“While we had a disappointing quarter financially, customer adoption of our recently introduced microprocessor and graphics products and platform offerings is strong, and we see increasing momentum across our businesses,” said Robert J. Rivet, AMD’s chief financial officer. “In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point.”
Second quarter 2008 gross margin was 52 percent. Excluding the positive impact associated with the sale of 200mm manufacturing equipment, second quarter 2008 gross margin was 37 percent, compared to 41 percent in the first quarter of 2008 and 34 percent in the second quarter of 2007.
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Reconciliation of GAAP to Non-GAAP Gross Margin 2 |
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| (Millions except percentages) | Q2-08 | Q1-08 | Q2-07 | |||||||||
| GAAP Gross Margin | $ | 696 | $ | 604 | $ | 439 | ||||||
| GAAP Gross Margin % | 52 | % | 41 | % | 34 | % | ||||||
| Gain on sale of 200mm equipment | 193 | |||||||||||
| Other charges | 2 | |||||||||||
| Non-GAAP Gross Margin | $ | 503 | $ | 604 | $ | 441 | ||||||
| Non-GAAP Gross Margin % | 37 | % | 41 | % | 34 | % | ||||||
| Segment Information | |||||||||
| (Millions) | Q2-08 | vs Q1-08 | vs Q2-07 | ||||||
| Computing Solutions | |||||||||
| Revenue | $ | 1,101 | -8 | % | 0 | % | |||
| Microprocessor Units | - | down | flat | ||||||
| Microprocessor Average Selling Price (ASP) | - | down | flat | ||||||
| Graphics (Including game console royalties) | |||||||||
| Revenue | $ | 248 | -5 | % | 18 | % | |||
| Graphic Processor Units | - | down | up | ||||||
| Graphic Processor Average Selling Price (ASP) | - | flat | down | ||||||
