01—Abstract
Summary
Summary of the 10-K filed February 18, 2014. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices Inc. (AMD) reported a net loss of $83 milliona for the fiscal year ended December 28, 2013, a significant improvement from a net loss of $1.18 billion in the prior year.
Net revenue for the year was $5.3 billionb, a slight decrease of 2% compared to $5.4 billion in 2012. The company highlighted its progress in executing a three-phase transformation plan aimed at restructuring and repositioning AMD for growth in changing computing landscapes and adjacent high-growth markets. A key driver for revenue growth in 2013 was the Graphics and Visual Solutions segment, which saw a 55% increase primarily due to new semi-custom System-on-Chip (SOC) products for game consoles (PlayStation 4 and Xbox One), launched in late 2013.
However, the Computing Solutions segment experienced a 22% decline in revenue due to challenging PC market conditions and increased competition. Despite the revenue challenges in its core computing business, AMD managed to improve its operating income to $103 millionc from an operating loss of $1.1 billion in 2012, largely driven by cost reductions and improved gross margins.
02—Key points
Key Highlights
- Net loss improved significantly to $83 million in 2013 from $1.18 billion in 2012.
- Net revenue decreased slightly by 2% to $5.3 billion in 2013.
- Graphics and Visual Solutions segment revenue surged by 55% driven by semi-custom SOC products for new game consoles.
- Computing Solutions segment revenue declined by 22% due to PC market challenges and competition.
- Operating income turned positive at $103 million in 2013, a substantial turnaround from an operating loss of $1.1 billion in 2012.
- The company continued to focus on its transformation plan, aiming for 50% of revenue from high-growth markets by the end of 2015.
- Cash, cash equivalents, and marketable securities remained stable at $1.2 billion as of year-end 2013.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2013, Advanced Micro Devices Inc lost $0.02.
- Revenue$5.30B100.0%
- Cost of revenue−$3.32B62.7%
- Gross profit$1.98B37.3%
- Operating costs−$1.88B35.4%
- Operating income$103.0M1.9%
- Interest, other & tax−$186.0M3.5%
- Net income−$83.0M1.6%
Where FY2013 revenue went
$5.30B- Cost of revenue: $3.32B, 63% of revenue
- R&D: $1.20B, 23% of revenue
- SG&A: $674.0M, 13% of revenue
- Operating income: $103.0M, 1.9% of revenue
Kept 1.9% as operating incomeOperating income $103.0M · 1.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 18, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $5.30B$5.42B | −2.3% |
| Cost of Revenue | $3.32B$4.19B | −20.7% |
| Gross Profit | $1.98B$1.24B | +60.2% |
| R&D Expenses | $1.20B$1.35B | −11.3% |
| SG&A Expenses | $674.00M$823.00M | −18.1% |
| Operating Income | $103.00M-$1.06B | +109.8% |
| Interest Expense | $177.00M$175.00M | +1.1% |
| Net Income | -$83.00M-$1.18B | +93.0% |
| EPS (Basic) | $-0.11$-1.60 | +93.1% |
| EPS (Diluted) | $-0.11$-1.60 | +93.1% |
| Shares Outstanding (Basic) | 754.00M741.00M | +1.8% |
| Shares Outstanding (Diluted) | 754.00M741.00M | +1.8% |
05—Questions
Frequently Asked Questions
What were the main financial performance indicators for AMD in 2013?
For the fiscal year ended December 28, 2013, AMD reported a net loss of $83 million on net revenue of $5.3 billion. This represents a substantial improvement from the previous year's net loss of $1.18 billion, though net revenue saw a slight 2% decrease. The company's operating income turned positive, reaching $103 million, a significant recovery from the $1.1 billion operating loss in 2012.
How did AMD's different business segments perform in 2013?
The Graphics and Visual Solutions segment showed strong growth, with revenue increasing by 55% year-over-year, largely driven by the successful launch of semi-custom SOC products for the new Sony PlayStation 4 and Microsoft Xbox One consoles. Conversely, the Computing Solutions segment experienced a 22% revenue decline due to the ongoing challenges in the PC market and increased competition.
What is AMD's strategic outlook and financial health as of the end of 2013?
AMD reported progress in its three-phase transformation plan, aiming to shift its business focus towards higher-growth markets. The company's cash and equivalents stood at $1.2 billion, providing a stable liquidity position. Despite the continued pressures in the PC market, the company's improved operating income and reduced net loss indicate a positive trend towards financial recovery and strategic realignment.
06—Continue