― Data Center, Gaming and Embedded segments every grew considerably year-over-year and Client section income was decrease than anticipated ―
― Cash and working money circulation elevated year-over-year ―
SANTA CLARA, Calif., Nov. 01, 2022 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) right this moment introduced income for the third quarter of 2022 of $5.6 billion, gross margin of 42%, working lack of $64 million, web earnings of $66 million and diluted earnings per share of $0.04. On a non-GAAP(*) foundation, gross margin was 50%, working earnings was $1.3 billion, web earnings was $1.1 billion and diluted earnings per share was $0.67.
GAAP Quarterly Financial Results
| Q3 2022 | Q3 2021 | Y/Y | |||||
| Revenue ($M) | $ | 5,565 | $ | 4,313 | Up 29% | ||
| Gross revenue ($M) | $ | 2,354 | $ | 2,086 | Up 13% | ||
| Gross margin % | 42 | % | 48 | % | Down 610 bps | ||
| Operating bills ($M) | $ | 2,426 | $ | 1,141 | Up 113% | ||
| Operating earnings (loss) ($M) | $ | (64 | ) | $ | 948 | Down 107% | |
| Operating margin % | (1 | )% | 22 | % | Down 23pp | ||
| Net earnings ($M) | $ | 66 | $ | 923 | Down 93% | ||
| Earnings per share | $ | 0.04 | $ | 0.75 | Down 95% | ||
Non-GAAP(*) Quarterly Financial Results
| Q3 2022 | Q3 2021 | Y/Y | |||||
| Revenue ($M) | $ | 5,565 | $ | 4,313 | Up 29% | ||
| Gross revenue ($M) | $ | 2,776 | $ | 2,087 | Up 33% | ||
| Gross margin % | 50 | % | 48 | % | Up 150 bps | ||
| Operating bills ($M) | $ | 1,520 | $ | 1,035 | Up 47% | ||
| Operating earnings ($M) | $ | 1,264 | $ | 1,055 | Up 20% | ||
| Operating margin % | 23 | % | 24 | % | Down 1pp | ||
| Net earnings ($M) | $ | 1,095 | $ | 893 | Up 23% | ||
| Earnings per share | $ | 0.67 | $ | 0.73 | Down 8% | ||
“Third quarter results came in below our expectations due to the softening PC market and substantial inventory reduction actions across the PC supply chain,” said AMD Chair and CEO Dr. Lisa Su. “Despite the challenging macro environment, we grew revenue 29% year-over-year driven by increased sales of our data center, embedded and game console products. We are confident that our leadership product portfolio, strong balance sheet, and ongoing growth opportunities in our data center and embedded businesses position us well to navigate the current market dynamics.”
Q3 2022 Financial Summary
- Revenue of $5.6 billion elevated 29% year-over-year pushed by development throughout the Data Center, Gaming and Embedded segments.
- Gross margin was 42%, a lower of 6 proportion factors year-over-year, primarily as a result of amortization of intangible belongings related to the Xilinx acquisition. Non-GAAP gross margin was 50%, a rise of two proportion factors year-over-year, primarily pushed by greater Embedded and Data Center section income. Gross margin and non-GAAP gross margin embrace $160 million of prices for stock, pricing, and associated reserves within the graphics and shopper companies.
- Operating loss was $64 million, in comparison with working earnings of $948 million, or 22% of income, a yr in the past. The loss was primarily because of the amortization of intangible belongings related to the Xilinx acquisition and elevated R&D investments. Non-GAAP working earnings was $1.3 billion, or 23% of income, up from $1.1 billion or 24% a yr in the past primarily pushed by greater income and gross margin partially offset by greater working bills.
- Net earnings was $66 million in comparison with $923 million a yr in the past primarily because of the amortization of intangible belongings related to the Xilinx acquisition and elevated R&D investments, partially offset by a $135 million tax profit within the quarter. Non-GAAP web earnings was $1.1 billion, up from $893 million a yr in the past primarily pushed by greater income and gross margin, partially offset by greater working bills.
- Diluted earnings per share was $0.04 in comparison with $0.75 a yr in the past primarily as a result of decrease web earnings. Non-GAAP diluted earnings per share was $0.67 in comparison with $0.73 a yr in the past primarily as a result of decrease Client section income.
- Cash, money equivalents and short-term investments have been $5.6 billion on the finish of the quarter. The firm repaid the $312 million 7.50% Senior Notes that matured in August and repurchased $617 million of frequent inventory in the course of the quarter.
- Cash from operations was $965 million within the quarter, in comparison with $849 million a yr in the past. Free money circulation was $842 million within the quarter in comparison with $764 million a yr in the past.
- Goodwill and acquisition-related intangible belongings related to the acquisitions of Xilinx and Pensando have been $49.3 billion.
Quarterly Segment Financial Summary
- Prior interval outcomes have been conformed to the present reporting segments for comparability functions.
- Data Center section income was $1.6 billion, up 45% year-over-year pushed by robust gross sales of EPYC™ server processors. Operating earnings was $505 million, or 31% of income, in comparison with $308 million or 28% a yr in the past. The working earnings and margin will increase have been primarily pushed by greater income, partially offset by greater working bills.
- Client section income was $1.0 billion, down 40% year-over-year as a result of diminished processor shipments ensuing from a weak PC market and a major stock correction throughout the PC provide chain. Client processor ASP elevated year-over-year pushed primarily by a richer mixture of Ryzen™ desktop processor gross sales. Operating loss was $26 million, in comparison with working earnings of $490 million or 29% a yr in the past. The lower was primarily as a result of decrease income.
- Gaming section income was $1.6 billion, up 14% year-over-year pushed by greater semi-custom product gross sales partially offset by decrease graphics income. Operating earnings was $142 million, or 9% of income, in comparison with $231 million or 16% a yr in the past. The lower was primarily as a result of decrease graphics income and stock, pricing and associated prices within the graphics business. Operating margin was decrease primarily as a result of decrease graphics income and better working bills.
- Embedded section income was $1.3 billion, up 1,549% year-over-year pushed primarily by the inclusion of Xilinx embedded product income. Operating earnings was $635 million, or 49% of income, in comparison with $23 million or 30% a yr in the past. Operating earnings and margin will increase have been primarily pushed by greater income.
- All Other working loss was $1.3 billion as in comparison with $104 million a yr in the past primarily as a result of amortization of intangible belongings largely related to the Xilinx acquisition.
Recent PR Highlights
- Adoption of AMD knowledge middle options continues to develop amongst key clients and companions:
- Microsoft Azure introduced the overall availability (GA) of recent confidential computing VMs leveraging state-of-the-art AMD safety applied sciences supplied by EPYC processors and new GPU-accelerated VMs. Additionally, Amazon Web Services introduced the brand new reminiscence optimized cases powered by EPYC processors.
- AMD introduced that AMD Pensando knowledge processing models (DPUs) will probably be one of many first DPU options to help VMware vSphere® 8 with Distributed Services Engine capabilities operating on servers from main distributors together with Dell Technologies and HPE.
- AMD launched the Ryzen 7000 Series processors for desktop, delivering dominant efficiency and management power effectivity. Powered by the brand new “Zen 4” structure, the Ryzen 7000 Series processors characteristic as much as 16 cores and 32 threads and are constructed on an optimized, high-performance 5nm course of node. AMD additionally introduced the brand new Socket AM5 motherboard.
- AMD introduced the Ryzen 7020 Series processors for cellular functions, bringing high-end efficiency and battery life to on a regular basis customers.
- AMD introduced a strategic collaboration with world mobility tech firm ECARX to collaborate on the ECARX digital cockpit for next-generation electrical autos, the primary in-vehicle platform to be supplied with AMD Ryzen Embedded V2000 processors and AMD Radeon™ RX 6000 Series GPUs together with ECARX {hardware} and software program.
- AMD launched the Ryzen Embedded V3000 Series processors, including the high-performance “Zen 3” core to the V-Series portfolio to ship dependable, scalable processing efficiency for a variety of storage and networking system functions.
- AMD and Energy Sciences Network (ESnet) introduced the launch of ESnet6, the U.S. Department of Energy’s subsequent technology community to reinforce collaborative science. AMD Alveo™ U280-based community accelerator playing cards deliver highly effective adaptive computing to ESnet6, enabling deep insights, fast detection and correction of issues, and steady innovation throughout the community.
- AMD and Samsung introduced the second technology of its SmartSSD, powered by AMD Versal™ Adaptive SoCs, enabling environment friendly knowledge processing for the information middle by integrating the compute and storage features.
- AMD introduced its 27th annual Corporate Responsibility Report, demonstrating its dedication to advancing computing to assist remedy the world’s most necessary challenges and detailing its progress towards environmental, social and governance targets.
Current Outlook
AMD’s outlook statements are primarily based on present expectations. The following statements are forward-looking and precise outcomes may differ materially relying on market situations and the components set forth beneath “Cautionary Statement” beneath. AMD’s fourth quarter is a 14-week quarter.
For the fourth quarter of 2022, AMD expects income to be roughly $5.5 billion, plus or minus $300 million, a rise of roughly 14% year-over-year and flat sequentially. Year-over-year and sequentially, the Embedded and Data Center segments are anticipated to develop. AMD expects non-GAAP gross margin to be roughly 51% within the fourth quarter of 2022.
For the complete yr 2022, AMD expects income to be roughly $23.5 billion, plus or minus $300 million, a rise of roughly 43% over 2021 led by development within the Embedded and Data Center segments. AMD expects non-GAAP gross margin to be roughly 52% for 2022.
AMD Teleconference
AMD will maintain a convention name for the monetary group at 2:00 p.m. PT (5:00 p.m. ET) right this moment 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.
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||
| (in hundreds of thousands, besides per share knowledge) (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| September 24, 2022 |
September 25, 2021 |
||||||||
| GAAP gross revenue | $ | 2,354 | $ | 2,086 | |||||
| GAAP gross margin % | 42 | % | 48 | % | |||||
| Stock-based compensation | 8 | 1 | |||||||
| Acquisition-related prices (1) | 2 | — | |||||||
| Amortization of acquired intangible belongings | 412 | — | |||||||
| Non-GAAP gross revenue | $ | 2,776 | $ | 2,087 | |||||
| Non-GAAP gross margin % | 50 | % | 48 | % | |||||
| GAAP working bills | $ | 2,426 | $ | 1,141 | |||||
| GAAP working bills/income % | 44 | % | 26 | % | |||||
| Stock-based compensation | 261 | 98 | |||||||
| Acquisition-related prices (1) | 55 | 8 | |||||||
| Amortization of acquired intangible belongings | 590 | — | |||||||
| Non-GAAP working bills | $ | 1,520 | $ | 1,035 | |||||
| Non-GAAP working bills/income % | 27 | % | 24 | % | |||||
| GAAP working earnings (loss) | $ | (64 | ) | $ | 948 | ||||
| GAAP working margin % | (1)% | 22 | % | ||||||
| Stock-based compensation | 269 | 99 | |||||||
| Acquisition-related prices (1) | 57 | 8 | |||||||
| Amortization of acquired intangible belongings | 1,002 | — | |||||||
| Non-GAAP working earnings | $ | 1,264 | $ | 1,055 | |||||
| Non-GAAP working margin % | 23 | % | 24 | % | |||||
| Three Months Ended | |||||||||||||||||
| September 24, 2022 |
September 25, 2021 |
||||||||||||||||
| GAAP web earnings / diluted earnings per share | $ | 66 | $ | 0.04 | $ | 923 | $ | 0.75 | |||||||||
| (Gains) losses on fairness investments, web | 3 | — | (60 | ) | (0.05 | ) | |||||||||||
| Stock-based compensation | 269 | 0.16 | 99 | 0.08 | |||||||||||||
| Equity earnings in investee | (4 | ) | — | (2 | ) | — | |||||||||||
| Acquisition-related prices (1) | 57 | 0.04 | 8 | 0.01 | |||||||||||||
| Amortization of acquired intangible belongings | 1,002 | 0.62 | — | — | |||||||||||||
| Income tax provision | (298 | ) | (0.19 | ) | (75 | ) | (0.06 | ) | |||||||||
| Non-GAAP web earnings / diluted earnings per share | $ | 1,095 | $ | 0.67 | $ | 893 | $ | 0.73 | |||||||||
| (1 | ) | Acquisition-related prices primarily comprised of transaction prices, buy value changes for stock and sure compensation prices |
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 doable. Billions of individuals, main Fortune 500 companies and cutting-edge scientific analysis establishments around the globe depend on AMD know-how every day to enhance how they stay, work and play. For extra details about how AMD is enabling right this moment and provoking tomorrow, go to the AMD (NASDAQ: AMD) web site, weblog, Facebook and Twitter pages.
Cautionary Statement
This press launch comprises forward-looking statements regarding Advanced Micro Devices, Inc. (AMD) similar to AMD’s expectation that its management product portfolio, robust stability sheet, and ongoing development alternatives in its knowledge middle and embedded companies positions AMD properly to navigate the present market dynamics; the options, performance, efficiency, availability, timing and anticipated advantages of AMD merchandise; and AMD’s anticipated fourth quarter 2022 and monetary 2022 monetary outlook, together with income and non-GAAP gross margin and anticipated drivers primarily based on present expectations, 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 comparable 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 identified and unknown dangers and uncertainties, a lot of that are tough to foretell and usually 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 info and statements. Material components 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; world financial uncertainty; lack of a major buyer; impression 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 situations of the industries through which AMD merchandise are offered; cyclical nature of the semiconductor {industry}; quarterly and seasonal gross sales patterns; AMD’s skill to adequately defend its know-how or different mental property; unfavorable foreign money trade price fluctuations; skill of third occasion producers to fabricate AMD’s merchandise on a well timed foundation in adequate portions and utilizing aggressive applied sciences; availability of important gear, supplies, substrates or manufacturing processes; skill to realize anticipated manufacturing yields for AMD’s merchandise; AMD’s skill to introduce merchandise on a well timed foundation with anticipated options and efficiency ranges; AMD’s skill 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 laptop 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; impression of modification or interruption of AMD’s inside business processes and data programs; 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 skill to depend on third occasion supply-chain logistics features; AMD’s skill to successfully management gross sales of its merchandise on the grey market; impression of presidency actions and rules similar to export administration rules, tariffs and commerce safety measures; AMD’s skill to appreciate its deferred tax belongings; potential tax liabilities; present and future claims and litigation; impression of environmental legal guidelines, battle minerals-related provisions and different legal guidelines or rules; impression of acquisitions, joint ventures and/or investments, together with acquisitions of Xilinx and Pensando, on AMD’s business and AMD’s skill to combine acquired companies; impression of any impairment of the mixed firm’s belongings 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 skill to generate adequate money to fulfill its working capital necessities or generate adequate income and working money circulation to make all of its deliberate R&D or strategic investments; political, authorized, financial dangers and pure disasters; future impairments of goodwill and know-how license purchases; AMD’s skill to draw and retain certified personnel; AMD’s inventory value volatility; and worldwide political situations. Investors are urged to overview 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 earnings press launch, along with GAAP monetary outcomes, AMD has offered non-GAAP monetary measures together with non-GAAP gross revenue, non-GAAP working bills, non-GAAP working earnings, non-GAAP web earnings, non-GAAP diluted earnings per share. AMD makes use of a normalized tax price in its computation of the non-GAAP earnings tax provision to supply higher consistency throughout the reporting intervals. For fiscal 2022, AMD makes use of a projected non-GAAP tax price of 13%, which excludes the tax impression of pre-tax non-GAAP changes, reflecting at the moment obtainable info. AMD additionally offered adjusted EBITDA and free money circulation as supplemental non-GAAP measures of its efficiency. These objects are outlined within the footnotes to the chosen company knowledge tables offered on the finish of this earnings press launch. AMD is offering these monetary measures as a result of it believes this non-GAAP presentation makes it simpler for traders to match its working outcomes for present and historic intervals and likewise as a result of AMD believes it assists traders in evaluating AMD’s efficiency throughout reporting intervals on a constant foundation by excluding objects that it doesn’t consider are indicative of its core working efficiency and for the opposite causes described within the footnotes to the chosen knowledge tables. The non-GAAP monetary measures disclosed on this earnings press launch needs to be considered along with and never as an alternative choice to or superior to AMD’s reported outcomes ready in accordance with GAAP and needs to be learn solely at the side of AMD’s Consolidated Financial Statements ready in accordance with GAAP. These non GAAP monetary measures referenced are reconciled to their most instantly comparable GAAP monetary measures within the knowledge tables on this earnings press launch. This earnings press launch additionally comprises forward-looking non-GAAP gross margin regarding AMD’s monetary outlook, which relies on present expectations as of November 1, 2022 and assumptions and beliefs that contain quite a few dangers and uncertainties. AMD undertakes no intent or obligation to publicly replace or revise its outlook statements because of new info, future occasions or in any other case, besides as could also be required by regulation. |
AMD, the AMD Arrow brand, EPYC, Radeon, Ryzen, Threadripper, Versal and combos 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.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions besides per share quantities and percentages) (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2022 |
September 25, 2021 |
September 24, 2022 |
September 25, 2021 |
|||||||||||||
| Net income | $ | 5,565 | $ | 4,313 | $ | 18,002 | $ | 11,608 | ||||||||
| Cost of gross sales | 2,799 | 2,227 | 8,797 | 6,105 | ||||||||||||
| Amortization of acquisition-related intangibles | 412 | — | 1,005 | — | ||||||||||||
| Total price of gross sales | 3,211 | 2,227 | 9,802 | 6,105 | ||||||||||||
| Gross revenue | 2,354 | 2,086 | 8,200 | 5,503 | ||||||||||||
| Gross margin % | 42 | % | 48 | % | 46 | % | 47 | % | ||||||||
| Research and improvement | 1,279 | 765 | 3,639 | 2,034 | ||||||||||||
| Marketing, normal and administrative | 557 | 376 | 1,746 | 1,036 | ||||||||||||
| Amortization of acquisition-related intangibles | 590 | — | 1,499 | — | ||||||||||||
| Licensing achieve | (8 | ) | (3 | ) | (97 | ) | (8 | ) | ||||||||
| Operating earnings (loss) | (64 | ) | 948 | 1,413 | 2,441 | |||||||||||
| Interest expense | (31 | ) | (7 | ) | (69 | ) | (26 | ) | ||||||||
| Other earnings (expense), web | 22 | 62 | (24 | ) | 51 | |||||||||||
| Income (loss) earlier than earnings taxes and fairness earnings | (73 | ) | 1,003 | 1,320 | 2,466 | |||||||||||
| Income tax provision (profit) | (135 | ) | 82 | 32 | 284 | |||||||||||
| Equity earnings in investee | 4 | 2 | 11 | 6 | ||||||||||||
| Net earnings | $ | 66 | $ | 923 | $ | 1,299 | $ | 2,188 | ||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 0.04 | $ | 0.76 | $ | 0.84 | $ | 1.80 | ||||||||
| Diluted | $ | 0.04 | $ | 0.75 | $ | 0.84 | $ | 1.78 | ||||||||
| Shares utilized in per share calculation | ||||||||||||||||
| Basic | 1,615 | 1,214 | 1,542 | 1,214 | ||||||||||||
| Diluted | 1,625 | 1,230 | 1,555 | 1,231 | ||||||||||||
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
| September 24, 2022 |
December 25, 2021 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current belongings: | ||||||||
| Cash and money equivalents | $ | 3,398 | $ | 2,535 | ||||
| Short-term investments | 2,193 | 1,073 | ||||||
| Accounts receivable, web | 4,336 | 2,706 | ||||||
| Inventories | 3,369 | 1,955 | ||||||
| Receivables from associated events | 4 | 2 | ||||||
| Prepaid bills and different present belongings | 1,120 | 312 | ||||||
| Total present belongings | 14,420 | 8,583 | ||||||
| Property and gear, web | 1,486 | 702 | ||||||
| Operating lease right-of use belongings | 490 | 367 | ||||||
| Goodwill | 24,187 | 289 | ||||||
| Acquisition-related intangibles, web | 25,162 | — | ||||||
| Investment: fairness technique | 80 | 69 | ||||||
| Deferred tax belongings | 32 | 931 | ||||||
| Other non-current belongings | 1,954 | 1,478 | ||||||
| Total Assets | $ | 67,811 | $ | 12,419 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,337 | $ | 1,321 | ||||
| Payables to associated events | 397 | 85 | ||||||
| Accrued liabilities | 3,598 | 2,424 | ||||||
| Short-term debt | — | 312 | ||||||
| Other present liabilities | 359 | 98 | ||||||
| Total present liabilities | 6,691 | 4,240 | ||||||
| Long-term debt, web | 2,466 | 1 | ||||||
| Long-term working lease liabilities | 424 | 348 | ||||||
| Deferred tax liabilities | 2,078 | 12 | ||||||
| Other long-term liabilities | 1,610 | 321 | ||||||
| Stockholders’ fairness: | ||||||||
| Capital inventory: | ||||||||
| Common inventory, par worth | 16 | 12 | ||||||
| Additional paid-in capital | 57,581 | 11,069 | ||||||
| Treasury inventory, at price | (2,815 | ) | (2,130 | ) | ||||
| Accumulated deficit | (152 | ) | (1,451 | ) | ||||
| Accumulated different complete loss | (88 | ) | (3 | ) | ||||
| Total stockholders’ fairness | $ | 54,542 | $ | 7,497 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 67,811 | $ | 12,419 | ||||
ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions) (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2022 |
September 25, 2021 |
September 24, 2022 |
September 25, 2021 |
|||||||||||||
| Net money offered by (utilized in) | ||||||||||||||||
| Operating actions | $ | 965 | $ | 849 | $ | 2,998 | $ | 2,699 | ||||||||
| Investing actions | $ | (1,298 | ) | $ | (83 | ) | $ | 932 | $ | (686 | ) | |||||
| Financing actions | $ | (1,233 | ) | $ | (949 | ) | $ | (3,067 | ) | $ | (1,168 | ) | ||||
SELECTED CORPORATE DATA
(Millions) (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2022 |
September 25, 2021 | September 24, 2022 |
September 25, 2021 |
|||||||||||||
| Segment and Category Information(1) | ||||||||||||||||
| Data Center | ||||||||||||||||
| Net income | $ | 1,609 | $ | 1,108 | $ | 4,388 | $ | 2,531 | ||||||||
| Operating earnings | $ | 505 | $ | 308 | $ | 1,404 | $ | 622 | ||||||||
| Client | ||||||||||||||||
| Net income | $ | 1,022 | $ | 1,692 | $ | 5,298 | $ | 5,058 | ||||||||
| Operating earnings (loss) | $ | (26 | ) | $ | 490 | $ | 1,342 | $ | 1,558 | |||||||
| Gaming | ||||||||||||||||
| Net income | $ | 1,631 | $ | 1,434 | $ | 5,161 | $ | 3,844 | ||||||||
| Operating earnings | $ | 142 | $ | 231 | $ | 687 | $ | 527 | ||||||||
| Embedded | ||||||||||||||||
| Net income | $ | 1,303 | $ | 79 | $ | 3,155 | $ | 175 | ||||||||
| Operating earnings | $ | 635 | $ | 23 | $ | 1,553 | $ | 26 | ||||||||
| All Other | ||||||||||||||||
| Net income | $ | — | $ | — | $ | — | $ | — | ||||||||
| Operating loss | $ | (1,320 | ) | $ | (104 | ) | $ | (3,573 | ) | $ | (292 | ) | ||||
| Total | ||||||||||||||||
| Net income | $ | 5,565 | $ | 4,313 | $ | 18,002 | $ | 11,608 | ||||||||
| Operating earnings (loss) | $ | (64 | ) | $ | 948 | $ | 1,413 | $ | 2,441 | |||||||
| Other Data | ||||||||||||||||
| Capital expenditures | $ | 123 | $ | 85 | $ | 326 | $ | 215 | ||||||||
| Adjusted EBITDA (2) | $ | 1,427 | $ | 1,152 | $ | 5,533 | $ | 3,030 | ||||||||
| Cash, money equivalents and short-term investments | $ | 5,591 | $ | 3,608 | $ | 5,591 | $ | 3,608 | ||||||||
| Free money circulation (3) | $ | 842 | $ | 764 | $ | 2,672 | $ | 2,484 | ||||||||
| Total belongings | $ | 67,811 | $ | 11,153 | $ | 67,811 | $ | 11,153 | ||||||||
| Total debt | $ | 2,466 | $ | 313 | $ | 2,466 | $ | 313 | ||||||||
| (1) | The Data Center section primarily consists of server microprocessors and GPUs, knowledge processing models (DPUs), Field Programmable Gate Arrays (FPGAs) and adaptive System-on-Chip (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 SoC merchandise and improvement providers. | |||
| The Embedded section primarily consists of embedded microprocessors and GPUs, FPGAs, adaptive SoC merchandise, and Adaptive Compute Acceleration Platform (ACAP) merchandise. | |||
| From time to time, the Company may 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. | |||
| (2) | Reconciliation of GAAP Net Income to Adjusted EBITDA | ||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2022 |
September 25, 2021 |
September 24, 2022 |
September 25, 2021 |
|||||||||||||
| GAAP web earnings | $ | 66 | $ | 923 | $ | 1,299 | $ | 2,188 | ||||||||
| Interest expense | 31 | 7 | 69 | 26 | ||||||||||||
| Other (earnings) expense, web | (22 | ) | (62 | ) | 24 | (51 | ) | |||||||||
| Income tax provision (profit) | (135 | ) | 82 | 32 | 284 | |||||||||||
| Equity earnings in investee | (4 | ) | (2 | ) | (11 | ) | (6 | ) | ||||||||
| Stock-based compensation | 269 | 99 | 702 | 267 | ||||||||||||
| Depreciation and amortization | 163 | 97 | 450 | 289 | ||||||||||||
| Amortization of acquired intangible belongings | 1,002 | — | 2,504 | — | ||||||||||||
| Acquisition-related prices | 57 | 8 | 464 | 33 | ||||||||||||
| Adjusted EBITDA | $ | 1,427 | $ | 1,152 | $ | 5,533 | $ | 3,030 | ||||||||
| The Company presents “Adjusted EBITDA” as a supplemental measure of its efficiency. Adjusted EBITDA for the Company is decided by adjusting GAAP web earnings for curiosity expense, different earnings (expense), web, earnings tax provision (profit), fairness earnings in investee, stock-based compensation, depreciation and amortization expense and acquisition-related prices. The Company additionally included amortization of acquired intangible belongings for the three months and 9 months ended September 24, 2022. The Company calculates and presents Adjusted EBITDA as a result of administration believes it’s of significance to traders and lenders in relation to its general capital construction and its skill to borrow further funds. In addition, the Company presents Adjusted EBITDA as a result of it believes this measure assists traders in evaluating its efficiency throughout reporting intervals on a constant foundation by excluding objects that the Company doesn’t consider are indicative of its core working efficiency. The Company’s calculation of Adjusted EBITDA could or is probably not in line with the calculation of this measure by different firms in the identical {industry}. Investors mustn’t view Adjusted EBITDA as a substitute for the GAAP working measure of earnings or GAAP liquidity measures of money flows from working, investing and financing actions. In addition, Adjusted EBITDA doesn’t take into consideration modifications in sure belongings and liabilities that may have an effect on money flows. | ||||||||||||||||
| (3) | Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow | ||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 24, 2022 | September 25, 2021 | September 24, 2022 | September 25, 2021 | |||||||||||||
| GAAP web money offered by working actions | $ | 965 | $ | 849 | $ | 2,998 | $ | 2,699 | ||||||||
| Operating money circulation margin % | 17 | % | 20 | % | 17 | % | 23 | % | ||||||||
| Purchases of property and gear | $ | (123 | ) | $ | (85 | ) | $ | (326 | ) | $ | (215 | ) | ||||
| Free money circulation | $ | 842 | $ | 764 | $ | 2,672 | $ | 2,484 | ||||||||
| Free money circulation margin % | 15 | % | 18 | % | 15 | % | 21 | % | ||||||||
| The Company additionally presents free money circulation as a supplemental Non-GAAP measure of its efficiency. Free money circulation is decided by adjusting GAAP web money offered by working actions for capital expenditures. The Company calculates and communicates free money circulation within the monetary earnings press launch as a result of administration believes it’s of significance to traders to grasp the character of those money flows. The Company’s calculation of free money circulation could or is probably not in line with the calculation of this measure by different firms in the identical {industry}. Investors mustn’t view free money circulation as a substitute for GAAP liquidity measures of money flows from working actions. | ||||||||||||||||
Media Contact:
Drew Prairie
AMD Communications
512-602-4425
[email protected]
Investor Contact:
Suresh Bhaskaran
AMD Investor Relations
408-749-2845
[email protected]
