3. AMD Internal Lab testing as of Nov 2, 2015 with an Intel Core i7 5960X with 2x8GB DDR4-2666 MHz memory, Gigabyte X99-UD4, AMD Radeon™ R9 380, Windows 10 64bit. PC manufacturers may vary configurations yielding different results. Frame Rate Target Control (FRTC) enables users to set a target maximum frame rate when playing an application in full screen mode, thereby reducing GPU power consumption, heat generation and fan speeds/noise. FRTC caps performance not only in 3D rendered in-game scenes, but also in splash screens, loading screens and menus. See http://www.amd.com/en-us/innovations/software-technologies/technologies-gaming/frtc for full details on FRTC. Rocketleague at 1080p Max quality consumed 180W using AMD Catalyst 15.7.1 Driver, 175W with Radeon Software Crimson Edition, and 61W when using FRTC=55fps in Radeon Software Crimson Edition. RS-7
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Three Months Ended Year Ended
-------------------------------- --------------------
December September December December December
26, 26, 27, 26, 27,
2015 2015 2014 2015 2014
--------- ---------- --------- --------- ---------
Net revenue $ 958 $ 1,061 $ 1,239 $ 3,991 $ 5,506
Cost of sales 675 822 879 2,911 3,667
--------- ---------- --------- --------- ---------
Gross margin 283 239 360 1,080 1,839
Gross margin % 30% 23% 29% 27% 33%
Research and
development 229 241 238 947 1,072
Marketing, general
and administrative 109 108 144 482 604
Amortization of
acquired intangible
assets - - 4 3 14
Restructuring and
other special
charges, net (6) 48 71 129 71
Goodwill impairment
charge - - 233 - 233
--------- ---------- --------- --------- ---------
Operating loss (49) (158) (330) (481) (155)
Interest expense (41) (39) (41) (160) (177)
Other income
(expense), net (2) - 4 (5) (66)
--------- ---------- --------- --------- ---------
Loss before income
taxes (92) (197) (367) (646) (398)
Provision (benefit)
for income taxes 10 - (3) 14 5
--------- ---------- --------- --------- ---------
Net loss $ (102) $ (197) $ (364) $ (660) $ (403)
Net loss per share
Basic $ (0.13) $ (0.25) $ (0.47) $ (0.84) $ (0.53)
Diluted $ (0.13) $ (0.25) $ (0.47) $ (0.84) $ (0.53)
--------- ---------- --------- --------- ---------
Shares used in per
share calculation
Basic 791 785 776 783 768
Diluted 791 785 776 783 768
--------- ---------- --------- --------- ---------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Millions)
Three Months Ended Year Ended
-------------------------------- --------------------
December September December December December
26, 26, 27, 26, 27,
2015 2015 2014 2015 2014
--------- ---------- --------- --------- ---------
Total comprehensive
loss $ (95) $ (207) $ (368) $ (663) $ (406)
--------- ---------- --------- --------- ---------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
------------- ------------- -------------
December 26, September 26, December 27,
2015 2015 2014
------------- ------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 785 $ 755 $ 805
Marketable securities - - 235
Accounts receivable, net 533 648 818
Inventories, net 678 761 685
Prepayment and other -
GLOBALFOUNDRIES 33 20 113
Prepaid expenses 43 63 32
Other current assets 248 206 48
------------- ------------- -------------
Total current assets 2,320 2,453 2,736
Property, plant and equipment,
net 188 194 302
Acquisition related intangible
assets, net - - 65
Goodwill 278 283 320
Other assets 323 286 344
------------- ------------- -------------
Total Assets $ 3,109 $ 3,216 $ 3,767
============= ============= =============
Liabilities and Stockholders'
Equity (Deficit)
Current liabilities:
Short-term debt $ 230 $ 230 $ 177
Accounts payable 279 388 415
Payable to GLOBALFOUNDRIES 245 226 218
Accrued liabilities 472 395 518
Other current liabilities 124 137 40
Deferred income on shipments
to distributors 53 60 72
------------- ------------- -------------
Total current liabilities 1,403 1,436 1,440
Long-term debt 2,032 2,030 2,035
Other long-term liabilities 86 86 105
Stockholders' equity (deficit):
Capital stock:
Common stock, par value 8 8 8
Additional paid-in capital 7,017 6,997 6,949
Treasury stock, at cost (123) (122) (119)
Accumulated deficit (7,306) (7,204) (6,646)
Accumulated other
comprehensive loss (8) (15) (5)
------------- ------------- -------------
Total Stockholders' equity
(deficit) (412) (336) 187
------------- ------------- -------------
Total Liabilities and
Stockholders' Equity (Deficit) $ 3,109 $ 3,216 $ 3,767
============= ============= =============
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months
Ended Year Ended
------------- -------------
December 26, December 26,
2015 2015
------------- -------------
Cash flows from operating activities:
Net Loss $ (102) $ (660)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 34 167
Stock-based compensation expense 16 63
Non-cash interest expense 3 11
Restructuring and other special charges,
net - 83
Other (10) (3)
Changes in operating assets and liabilities:
Accounts receivable 116 280
Inventories 82 (11)
Prepayment and other - GLOBALFOUNDRIES (13) 84
Prepaid expenses and other assets (9) (122)
Accounts payable, accrued liabilities and
other (82) (156)
Payable to GLOBALFOUNDRIES 18 27
------------- -------------
Net cash provided by (used in) operating
activities $ 53 $ (237)
------------- -------------
Cash flows from investing activities:
Purchases of available-for-sale securities - (227)
Purchases of property, plant and equipment (32) (96)
Proceeds from maturities of available-for-
sale securities - 462
Proceeds from sale of property, plant and
equipment - 8
------------- -------------
Net cash provided by (used in) investing
activities $ (32) $ 147
------------- -------------
Cash flows from financing activities:
Net proceeds from grants 6 14
Proceeds from issuance of common stock 3 4
Proceeds from borrowings, net - 100
Repayments of long-term debt and capital
lease obligations - (44)
Other - (4)
------------- -------------
Net cash provided by financing activities $ 9 $ 70
------------- -------------
Net increase (decrease) in cash and cash
equivalents 30 (20)
------------- -------------
Cash and cash equivalents at beginning of
period $ 755 $ 805
------------- -------------
Cash and cash equivalents at end of period $ 785 $ 785
------------- -------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Three Months Ended Year Ended
--------------------------------------------------- ------------------------
Segment and December September December December December
Category 26, 26, 27, 26, 27,
Information 2015 2015 2014 2015 2014
--------------------------------------------------- ------------------------
Computing and
Graphics (1)
Net revenue $ 470 $ 424 $ 662 $ 1,805 $ 3,132
Operating
loss $ (99) $ (181) $ (56) $ (502) $ (76)
Enterprise,
Embedded and
Semi-Custom
(2)
Net revenue $ 488 $ 637 $ 577 $ 2,186 $ 2,374
Operating
income $ 59 $ 84 $ 109 $ 215 $ 399
All Other (3)
Net revenue - - - - -
Operating
loss $ (9) $ (61) $ (383) $ (194) $ (478)
Total
Net revenue $ 958 $ 1,061 $ 1,239 $ 3,991 $ 5,506
Operating
loss $ (49) $ (158) $ (330) $ (481) $ (155)
--------------------------------------------------- ------------------------
Other Data
Depreciation
and
amortization,
excluding
amortization
of acquired
intangible
assets $ 34 $ 42 $ 44 $ 164 $ 189
Capital
additions $ 32 $ 25 $ 22 $ 96 $ 95
Adjusted
EBITDA (4) $ (5) $ (55) $ 96 $ (89) $ 505
Cash, cash
equivalents
and
marketable
securities $ 785 $ 755 $ 1,040 $ 785 $ 1,040
Non-GAAP free
cash flow
(5) $ 21 $ (84) $ 94 $ (333) $ (193)
Total assets $ 3,109 $ 3,216 $ 3,767 $ 3,109 $ 3,767
Total debt $ 2,262 $ 2,260 $ 2,212 $ 2,262 $ 2,212
Headcount 9,139 9,475 9,687 9,139 9,687
--------------------------------------------------- ------------------------
(1) Computing and Graphics segment primarily includes desktop and notebook
processors, chipsets, discrete graphics processing units (GPUs) and
professional graphics.
(2) Enterprise, Embedded and Semi-Custom segment primarily includes server
and embedded processors, 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
stock-based compensation expense. In addition, the Company also
included the following adjustments for the indicated periods: for the
fourth and third quarters of 2015 and for 2015, the Company included
restructuring and other special charges, net; for the fourth quarter
of 2014, the Company included a goodwill impairment, net restructuring
and other special charges and a lower of cost or market inventory
adjustment; and for 2014, the Company included a goodwill impairment,
net restructuring and other special charges, a lower of cost or market
inventory adjustment and workforce rebalancing severance charges;
(4) Reconciliation of GAAP Operating Loss to Adjusted EBITDA*
Three Months Ended Year Ended
-------------------------------- --------------------
December September December December December
26, 26, 27, 26, 27,
2015 2015 2014 2015 2014
--------- ---------- --------- --------- ---------
GAAP operating
loss $ (49) $ (158) $ (330) $ (481) $ (155)
Goodwill
impairment - - 233 - 233
Restructuring
and other
special
charges, net (6) 48 71 129 71
Workforce
rebalancing
severance
charges - - - - 14
Lower of cost
or market
inventory
adjustment - - 58 - 58
Technology node
transition
charge - - - 33 -
Stock-based
compensation
expense 16 13 16 63 81
Amortization of
acquired
intangible
assets - - 4 3 14
Depreciation
and
amortization 34 42 44 164 189
--------- ---------- --------- --------- ---------
Adjusted EBITDA $ (5) $ (55) $ 96 $ (89) $ 505
========= ========== ========= ========= =========
(5) Non-GAAP free
cash flow
reconciliation**
Three Months Ended Year Ended
-------------------------------- --------------------
December September December December December
26, 26, 27, 26, 27,
2015 2015 2014 2015 2014
--------- ---------- --------- --------- ---------
GAAP net cash
provided by
(used in)
operating
activities $ 53 $ (59) $ 116 $ (237) $ (98)
Purchases of
property,
plant and
equipment (32) (25) (22) (96) (95)
--------- ---------- --------- --------- ---------
Non-GAAP free
cash flow $ 21 $ (84) $ 94 $ (333) $ (193)
========= ========== ========= ========= =========
* 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,
stock-based compensation expense and restructuring and other special
charges, net. In addition, the Company also excluded the following
adjustments for the indicated periods: for 2015, the Company excluded
a technology node transition charge and amortization of acquired
intangible assets; for the fourth quarter of 2014 and for 2014, the
Company excluded an adjustment for a goodwill impairment charge,
restructuring and other special charges and lower of cost or market
inventory adjustment and amortization of acquired intangible assets.
In addition, for 2014, the Company also excluded workforce rebalancing
severance charges. The Company calculates and communicates Adjusted
EBITDA 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 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 financial 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 earnings press release
of these non-GAAP financial measures to the most directly comparable
GAAP financial measures.
