| * | In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this earnings press release. We use a normalized tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2020, the projected non-GAAP tax rate is 3%. AMD has 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. Refer to the data tables at the end of this earnings press release.
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AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Athlon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.
| ADVANCED MICRO DEVICES, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Millions except per share amounts and percentages) (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 28,
2020 | December 28,
2019 | March 30,
2019 | |||||||
| Net revenue | $ | 1,786 | $ | 2,127 | $ | 1,272 | |||
| Cost of sales | 968 | 1,178 | 751 | ||||||
| Gross margin | 818 | 949 | 521 | ||||||
| Gross margin % | 46 | % | 45 | % | 41 | % | |||
| Research and development | 442 | 395 | 373 | ||||||
| Marketing, general and administrative | 199 | 206 | 170 | ||||||
| Licensing gain | - | - | (60 | ) | |||||
| Operating income | 177 | 348 | 38 | ||||||
| Interest expense | (13 | ) | (18 | ) | (27 | ) | |||
| Other income (expense), net | 4 | (125 | ) | (7 | ) | ||||
| Income before income taxes and equity loss | 168 | 205 | 4 | ||||||
| Provision for (benefit from) income taxes | 6 | 35 | (13 | ) | |||||
| Equity loss in investee | - | - | (1 | ) | |||||
| Net Income | $ | 162 | $ | 170 | $ | 16 | |||
| Earnings per share | |||||||||
| Basic | $ | 0.14 | $ | 0.15 | $ | 0.01 | |||
| Diluted | $ | 0.14 | $ | 0.15 | $ | 0.01 | |||
| Shares used in per share calculation | |||||||||
| Basic | 1,170 | 1,140 | 1,044 | ||||||
| Diluted | 1,224 | 1,188 | 1,094 | ||||||
