place and outcomes of operation; restrictions imposed by agreements governing AMD’s notes, the ensures of Xilinx’s notes and the revolving credit score facility; AMD’s indebtedness; AMD’s capacity to generate enough money to fulfill its working capital necessities or generate enough income and working money move to make all of its deliberate R&D or strategic investments; political, authorized, financial dangers and pure disasters; future impairments of goodwill and expertise license purchases; AMD’s capacity to draw and retain certified personnel; AMD’s inventory value volatility; and worldwide political circumstances. Investors are urged to evaluate intimately the dangers and uncertainties in AMD’s Securities and Exchange Commission filings, together with however not restricted to AMD’s most up-to-date studies on Forms 10-Okay and 10-Q.
| (*) | In this press launch, along with chosen preliminary GAAP monetary outcomes, AMD has offered preliminary non-GAAP monetary measures together with non-GAAP gross margin and non-GAAP working bills. AMD makes use of a normalized tax charge in its computation of the non-GAAP earnings tax provision to supply higher consistency throughout the reporting durations. For fiscal 2022, AMD makes use of a projected non-GAAP tax charge of 13%, which excludes the tax affect of pre-tax non-GAAP changes, reflecting at present out there data. AMD is offering these preliminary monetary measures as a result of it believes this non-GAAP presentation makes it simpler for traders to check its working outcomes for present and historic durations and likewise as a result of AMD believes it assists traders in evaluating AMD’s efficiency throughout reporting durations on a constant foundation by excluding objects that it doesn’t consider are indicative of its core working efficiency. The preliminary non-GAAP monetary measures disclosed on this press launch must be considered along with and never as an alternative choice to or superior to AMD’s preliminary outcomes ready in accordance with GAAP. These preliminary non-GAAP monetary measures referenced are reconciled to their most straight comparable preliminary GAAP monetary measures on the finish of this press launch. |
| (2) | The Data Center section primarily consists of server microprocessors, GPUs, knowledge processing models (DPUs), Field Programmable Gate Arrays (FPGAs) and adaptive SoC merchandise for knowledge facilities. | |
| The Client section primarily consists of microprocessors, accelerated processing models (APUs) that combine microprocessors and graphics, and chipsets for desktop and pocket book private computer systems. | ||
| The Gaming section primarily consists of discrete graphics processing models (GPUs), semi-custom System-on-Chip (SoC) merchandise and growth companies. | ||
| The Embedded section primarily consists of embedded microprocessors, GPUs, FPGAs, adaptive SoC merchandise, and Adaptive Compute Acceleration Platform (ACAP) merchandise. | ||
| From time to time, the Company can also promote or license parts of its IP portfolio. | ||
| All Other class primarily consists of sure bills and credit that aren’t allotted to any of the working segments. Also included on this class are acquisition-related intangible asset amortization expense, stock-based compensation expense, acquisition-related prices and licensing achieve. | ||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||
| (Unaudited) | ||
| Q3 FY22 | ||
| Preliminary Results | ||
| GAAP gross margin % | ~42% | |
| Stock-based compensation, acquisition-related prices(3), amortization of acquired intangible property | ~8 pps | |
| Non-GAAP gross margin % | ~50% | |
| GAAP working bills ($ in billions) | ~$2.4 | |
| Stock-based compensation, acquisition-related prices(3), amortization of acquired intangible property | ~$(0.9) | |
| Non-GAAP working bills | ~$1.5 | |
| (3) | Acquisition-related prices primarily comprised of transaction prices, buy value changes for stock and sure compensation costs | |
AMD, the AMD Arrow emblem, EPYC, Radeon, Ryzen, Threadripper, Versal and mixtures thereof, are emblems of Advanced Micro Devices, Inc. Other names are for informational functions solely and used to determine firms and merchandise and could also be emblems of their respective proprietor
Media Contact:
Drew Prairie
AMD Communications
512-602-4425
[email protected]
Investor Contact:
Ruth Cotter
AMD Investor Relations
408-749-3887
[email protected]
