01—Abstract
Summary
Summary of the 10-Q filed November 4, 2009. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) reported net revenue of $1,396 milliona for the third quarter of 2009, a decrease of 22% compared to $1,797 million in the same quarter of the prior year.
This decline was attributed to lower average selling prices, particularly for microprocessors and GPU products, driven by a shift towards more value-priced offerings. The company posted an operating loss of $77 millionb, a significant drop from the $122 million operating income in Q3 2008, primarily due to lower revenues and increased interest expenses related to GLOBALFOUNDRIES (GF) debt. Despite the revenue decline and operating loss, AMD reported improved cash and cash equivalents, reaching $2.5 billion, bolstered by financing activities related to the GF joint venture.
The company continues to manage costs through restructuring efforts, showing a decrease in R&D and SG&A expenses. However, the overall financial performance reflects the challenging semiconductor market and ongoing integration of the GF venture.
02—Key points
Key Highlights
- Net revenue decreased by 22% year-over-year to $1,396 million, impacted by lower average selling prices.
- The company reported an operating loss of $77 million, a reversal from the $122 million operating income in the prior year's quarter.
- Interest expense increased significantly due to new debt from GLOBALFOUNDRIES.
- Cash, cash equivalents, and marketable securities increased to $2.5 billion, largely due to the GLOBALFOUNDRIES transaction.
- Cost reduction initiatives led to lower R&D and SG&A expenses.
- GLOBALFOUNDRIES (GF) was consolidated following a March 2009 transaction, contributing $256 million in revenue and an operating loss of $101 million in the quarter.
- The company repurchased a significant portion of its 6.00% Convertible Senior Notes, realizing a substantial gain of $66 million in other income.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2009, Advanced Micro Devices Inc lost $0.09.
- Revenue$1.40B100.0%
- Cost of revenue−$811.0M58.1%
- Gross profit$585.0M41.9%
- Operating costs−$662.0M47.4%
- Operating income−$77.0M5.5%
- Interest, other & tax−$51.0M3.7%
- Net income−$128.0M9.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2009filed November 4, 2009Financial Statements
| Revenue | $1.40B |
| Cost of Revenue | $811.00M |
| Gross Profit | $585.00M |
| R&D Expenses | $420.00M |
| SG&A Expenses | $221.00M |
| Operating Income | -$77.00M |
| Interest Expense | $114.00M |
| Net Income | -$128.00M |
| EPS (Basic) | $-0.18 |
| EPS (Diluted) | $-0.18 |
| Shares Outstanding (Basic) | 694.00M |
| Shares Outstanding (Diluted) | 694.00M |
05—Questions
Frequently Asked Questions
What was AMD's revenue performance in Q3 2009?
AMD's net revenue for the third quarter of 2009 was $1,396 million, a decrease of 22% compared to $1,797 million in the third quarter of 2008. This decline was primarily driven by lower average selling prices for its products, especially microprocessors and GPUs, due to a product mix shift towards more value-oriented offerings.
How did the GLOBALFOUNDRIES (GF) transaction impact AMD's financials?
AMD consolidated GLOBALFOUNDRIES (GF) in the first quarter of 2009. In Q3 2009, GF contributed $256 million in net revenue but also an operating loss of $101 million. The GF transaction and related financing activities significantly increased AMD's cash reserves to $2.5 billion, but also contributed to a rise in interest expenses.
What was AMD's profitability in Q3 2009?
AMD reported an operating loss of $77 million for the third quarter of 2009, a reversal from the operating income of $122 million in the same quarter of 2008. The net loss attributable to common stockholders was $128 million, or $(0.18) per share.
What significant financial activities occurred during the quarter?
AMD repurchased a significant portion of its 6.00% Convertible Senior Notes, generating a gain of $66 million recognized in other income. The company also benefited from reduced R&D and SG&A expenses due to ongoing cost-reduction initiatives. The financing activities related to the GLOBALFOUNDRIES joint venture also significantly impacted the cash position.
06—Continue