AMD (ADVANCED MICRO DEVICES) ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Millions except per share amounts and percentages) (Unaudited)
Three Months Ended
December 28, | September 28, | December 29, | ||||
2019 | 2019 | 2018 | ||||
Net revenue | $ | 2,127 | $ | 1,801 | $ | 1,419 |
Cost of sales | 1,178 | 1,024 | 882 | |||
Gross margin | 949 | 777 | 537 | |||
Gross margin % | 45% | 43% | 38% | |||
Research and development | 395 | 406 | 371 | |||
Marketing, general and administrative | 206 | 185 | 138 | |||
Licensing gain | - | - | - | |||
Operating income | 348 | 186 | 28 | |||
Interest expense | (18) | (24) | (29) | |||
Other income (expense), net | (125) | (36) | 4 | |||
Income before income taxes and equity income (loss) | 205 | 126 | 3 | |||
Provision for (benefit from) for income taxes | 35 | 7 | (35) | |||
Equity income (loss) in investee | - | 1 | - | |||
Net Income | $ | 170 | $ | 120 | $ | 38 |
Earnings per share | ||||||
Basic | $ | 0.15 | $ | 0.11 | $ | 0.04 |
Diluted | $ | 0.15 | $ | 0.11 | $ | 0.04 |
Shares used in per share calculation | ||||||
Basic | 1,140 | 1,097 | 1,002 | |||
Diluted | 1,188 | 1,117 | 1,079 | |||
Year Ended
December 28, | December 29, | ||
2019 | 2018 | ||
$ | 6,731 | $ | 6,475 |
3,863 | 4,028 | ||
2,868 | 2,447 | ||
43% | 38% | ||
1,547 | 1,434 | ||
750 | 562 | ||
(60) | - | ||
631 | 451 | ||
(94) | (121) | ||
(165) | - | ||
372 | 330 | ||
31 | (9) | ||
- | (2) | ||
$ | 341 | $ | 337 |
$ | 0.31 | $ | 0.34 |
$ | 0.30 | $ | 0.32 |
1,091 | 982 | ||
1,120 | 1,064 | ||
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Millions) (Unaudited)
December 28,
2019(1)(2)
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ | 1,466 |
Marketable securities | 37 | |
Accounts receivable, net | 1,859 | |
Inventories, net | 982 | |
Prepayment and receivables - related parties | 20 | |
Prepaid expenses and other current assets | 233 | |
Total current assets | 4,597 | |
Property and equipment, net | 500 | |
Operating lease right-of use assets | 205 | |
Goodwill | 289 | |
Investment: equity method | 58 | |
Other assets | 379 | |
Total Assets | $ | 6,028 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Short-term debt, net | $ | - |
Accounts payable | 988 | |
Payables to related parties | 213 | |
Accrued liabilities | 1,084 | |
Other current liabilities | 74 | |
Total current liabilities | 2,359 | |
Long-term debt, net | 486 | |
Long-term operating lease liabilities | 199 | |
Other long-term liabilities | 157 | |
Stockholders' equity: | ||
Capital stock: | ||
Common stock, par value | 12 | |
Additional paid-in capital | 9,963 | |
Treasury stock, at cost | (53) | |
Accumulated deficit | (7,095) | |
Accumulated other comprehensive loss | - | |
Total Stockholders' equity | $ | 2,827 |
Total Liabilities and Stockholders' Equity | $ | 6,028 |
December 29,
2018(2)
- 1,078
78
1,235
845
34
270
3,540
348
-
289
58
321
- 4,556
-
136
834
207
783
24
1,984
1,114
-
192
10
8,750
(50)
(7,436)
(8)
- 1,266
- 4,556
- During the first quarter of 2019, the Company adopted the new lease accounting standard, ASC 842, Leases, which resulted in an increase to assets and liabilities for leases primarily related to office buildings. The adoption of this standard had no impact to the Company's results of operations or cash flows.
- During the second quarter of 2019, GLOBALFOUNDRIES Inc. (GF) ceased being a related party of the Company. All prior period GF related party balances have been reclassified to conform to the current period presentation.
ADVANCED MICRO DEVICES, INC. SELECTED CASH FLOW INFORMATION (Millions) (Unaudited)
Three Months Ended
December 28,
2019
Net cash provided by (used in)
Year Ended
December 28,
2019
Operating activities | $ | 442 | $ | 493 | |
Investing activities | $ | (26) | $ | (149) | |
Financing activities | $ | (107) | $ | 43 | |
ADVANCED MICRO DEVICES, INC. SELECTED CORPORATE DATA (Millions) (Unaudited)
Three Months Ended
Segment and Category Information | December 28, | September 28, | December 29, | |||
2019 | 2019 | 2018 | ||||
Computing and Graphics (1) | ||||||
Net revenue | $ | 1,662 | $ | 1,276 | $ | 986 |
Operating income | $ | 360 | $ | 179 | $ | 115 |
Enterprise, Embedded and Semi-Custom(2) | ||||||
Net revenue | $ | 465 | $ | 525 | $ | 433 |
Operating income | $ | 45 | $ | 61 | $ | (6) |
All Other (3) | ||||||
Net revenue | - | - | - | |||
Operating loss | $ | (57) | $ | (54) | $ | (81) |
Total | ||||||
Net revenue | $ | 2,127 | $ | 1,801 | $ | 1,419 |
Operating income | $ | 348 | $ | 186 | $ | 28 |
Other Data | ||||||
Capital expenditures | $ | 42 | $ | 55 | $ | 41 |
Adjusted EBITDA (4) | $ | 469 | $ | 300 | $ | 152 |
Cash, cash equivalents and marketable securities | $ | 1,503 | $ | 1,209 | $ | 1,156 |
Free cash flow (5) | $ | 400 | $ | 179 | $ | 79 |
Total assets | $ | 6,028 | $ | 5,253 | $ | 4,556 |
Total debt | $ | 486 | $ | 872 | $ | 1,250 |
See footnotes on the next page
Year Ended
December 28, | December 29, | ||
2019 | 2018 | ||
$ | 4,709 | $ | 4,125 |
$ | 577 | $ | 470 |
$ | 2,022 | $ | 2,350 |
$ | 263 | $ | 163 |
- | - | ||
$ | (209) | $ | (182) |
$ | 6,731 | $ | 6,475 |
$ | 631 | $ | 451 |
$ | 217 | $ | 163 |
$ | 1,062 | $ | 803 |
$ | 1,503 | $ | 1,156 |
$ | 276 | $ | (129) |
$ | 6,028 | $ | 4,556 |
$ | 486 | $ | 1,250 |
- The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. The Company also licenses portions of its intellectual property portfolio.
- The Enterprise, Embedded andSemi-Custom segment primarily includes server and embedded processors, semi-customSystem-on-Chip (SoC) products, development services and technology for game consoles. The Company also licenses portions of its intellectual property portfolio.
- All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category isstock-based compensation expense.
- Reconciliation of GAAP Net Income to Adjusted EBITDA*
Three Months Ended | Year Ended | ||||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
GAAP net income | $ | 170 | $ | 120 | $ | 38 | $ | 341 | $ | 337 | |
Interest expense | 18 | 24 | 29 | 94 | 121 | ||||||
Other (income) expense, net | 125 | 36 | (4) | 165 | - | ||||||
Provision (benefit) for income taxes | 35 | 7 | (35) | 31 | (9) | ||||||
Equity (income) loss in investee | - | (1) | - | - | 2 | ||||||
Impairment of technology licenses | - | - | 45 | - | 45 | ||||||
Stock-based compensation | 57 | 54 | 36 | 197 | 137 | ||||||
Depreciation and amortization | 64 | 60 | 43 | 222 | 170 | ||||||
Loss contingency on legal matter | - | - | - | 12 | - | ||||||
Adjusted EBITDA | $ | 469 | $ | 300 | $ | 152 | $ | 1,062 | $ | 803 | |
(5)Free Cash Flow Reconciliation** | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
GAAP net cash provided by operating activities | $ | 442 | $ | 234 | $ | 120 | $ | 493 | $ | 34 | |
Purchases of property and equipment | (42) | (55) | (41) | (217) | (163) | ||||||
Free cash flow | $ | 400 | $ | 179 | $ | 79 | $ | 276 | $ | (129) |
- 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, provision (benefit) for income taxes, equity income (loss) on investee,stock-based compensation, and depreciation and amortization expense. In addition, the Company included a loss contingency on legal matter in the year ended December 28, 2019 and an impairment of technology licenses in the three months and the year ended December 29, 2018. 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 supplementalNon-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by (used in) 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. All periods presented conform to the current period presentation.
The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial measures.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||
(In millions, except per share data) (Unaudited) | Three Months Ended | Year Ended | ||||||||||||
December 28, | September 28, | December 29, | December 28, | December 29, | ||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||
GAAP gross margin | $ | 949 | $ | 777 | $ | 537 | $ | 2,868 | $ | 2,447 | ||||
GAAP gross margin % | 45% | 43% | 38% | 43% | 38% | |||||||||
Impairment of technology licenses | - | - | 45 | - | 45 | |||||||||
Stock-based compensation | 1 | 2 | 1 | 6 | 4 | |||||||||
Non-GAAP gross margin | $ | 950 | $ | 779 | $ | 583 | $ | 2,874 | $ | 2,496 | ||||
Non-GAAP gross margin % | 45% | 43% | 41% | 43% | 39% | |||||||||
GAAP operating expenses | $ | 601 | $ | 591 | $ | 509 | $ | 2,297 | $ | 1,996 | ||||
Stock-based compensation | 56 | 52 | 35 | 191 | 133 | |||||||||
Loss contingency on legal matter | - | - | - | 12 | - | |||||||||
Non-GAAP operating expenses | $ | 545 | $ | 539 | $ | 474 | $ | 2,094 | $ | 1,863 | ||||
GAAP operating income | $ | 348 | $ | 186 | $ | 28 | $ | 631 | $ | 451 | ||||
Impairment of technology licenses | - | - | 45 | - | 45 | |||||||||
Stock-based compensation | 57 | 54 | 36 | 197 | 137 | |||||||||
Loss contingency on legal matter | - | - | - | 12 | - | |||||||||
Non-GAAP operating income | $ | 405 | $ | 240 | $ | 109 | $ | 840 | $ | 633 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 28, | September 29, | December 29, | December 28, | December 29, | ||||||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
GAAP net income / earnings per share | $ | 170 | $ | 0.15 | $ | 120 | $ | 0.11 | $ | 38 | $ | 0.04 | $ | 341 | $ | 0.30 | $ | 337 | $ | 0.32 | ||||||
Loss on debt redemption/conversion | 128 | 0.10 | 40 | 0.03 | 5 | - | 176 | 0.15 | 12 | 0.01 | ||||||||||||||||
Non-cash interest expense related to convertible debt | 4 | - | 6 | - | 6 | 0.01 | 22 | 0.02 | 24 | 0.02 | ||||||||||||||||
Stock-based compensation | 57 | 0.05 | 54 | 0.04 | 36 | 0.03 | 197 | 0.16 | 137 | 0.11 | ||||||||||||||||
Impairment of technology licenses | - | - | - | - | 45 | 0.04 | - | - | 45 | 0.04 | ||||||||||||||||
Equity (income) loss in investee | - | - | (1) | - | - | - | - | - | 2 | - | ||||||||||||||||
Loss contingency on legal matter | - | - | - | - | - | - | 12 | 0.01 | - | - | ||||||||||||||||
Provision for (benefit from) for income taxes | 24 | 0.02 | - | - | - | - | 8 | - | - | - | ||||||||||||||||
Withholding tax refund including interest | - | - | - | - | (43) | (0.04) | - | - | (43) | (0.04) | ||||||||||||||||
Non-GAAP net income / earnings per share | $ | 383 | $ | 0.32 | $ | 219 | $ | 0.18 | $ | 87 | $ | 0.08 | $ | 756 | $ | 0.64 | $ | 514 | $ | 0.46 | ||||||
Shares used and net income adjustment in | ||||||||||||||||||||||||||
earnings per share calculation | ||||||||||||||||||||||||||
Shares used in per share calculation (GAAP) | 1,188 | 1,117 | 1,079 | 1,120 | 1,064 | |||||||||||||||||||||
Interest expense add-back to GAAP net income | $ | 4 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Shares used in per share calculation (Non-GAAP)(1) | 1,216 | 1,212 | 1,180 | 1,209 | 1,165 | |||||||||||||||||||||
(1) | $ | 2 | $ | 4 | $ | 5 | $ | 16 | $ | 18 | ||||||||||||||||
Interest expense add-back to Non-GAAP net income |
-
The three months ended December 28, 2019, GAAP diluted EPS calculation includes the 31 million shares related to the Company's 2026 Convertible Notes and the associated $4 million interest expenseadd-back to net income under the "if converted" method.
The three months and year ended December 28, 2019, Non-GAAP diluted EPS calculation includes the 59 million and 89 million shares, respectively, related to the Company's 2026 Convertible Notes and the associated $2 million and $16 million interest expense add- back to net income, respectively, under the "if converted" method.
The three months ended September 28, 2019, Non-GAAP diluted EPS calculation includes the 95 million shares related to the Company's 2026 Convertible Notes and the associated $4 million interest expense add-back to net income under the "if converted" method.
The three months and year ended December 29, 2018, Non-GAAP diluted EPS calculation includes the 100.6 million shares related to the Company's 2026 Convertible Notes and the associated $5 million and $18 million, respectively, interest expense add-back to net income under the "if converted" method.
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AMD - Advanced Micro Devices Inc. published this content on 28 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2020 22:14:07 UTC
