AMD (NASDAQ:AMD) today announced revenue for the third quarter of
2024 of $6.8 billion, gross margin of 50%, operating income of $724
million, net income of $771 million and diluted earnings per share
of $0.47. On a non-GAAP(*) basis, gross margin was 54%, operating
income was $1.7 billion, net income was $1.5 billion and diluted
earnings per share was $0.92.
“We delivered strong third quarter financial results with record
revenue led by higher sales of EPYC and Instinct data center
products and robust demand for our Ryzen PC processors,” said AMD
Chair and CEO Dr. Lisa Su. “Looking forward, we see significant
growth opportunities across our data center, client and embedded
businesses driven by the insatiable demand for more compute.”
“We are pleased with our execution in the third quarter,
delivering strong year-over-year expansion in gross margin and
earnings per share,” said AMD EVP, CFO and Treasurer Jean Hu. "We
are on-track to deliver record annual revenue for 2024 based on
significant growth in our Data Center and Client segments.”
GAAP Quarterly Financial Results |
|
|
Q3 2024 |
Q3 2023 |
Y/Y |
Q2 2024 |
Q/Q |
Revenue ($M) |
$6,819 |
$5,800 |
Up 18% |
$5,835 |
Up 17% |
Gross profit ($M) |
$3,419 |
$2,747 |
Up 24% |
$2,864 |
Up 19% |
Gross margin |
50% |
47% |
Up 3 ppts |
49% |
Up 1 ppt |
Operating expenses ($M) |
$2,709 |
$2,533 |
Up 7% |
$2,605 |
Up 4% |
Operating income ($M) |
$724 |
$224 |
Up 223% |
$269 |
Up 169% |
Operating margin |
11% |
4% |
Up 7 ppts |
5% |
Up 6 ppts |
Net income ($M) |
$771 |
$299 |
Up 158% |
$265 |
Up 191% |
Diluted earnings per share |
$0.47 |
$0.18 |
Up 161% |
$0.16 |
Up 194% |
|
Non-GAAP(*) Quarterly Financial Results |
|
|
Q3 2024 |
Q3 2023 |
Y/Y |
Q2 2024 |
Q/Q |
Revenue ($M) |
$6,819 |
$5,800 |
Up 18% |
$5,835 |
Up 17% |
Gross profit ($M) |
$3,657 |
$2,963 |
Up 23% |
$3,101 |
Up 18% |
Gross margin |
54% |
51% |
Up 3 ppts |
53% |
Up 1 ppt |
Operating expenses ($M) |
$1,956 |
$1,697 |
Up 15% |
$1,847 |
Up 6% |
Operating income ($M) |
$1,715 |
$1,276 |
Up 34% |
$1,264 |
Up 36% |
Operating margin |
25% |
22% |
Up 3 ppts |
22% |
Up 3 ppts |
Net income ($M) |
$1,504 |
$1,135 |
Up 33% |
$1,126 |
Up 34% |
Diluted earnings per share |
$0.92 |
$0.70 |
Up 31% |
$0.69 |
Up 33% |
|
Segment Summary
- Record Data Center segment revenue of $3.5 billion was up 122%
year-over-year and 25% sequentially primarily driven by the strong
ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU
sales.
- Client segment revenue was $1.9 billion, up 29% year-over-year
and 26% sequentially primarily driven by strong demand for “Zen 5”
AMD Ryzen™ processors.
- Gaming segment revenue was $462 million, down 69%
year-over-year and 29% sequentially primarily due to a decrease in
semi-custom revenue.
- Embedded segment revenue was $927 million, down 25%
year-over-year as customers normalized their inventory levels. On a
sequential basis, revenue increased 8% as demand improved in
several end markets.
Recent PR Highlights
- At the Advancing AI 2024 event this month, AMD and strategic
partners including Dell, Google Cloud, HPE, Lenovo, Meta,
Microsoft, Oracle Cloud Infrastructure, Supermicro and AI leaders
Databricks, Essential AI, Fireworks AI, Luma AI and Reka AI
unveiled a broad portfolio of solutions delivering enterprise AI at
scale based on the latest AMD Instinct accelerators, EPYC CPUs, AMD
networking solutions and Ryzen PRO CPUs:
- New AMD EPYC 9005 Series processors, with record-breaking
performance and energy efficiency for diverse data center needs,
available in a wide range of platforms from leading OEMs and
ODMs.
- AMD Instinct MI325X accelerators, delivering leadership
performance and memory capabilities for the most demanding AI
workloads. AMD also shared new details on next-gen AMD Instinct
accelerators planned to launch in 2025 and 2026.
- An expanded high performance networking portfolio to maximize
performance, scalability and efficiency for AI systems, with the
new AMD Pensando™ Salina DPU and AMD Pensando Pollara 400 NIC.
- New Ryzen AI PRO 300 Series mobile processors, powering
next-gen AI PCs for the enterprise with 50+ AI TOPS and leadership
performance, battery life, security and manageability
features.
- AMD continues to extend leadership AI performance,
optimizations and customer adoption for AMD Instinct accelerators
and AMD ROCm™ open software:
- Oracle Cloud Infrastructure selected AMD Instinct MI300X
accelerators with AMD ROCm open software to power its latest OCI
Compute Supercluster designed for demanding AI workloads.
- AMD unveiled its first results on leading AI benchmark MLPerf,
revealing excellent performance for AMD Instinct MI300X
accelerators advanced by the AMD ROCm software platform, on-par
with NVIDIA H100.
- AMD highlighted support for the latest Llama 3.2 release from
Meta, enabling developers to build new agentic applications and
personalized AI experiences on AMD accelerators and processors from
cloud to edge and AI PCs.
- AMD and ecosystem partners are enabling new AI PC platforms and
capabilities:
- In partnership with Microsoft, AMD announced that Copilot+ will
be enabled on AMD CPU-powered AI PCs via a free upgrade planned to
be available starting in November 2024.
- OEM partners including Acer, HP, Lenovo and Asus announced new
systems powered by AMD Ryzen AI 300 Series mobile processors,
leveraging the leadership gaming, content creation and everyday
performance of the new “Zen 5” architecture.
- AMD expanded its embedded portfolio for a range of
applications, including:
- New AMD EPYC Embedded 8004 Series processors, designed to
deliver outstanding performance and power efficiency for demanding
workloads.
- The smaller form factor, cost-optimized AMD Alveo™ UL3422
Accelerator Card, a fintech accelerator for ultra-low latency
electronic trading applications.
- The AMD Artix™ UltraScale+™ XA AU7P, a cost-optimized,
automotive-qualified FPGA for ADAS sensor applications and
in-vehicle infotainment.
- AMD announced an agreement to acquire ZT Systems, a leading
provider of AI and general purpose compute infrastructure for the
world’s largest hyperscale providers, to expand the company’s data
center AI systems capabilities and accelerate deployment of AMD AI
rack scale systems with cloud and enterprise customers. The
acquisition is subject to regulatory clearance and other customary
closing conditions and is expected to close in the first half of
2025.
- AMD completed the acquisition of Silo AI to accelerate
development and deployment of AI models on AMD hardware.
- AMD and Intel announced the creation of an x86 ecosystem
advisory group with Broadcom, Dell, Google, HPE, HP, Lenovo, Meta,
Microsoft, Oracle, Red Hat and industry luminaries Linus Torvalds
and Tim Sweeney to collaborate on architectural interoperability
and simplify software development.
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 fourth quarter of 2024, AMD expects revenue to be
approximately $7.5 billion, plus or minus $300 million. At the
mid-point of the revenue range, this represents year-over-year
growth of approximately 22% and sequential growth of approximately
10%. Non-GAAP gross margin is expected to be approximately 54%.
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 third quarter 2024
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.
Media Contact:Drew
PrairieAMD
Communications512-602-4425drew.prairie@amd.com
Investor Contact:Mitch
HawsAMD Investor
Relations408-749-3124mitch.haws@amd.com
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(in
millions, except per share data) (Unaudited)
|
Three Months Ended |
|
September 28,2024 |
|
June 29,2024 |
|
September 30,2023 |
GAAP gross profit |
$ |
3,419 |
|
|
$ |
2,864 |
|
|
$ |
2,747 |
|
GAAP gross margin |
|
50 |
% |
|
|
49 |
% |
|
|
47 |
% |
Stock-based compensation |
|
5 |
|
|
|
5 |
|
|
|
6 |
|
Amortization of acquisition-related intangibles |
|
233 |
|
|
|
231 |
|
|
|
210 |
|
Acquisition-related and other costs(1) |
|
— |
|
|
|
1 |
|
|
|
— |
|
Non-GAAP gross
profit |
$ |
3,657 |
|
|
$ |
3,101 |
|
|
$ |
2,963 |
|
Non-GAAP gross margin |
|
54 |
% |
|
|
53 |
% |
|
|
51 |
% |
|
|
|
|
|
|
GAAP operating
expenses |
$ |
2,709 |
|
|
$ |
2,605 |
|
|
$ |
2,533 |
|
GAAP operating expenses/revenue % |
|
40 |
% |
|
|
45 |
% |
|
|
44 |
% |
Stock-based compensation |
|
346 |
|
|
|
341 |
|
|
|
347 |
|
Amortization of acquisition-related intangibles |
|
352 |
|
|
|
372 |
|
|
|
450 |
|
Acquisition-related and other costs(1) |
|
55 |
|
|
|
45 |
|
|
|
39 |
|
Non-GAAP operating
expenses |
$ |
1,956 |
|
|
$ |
1,847 |
|
|
$ |
1,697 |
|
Non-GAAP operating expenses/revenue % |
|
29 |
% |
|
|
32 |
% |
|
|
29 |
% |
|
|
|
|
|
|
GAAP operating
income |
$ |
724 |
|
|
$ |
269 |
|
|
$ |
224 |
|
GAAP operating margin |
|
11 |
% |
|
|
5 |
% |
|
|
4 |
% |
Stock-based compensation |
|
351 |
|
|
|
346 |
|
|
|
353 |
|
Amortization of acquisition-related intangibles |
|
585 |
|
|
|
603 |
|
|
|
660 |
|
Acquisition-related and other costs(1) |
|
55 |
|
|
|
46 |
|
|
|
39 |
|
Non-GAAP operating
income |
$ |
1,715 |
|
|
$ |
1,264 |
|
|
$ |
1,276 |
|
Non-GAAP operating margin |
|
25 |
% |
|
|
22 |
% |
|
|
22 |
% |
|
Three Months Ended |
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
GAAP net income / earnings per share |
$ |
771 |
|
|
$ |
0.47 |
|
|
$ |
265 |
|
|
$ |
0.16 |
|
|
$ |
299 |
|
|
$ |
0.18 |
|
(Gains) losses on equity investments, net |
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Stock-based compensation |
|
351 |
|
|
|
0.21 |
|
|
|
346 |
|
|
|
0.21 |
|
|
|
353 |
|
|
|
0.22 |
|
Equity income in investee |
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
Amortization of acquisition-related intangibles |
|
585 |
|
|
|
0.36 |
|
|
|
603 |
|
|
|
0.37 |
|
|
|
660 |
|
|
|
0.41 |
|
Acquisition-related and other costs(1) |
|
56 |
|
|
|
0.03 |
|
|
|
46 |
|
|
|
0.03 |
|
|
|
39 |
|
|
|
0.02 |
|
Income tax provision |
|
(251 |
) |
|
|
(0.15 |
) |
|
|
(127 |
) |
|
|
(0.08 |
) |
|
|
(209 |
) |
|
|
(0.13 |
) |
Non-GAAP net income /
earnings per share |
$ |
1,504 |
|
|
$ |
0.92 |
|
|
$ |
1,126 |
|
|
$ |
0.69 |
|
|
$ |
1,135 |
|
|
$ |
0.70 |
|
(1) |
|
Acquisition-related and other costs primarily comprised of
transaction costs, purchase price adjustments for inventory,
certain compensation charges, contract termination and workforce
rebalancing charges. |
About AMD
For more than 50 years AMD has driven innovation in
high-performance computing, graphics and visualization
technologies. AMD employees are focused on building leadership
high-performance and adaptive products that push the boundaries of
what is possible. Billions of people, leading Fortune 500
businesses and cutting-edge scientific research institutions around
the world rely on AMD technology daily to improve how they live,
work and play. For more information about how AMD is enabling today
and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog,
LinkedIn and X pages.
Cautionary Statement
This press release contains forward-looking statements
concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s
expectations for future growth in data center, client and embedded
businesses; AMD being on track to deliver record annual revenue
growth for 2024 based on significant growth in AMD’s Data Center
and Client segments; AMD’s expectations about the demand for more
compute; the features, functionality, performance, availability,
timing and expected benefits of future AMD products; AMD’s
anticipated acquisition of ZT Systems and the expected timing of
the transaction; and AMD’s expected fourth quarter 2024 financial
outlook, including revenue and non-GAAP gross margin, 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; Nvidia’s dominance in the graphics processing unit
market and its aggressive business practices; the cyclical nature
of the semiconductor industry; market conditions of the industries
in which AMD products are sold; loss of a significant customer;
competitive markets in which AMD’s products are sold; economic and
market uncertainty; quarterly and seasonal sales patterns; AMD's
ability to adequately protect its technology or other intellectual
property; unfavorable currency exchange rate fluctuations; ability
of third party manufacturers to manufacture AMD's products on a
timely basis in sufficient quantities and using competitive
technologies; availability of essential equipment, materials,
substrates or manufacturing processes; ability to achieve expected
manufacturing yields for AMD’s products; AMD's ability to introduce
products on a timely basis with expected features and performance
levels; 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
cyberattacks; uncertainties involving the ordering and shipment of
AMD’s products; AMD’s reliance on third-party intellectual property
to design and introduce new products; AMD's reliance on third-party
companies for design, manufacture and supply of motherboards,
software, memory and other computer platform components; AMD's
reliance on Microsoft 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; 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; efficiency of AMD's supply chain; AMD's ability
to rely on third party supply-chain logistics functions; AMD’s
ability to effectively control sales of its products on the gray
market; long-term impact of climate change on AMD’s business;
impact of government actions and regulations such as export
regulations, tariffs and trade protection measures; AMD’s ability
to realize its deferred tax assets; potential tax liabilities;
current and future claims and litigation; impact of environmental
laws, conflict minerals related provisions and other laws or
regulations; evolving expectations from governments, investors,
customers and other stakeholders regarding corporate responsibility
matters; issues related to the responsible use of AI; restrictions
imposed by agreements governing AMD’s notes, the guarantees of
Xilinx’s notes and the revolving credit agreement; the ability to
obtain applicable regulatory approvals for the acquisition of ZT
Systems in a timely manner or otherwise and to satisfy other
closing conditions to the transaction; impact of acquisitions,
joint ventures and/or investments on AMD’s business and AMD’s
ability to integrate acquired businesses; impact of any impairment
of the combined company’s assets; political, legal and economic
risks and natural disasters; future impairments of technology
license purchases; AMD’s ability to attract and retain qualified
personnel; and AMD’s stock price volatility. 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 gross margin, non-GAAP operating
expenses, non-GAAP operating expenses/revenue%, non-GAAP operating
income, non-GAAP operating margin, non-GAAP net income and non-GAAP
diluted 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 2024, AMD uses
a projected non-GAAP tax rate of 13%, which excludes the tax impact
of pre-tax non-GAAP adjustments, reflecting currently available
information. AMD also provided adjusted EBITDA, free cash flow and
free cash flow margin 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 in 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 October 29,
2024 and assumptions and beliefs that involve numerous risks and
uncertainties. Adjustments to arrive at the GAAP gross margin
outlook typically include stock-based compensation, amortization of
acquired intangible assets and acquisition-related and other costs.
The timing and impact of such adjustments are dependent on future
events that are typically uncertain or outside of AMD's control,
therefore, a reconciliation to equivalent GAAP measures is not
practicable at this time. 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. |
|
|
|
©2024 Advanced Micro Devices, Inc. All rights reserved.
AMD, the AMD Arrow logo, 3D V-Cache, Alveo, EPYC, FidelityFX,
Instinct, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal,
Zynq, and combinations thereof, are trademarks of Advanced Micro
Devices, Inc.
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Millions
except per share amounts and percentages) (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 28,2024 |
|
June 29,2024 |
|
September 30,2023 |
|
September 28,2024 |
|
September 30,2023 |
Net revenue |
$ |
6,819 |
|
|
$ |
5,835 |
|
|
$ |
5,800 |
|
|
$ |
18,127 |
|
|
$ |
16,512 |
|
Cost of sales |
|
3,167 |
|
|
|
2,740 |
|
|
|
2,843 |
|
|
|
8,590 |
|
|
|
8,236 |
|
Amortization of
acquisition-related intangibles |
|
233 |
|
|
|
231 |
|
|
|
210 |
|
|
|
694 |
|
|
|
727 |
|
Total cost of sales |
|
3,400 |
|
|
|
2,971 |
|
|
|
3,053 |
|
|
|
9,284 |
|
|
|
8,963 |
|
Gross profit |
|
3,419 |
|
|
|
2,864 |
|
|
|
2,747 |
|
|
|
8,843 |
|
|
|
7,549 |
|
Gross margin |
|
50 |
% |
|
|
49 |
% |
|
|
47 |
% |
|
|
49 |
% |
|
|
46 |
% |
Research and development |
|
1,636 |
|
|
|
1,583 |
|
|
|
1,507 |
|
|
|
4,744 |
|
|
|
4,361 |
|
Marketing, general and
administrative |
|
721 |
|
|
|
650 |
|
|
|
576 |
|
|
|
1,991 |
|
|
|
1,708 |
|
Amortization of
acquisition-related intangibles |
|
352 |
|
|
|
372 |
|
|
|
450 |
|
|
|
1,116 |
|
|
|
1,449 |
|
Licensing gain |
|
(14 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(37 |
) |
|
|
(28 |
) |
Operating income |
|
724 |
|
|
|
269 |
|
|
|
224 |
|
|
|
1,029 |
|
|
|
59 |
|
Interest expense |
|
(23 |
) |
|
|
(25 |
) |
|
|
(26 |
) |
|
|
(73 |
) |
|
|
(79 |
) |
Other income (expense),
net |
|
36 |
|
|
|
55 |
|
|
|
59 |
|
|
|
144 |
|
|
|
148 |
|
Income before income taxes and equity income |
|
737 |
|
|
|
299 |
|
|
|
257 |
|
|
|
1,100 |
|
|
|
128 |
|
Income tax provision
(benefit) |
|
(27 |
) |
|
|
41 |
|
|
|
(39 |
) |
|
|
(38 |
) |
|
|
(49 |
) |
Equity income in investee |
|
7 |
|
|
|
7 |
|
|
|
3 |
|
|
|
21 |
|
|
|
10 |
|
Net income |
$ |
771 |
|
|
$ |
265 |
|
|
$ |
299 |
|
|
$ |
1,159 |
|
|
$ |
187 |
|
Earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.48 |
|
|
$ |
0.16 |
|
|
$ |
0.18 |
|
|
$ |
0.72 |
|
|
$ |
0.12 |
|
Diluted |
$ |
0.47 |
|
|
$ |
0.16 |
|
|
$ |
0.18 |
|
|
$ |
0.71 |
|
|
$ |
0.11 |
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
Basic |
|
1,620 |
|
|
|
1,618 |
|
|
|
1,616 |
|
|
|
1,619 |
|
|
|
1,613 |
|
Diluted |
|
1,636 |
|
|
|
1,637 |
|
|
|
1,629 |
|
|
|
1,638 |
|
|
|
1,625 |
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(Millions)
|
September 28,2024 |
|
December 30,2023 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
3,897 |
|
|
$ |
3,933 |
|
Short-term investments |
|
647 |
|
|
|
1,840 |
|
Accounts receivable, net |
|
7,241 |
|
|
|
5,376 |
|
Inventories |
|
5,374 |
|
|
|
4,351 |
|
Receivables from related parties |
|
29 |
|
|
|
9 |
|
Prepaid expenses and other current assets |
|
1,547 |
|
|
|
1,259 |
|
Total current
assets |
|
18,735 |
|
|
|
16,768 |
|
Property and equipment,
net |
|
1,669 |
|
|
|
1,589 |
|
Operating lease right-of-use
assets |
|
647 |
|
|
|
633 |
|
Goodwill |
|
24,839 |
|
|
|
24,262 |
|
Acquisition-related
intangibles, net |
|
19,572 |
|
|
|
21,363 |
|
Investment: equity method |
|
137 |
|
|
|
99 |
|
Deferred tax assets |
|
1,183 |
|
|
|
366 |
|
Other non-current assets |
|
2,854 |
|
|
|
2,805 |
|
Total
Assets |
$ |
69,636 |
|
|
$ |
67,885 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,530 |
|
|
$ |
2,055 |
|
Payables to related parties |
|
461 |
|
|
|
363 |
|
Accrued liabilities |
|
4,120 |
|
|
|
3,082 |
|
Current portion of long-term debt, net |
|
— |
|
|
|
751 |
|
Other current liabilities |
|
389 |
|
|
|
438 |
|
Total current
liabilities |
|
7,500 |
|
|
|
6,689 |
|
Long-term debt, net of current
portion |
|
1,720 |
|
|
|
1,717 |
|
Long-term operating lease
liabilities |
|
518 |
|
|
|
535 |
|
Deferred tax liabilities |
|
1,162 |
|
|
|
1,202 |
|
Other long-term
liabilities |
|
1,751 |
|
|
|
1,850 |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Capital stock: |
|
|
|
Common stock, par value |
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
60,896 |
|
|
|
59,676 |
|
Treasury stock, at cost |
|
(5,812 |
) |
|
|
(4,514 |
) |
Retained earnings |
|
1,882 |
|
|
|
723 |
|
Accumulated other
comprehensive income (loss) |
|
2 |
|
|
|
(10 |
) |
Total stockholders'
equity |
$ |
56,985 |
|
|
$ |
55,892 |
|
Total Liabilities and
Stockholders' Equity |
$ |
69,636 |
|
|
$ |
67,885 |
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions)
(Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 28,2024 |
|
September 30,2023 |
|
September 28,2024 |
|
September 30,2023 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
771 |
|
|
$ |
299 |
|
|
$ |
1,159 |
|
|
$ |
187 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
756 |
|
|
|
823 |
|
|
|
2,309 |
|
|
|
2,654 |
|
Stock-based compensation |
|
351 |
|
|
|
353 |
|
|
|
1,068 |
|
|
|
1,010 |
|
Amortization of operating lease right-of-use assets |
|
30 |
|
|
|
25 |
|
|
|
82 |
|
|
|
73 |
|
Deferred income taxes |
|
(607 |
) |
|
|
(218 |
) |
|
|
(863 |
) |
|
|
(800 |
) |
Inventory loss at contract manufacturer |
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
Other |
|
(13 |
) |
|
|
(23 |
) |
|
|
(50 |
) |
|
|
(31 |
) |
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
Accounts receivable, net |
|
(1,489 |
) |
|
|
(743 |
) |
|
|
(1,862 |
) |
|
|
(929 |
) |
Inventories |
|
(386 |
) |
|
|
122 |
|
|
|
(1,096 |
) |
|
|
(674 |
) |
Prepaid expenses and other assets |
|
(16 |
) |
|
|
(143 |
) |
|
|
(250 |
) |
|
|
(380 |
) |
Receivables from and payables to related parties, net |
|
36 |
|
|
|
14 |
|
|
|
78 |
|
|
|
(136 |
) |
Accounts payable |
|
832 |
|
|
|
(547 |
) |
|
|
476 |
|
|
|
(238 |
) |
Accrued and other liabilities |
|
363 |
|
|
|
459 |
|
|
|
626 |
|
|
|
550 |
|
Net cash provided by operating
activities |
|
628 |
|
|
|
421 |
|
|
|
1,742 |
|
|
|
1,286 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(132 |
) |
|
|
(124 |
) |
|
|
(428 |
) |
|
|
(407 |
) |
Purchases of short-term investments |
|
(142 |
) |
|
|
(496 |
) |
|
|
(707 |
) |
|
|
(3,312 |
) |
Proceeds from maturity of short-term investments |
|
149 |
|
|
|
746 |
|
|
|
1,351 |
|
|
|
1,917 |
|
Proceeds from sale of short-term investments |
|
589 |
|
|
|
— |
|
|
|
591 |
|
|
|
248 |
|
Acquisitions, net of cash acquired |
|
(548 |
) |
|
|
(14 |
) |
|
|
(548 |
) |
|
|
(14 |
) |
Related party equity method investment |
|
(17 |
) |
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
Other |
|
(37 |
) |
|
|
(10 |
) |
|
|
(129 |
) |
|
|
(5 |
) |
Net cash provided by (used in)
investing activities |
|
(138 |
) |
|
|
102 |
|
|
|
113 |
|
|
|
(1,573 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Repayment of debt |
|
— |
|
|
|
— |
|
|
|
(750 |
) |
|
|
— |
|
Proceeds from sales of common stock through employee equity
plans |
|
4 |
|
|
|
4 |
|
|
|
152 |
|
|
|
148 |
|
Repurchases of common stock |
|
(250 |
) |
|
|
(511 |
) |
|
|
(606 |
) |
|
|
(752 |
) |
Common stock repurchases for tax withholding on employee equity
plans |
|
(460 |
) |
|
|
(295 |
) |
|
|
(686 |
) |
|
|
(382 |
) |
Other |
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
1 |
|
Net cash used in financing
activities |
|
(706 |
) |
|
|
(803 |
) |
|
|
(1,891 |
) |
|
|
(987 |
) |
Net decrease in cash and cash
equivalents |
$ |
(216 |
) |
|
$ |
(280 |
) |
|
$ |
(36 |
) |
|
$ |
(1,274 |
) |
Cash and cash equivalents at
beginning of period |
|
4,113 |
|
|
|
3,841 |
|
|
|
3,933 |
|
|
|
4,835 |
|
Cash and cash equivalents at
end of period |
$ |
3,897 |
|
|
$ |
3,561 |
|
|
$ |
3,897 |
|
|
$ |
3,561 |
|
ADVANCED MICRO DEVICES, INC.SELECTED
CORPORATE DATA(Millions) (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 28,2024 |
|
June 29,2024 |
|
September 30,2023 |
|
September 28,2024 |
|
September 30,2023 |
Segment and Category
Information(1) |
|
|
|
|
|
|
|
|
|
Data Center |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
3,549 |
|
|
$ |
2,834 |
|
|
$ |
1,598 |
|
|
$ |
8,720 |
|
|
$ |
4,214 |
|
Operating income |
$ |
1,041 |
|
|
$ |
743 |
|
|
$ |
306 |
|
|
$ |
2,325 |
|
|
$ |
601 |
|
Client |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
1,881 |
|
|
$ |
1,492 |
|
|
$ |
1,453 |
|
|
$ |
4,741 |
|
|
$ |
3,190 |
|
Operating income (loss) |
$ |
276 |
|
|
$ |
89 |
|
|
$ |
140 |
|
|
$ |
451 |
|
|
$ |
(101 |
) |
Gaming |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
462 |
|
|
$ |
648 |
|
|
$ |
1,506 |
|
|
$ |
2,032 |
|
|
$ |
4,844 |
|
Operating income |
$ |
12 |
|
|
$ |
77 |
|
|
$ |
208 |
|
|
$ |
240 |
|
|
$ |
747 |
|
Embedded |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
927 |
|
|
$ |
861 |
|
|
$ |
1,243 |
|
|
$ |
2,634 |
|
|
$ |
4,264 |
|
Operating income |
$ |
372 |
|
|
$ |
345 |
|
|
$ |
612 |
|
|
$ |
1,059 |
|
|
$ |
2,167 |
|
All Other |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
$ |
(977 |
) |
|
$ |
(985 |
) |
|
$ |
(1,042 |
) |
|
$ |
(3,046 |
) |
|
$ |
(3,355 |
) |
Total |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
6,819 |
|
|
$ |
5,835 |
|
|
$ |
5,800 |
|
|
$ |
18,127 |
|
|
$ |
16,512 |
|
Operating income |
$ |
724 |
|
|
$ |
269 |
|
|
$ |
224 |
|
|
$ |
1,029 |
|
|
$ |
59 |
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
132 |
|
|
$ |
154 |
|
|
$ |
124 |
|
|
$ |
428 |
|
|
$ |
407 |
|
Adjusted EBITDA(2) |
$ |
1,887 |
|
|
$ |
1,430 |
|
|
$ |
1,439 |
|
|
$ |
4,612 |
|
|
$ |
3,920 |
|
Cash, cash equivalents and
short-term investments |
$ |
4,544 |
|
|
$ |
5,340 |
|
|
$ |
5,785 |
|
|
$ |
4,544 |
|
|
$ |
5,785 |
|
Free cash flow(3) |
$ |
496 |
|
|
$ |
439 |
|
|
$ |
297 |
|
|
$ |
1,314 |
|
|
$ |
879 |
|
Total assets |
$ |
69,636 |
|
|
$ |
67,886 |
|
|
$ |
67,626 |
|
|
$ |
69,636 |
|
|
$ |
67,626 |
|
Total debt |
$ |
1,720 |
|
|
$ |
1,719 |
|
|
$ |
2,467 |
|
|
$ |
1,720 |
|
|
$ |
2,467 |
|
(1) |
|
The Data Center segment primarily includes server microprocessors
(CPUs), graphics processing units (GPUs), accelerated processing
units (APUs), data processing units (DPUs), Field Programmable Gate
Arrays (FPGAs), Smart Network Interface Cards (SmartNICs),
Artificial Intelligence (AI) accelerators and Adaptive
System-on-Chip (SoC) products for data centers. |
|
|
The Client segment primarily
includes CPUs, APUs, and chipsets for desktop, notebook and
handheld personal computers. |
|
|
The Gaming segment primarily
includes discrete GPUs, and semi-custom SoC products and
development services. |
|
|
The Embedded segment primarily
includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules
(SOMs), and Adaptive SoC products. |
|
|
From time to time, the Company
may also sell or license portions of its IP portfolio. |
|
|
All Other category primarily
includes certain expenses and credits that are not allocated to any
of the operating segments, such as amortization of
acquisition-related intangible asset, employee stock-based
compensation expense, acquisition-related and other costs,
inventory loss at contract manufacturer, and licensing gain. |
(2) |
|
Reconciliation of GAAP Net Income to Adjusted
EBITDA |
|
Three Months Ended |
|
Nine Months Ended |
(Millions) (Unaudited) |
September 28,2024 |
|
June 29,2024 |
|
September 30,2023 |
|
September 28,2024 |
|
September 30,2023 |
GAAP net income |
$ |
771 |
|
|
$ |
265 |
|
|
$ |
299 |
|
|
$ |
1,159 |
|
|
$ |
187 |
|
Interest expense |
|
23 |
|
|
|
25 |
|
|
|
26 |
|
|
|
73 |
|
|
|
79 |
|
Other (income) expense, net |
|
(36 |
) |
|
|
(55 |
) |
|
|
(59 |
) |
|
|
(144 |
) |
|
|
(148 |
) |
Income tax provision (benefit) |
|
(27 |
) |
|
|
41 |
|
|
|
(39 |
) |
|
|
(38 |
) |
|
|
(49 |
) |
Equity income in investee |
|
(7 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(21 |
) |
|
|
(10 |
) |
Stock-based compensation |
|
351 |
|
|
|
346 |
|
|
|
353 |
|
|
|
1,068 |
|
|
|
1,006 |
|
Depreciation and amortization |
|
171 |
|
|
|
166 |
|
|
|
163 |
|
|
|
499 |
|
|
|
478 |
|
Amortization of acquisition-related intangibles |
|
585 |
|
|
|
603 |
|
|
|
660 |
|
|
|
1,810 |
|
|
|
2,176 |
|
Inventory loss at contract manufacturer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
Acquisition-related and other costs |
|
56 |
|
|
|
46 |
|
|
|
39 |
|
|
|
141 |
|
|
|
201 |
|
Adjusted EBITDA |
$ |
1,887 |
|
|
$ |
1,430 |
|
|
$ |
1,439 |
|
|
$ |
4,612 |
|
|
$ |
3,920 |
|
|
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 (benefit), equity income in
investee, stock-based compensation, depreciation and amortization
expense, amortization of acquisition-related intangibles, inventory
loss at contract manufacturer, and acquisition-related and other
costs. 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.
(3) |
|
Reconciliation of GAAP Net Cash Provided by Operating
Activities to Free Cash Flow |
|
Three Months Ended |
|
Nine Months Ended |
(Millions except percentages)
(Unaudited) |
September 28,2024 |
|
June 29,2024 |
|
September 30,2023 |
|
September 28,2024 |
|
September 30,2023 |
GAAP net cash provided by operating activities |
$ |
628 |
|
|
$ |
593 |
|
|
$ |
421 |
|
|
$ |
1,742 |
|
|
$ |
1,286 |
|
Operating cash flow margin % |
|
9 |
% |
|
|
10 |
% |
|
|
7 |
% |
|
|
10 |
% |
|
|
8 |
% |
Purchases of property and equipment |
|
(132 |
) |
|
|
(154 |
) |
|
|
(124 |
) |
|
|
(428 |
) |
|
|
(407 |
) |
Free cash flow |
$ |
496 |
|
|
$ |
439 |
|
|
$ |
297 |
|
|
$ |
1,314 |
|
|
$ |
879 |
|
Free cash flow margin % |
|
7 |
% |
|
|
8 |
% |
|
|
5 |
% |
|
|
7 |
% |
|
|
5 |
% |
|
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, and free cash flow margin % is free cash flow
expressed as a percentage of the Company's net revenue. 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.
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