(1) In this release, in addition to GAAP financial results, AMD has provided
non-GAAP financial measures, including non-GAAP operating income (loss),
non-GAAP net income (loss) and non-GAAP earnings (loss) per share. These
non-GAAP financial measures reflect certain adjustments as presented in
the data tables in this press release. AMD also provided Adjusted EBITDA
and non-GAAP free cash flow as supplemental measures of its performance.
These items are defined in the footnotes to the selected data tables
provided at the end of this 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. Refer to the data tables at the
end of this release for additional AMD data.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Quarter Ended
---------------------------------------
March 29, Dec 28, Mar. 30,
2014 2013 2013
----------- ----------- -----------
Net revenue $ 1,397 $ 1,589 $ 1,088
Cost of sales 910 1,036 643
----------- ----------- -----------
Gross margin 487 553 445
Gross margin % 35% 35% 41%
Research and development 279 293 312
Marketing, general and
administrative 156 169 179
Amortization of acquired
intangible assets 3 4 5
Restructuring and other special
charges, net - - 47
Legal settlements, net - (48) -
----------- ----------- -----------
Operating income (loss) 49 135 (98)
Interest income 1 1 1
Interest expense (47) (44) (44)
Other expense, net (21) (2) (3)
----------- ----------- -----------
Income (loss) before income taxes (18) 90 (144)
Provision for income taxes 2 1 2
----------- ----------- -----------
Net income (loss) $ (20) $ 89 $ (146)
Net income (loss) per share
Basic $ (0.03) $ 0.12 $ (0.19)
Diluted $ (0.03) $ 0.12 $ (0.19)
----------- ----------- -----------
Shares used in per share
calculation
Basic 761 759 749
Diluted 761 766 749
----------- ----------- -----------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)
Quarter Ended
---------------------------------------
March 29, Dec 28, Mar. 30,
2014 2013 2013
----------- ----------- -----------
Total comprehensive income (loss) $ (21) $ 89 $ (147)
----------- ----------- -----------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
----------- ----------- -----------
March 29, Dec 28, Mar. 30,
2014 2013 2013
----------- ----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 554 $ 869 $ 441
Marketable securities 348 228 562
Accounts receivable, net 840 832 645
Inventories, net 869 884 613
Prepaid expenses and other
current assets 79 71 77
----------- ----------- -----------
Total current assets 2,690 2,884 2,338
Long-term marketable securities 80 90 180
Property, plant and equipment, net 337 346 411
Acquisition related intangible
assets, net 75 78 92
Goodwill 553 553 553
Other assets 373 386 223
----------- ----------- -----------
Total Assets $ 4,108 $ 4,337 $ 3,797
=========== =========== ===========
Liabilities and Stockholders'
Equity
Current liabilities:
Short-term debt $ 60 $ 60 $ 5
Accounts payable 483 519 301
Payable to GLOBALFOUNDRIES 213 364 379
Accrued and other current
liabilities 482 530 504
Deferred income on shipments to
distributors 146 145 132
----------- ----------- -----------
Total current liabilities 1,384 1,618 1,321
Long-term debt 2,078 1,998 2,039
Other long-term liabilities 135 177 22
Stockholders' equity:
Capital stock:
Common stock, par value 8 7 7
Additional paid-in capital 6,883 6,894 6,827
Treasury stock, at cost (114) (112) (109)
Accumulated deficit (6,263) (6,243) (6,306)
Accumulated other comprehensive
loss (3) (2) (4)
----------- ----------- -----------
Total stockholders' equity 511 544 415
----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $ 4,108 $ 4,337 $ 3,797
=========== =========== ===========
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Quarter Ended
--------------
March 29,
2014
--------------
Cash flows from operating activities:
Net loss $ (20)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 53
Employee stock-based compensation expense 23
Non-cash interest expense 6
Loss on debt redemption 15
Other (4)
Changes in operating assets and liabilities:
Accounts receivable (8)
Inventories 14
Prepaid expenses and other assets (8)
Payable to GLOBALFOUNDRIES (151)
Accounts payable, accrued liabilities and other (124)
--------------
Net cash used in operating activities $ (204)
--------------
Cash flows from investing activities:
Purchases of property, plant and equipment (21)
Purchases of available-for-sale securities (310)
Proceeds from sale and maturity of available-for-sale
securities 200
--------------
Net cash used in investing activities $ (131)
--------------
Cash flows from financing activities:
Proceeds from issuance of common stock 1
Proceeds from borrowings, net 589
Repayments of long-term debt and capital lease obligations (569)
Other (1)
--------------
Net cash provided by financing activities $ 20
--------------
Net decrease in cash and cash equivalents (315)
--------------
Cash and cash equivalents at beginning of period $ 869
--------------
Cash and cash equivalents at end of period $ 554
--------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Quarter Ended
----------------------------------------------------------------------------
March 29, Dec 28, Mar. 30,
Segment and Category Information 2014 2013 2013
----------------------------------------------------------------------------
Computing Solutions (1)
Net revenue $ 663 $ 722 $ 751
Operating loss $ (3) $ (7) $ (39)
Graphics and Visual Solutions
(2)
Net revenue 734 865 337
Operating income 91 121 16
All Other (3)
Net revenue - 2 -
Operating income (loss) (39) 21 (75)
Total
Net revenue $ 1,397 $ 1,589 $ 1,088
Operating income (loss) $ 49 $ 135 $ (98)
----------------------------------------------------------------------------
Other Data
Depreciation and amortization,
excluding amortization of
acquired intangible assets $ 50 $ 50 $ 62
Capital additions $ 21 $ 21 $ 20
Adjusted EBITDA (4) $ 139 $ 165 $ 40
Cash, cash equivalents and
marketable securities,
including long-term marketable
securities $ 982 $ 1,187 $ 1,183
Non-GAAP free cash flow (5) $ (225) $ 0 $ (175)
Total assets $ 4,108 $ 4,337 $ 3,797
Total debt $ 2,138 $ 2,058 $ 2,044
Headcount 10,397 10,671 9,844
----------------------------------------------------------------------------
(1) Computing Solutions segment primarily includes x86 microprocessors,
as standalone devices or as incorporated as an accelerated processing
unit (APU), chipsets, embedded processors and dense servers.
(2) Graphics and Visual Solutions segment primarily includes graphics
processing units (GPU), including professional graphics, semi-custom
System-on-Chip (SOC) products, development services and technology
for game consoles.
(3) All Other category primarily includes certain expenses and credits
that are not allocated to any of the operating segments. Also
included in this category are amortization of acquired intangible
assets and employee stock-based compensation expense. In addition,
the Company also included the following adjustments for the indicated
periods: for the first quarter of 2014, the Company included
workforce rebalancing severance charges; for the fourth quarter of
2013, the Company included net legal settlements; and for the first
quarter of 2013, the Company included net restructuring and other
special charges. The Company also reports the results of former
businesses in the All Other category because the operating results
were not material.
(4) Reconciliation of GAAP operating income (loss) to Adjusted EBITDA*
Quarter Ended
---------------------------------------
March 29, Dec 28, Mar. 30,
2014 2013 2013
----------- ----------- -----------
GAAP operating income
(loss) $ 49 $ 135 $ (98)
Workforce rebalancing
severance charges 14 - -
Legal settlements, net - (48) -
Depreciation and
amortization 50 50 62
Employee stock-based
compensation expense 23 24 24
Amortization of acquired
intangible assets 3 4 5
Restructuring and other
special charges, net - - 47
----------- ----------- -----------
Adjusted EBITDA $ 139 $ 165 $ 40
=========== =========== ===========
(5) Non-GAAP free cash flow reconciliation**
Quarter Ended
---------------------------------------
March 29, Dec 28, Mar. 30,
2014 2013 2013
----------- ----------- -----------
GAAP net cash provided by
(used in) operating
activities $ (204) $ 21 $ (155)
Purchases of property,
plant and equipment (21) (21) (20)
----------- ----------- -----------
Non-GAAP free cash flow $ (225) $ 0 $ (175)
=========== =========== ===========
* The Company presents Adjusted EBITDA as a supplemental measure of
its performance. Adjusted EBITDA for the Company is determined by
adjusting operating income (loss) for depreciation and amortization,
employee stock-based compensation expense and amortization of
acquired intangible assets. In addition, the Company also included
the following adjustments for the indicated periods: for the first
quarter of 2014, the Company included an adjustment for workforce
rebalancing severance charges; for the fourth quarter of 2013, the
Company included an adjustment for net legal settlements; and for
the first quarter of 2013, the Company included net restructuring
and other special charges. The Company calculates and communicates
Adjusted EBITDA in the financial earnings press release because the
Company's 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 operating income
(loss) 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
as well as interest and income taxes that can affect cash flows.
** The Company also presents non-GAAP free cash flow in the earnings
press release as a supplemental measure of its performance. Non-GAAP
free cash flow is determined by adjusting GAAP net cash provided by
(used in) operating activities for capital expenditures. The Company
calculates and communicates non-GAAP free cash flow in the earnings
press release because the Company's management believes it is of
importance to investors to understand the nature of these cash
flows. The Company's calculation of non-GAAP 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 non-GAAP
free cash flow as an alternative to GAAP liquidity measures of cash
flows from operating activities. The Company has provided
reconciliations within the press earnings release and financial
tables of these non-GAAP financial measures to the most directly
comparable GAAP financial measures.
