AMD Reports Second Quarter 2021 Financial Results
July 27 2021 - 04:15PM
AMD (NASDAQ:AMD) today announced revenue for the second quarter of
2021 of $3.85 billion, operating income of $831 million, net income
of $710 million and diluted earnings per share of $0.58. On a
non-GAAP* basis, operating income was $924 million, net income was
$778 million and diluted earnings per share was $0.63.
GAAP Quarterly Financial
Results
|
Q2 2021 |
Q2 2020 |
Y/Y |
Q1 2021 |
Q/Q |
Revenue ($M) |
$3,850 |
$1,932 |
Up 99% |
$3,445 |
Up 12% |
Gross profit ($M) |
$1,830 |
$848 |
Up 116% |
$1,587 |
Up 15% |
Gross margin % |
48% |
44% |
Up 4pp |
46% |
Up 2pp |
Operating expenses ($M) |
$1,000 |
$675 |
Up 48% |
$929 |
Up 8% |
Operating income ($M) |
$831 |
$173 |
Up 380% |
$662 |
Up 26% |
Operating margin % |
22% |
9% |
Up 13pp |
19% |
Up 3pp |
Net income ($M) |
$710 |
$157 |
Up 352% |
$555 |
Up 28% |
Earnings per share |
$0.58 |
$0.13 |
Up 346% |
$0.45 |
Up 29% |
Non-GAAP* Quarterly Financial
Results
|
Q2 2021 |
Q2 2020 |
Y/Y |
Q1 2021 |
Q/Q |
Revenue ($M) |
$3,850 |
$1,932 |
Up 99% |
$3,445 |
Up 12% |
Gross profit ($M) |
$1,832 |
$850 |
Up 116% |
$1,588 |
Up 15% |
Gross margin % |
48% |
44% |
Up 4pp |
46% |
Up 2pp |
Operating expenses ($M) |
$909 |
$617 |
Up 47% |
$830 |
Up 10% |
Operating income ($M) |
$924 |
$233 |
Up 297% |
$762 |
Up 21% |
Operating margin % |
24% |
12% |
Up 12pp |
22% |
Up 2pp |
Net income ($M) |
$778 |
$216 |
Up 260% |
$642 |
Up 21% |
Earnings per share |
$0.63 |
$0.18 |
Up 250% |
$0.52 |
Up 21% |
“Our business performed exceptionally well in the second quarter
as revenue and operating margin doubled and profitability more than
tripled year-over-year,” said AMD president and CEO Lisa Su. “We
are growing significantly faster than the market with strong demand
across all of our businesses. We now expect our 2021 annual revenue
to grow by approximately 60 percent year-over-year driven by strong
execution and increased customer preference for our leadership
products.”
Q2 2021 Results
- Revenue was $3.85 billion, up 99 percent year-over-year and 12
percent quarter-over-quarter driven by higher revenue in both the
Computing and Graphics segment and Enterprise and Embedded and
Semi-custom segment.
- Gross margin was 48 percent, up 4 percentage points
year-over-year and 2 percentage points quarter-over-quarter. The
increases were driven by a richer mix of sales, including high-end
Ryzen™, Radeon™ and EPYC™ processor sales.
- Operating income was $831 million compared to operating income
of $173 million a year ago and $662 million in the prior quarter.
Non-GAAP operating income was $924 million compared to $233 million
a year ago and $762 million in the prior quarter. Operating income
improvements were primarily driven by higher revenue.
- Net income was $710 million compared to $157 million a year ago
and $555 million in the prior quarter. Non-GAAP net income was $778
million compared to $216 million a year ago and $642 million in the
prior quarter.
- Diluted earnings per share was $0.58 compared to $0.13 a year
ago and $0.45 in the prior quarter. Non-GAAP diluted earnings per
share was $0.63 compared to $0.18 a year ago and $0.52 in the prior
quarter.
- Cash, cash equivalents and short-term investments were $3.79
billion at the end of the quarter.
- Cash from operations was $952 million compared to $243 million
a year ago and $898 million in the prior quarter. Free cash flow
was a record $888 million compared to free cash flow of $152
million a year ago and $832 million in the prior quarter.
- In May 2021, the Company announced a $4 billion share
repurchase program. In the second quarter, the Company repurchased
3.2 million shares of common stock for $256 million.
Quarterly Financial Segment Summary
- Computing and Graphics segment revenue was $2.25 billion, up 65
percent year-over-year and 7 percent quarter-over-quarter driven by
higher client and graphics processor sales.
- Client processor average selling price (ASP) grew
year-over-year and quarter-over-quarter driven by a richer mix of
Ryzen desktop and notebook processor sales.
- GPU ASP grew year-over-year and quarter-over-quarter driven by
high-end graphics product sales, including data center GPU
sales.
- Operating income was $526 million compared to $200 million a
year ago and $485 million in the prior quarter. The increases were
primarily driven by higher revenue.
- Enterprise, Embedded and Semi-Custom segment revenue was $1.60
billion, up 183 percent year-over-year and 19 percent
quarter-over-quarter. The increases were driven by higher EPYC
processor revenue and semi-custom product sales.
- Operating income was $398 million compared to $33 million a
year ago and $277 million in the prior quarter. The increases were
primarily driven by higher revenue.
- All Other operating loss was $93 million compared to $60
million a year ago and $100 million in the prior quarter.
Recent PR Highlights
- AMD announced that stockholders overwhelmingly approved its
acquisition of Xilinx. The proposed acquisition remains on-track to
close by the end of the year.
- AMD announced a $4 billion share repurchase program. AMD
expects to fund repurchases through cash generated from
operations.
- The Top500 organization announced the world’s fastest
supercomputers. The number of AMD-powered systems on the list grew
by almost five times in the past year. AMD EPYC processors power
half of the 58 new systems added to the June 2021 listing.
- AMD and its technology partners announced numerous new
high-performance computing systems taking advantage of AMD EPYC
processors. These systems include Microsoft Azure supercomputers
for UK Met Office, The Perlmutter supercomputer and The Singapore
National Supercomputing Centre supercomputer.
- Google Cloud and AMD announced a new instance (T2D) based on
3rd Gen AMD EPYC processors. According to Google Cloud, by using
3rd Gen EPYC processors, T2D provides up to 56 percent better
absolute performance and more than 40 percent higher
price-performance for scale-out workloads compared to other cloud
instances.
- AMD continued advances in industry-leading packaging
innovations to push the envelope in high-performance computing with
new 3D chiplet technology. This packaging breakthrough combines
AMD’s innovative chiplet architecture with 3D stacking using an
industry-leading hybrid bond approach.
- AMD announced the AMD Advantage Design Framework designed to
deliver best-in-class gaming experiences on notebook PCs by
combining AMD Radeon RX 6000M Series Mobile Graphics processors,
AMD Radeon Software and AMD Ryzen 5000 Series Mobile Processors
with exclusive AMD smart technologies and other advanced system
design characteristics.
- The adoption of AMD’s high-performance “Zen” CPUs and AMD RDNA™
2 GPUs expanded into new markets.
- AMD announced Tesla is using AMD Ryzen Embedded Processors and
AMD RDNA 2 based GPUs to power the infotainment system in the new
Tesla Model S and Model X vehicles.
- AMD announced 2nd Gen AMD EPYC processors are powering the new
HPE Alletra 6000 storage solutions, enabling up to 3x more
performance compared to previous HPE Nimble storage all flash
arrays.
- Valve announced Steam Deck, a handheld gaming console powered
by a semi-custom AMD processor that can play the latest AAA PC
games and access the entire Steam library on the go.
- AMD launched FidelityFX Super Resolution (FSR), a
state-of-the-art spatial upscaling algorithm feature designed to
boost framerates and deliver high-quality, high-resolution gaming
experiences. AMD also announced that more than 40 game developers
pledged support for FSR, with more expected in the future.
Current OutlookAMD’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 third quarter of 2021, AMD
expects revenue to be approximately $4.1 billion, plus or minus
$100 million, an increase of approximately 46 percent
year-over-year and approximately 6 percent
quarter-over-quarter. The year-over-year increase is expected
to be driven by growth across all businesses. The
quarter-over-quarter increase is expected to be primarily driven by
growth in AMD’s data center and gaming businesses. AMD expects
non-GAAP gross margin to be approximately 48 percent in the third
quarter of 2021.For the full year 2021, AMD now expects
revenue growth of approximately 60 percent, up from prior guidance
of approximately 50 percent, driven by strong growth across all
businesses. AMD now expects non-GAAP gross margin to be
approximately 48 percent for the full year 2021, up from prior
guidance of approximately 47 percent.
AMD Teleconference AMD will hold a conference
call for the financial community at 2:00 p.m. PT (5:00 p.m. ET)
today to discuss its second quarter 2021 financial results. AMD
will provide a real-time audio broadcast of the teleconference on
the Investor Relations page of its website at www.amd.com.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(In
millions, except per share data) (Unaudited) |
|
|
|
|
Three Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
GAAP gross profit |
|
$ |
1,830 |
|
|
$ |
1,587 |
|
|
$ |
848 |
|
GAAP gross margin % |
|
48 |
% |
|
46 |
% |
|
44 |
% |
Stock-based compensation |
|
2 |
|
|
1 |
|
|
2 |
|
Non-GAAP gross profit |
|
$ |
1,832 |
|
|
$ |
1,588 |
|
|
$ |
850 |
|
Non-GAAP gross margin % |
|
48 |
% |
|
46 |
% |
|
44 |
% |
|
|
|
|
|
|
|
GAAP operating expenses |
|
$ |
1,000 |
|
|
$ |
929 |
|
|
$ |
675 |
|
GAAP operating expenses/revenue % |
|
26 |
% |
|
27 |
% |
|
35 |
% |
Stock-based compensation |
|
81 |
|
|
84 |
|
|
58 |
|
Acquisition-related costs |
|
10 |
|
|
15 |
|
|
— |
|
Non-GAAP operating expenses |
|
$ |
909 |
|
|
$ |
830 |
|
|
$ |
617 |
|
Non-GAAP operating expenses/revenue% |
|
24 |
% |
|
24 |
% |
|
32 |
% |
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
831 |
|
|
$ |
662 |
|
|
$ |
173 |
|
GAAP operating margin % |
|
22 |
% |
|
19 |
% |
|
9 |
% |
Stock-based compensation |
|
83 |
|
|
85 |
|
|
60 |
|
Acquisition-related costs |
|
10 |
|
|
15 |
|
|
— |
|
Non-GAAP operating income |
|
$ |
924 |
|
|
$ |
762 |
|
|
$ |
233 |
|
Non-GAAP operating margin % |
|
24 |
% |
|
22 |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
GAAP net income / earnings per share |
|
$ |
710 |
|
|
$ |
0.58 |
|
|
$ |
555 |
|
|
$ |
0.45 |
|
|
$ |
157 |
|
|
$ |
0.13 |
|
Loss on debt redemption/conversion |
|
1 |
|
|
— |
|
|
6 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Non-cash interest expense related to convertible debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
Stock-based compensation |
|
83 |
|
|
0.06 |
|
|
85 |
|
|
0.07 |
|
|
60 |
|
|
0.05 |
|
Equity income in investee |
|
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
Acquisition-related costs |
|
10 |
|
|
0.01 |
|
|
15 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Impairment of investment |
|
— |
|
|
— |
|
|
8 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Income tax provision |
|
(24 |
) |
|
(0.02 |
) |
|
(25 |
) |
|
(0.03 |
) |
|
(2 |
) |
|
— |
|
Non-GAAP net income /
earnings per share |
|
$ |
778 |
|
|
$ |
0.63 |
|
|
$ |
642 |
|
|
$ |
0.52 |
|
|
$ |
216 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used and net
income adjustment inearnings per share
calculation (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculation (GAAP) |
|
1,232 |
|
|
1,231 |
|
|
1,227 |
|
Interest expense add-back to GAAP net income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3 |
|
Shares used in per share calculation (Non-GAAP) |
|
1,232 |
|
|
1,233 |
|
|
1,227 |
|
Interest expense add-back to
Non-GAAP net income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
(1 |
) |
|
For the three months ended June
27, 2020, GAAP diluted EPS calculations include 31 million shares
related to the Company’s 2026 Convertible Notes and the associated
$3 million interest expense add-back to net income under the “if
converted” method.For the three months ended March 27, 2021 and
June 27, 2020, Non-GAAP diluted EPS calculations include 2 million
and 31 million shares, respectively, related to the Company’s 2026
Convertible Notes and the associated $0 million and $1 million
interest expense, respectively, add-back to net income under the
“if converted” method. |
About AMDFor more than 50 years, AMD has driven
innovation in high-performance computing, graphics and
visualization technologies – the building blocks for gaming,
immersive platforms and the data center. Hundreds of millions of
consumers, leading Fortune 500 businesses and cutting-edge
scientific research facilities around the world rely on AMD
technology daily to improve how they live, work and play. AMD
employees around the world are focused on building great products
that push the boundaries of what is possible. For more information
about how AMD is enabling today and inspiring tomorrow, visit the
AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.
Cautionary StatementThis press
release contains forward-looking statements concerning Advanced
Micro Devices, Inc. (AMD) such as AMD’s expectation for annual
revenue growth and the expected drivers; AMD’s acquisition of
Xilinx remaining on track to close by the end of the year; the
features, functionality, performance, availability, timing and
expected benefits of AMD products; and AMD’s expected third quarter
2021 and fiscal 2021 financial outlook, including revenue and
non-GAAP gross margin and expected drivers based on current
expectations, which are made pursuant to the Safe Harbor provisions
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are commonly identified by words such as
“would,” “may,” “expects,” “believes,” “plans,” “intends,”
“projects” and other terms with similar meaning. Investors are
cautioned that the forward-looking statements in this press release
are based on current beliefs, assumptions and expectations, speak
only as of the date of this press release and involve risks and
uncertainties that could cause actual results to differ materially
from current expectations. Such statements are subject to certain
known and unknown risks and uncertainties, many of which are
difficult to predict and generally beyond AMD’s control, that could
cause actual results and other future events to differ materially
from those expressed in, or implied or projected by, the
forward-looking information and statements. Material factors that
could cause actual results to differ materially from current
expectations include, without limitation, the following: Intel
Corporation’s dominance of the microprocessor market and its
aggressive business practices; global economic uncertainty; the
loss of a significant customer; the impact of the COVID-19 pandemic
on AMD’s business, financial condition and results of operations;
the competitive markets in which AMD’s products are sold; quarterly
and seasonal sales patterns; market conditions of the industries in
which AMD products are sold; the cyclical nature of the
semiconductor industry; AMD’s ability to adequately protect its
technology or other intellectual property; unfavorable currency
exchange rate fluctuations; the ability of third party
manufacturers to manufacture AMD’s products on a timely basis in
sufficient quantities and using competitive technologies; the
availability of essential equipment, materials, substrates or
manufacturing processes; expected manufacturing yields for AMD’s
products; AMD’s ability to introduce products on a timely basis
with features and performance levels that provide value to its
customers; AMD’s ability to generate revenue from its semi-custom
SoC products; potential security vulnerabilities; potential
security incidents including IT outages, data loss, data breaches
and cyber-attacks; uncertainties involving the ordering and
shipment of AMD’s products; AMD’s reliance on third-party
intellectual property to design and introduce new products in a
timely manner; AMD’s reliance on third-party companies for the
design, manufacture and supply of motherboards, software and other
computer platform components; AMD’s reliance on Microsoft
Corporation and other software vendors’ support to design and
develop software to run on AMD’s products; AMD’s reliance on
third-party distributors and add-in-board partners; the impact of
modification or interruption of AMD’s internal business processes
and information systems; compatibility of AMD’s products with some
or all industry-standard software and hardware; costs related to
defective products; the efficiency of AMD’s supply chain; AMD’s
ability to rely on third party supply-chain logistics functions;
AMD’s ability to effectively control the sales of its products on
the gray market; the impact of government actions and regulations
such as export administration regulations, tariffs and trade
protection measures; AMD’s ability to realize its deferred tax
assets; potential tax liabilities; current and future claims and
litigation; the impact of environmental laws, conflict
minerals-related provisions and other laws or regulations; the
impact of acquisitions, joint ventures and/or investments on AMD’s
business, including the announced acquisition of Xilinx, and the
failure to integrate acquired businesses; AMD’s ability to complete
the Xilinx merger; the impact of the announcement and pendency of
the Xilinx merger on AMD’s business; the impact of any impairment
of the combined company’s assets on the combined company’s
financial position and results of operation; the restrictions
imposed by agreements governing AMD’s notes and the revolving
credit facility; AMD’s indebtedness; AMD’s ability to generate
sufficient cash to service its debt obligations or meet its working
capital requirements; AMD’s ability to repurchase its outstanding
debt in the event of a change of control; AMD’s ability to generate
sufficient revenue and operating cash flow or obtain external
financing for research and development or other strategic
investments; political, legal, economic risks and natural
disasters; future impairments of goodwill and technology license
purchases; AMD’s ability to attract and retain qualified personnel;
AMD’s stock price volatility; and worldwide political conditions.
Investors are urged to review in detail the risks and uncertainties
in AMD’s Securities and Exchange Commission filings, including but
not limited to AMD’s most recent reports on Forms 10-K and
10-Q.
(*) In this earnings press
release, in addition to GAAP financial results, AMD has provided
non-GAAP financial measures including non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
net income and non-GAAP earnings per share. AMD uses a normalized
tax rate in its computation of the non-GAAP income tax provision to
provide better consistency across the reporting periods. For fiscal
2021, AMD uses a projected non-GAAP tax rate of 15%, which excludes
the tax impact of pre-tax non-GAAP adjustments, reflecting
currently available information. AMD also provided adjusted EBITDA
and free cash flow as supplemental non-GAAP 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. The non-GAAP financial
measures disclosed in this earnings press release should be viewed
in addition to and not as a substitute for or superior to AMD’s
reported results prepared in accordance with GAAP and should be
read only in conjunction with AMD’s Consolidated Financial
Statements prepared in accordance with GAAP. These non-GAAP
financial measures referenced are reconciled to their most directly
comparable GAAP financial measures in the data tables at the end of
this earnings press release. This earnings press release also
contains forward-looking non-GAAP gross margin concerning AMD’s
financial outlook, which is based on current expectations as of
July 27, 2021, and assumptions and beliefs that involve numerous
risks and uncertainties. AMD undertakes no intent or obligation to
publicly update or revise its outlook statements as a result of new
information, future events or otherwise, except as may be required
by law.
AMD, the AMD Arrow logo, EPYC, Radeon,
Ryzen, Instinct, Threadripper and combinations thereof, are
trademarks of Advanced Micro Devices, Inc. Other names are for
informational purposes only and used to identify companies and
products and may be trademarks of their respective
owner.
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Millions except per share
amounts and percentages) (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
|
June 26,2021 |
|
June 27,2020 |
Net revenue |
|
$ |
3,850 |
|
|
$ |
3,445 |
|
|
$ |
1,932 |
|
|
$ |
7,295 |
|
|
$ |
3,718 |
|
Cost
of sales |
|
2,020 |
|
|
1,858 |
|
|
1,084 |
|
|
3,878 |
|
|
2,052 |
|
Gross profit |
|
1,830 |
|
|
1,587 |
|
|
848 |
|
|
3,417 |
|
|
1,666 |
|
Gross margin % |
|
48 |
% |
|
46 |
% |
|
44 |
% |
|
47 |
% |
|
45 |
% |
Research and development |
|
659 |
|
|
610 |
|
|
460 |
|
|
1,269 |
|
|
902 |
|
Marketing, general and administrative |
|
341 |
|
|
319 |
|
|
215 |
|
|
660 |
|
|
414 |
|
Licensing gain |
|
(1 |
) |
|
(4 |
) |
|
— |
|
|
(5 |
) |
|
— |
|
Operating income |
|
831 |
|
|
662 |
|
|
173 |
|
|
1,493 |
|
|
350 |
|
Interest expense |
|
(10 |
) |
|
(9 |
) |
|
(14 |
) |
|
(19 |
) |
|
(27 |
) |
Other
income (expense), net |
|
— |
|
|
(11 |
) |
|
1 |
|
|
(11 |
) |
|
5 |
|
Income before income taxes and equity income |
|
821 |
|
|
642 |
|
|
160 |
|
|
1,463 |
|
|
328 |
|
Income tax provision |
|
113 |
|
|
89 |
|
|
4 |
|
|
202 |
|
|
10 |
|
Equity income in investee |
|
2 |
|
|
2 |
|
|
1 |
|
|
4 |
|
|
1 |
|
Net Income |
|
$ |
710 |
|
|
$ |
555 |
|
|
$ |
157 |
|
|
$ |
1,265 |
|
|
$ |
319 |
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.58 |
|
|
$ |
0.46 |
|
|
$ |
0.13 |
|
|
$ |
1.04 |
|
|
$ |
0.27 |
|
Diluted |
|
$ |
0.58 |
|
|
$ |
0.45 |
|
|
$ |
0.13 |
|
|
$ |
1.03 |
|
|
$ |
0.27 |
|
Shares used in per share calculation |
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,216 |
|
|
1,213 |
|
|
1,174 |
|
|
1,214 |
|
|
1,172 |
|
Diluted |
|
1,232 |
|
|
1,231 |
|
|
1,227 |
|
|
1,231 |
|
|
1,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED
MICRO DEVICES, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS (Millions) |
|
|
|
|
|
|
|
June 26,2021 |
|
December 26,2020 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
2,623 |
|
|
$ |
1,595 |
|
Short-term investments |
|
1,170 |
|
|
695 |
|
Accounts receivable, net |
|
2,020 |
|
|
2,066 |
|
Inventories |
|
1,765 |
|
|
1,399 |
|
Receivables from related parties |
|
6 |
|
|
10 |
|
Prepaid expenses and other current assets |
|
234 |
|
|
378 |
|
Total current assets |
|
7,818 |
|
|
6,143 |
|
Property and equipment, net |
|
671 |
|
|
641 |
|
Operating lease right-of use assets |
|
247 |
|
|
208 |
|
Goodwill |
|
289 |
|
|
289 |
|
Investment: equity method |
|
67 |
|
|
63 |
|
Deferred tax assets |
|
1,090 |
|
|
1,245 |
|
Other
non-current assets |
|
509 |
|
|
373 |
|
Total Assets |
|
$ |
10,691 |
|
|
$ |
8,962 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
836 |
|
|
$ |
468 |
|
Payables to related parties |
|
36 |
|
|
78 |
|
Accrued liabilities |
|
1,911 |
|
|
1,796 |
|
Other current liabilities |
|
109 |
|
|
75 |
|
Total current liabilities |
|
2,892 |
|
|
2,417 |
|
Long-term debt, net |
|
313 |
|
|
330 |
|
Long-term operating lease liabilities |
|
240 |
|
|
201 |
|
Other
long-term liabilities |
|
181 |
|
|
177 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Capital stock: |
|
|
|
|
Common stock, par value |
|
12 |
|
|
12 |
|
Additional paid-in capital |
|
10,795 |
|
|
10,544 |
|
Treasury stock, at cost |
|
(401 |
) |
|
(131 |
) |
Accumulated deficit (1) |
|
(3,348 |
) |
|
(4,605 |
) |
Accumulated other comprehensive income |
|
7 |
|
|
17 |
|
Total stockholders’ equity |
|
$ |
7,065 |
|
|
$ |
5,837 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
10,691 |
|
|
$ |
8,962 |
|
(1) |
|
During the first quarter of 2021,
the Company adopted ASU 2019-12, Income Taxes (Topic 740):
Simplifying the Accounting for Income Taxes, using the modified
retrospective adoption method, which resulted in $8 million of
deferred tax liability associated with book-tax differences in a
foreign equity method investment recognized in Accumulated
deficit. |
|
|
|
|
|
|
ADVANCED
MICRO DEVICES, INC.SELECTED CASH FLOW
INFORMATION(Millions) (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
|
June 26,2021 |
|
June 27,2020 |
Net cash provided by (used in) |
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
952 |
|
|
$ |
898 |
|
|
$ |
243 |
|
|
$ |
1,850 |
|
|
$ |
178 |
|
Investing activities |
|
$ |
119 |
|
|
$ |
(722 |
) |
|
$ |
(36 |
) |
|
$ |
(603 |
) |
|
$ |
(109 |
) |
Financing activities |
|
$ |
(211 |
) |
|
$ |
(8 |
) |
|
$ |
238 |
|
|
$ |
(219 |
) |
|
$ |
240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
CORPORATE DATA(Millions) (Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
|
June 26,2021 |
|
June 27,2020 |
Segment
Information |
|
|
|
|
|
|
|
|
|
|
Computing and Graphics (1) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
2,250 |
|
|
$ |
2,100 |
|
|
$ |
1,367 |
|
|
$ |
4,350 |
|
|
$ |
2,805 |
|
Operating income |
|
$ |
526 |
|
|
$ |
485 |
|
|
$ |
200 |
|
|
$ |
1,011 |
|
|
$ |
462 |
|
Enterprise, Embedded and Semi-Custom (2) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
1,600 |
|
|
$ |
1,345 |
|
|
$ |
565 |
|
|
$ |
2,945 |
|
|
$ |
913 |
|
Operating income |
|
$ |
398 |
|
|
$ |
277 |
|
|
$ |
33 |
|
|
$ |
675 |
|
|
$ |
7 |
|
All Other (3) |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
|
$ |
(93 |
) |
|
$ |
(100 |
) |
|
$ |
(60 |
) |
|
$ |
(193 |
) |
|
$ |
(119 |
) |
Total |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
3,850 |
|
|
$ |
3,445 |
|
|
$ |
1,932 |
|
|
$ |
7,295 |
|
|
$ |
3,718 |
|
Operating income |
|
$ |
831 |
|
|
$ |
662 |
|
|
$ |
173 |
|
|
$ |
1,493 |
|
|
$ |
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
$ |
64 |
|
|
$ |
66 |
|
|
$ |
91 |
|
|
$ |
130 |
|
|
$ |
146 |
|
Adjusted EBITDA (4) |
|
$ |
1,021 |
|
|
$ |
857 |
|
|
$ |
305 |
|
|
$ |
1,878 |
|
|
$ |
609 |
|
Cash, cash equivalents and
short-term investments |
|
$ |
3,793 |
|
|
$ |
3,116 |
|
|
$ |
1,775 |
|
|
$ |
3,793 |
|
|
$ |
1,775 |
|
Free cash flow (5) |
|
$ |
888 |
|
|
$ |
832 |
|
|
$ |
152 |
|
|
$ |
1,720 |
|
|
$ |
32 |
|
Total assets |
|
$ |
10,691 |
|
|
$ |
10,047 |
|
|
$ |
6,583 |
|
|
$ |
10,691 |
|
|
$ |
6,583 |
|
Total debt |
|
$ |
313 |
|
|
$ |
313 |
|
|
$ |
690 |
|
|
$ |
313 |
|
|
$ |
690 |
|
(1) |
|
The Computing and Graphics segment primarily includes desktop and
notebook microprocessors, accelerated processing units that
integrate microprocessors and graphics, chipsets, discrete graphics
processing units (GPUs), data center and professional GPUs and
development services. From time to time, the Company may also sell
or license portions of its IP portfolio. |
|
|
|
(2) |
|
The Enterprise, Embedded and
Semi-Custom segment primarily includes server and embedded
processors, semi-customSystem-on-Chip (SoC) products, development
services and technology for game consoles. From time to time, the
Company mayalso sell or license portions of its IP portfolio. |
|
|
|
(3) |
|
All Other category primarily
includes certain expenses and credits that are not allocated to any
of the operating segments. Alsoincluded in this category is
stock-based compensation expense and acquisition-related
costs. |
|
|
|
(4) |
|
Reconciliation of GAAP
Net Income to Adjusted EBITDA* |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
|
June 26,2021 |
|
June 27,2020 |
GAAP net income |
|
$ |
710 |
|
|
$ |
555 |
|
|
$ |
157 |
|
|
$ |
1,265 |
|
|
$ |
319 |
|
Interest expense |
|
10 |
|
|
9 |
|
|
14 |
|
|
19 |
|
|
27 |
|
Other (income) expense, net |
|
— |
|
|
11 |
|
|
(1 |
) |
|
11 |
|
|
(5 |
) |
Income tax provision |
|
113 |
|
|
89 |
|
|
4 |
|
|
202 |
|
|
10 |
|
Equity income in investee |
|
(2 |
) |
|
(2 |
) |
|
(1 |
) |
|
(4 |
) |
|
(1 |
) |
Stock-based compensation |
|
83 |
|
|
85 |
|
|
60 |
|
|
168 |
|
|
119 |
|
Depreciation and amortization |
|
97 |
|
|
95 |
|
|
72 |
|
|
192 |
|
|
140 |
|
Acquisition-related costs |
|
10 |
|
|
15 |
|
|
— |
|
|
25 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
1,021 |
|
|
$ |
857 |
|
|
$ |
305 |
|
|
$ |
1,878 |
|
|
$ |
609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
Reconciliation of GAAP Net Cash
Provided by Operating Activities to Free Cash Flow** |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 26,2021 |
|
March 27,2021 |
|
June 27,2020 |
|
June 26,2021 |
|
June 27,2020 |
GAAP net cash provided by operating activities |
|
$ |
952 |
|
|
$ |
898 |
|
|
$ |
243 |
|
|
1,850 |
|
|
178 |
|
Purchases of property and equipment |
|
(64 |
) |
|
(66 |
) |
|
(91 |
) |
|
(130 |
) |
|
(146 |
) |
Free cash flow |
|
$ |
888 |
|
|
$ |
832 |
|
|
$ |
152 |
|
|
1,720 |
|
|
32 |
|
* |
|
The Company presents “Adjusted EBITDA” as a supplemental measure of
its performance. Adjusted EBITDA for the Company is determined by
adjusting GAAP net income for interest expense, other income
(expense), net, income tax provision, equity income on investee,
stock-based compensation, and depreciation and amortization
expense. The Company also included acquisition-related costs for
the quarter ended June 27, 2021 and March 27, 2021. The Company
calculates and presents Adjusted EBITDA because 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 income 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 that can affect cash flows. |
|
|
|
** |
|
The Company also presents free cash flow as a supplemental Non-GAAP
measure of its performance. Free cash flow is determined by
adjusting GAAP net cash provided by operating activities for
capital expenditures. The Company calculates and communicates free
cash flow in the financial earnings press release because
management believes it is of importance to investors to understand
the nature of these cash flows. The Company’s calculation of 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 free cash flow as an alternative to GAAP liquidity
measures of cash flows from operating activities. |
Media Contact:Drew PrairieAMD
Communications512-602-4425drew.prairie@amd.com
Investor Contact:Laura
GravesAMD Investor
Relations408-749-5467laura.graves@amd.com
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