AMD Reports Third Quarter Results
Posted: Thu Oct 14, 2010 4:50 pm
AMD Reports Third Quarter Results
-- AMD revenue $1.62 billion, 2 percent sequential decrease and 16 percent increase year-over-year
-- Net loss $118 million, net loss per share $0.17, operating income $128 million
-- Non-GAAP(1,2) net income $108 million, EPS $0.15, operating income $144 million
-- Gross margin 46 percent
-- AMD revenue $1.62 billion, 2 percent sequential decrease and 16 percent increase year-over-year
-- Net loss $118 million, net loss per share $0.17, operating income $128 million
-- Non-GAAP(1,2) net income $108 million, EPS $0.15, operating income $144 million
-- Gross margin 46 percent
AMD today announced revenue for the third quarter of 2010 of $1.62 billion, a net loss of $118 million, or $0.17 per share, and operating income of $128 million. The company reported non-GAAP net income of $108 million, or $0.15 per share, and non-GAAP operating income of $144 million.
"AMD's third quarter performance was highlighted by solid gross margin and a continued focus on profitability, despite weaker than expected consumer demand," said Dirk Meyer, AMD president and CEO. "Our strategy to deliver platforms with superior visual experiences continues to resonate. We look forward to building on this momentum when we begin shipping our first AMD Fusion Accelerated Processor Units later this quarter."
Quarterly Summary
-- Gross margin was 46 percent.
-- Cash, cash equivalents and marketable securities balance at the end of
the quarter was $1.73 billion. The decrease from the second quarter
was primarily due to the repurchase of $800 million aggregate
principal amount of 6.00% Convertible Senior Notes due 2015 offset by
proceeds from our issuance of $500 million of 7.75% Senior Notes due
2020.
--
-- Approximately $780 million of the 6.00% Convertible Senior Notes
remained outstanding as of September 25, 2010.
-- Computing Solutions segment revenue was flat sequentially and up 13
percent year-over-year. The year-over-year increase was primarily
driven by record notebook microprocessor unit shipments.
--
-- Operating income was $164 million, compared with $128 million in
Q2-10 and $82 million in Q3-09.
-- Microprocessor average selling price (ASP) decreased slightly
sequentially and increased year-over-year.
-- AMD updated its desktop processor family with six new offerings,
including the six-core AMD Phenom(TM) II X6 1075 processor with
high-end features like Turbo CORE acceleration technology, and the
unlocked, quad-core AMD Phenom(TM) II X2 560 Black Edition
processor which enables performance-tuning capabilities.
-- IBM joined the ranks of global customers offering AMD
Opteron(TM) 6000 series platform-based systems. In total, more
than 40 unique AMD Opteron(TM) 6000 series-based platforms are
now available from leading server manufacturers, including the HP
ProLiant DL385 G7, the Dell PowerEdge(TM) R815, and many others.
-- AMD released significant technical details of two new x86 cores
during the quarter. "Bulldozer" targets high-performance PC and
server markets, while "Bobcat" is intended for low-power notebook
and desktop markets. Both cores were designed from the ground up
to address specific customer requirements and compute workloads.
-- AMD demonstrated "Brazos", the upcoming platform combining
low-power x86 processor cores and discrete-level graphics
capabilities in a single AMD Fusion Accelerated Processing Unit
(APU). "Brazos" platforms will feature the "Ontario" and "Zacate"
APUs and are expected to bring many of the vivid digital computing
experiences once reserved for high-end PCs to value and mainstream
notebooks and desktops early next year.
-- Graphics segment revenue decreased 11 percent sequentially but
increased 33 percent year-over-year. The sequential decrease was
driven by decreased mobile graphics processor unit (GPU) unit
shipments and decreased ASP. The year-over-year increase was driven
by an increase in GPU unit shipments and ASP.
--
-- Operating income was $1 million, compared with $33 million in
Q2-10 and $2 million in Q3-09.
-- AMD has shipped more than 25 million DirectX11-capable GPUs since
introduction in September 2009.
-- AMD launched the ATI FirePro(TM) V9800, the company's flagship
professional graphics card and the industry's only single-card
solution for driving up to six monitors at a time.
-- Apple refreshed its iMac and Mac Pro desktop computers, making ATI
Radeon(TM) cards the only graphics solution for all
configurations of these products.
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 approximately flat sequentially for the fourth quarter of 2010.
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 third 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.
About AMD
Advanced Micro Devices /quotes/comstock/13*!amd/quotes/nls/amd (AMD 7.48, +0.34, +4.78%) is an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit AMD.