AMD Reports Fourth Quarter and Full Year 2023 Financial Results
30 Janeiro 2024 - 6:15PM
AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of
2023 of $6.2 billion, gross margin of 47%, operating income of $342
million, net income of $667 million and diluted earnings per share
of $0.41. On a non-GAAP(*) basis, gross margin was 51%, operating
income was $1.4 billion, net income was $1.2 billion and diluted
earnings per share was $0.77.
For the full year 2023, the company reported revenue of $22.7
billion, gross margin of 46%, operating income of $401 million, net
income of $854 million and diluted earnings per share of $0.53. On
a non-GAAP(*) basis, gross margin was 50%, operating income was
$4.9 billion, net income was $4.3 billion and diluted earnings per
share was $2.65.
“We finished 2023 strong, with sequential and year-over-year
revenue and earnings growth driven by record quarterly AMD Instinct
GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” said
AMD Chair and CEO Dr. Lisa Su. “Demand for our high-performance
data center product portfolio continues to accelerate, positioning
us well to deliver strong annual growth in what is an incredibly
exciting time as AI re-shapes virtually every part of the computing
market.”
“AMD executed well in 2023 despite a mixed demand
environment,” said AMD EVP, CFO and Treasurer Jean Hu. “We drove
year-over-year revenue growth in our Data Center and Embedded
segments and successfully launched our AMD Instinct MI300 GPUs
positioning us for a strong product ramp in 2024.”
GAAP Quarterly Financial Results |
|
|
Q4 2023 |
Q4 2022 |
Y/Y |
Q3 2023 |
Q/Q |
Revenue ($M) |
$6,168 |
$5,599 |
Up 10% |
$5,800 |
Up 6% |
Gross profit ($M) |
$2,911 |
$2,403 |
Up 21% |
$2,747 |
Up 6% |
Gross margin |
47% |
43% |
Up 4 ppts |
47% |
Flat |
Operating expenses ($M) |
$2,575 |
$2,557 |
Flat |
$2,533 |
Up 2% |
Operating income (loss) ($M) |
$342 |
$(149) |
Up 330% |
$224 |
Up 53% |
Operating margin |
6% |
(3%) |
Up 9 ppts |
4% |
Up 2 ppts |
Net income ($M) |
$667 |
$21 |
Up 3,076% |
$299 |
Up 123% |
Diluted earnings per share |
$0.41 |
$0.01 |
Up 4,000% |
$0.18 |
Up 128% |
|
|
|
|
|
|
Non-GAAP(*) Quarterly Financial Results |
|
|
Q4 2023 |
Q4 2022 |
Y/Y |
Q3 2023 |
Q/Q |
Revenue ($M) |
$6,168 |
$5,599 |
Up 10% |
$5,800 |
Up 6% |
Gross profit ($M) |
$3,133 |
$2,859 |
Up 10% |
$2,963 |
Up 6% |
Gross margin |
51% |
51% |
Flat |
51% |
Flat |
Operating expenses ($M) |
$1,727 |
$1,602 |
Up 8% |
$1,697 |
Up 2% |
Operating income ($M) |
$1,412 |
$1,262 |
Up 12% |
$1,276 |
Up 11% |
Operating margin |
23% |
23% |
Flat |
22% |
Up 1 ppt |
Net income ($M) |
$1,249 |
$1,113 |
Up 12% |
$1,135 |
Up 10% |
Diluted earnings per share |
$0.77 |
$0.69 |
Up 12% |
$0.70 |
Up 10% |
|
|
|
|
|
|
Annual Financial Results |
|
|
GAAP |
Non-GAAP(*) |
|
2023 |
2022 |
Y/Y |
2023 |
2022 |
Y/Y |
Revenue ($M) |
$22,680 |
$23,601 |
Down 4% |
$22,680 |
$23,601 |
Down 4% |
Gross profit ($M) |
$10,460 |
$10,603 |
Down 1% |
$11,436 |
$12,273 |
Down 7% |
Gross margin % |
46% |
45% |
Up 1 ppt |
50% |
52% |
Down 2 ppts |
Operating expenses ($M) |
$10,093 |
$9,441 |
Up 7% |
$6,616 |
$6,030 |
Up 10% |
Operating income ($M) |
$401 |
$1,264 |
Down 68% |
$4,854 |
$6,345 |
Down 23% |
Operating margin % |
2% |
5% |
Down 3 ppts |
21% |
27% |
Down 6 ppts |
Net income ($M) |
$854 |
$1,320 |
Down 35% |
$4,302 |
$5,504 |
Down 22% |
Diluted earnings per share |
$0.53 |
$0.84 |
Down 37% |
$2.65 |
$3.50 |
Down 24% |
|
|
|
|
|
|
|
Segment Summary
- Data Center segment revenue in the
quarter was $2.3 billion, up 38% year-over-year and 43%
sequentially driven by strong growth in AMD Instinct™ GPUs and 4th
Gen AMD EPYC™ CPUs.
- For 2023, Data Center segment
revenue was $6.5 billion, an increase of 7% compared to the prior
year, driven by strong growth in AMD Instinct GPUs and 4th Gen AMD
EPYC CPUs.
- Client segment revenue was $1.5
billion, up 62% year-over-year driven primarily by an increase in
AMD Ryzen™ 7000 Series CPU sales.
- For 2023, Client segment revenue was
$4.7 billion, down 25% compared to the prior year, due to a decline
in the PC market.
- Gaming segment revenue was $1.4
billion, down 17% year-over-year and 9% sequentially, due to a
decrease in semi-custom revenue, partially offset by an increase in
AMD Radeon™ GPU sales.
- For 2023, Gaming segment revenue was
$6.2 billion, down 9% compared to the prior year primarily due to
lower semi-custom sales.
- Embedded segment revenue was $1.1
billion, down 24% year-over-year and 15% sequentially primarily due
to customers reducing their inventory levels.
- For 2023, Embedded segment revenue
was $5.3 billion, up 17% compared to the prior year, primarily due
to the inclusion of a full year of revenue related to the
acquisition of Xilinx completed in February 2022.
Recent PR Highlights
- AMD showcased growing momentum for advanced AMD
technology-powered AI solutions from the data center to PCs:
- AMD announced the general availability of AMD Instinct MI300X
accelerators – with industry leading memory bandwidth performance
for generative AI – as well as the AMD Instinct MI300A APU that
combines AMD CDNA™ 3 and “Zen 4” chiplets to deliver breakthrough
performance for HPC and AI workloads.
- At the “Advancing AI” event, Microsoft, Meta, Oracle, Dell
Technologies, HPE, Lenovo, Supermicro, Arista, Broadcom and Cisco
showcased how they are leveraging AMD Instinct MI300X accelerators
to power cloud and enterprise AI infrastructure.
- AMD made significant progress expanding its AI software
ecosystem, including unveiling the latest version of its
open-source ROCm™ 6, software stack optimized for generative AI. AI
ecosystem leaders including Databricks, Essential AI, Lamini and
OpenAI are leveraging AMD Instinct accelerators to deliver
differentiated AI solutions. AMD also extended support for ROCm
software to include the AMD Radeon RX 7900 XT GPU, providing even
more options for AI developers and researchers to use AMD hardware
for their AI work.
- AMD announced AMD Ryzen 8040 Series mobile processors with an
integrated neural processing unit (NPU) on select models for AI. In
2022, AMD was the first company to introduce an x86 processor with
an on-chip NPU to accelerate AI workloads with the AMD Ryzen 7040
series mobile processors. The updated NPU in the AMD Ryzen 8040
series delivers up to 1.6x more AI processing performance compared
to AMD Ryzen 7040 Series mobile processors. Acer, ASUS, Lenovo,
Razer and other PC OEMs introduced new laptops featuring AMD Ryzen
8040 Series processors, with the first systems on-track to go on
sale this quarter.
- At CES 2024, AMD announced the AMD Ryzen 8000G Series desktop
processors that are the first desktop PC processors in the industry
to include a dedicated AI NPU to power AI capabilities on the
PC.
- At Microsoft Ignite, AMD and Microsoft highlighted how AMD
Instinct MI300X accelerators, AMD EPYC CPUs and AMD Ryzen CPUs with
AI engines are enabling new services and compute capabilities
across cloud and generative AI, confidential computing, cloud
computing and AI-capable PCs.
- AMD showcased continued leadership in supercomputing:
- Eni announced a new supercomputer, HPC6, powered by AMD EPYC
CPUs and AMD Instinct GPUs. When completed, the HPC6 system will be
one of the world’s most powerful supercomputers dedicated to
industrial applications.
- AMD EPYC processors and AMD Instinct accelerators now power 140
supercomputers on the latest Top500 list of the world’s fastest
computers and eight of the top 10 most energy efficient
supercomputers in the world based on the latest Green500 list. The
Frontier supercomputer powered by AMD EPYC and AMD Instinct
processors remains the fastest supercomputer in the world.
- AMD extended its 3rd Gen AMD EPYC processor lineup with six new
CPUs that deliver excellent value, performance, energy efficiency
and security features for mainstream applications.
- AMD introduced the AMD Radeon RX 7600 XT GPU, a
high-performance graphics card designed to deliver immersive 1080P
gaming experiences.
- AMD introduced the AMD Versal™ AI Edge XA Series and AMD Ryzen
Embedded V2000A devices designed for automotive focus segments
including infotainment, advanced driver safety and autonomous
driving.
- AMD announced the AMD Ryzen Embedded 7000 Series processors,
delivering leadership performance and advanced features for
industrial and edge solutions. The launch was supported by a
growing partner ecosystem, including integrated solutions from
Advantech, ASRock and DFI.
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 first quarter of 2024, AMD expects revenue to be
approximately $5.4 billion, plus or minus $300 million.
Sequentially, AMD expects Data Center segment revenue to be flat,
with a seasonal decline in server sales offset by a strong Data
Center GPU ramp. Client, Embedded and Gaming segment sales are
expected to decline sequentially, with semi-custom revenue expected
to decline by a significant double-digit percentage. Non-GAAP gross
margin is expected to be approximately 52%.
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 fourth quarter and
full-year 2023 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 |
|
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
GAAP gross profit |
$ |
2,911 |
|
|
$ |
2,747 |
|
|
$ |
2,403 |
|
|
$ |
10,460 |
|
|
$ |
10,603 |
|
GAAP gross margin |
|
47 |
% |
|
|
47 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
|
45 |
% |
Stock-based compensation |
|
6 |
|
|
|
6 |
|
|
|
9 |
|
|
|
30 |
|
|
|
29 |
|
Amortization of acquisition-related intangibles |
|
215 |
|
|
|
210 |
|
|
|
443 |
|
|
|
942 |
|
|
|
1,448 |
|
Acquisition-related and other costs(1) |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
|
|
193 |
|
Non-GAAP gross
profit |
$ |
3,133 |
|
|
$ |
2,963 |
|
|
$ |
2,859 |
|
|
$ |
11,436 |
|
|
$ |
12,273 |
|
Non-GAAP gross margin |
|
51 |
% |
|
|
51 |
% |
|
|
51 |
% |
|
|
50 |
% |
|
|
52 |
% |
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses |
$ |
2,575 |
|
|
$ |
2,533 |
|
|
$ |
2,557 |
|
|
$ |
10,093 |
|
|
$ |
9,441 |
|
GAAP operating expenses/revenue % |
|
42 |
% |
|
|
44 |
% |
|
|
46 |
% |
|
|
45 |
% |
|
|
40 |
% |
Stock-based compensation |
|
368 |
|
|
|
347 |
|
|
|
301 |
|
|
|
1,350 |
|
|
|
983 |
|
Amortization of acquisition-related intangibles |
|
420 |
|
|
|
450 |
|
|
|
601 |
|
|
|
1,869 |
|
|
|
2,100 |
|
Acquisition-related and other costs(1) |
|
60 |
|
|
|
39 |
|
|
|
53 |
|
|
|
258 |
|
|
|
328 |
|
Non-GAAP operating
expenses |
$ |
1,727 |
|
|
$ |
1,697 |
|
|
$ |
1,602 |
|
|
$ |
6,616 |
|
|
$ |
6,030 |
|
Non-GAAP operating expenses/revenue % |
|
28 |
% |
|
|
29 |
% |
|
|
29 |
% |
|
|
29 |
% |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
$ |
342 |
|
|
$ |
224 |
|
|
$ |
(149 |
) |
|
$ |
401 |
|
|
$ |
1,264 |
|
GAAP operating margin |
|
6 |
% |
|
|
4 |
% |
|
(3)% |
|
|
2 |
% |
|
|
5 |
% |
Stock-based compensation |
|
374 |
|
|
|
353 |
|
|
|
310 |
|
|
|
1,380 |
|
|
|
1,012 |
|
Amortization of acquisition-related intangibles |
|
635 |
|
|
|
660 |
|
|
|
1,044 |
|
|
|
2,811 |
|
|
|
3,548 |
|
Acquisition-related and other costs(1) |
|
61 |
|
|
|
39 |
|
|
|
57 |
|
|
|
262 |
|
|
|
521 |
|
Non-GAAP operating
income |
$ |
1,412 |
|
|
$ |
1,276 |
|
|
$ |
1,262 |
|
|
$ |
4,854 |
|
|
$ |
6,345 |
|
Non-GAAP operating margin |
|
23 |
% |
|
|
22 |
% |
|
|
23 |
% |
|
|
21 |
% |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
GAAP net income / earnings per share |
$ |
667 |
|
|
$ |
0.41 |
|
|
$ |
299 |
|
|
$ |
0.18 |
|
|
$ |
21 |
|
|
$ |
0.01 |
|
|
$ |
854 |
|
|
$ |
0.53 |
|
|
$ |
1,320 |
|
|
$ |
0.84 |
|
(Gains) losses on equity investments, net |
|
1 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
62 |
|
|
|
0.04 |
|
Stock-based compensation |
|
374 |
|
|
|
0.23 |
|
|
|
353 |
|
|
|
0.22 |
|
|
|
310 |
|
|
|
0.19 |
|
|
|
1,380 |
|
|
|
0.85 |
|
|
|
1,012 |
|
|
|
0.64 |
|
Equity income in investee |
|
(6 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(16 |
) |
|
|
(0.01 |
) |
|
|
(14 |
) |
|
|
(0.01 |
) |
Amortization of acquisition-related intangibles |
|
635 |
|
|
|
0.39 |
|
|
|
660 |
|
|
|
0.41 |
|
|
|
1,044 |
|
|
|
0.65 |
|
|
|
2,811 |
|
|
|
1.73 |
|
|
|
3,548 |
|
|
|
2.26 |
|
Acquisition-related and other costs(1) |
|
61 |
|
|
|
0.04 |
|
|
|
39 |
|
|
|
0.02 |
|
|
|
57 |
|
|
|
0.04 |
|
|
|
262 |
|
|
|
0.16 |
|
|
|
521 |
|
|
|
0.33 |
|
Income tax provision |
|
(483 |
) |
|
|
(0.30 |
) |
|
|
(209 |
) |
|
|
(0.13 |
) |
|
|
(321 |
) |
|
|
(0.20 |
) |
|
|
(988 |
) |
|
|
(0.61 |
) |
|
|
(945 |
) |
|
|
(0.60 |
) |
Non-GAAP net income /
earnings per share |
$ |
1,249 |
|
|
$ |
0.77 |
|
|
$ |
1,135 |
|
|
$ |
0.70 |
|
|
$ |
1,113 |
|
|
$ |
0.69 |
|
|
$ |
4,302 |
|
|
$ |
2.65 |
|
|
$ |
5,504 |
|
|
$ |
3.50 |
|
(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,
Facebook and X pages.
Cautionary Statement
This press release contains forward-looking statements concerning
Advanced Micro Devices, Inc. (AMD) such as AMD’s expectations
regarding the demand for its high-performance data center product
portfolio and AMD’s ability to deliver strong annual growth in
2024; expected future AI technology trends and developments;
expected AMD Instinct™ MI 300 GPU demand and product ramp in 2024;
the features, functionality, performance, availability, timing and
expected benefits of AMD products; and AMD’s expected first quarter
2024 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;
economic uncertainty; cyclical nature of the semiconductor
industry; market conditions of the industries in which AMD products
are sold; loss of a significant customer; impact of the COVID-19
pandemic on AMD’s business, financial condition and results of
operations; competitive markets in which AMD’s products are sold;
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 cyber-attacks;
potential difficulties in operating AMD’s newly upgraded enterprise
resource planning system; 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 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;
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; 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; restrictions imposed by agreements governing
AMD’s notes, the guarantees of Xilinx’s notes and the revolving
credit facility; AMD's indebtedness; AMD's ability to generate
sufficient cash to meet its working capital requirements or
generate sufficient revenue and operating cash flow to make all of
its planned R&D or strategic investments; 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
operating expenses, non-GAAP operating income, non-GAAP net income,
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 2023,
AMD used a non-GAAP tax rate of 13%, which excludes the tax impact
of pre-tax non-GAAP adjustments. 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 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 January 30,
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. |
|
|
|
AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Instinct,
Versal, Alveo, Kria, FidelityFX, 3D V-Cache, Ultrascale+, Zynq,
Threadripper 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 |
|
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
Net revenue |
$ |
6,168 |
|
|
$ |
5,800 |
|
|
$ |
5,599 |
|
|
$ |
22,680 |
|
|
$ |
23,601 |
|
Cost of sales |
|
3,042 |
|
|
|
2,843 |
|
|
|
2,753 |
|
|
|
11,278 |
|
|
|
11,550 |
|
Amortization of
acquisition-related intangibles |
|
215 |
|
|
|
210 |
|
|
|
443 |
|
|
|
942 |
|
|
|
1,448 |
|
Total cost of sales |
|
3,257 |
|
|
|
3,053 |
|
|
|
3,196 |
|
|
|
12,220 |
|
|
|
12,998 |
|
Gross profit |
|
2,911 |
|
|
|
2,747 |
|
|
|
2,403 |
|
|
|
10,460 |
|
|
|
10,603 |
|
Gross margin |
|
47 |
% |
|
|
47 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
|
45 |
% |
Research and development |
|
1,511 |
|
|
|
1,507 |
|
|
|
1,366 |
|
|
|
5,872 |
|
|
|
5,005 |
|
Marketing, general and
administrative |
|
644 |
|
|
|
576 |
|
|
|
590 |
|
|
|
2,352 |
|
|
|
2,336 |
|
Amortization of
acquisition-related intangibles |
|
420 |
|
|
|
450 |
|
|
|
601 |
|
|
|
1,869 |
|
|
|
2,100 |
|
Licensing gain |
|
(6 |
) |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
(34 |
) |
|
|
(102 |
) |
Operating income (loss) |
|
342 |
|
|
|
224 |
|
|
|
(149 |
) |
|
|
401 |
|
|
|
1,264 |
|
Interest expense |
|
(27 |
) |
|
|
(26 |
) |
|
|
(19 |
) |
|
|
(106 |
) |
|
|
(88 |
) |
Other income (expense),
net |
|
49 |
|
|
|
59 |
|
|
|
32 |
|
|
|
197 |
|
|
|
8 |
|
Income (loss) before income taxes and equity income |
|
364 |
|
|
|
257 |
|
|
|
(136 |
) |
|
|
492 |
|
|
|
1,184 |
|
Income tax benefit |
|
(297 |
) |
|
|
(39 |
) |
|
|
(154 |
) |
|
|
(346 |
) |
|
|
(122 |
) |
Equity income in investee |
|
6 |
|
|
|
3 |
|
|
|
3 |
|
|
|
16 |
|
|
|
14 |
|
Net income |
$ |
667 |
|
|
$ |
299 |
|
|
$ |
21 |
|
|
$ |
854 |
|
|
$ |
1,320 |
|
Earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.41 |
|
|
$ |
0.18 |
|
|
$ |
0.01 |
|
|
$ |
0.53 |
|
|
$ |
0.85 |
|
Diluted |
$ |
0.41 |
|
|
$ |
0.18 |
|
|
$ |
0.01 |
|
|
$ |
0.53 |
|
|
$ |
0.84 |
|
Shares used in per share
calculation |
|
|
|
|
|
|
|
|
|
Basic |
|
1,616 |
|
|
|
1,616 |
|
|
|
1,613 |
|
|
|
1,614 |
|
|
|
1,561 |
|
Diluted |
|
1,628 |
|
|
|
1,629 |
|
|
|
1,618 |
|
|
|
1,625 |
|
|
|
1,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(Millions)
|
December 30, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
3,933 |
|
|
$ |
4,835 |
|
Short-term investments |
|
1,840 |
|
|
|
1,020 |
|
Accounts receivable, net |
|
5,376 |
|
|
|
4,126 |
|
Inventories |
|
4,351 |
|
|
|
3,771 |
|
Receivables from related parties |
|
9 |
|
|
|
2 |
|
Prepaid expenses and other current assets |
|
1,259 |
|
|
|
1,265 |
|
Total current
assets |
|
16,768 |
|
|
|
15,019 |
|
Property and equipment,
net |
|
1,589 |
|
|
|
1,513 |
|
Operating lease right-of-use
assets |
|
633 |
|
|
|
460 |
|
Goodwill |
|
24,262 |
|
|
|
24,177 |
|
Acquisition-related
intangibles, net |
|
21,363 |
|
|
|
24,118 |
|
Investment: equity method |
|
99 |
|
|
|
83 |
|
Deferred tax assets |
|
366 |
|
|
|
58 |
|
Other non-current assets |
|
2,805 |
|
|
|
2,152 |
|
Total
Assets |
$ |
67,885 |
|
|
$ |
67,580 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,055 |
|
|
$ |
2,493 |
|
Payables to related parties |
|
363 |
|
|
|
463 |
|
Accrued liabilities |
|
3,082 |
|
|
|
3,077 |
|
Current portion of long-term debt, net |
|
751 |
|
|
|
— |
|
Other current liabilities |
|
438 |
|
|
|
336 |
|
Total current
liabilities |
|
6,689 |
|
|
|
6,369 |
|
Long-term debt, net of current
portion |
|
1,717 |
|
|
|
2,467 |
|
Long-term operating lease
liabilities |
|
535 |
|
|
|
396 |
|
Deferred tax liabilities |
|
1,202 |
|
|
|
1,934 |
|
Other long-term
liabilities |
|
1,850 |
|
|
|
1,664 |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Capital stock: |
|
|
|
Common stock, par value |
|
17 |
|
|
|
16 |
|
Additional paid-in capital |
|
59,676 |
|
|
|
58,005 |
|
Treasury stock, at cost |
|
(4,514 |
) |
|
|
(3,099 |
) |
Retained earnings (Accumulated
deficit) |
|
723 |
|
|
|
(131 |
) |
Accumulated other
comprehensive loss |
|
(10 |
) |
|
|
(41 |
) |
Total stockholders'
equity |
$ |
55,892 |
|
|
$ |
54,750 |
|
Total Liabilities and
Stockholders' Equity |
$ |
67,885 |
|
|
$ |
67,580 |
|
|
ADVANCED MICRO DEVICES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Millions)
(Unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
667 |
|
|
$ |
21 |
|
|
$ |
854 |
|
|
$ |
1,320 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
799 |
|
|
|
1,220 |
|
|
|
3,453 |
|
|
|
4,174 |
|
Stock-based compensation |
|
374 |
|
|
|
315 |
|
|
|
1,384 |
|
|
|
1,081 |
|
Amortization of operating lease right-of-use assets |
|
25 |
|
|
|
25 |
|
|
|
98 |
|
|
|
88 |
|
Amortization of inventory fair value adjustment |
|
— |
|
|
|
2 |
|
|
|
3 |
|
|
|
189 |
|
Loss on sale or disposal of property and equipment |
|
1 |
|
|
|
1 |
|
|
|
11 |
|
|
|
16 |
|
Deferred income taxes |
|
(219 |
) |
|
|
(177 |
) |
|
|
(1,019 |
) |
|
|
(1,505 |
) |
(Gains) losses on equity investments, net |
|
— |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
62 |
|
Other |
|
(24 |
) |
|
|
(5 |
) |
|
|
(67 |
) |
|
|
(14 |
) |
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
Accounts receivable, net |
|
(321 |
) |
|
|
210 |
|
|
|
(1,250 |
) |
|
|
(1,091 |
) |
Inventories |
|
94 |
|
|
|
(404 |
) |
|
|
(580 |
) |
|
|
(1,401 |
) |
Receivables from related parties |
|
(8 |
) |
|
|
(12 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
Prepaid expenses and other assets |
|
(92 |
) |
|
|
(372 |
) |
|
|
(472 |
) |
|
|
(1,197 |
) |
Payables to related parties |
|
37 |
|
|
|
66 |
|
|
|
(100 |
) |
|
|
379 |
|
Accounts payable |
|
(181 |
) |
|
|
120 |
|
|
|
(419 |
) |
|
|
931 |
|
Accrued and other liabilities |
|
(771 |
) |
|
|
(448 |
) |
|
|
(221 |
) |
|
|
546 |
|
Net cash provided by operating
activities |
|
381 |
|
|
|
567 |
|
|
|
1,667 |
|
|
|
3,565 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(139 |
) |
|
|
(124 |
) |
|
|
(546 |
) |
|
|
(450 |
) |
Purchases of short-term investments |
|
(410 |
) |
|
|
(268 |
) |
|
|
(3,722 |
) |
|
|
(2,667 |
) |
Proceeds from maturity of short-term investments |
|
770 |
|
|
|
1,446 |
|
|
|
2,687 |
|
|
|
4,310 |
|
Proceeds from sale of short-term investments |
|
52 |
|
|
|
— |
|
|
|
300 |
|
|
|
— |
|
Cash received from acquisition of Xilinx |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,366 |
|
Acquisitions, net of cash acquired |
|
(117 |
) |
|
|
14 |
|
|
|
(131 |
) |
|
|
(1,544 |
) |
Other |
|
(6 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
|
|
(16 |
) |
Net cash provided by (used in)
investing activities |
|
150 |
|
|
|
1,067 |
|
|
|
(1,423 |
) |
|
|
1,999 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from debt, net of issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
991 |
|
Repayment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(312 |
) |
Proceeds from sales of common stock through employee equity
plans |
|
120 |
|
|
|
88 |
|
|
|
268 |
|
|
|
167 |
|
Repurchases of common stock |
|
(233 |
) |
|
|
(250 |
) |
|
|
(985 |
) |
|
|
(3,702 |
) |
Common stock repurchases for tax withholding on employee equity
plans |
|
(45 |
) |
|
|
(35 |
) |
|
|
(427 |
) |
|
|
(406 |
) |
Other |
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
Net cash used in financing
activities |
|
(159 |
) |
|
|
(197 |
) |
|
|
(1,146 |
) |
|
|
(3,264 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
372 |
|
|
|
1,437 |
|
|
|
(902 |
) |
|
|
2,300 |
|
Cash and cash equivalents at
beginning of period |
|
3,561 |
|
|
|
3,398 |
|
|
|
4,835 |
|
|
|
2,535 |
|
Cash and cash equivalents at
end of period |
$ |
3,933 |
|
|
$ |
4,835 |
|
|
$ |
3,933 |
|
|
$ |
4,835 |
|
|
ADVANCED MICRO DEVICES, INC.SELECTED
CORPORATE DATA(Millions) (Unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
Segment and Category
Information(1) |
|
|
|
|
|
|
|
|
|
Data Center |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
2,282 |
|
|
$ |
1,598 |
|
|
$ |
1,655 |
|
|
$ |
6,496 |
|
|
$ |
6,043 |
|
Operating income |
$ |
666 |
|
|
$ |
306 |
|
|
$ |
444 |
|
|
$ |
1,267 |
|
|
$ |
1,848 |
|
Client |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
1,461 |
|
|
$ |
1,453 |
|
|
$ |
903 |
|
|
$ |
4,651 |
|
|
$ |
6,201 |
|
Operating income (loss) |
$ |
55 |
|
|
$ |
140 |
|
|
$ |
(152 |
) |
|
$ |
(46 |
) |
|
$ |
1,190 |
|
Gaming |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
1,368 |
|
|
$ |
1,506 |
|
|
$ |
1,644 |
|
|
$ |
6,212 |
|
|
$ |
6,805 |
|
Operating income |
$ |
224 |
|
|
$ |
208 |
|
|
$ |
266 |
|
|
$ |
971 |
|
|
$ |
953 |
|
Embedded |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
1,057 |
|
|
$ |
1,243 |
|
|
$ |
1,397 |
|
|
$ |
5,321 |
|
|
$ |
4,552 |
|
Operating income |
$ |
461 |
|
|
$ |
612 |
|
|
$ |
699 |
|
|
$ |
2,628 |
|
|
$ |
2,252 |
|
All Other |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operating loss |
$ |
(1,064 |
) |
|
$ |
(1,042 |
) |
|
$ |
(1,406 |
) |
|
$ |
(4,419 |
) |
|
$ |
(4,979 |
) |
Total |
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
6,168 |
|
|
$ |
5,800 |
|
|
$ |
5,599 |
|
|
$ |
22,680 |
|
|
$ |
23,601 |
|
Operating income (loss) |
$ |
342 |
|
|
$ |
224 |
|
|
$ |
(149 |
) |
|
$ |
401 |
|
|
$ |
1,264 |
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
139 |
|
|
$ |
124 |
|
|
$ |
124 |
|
|
$ |
546 |
|
|
$ |
450 |
|
Adjusted EBITDA(2) |
$ |
1,576 |
|
|
$ |
1,439 |
|
|
$ |
1,438 |
|
|
$ |
5,496 |
|
|
$ |
6,971 |
|
Cash, cash equivalents and
short-term investments |
$ |
5,773 |
|
|
$ |
5,785 |
|
|
$ |
5,855 |
|
|
$ |
5,773 |
|
|
$ |
5,855 |
|
Free cash flow(3) |
$ |
242 |
|
|
$ |
297 |
|
|
$ |
443 |
|
|
$ |
1,121 |
|
|
$ |
3,115 |
|
Total assets |
$ |
67,885 |
|
|
$ |
67,626 |
|
|
$ |
67,580 |
|
|
$ |
67,885 |
|
|
$ |
67,580 |
|
Total debt |
$ |
2,468 |
|
|
$ |
2,467 |
|
|
$ |
2,467 |
|
|
$ |
2,468 |
|
|
$ |
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, and
licensing gain. |
|
|
(2) |
Reconciliation of GAAP
Net Income to Adjusted EBITDA |
|
Three Months Ended |
|
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
GAAP net income |
$ |
667 |
|
|
$ |
299 |
|
|
$ |
21 |
|
|
$ |
854 |
|
|
$ |
1,320 |
|
Interest expense |
|
27 |
|
|
|
26 |
|
|
|
19 |
|
|
|
106 |
|
|
|
88 |
|
Other (income) expense, net |
|
(49 |
) |
|
|
(59 |
) |
|
|
(32 |
) |
|
|
(197 |
) |
|
|
(8 |
) |
Income tax benefit |
|
(297 |
) |
|
|
(39 |
) |
|
|
(154 |
) |
|
|
(346 |
) |
|
|
(122 |
) |
Equity income in investee |
|
(6 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(16 |
) |
|
|
(14 |
) |
Stock-based compensation |
|
374 |
|
|
|
353 |
|
|
|
310 |
|
|
|
1,380 |
|
|
|
1,012 |
|
Depreciation and amortization |
|
164 |
|
|
|
163 |
|
|
|
176 |
|
|
|
642 |
|
|
|
626 |
|
Amortization of acquisition-related intangibles |
|
635 |
|
|
|
660 |
|
|
|
1,044 |
|
|
|
2,811 |
|
|
|
3,548 |
|
Acquisition-related and other costs |
|
61 |
|
|
|
39 |
|
|
|
57 |
|
|
|
262 |
|
|
|
521 |
|
Adjusted EBITDA |
$ |
1,576 |
|
|
$ |
1,439 |
|
|
$ |
1,438 |
|
|
$ |
5,496 |
|
|
$ |
6,971 |
|
|
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 benefit, equity income in investee,
stock-based compensation, depreciation and amortization expense
(including amortization of acquisition-related intangibles),
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 |
|
Year Ended |
|
December 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
GAAP net cash provided by operating activities |
$ |
381 |
|
|
$ |
421 |
|
|
$ |
567 |
|
|
$ |
1,667 |
|
|
$ |
3,565 |
|
Operating cash flow margin % |
|
6 |
% |
|
|
7 |
% |
|
|
10 |
% |
|
|
7 |
% |
|
|
15 |
% |
Purchases of property and equipment |
|
(139 |
) |
|
|
(124 |
) |
|
|
(124 |
) |
|
|
(546 |
) |
|
|
(450 |
) |
Free cash flow |
$ |
242 |
|
|
$ |
297 |
|
|
$ |
443 |
|
|
$ |
1,121 |
|
|
$ |
3,115 |
|
Free cash flow margin % |
|
4 |
% |
|
|
5 |
% |
|
|
8 |
% |
|
|
5 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Media Contact:Drew
PrairieAMD
Communications512-602-4425drew.prairie@amd.com
Investor Contact:Mitch
HawsAMD Investor
Relations408-749-3124mitch.haws@amd.com
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