Summary
Advanced Micro Devices, Inc. (AMD) reported a net loss of $335 million for the second quarter ended June 27, 2009, or $0.49 per share. This represents an improvement from the $1.19 billion net loss in the same quarter last year, though revenue declined year-over-year. The company's financial results for this period were significantly impacted by the recent formation of its GLOBALFOUNDRIES (GF) manufacturing joint venture with ATIC. The GF transaction, which closed in March 2009, brought in substantial cash and changed the company's operational and reporting structure. While overall revenues saw a year-over-year decrease, the company highlighted stabilization in PC demand and cost reduction efforts. AMD's balance sheet showed a stronger cash position, with $2.5 billion in cash and marketable securities at the end of the quarter, up from $1.1 billion at the end of the prior year. This increase was largely attributed to the GF transaction. Despite the revenue decline and continued operating losses, the company is focusing on cash preservation and cost containment measures. Investors will be closely watching the integration and performance of GLOBALFOUNDRIES, as well as AMD's ability to navigate the challenging macroeconomic environment and competitive semiconductor market.
Financial Highlights
28 data points| Revenue | $1.18B |
| Cost of Revenue | $743.00M |
| Gross Profit | $441.00M |
| R&D Expenses | $425.00M |
| SG&A Expenses | $247.00M |
| Operating Income | -$249.00M |
| Interest Expense | $108.00M |
| Net Income | -$330.00M |
| EPS (Basic) | $-0.49 |
| EPS (Diluted) | $-0.49 |
| Shares Outstanding (Basic) | 667.00M |
| Shares Outstanding (Diluted) | 667.00M |
Key Highlights
- 1Net loss of $335 million ($0.49 per share) for the quarter, an improvement from $1.19 billion loss in Q2 2008.
- 2Total net revenue of $1.18 billion, a decrease from $1.36 billion in Q2 2008.
- 3Cash, cash equivalents, and marketable securities increased to $2.5 billion from $1.1 billion, largely due to the GLOBALFOUNDRIES (GF) transaction.
- 4Operating loss of $249 million, an improvement from $569 million in Q2 2008, aided by lower operating expenses and absence of significant impairment charges.
- 5GLOBALFOUNDRIES (GF) joint venture, formed in March 2009, now reported as a separate segment, contributing $253 million in revenue and a $101 million operating loss for the quarter.
- 6Significant decrease in Marketing, General, and Administrative expenses, down 26% year-over-year, reflecting cost-cutting initiatives.
- 7Stock-based compensation expenses remained flat year-over-year at $18 million.