AMD revenue $1.61 billion, 2 percent sequential decrease and 2 percent increase year-over-year
Net income $510 million, earnings per share $0.68, operating income $54 million
Non-GAAP1,2 net income $56 million, earnings per share $0.08, operating income $92 million
Gross margin 43 percent, non-GAAP gross margin 45 percent
SUNNYVALE, Calif. —4/21/2011
AMD (NYSE:AMD) today announced revenue for the first quarter of 2011 of $1.61 billion, net income of $510 million, or $0.68 per share, and operating income of $54 million. The company reported non-GAAP net income of $56 million, or $0.08 per share, and non-GAAP operating income of $92 million.
“First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs),” said Thomas Seifert, CFO and interim CEO. “APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our ‘Llano’ APU.”
GAAP Financial Results
Q1-11 Q4-10 Q1-10
Revenue $1.61B $1.65B $1.57B
Operating income $54M $413M $182M
Net income / Earnings per share $510M/$0.68 $375M/$0.50 $257M/$0.35
Non-GAAP Financial Results1
Q1-11
Q4-10
Q1-10
Revenue
$1.61B
$1.65B
$1.57B
Operating income
$92M
$141M
$130M
Net income / Earnings per share
$56M/$0.08
$106M/$0.14
$63M/$0.09
Quarterly Summary
Gross margin was 43 percent.
Non-GAAP gross margin was 45 percent, flat sequentially.
Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.75 billion.
Computing Solutions segment revenue decreased 2 percent sequentially and increased 3 percent year-over-year. The sequential decrease was driven primarily by lower average selling price (ASP) partially offset by higher desktop microprocessor sales. The year-over-year increase was primarily driven by strong microprocessor unit sales in the channel.
Operating income was $100 million, compared with $91 million in Q410 and $146 million in Q110.
Microprocessor ASP decreased sequentially and year-over-year.
AMD commenced revenue shipments of AMD’s first Fusion APU for mainstream notebooks (codenamed “Llano”) that combines discrete-class graphics capabilities, personal supercomputing performance and AMD AllDay™ power.
Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Sony and Toshiba shipped sleek new thin-and-light notebooks based on AMD’s low-power APUs capable of delivering high definition visual experiences and extended battery life.
More than 50 applications from software companies including Adobe, ArcSoft, Corel, CyberLink and Microsoft take advantage of the incredible compute power found in AMD’s APUs and GPUs to dramatically improve application performance and power efficiency.
AMD launched the world’s first APU specifically designed for embedded systems with a record number of embedded partners for the company. Fujitsu, Kontron, Quixant and Congatec announced APU-based solutions for graphics-intensive markets like digital signage, Internet-ready set top boxes, casino gaming machines and point-of-sale kiosks. Acer, Cray, Dell, HP, SGI and other server manufacturers launched new or updated systems based on five newly introduced AMD Opteron™ 6100 series processors.
In the high performance computing market (HPC), AMD Opteron-based solutions continue to gain traction based on their greater scalability. New customer wins include Lockheed Martin’s cluster for the US Department of Defense and the University of Sao Paulo’s cluster to enable advanced scientific astronomical research.
AMD expanded its enthusiast desktop offerings with the introduction of its fastest four-core processor, the AMD Phenom™ II X4 975 Black Edition.
Graphics segment revenue decreased 3 percent sequentially and was flat year-over-year. The sequential decrease was driven primarily by a seasonal decline in royalties received in connection with the sale of game console systems.
Operating income was $19 million, compared with $68 million in Q410 and $47 million in Q110.
GPU ASP decreased sequentially and year-over-year.
AMD maintained its graphics performance leadership position with the launch of the world’s fastest graphics card, the AMD Radeon™ HD 6990.
Apple refreshed its Macbook Pro line-up with the new AMD Radeon HD 6490M and HD 6750M graphics chips. AMD now provides discrete graphics solutions across Apple’s iMac and Macbook Pro product lines.
Strong industry adoption of AMD’s mobile graphics continued, as HP and Dell launched new designs powered by the new AMD Radeon™ HD 6000M family of graphics processors.
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.
AMD expects revenue to be flat to slightly down sequentially for the second quarter of 2011.
For additional detail regarding AMD’s results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
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 first quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its Web site at AMD. The webcast will be available for 10 days after the conference call.
Reconciliation of GAAP to Non-GAAP Net Income 1,3
(Millions except per share amounts)
Q1-11 Q4-10 Q1-10
GAAP net income / Earnings per share $ 510 $ 0.68 $ 375 $ 0.50 $ 257 $ 0.35
Gross margin benefit due to deconsolidation of GLOBALFOUNDRIES - - - - 69 0.09
Gain on the fair value assessment of investment in GLOBALFOUNDRIES - - - - 325 0.45
Equity income (loss) and dilution gain in investee, net 492 0.66 27 0.05 (183) (0.25)
Payment to GLOBALFOUNDRIES (24) (0.03) - - - -
Non-GAAP net income excluding GLOBALFOUNDRIES related items 42 0.06 348 0.47 46 0.06
Amortization of acquired intangible assets (9) (0.01) (11) (0.01) (17) (0.02)
Legal settlements (5) (0.01) 283 0.39 - -
Income tax related to legal settlements - - (47) (0.06) - -
Gain on investment sale - - 17 0.02 - -
Non-GAAP net income / Earnings per share $ 56 $ 0.08 $ 106 $ 0.14 $ 63 $ 0.09
Reconciliation of GAAP to Non-GAAP Operating Income 1,3
(Millions)
Q1-11 Q4-10 Q1-10
GAAP operating income $ 54 $ 413 $ 182
Payment to GLOBALFOUNDRIES (24) - -
Gross margin benefit due to deconsolidation of GLOBALFOUNDRIES - - 69
Amortization of acquired intangible assets (9) (11) (17)
Legal settlements (5) 283 -
Non-GAAP operating income $ 92 $ 141 $ 130
Reconciliation of GAAP to Non-GAAP Gross Margin 1,3
(Millions except percentages)
Q1-11 Q4-10 Q1-10
GAAP Gross Margin $ 691 $ 743 $ 741
GAAP Gross Margin % 43% 45% 47%
Gross margin benefit due to deconsolidation of GLOBALFOUNDRIES - - 69
Legal settlements (5) - -
Payment to GLOBALFOUNDRIES (24) - -
Non-GAAP Gross Margin $ 720 $ 743 $ 672
Non-GAAP Gross Margin % 45% 45% 43%
About AMD
AMD (NYSE: AMD) is a semiconductor design innovator leading the next era of vivid digital experiences with its groundbreaking AMD Fusion Accelerated Processing Units (APUs) that power a wide range of computing devices. AMD’s server computing products are focused on driving industry-leading cloud computing and virtualization environments. AMD’s superior graphics technologies are found in a variety of solutions ranging from game consoles, PCs to supercomputers. For more information, visit http://www.amd.com.
