Summary
Advanced Micro Devices, Inc. (AMD) reported its second quarter 2011 results, showing a slight decrease in net revenue to $1.57 billion from $1.65 billion in the prior year period. The company experienced strong customer demand for its AMD Fusion family of accelerated processing unit (APU) products, particularly the "Brazos" and "Llano" APUs, which contributed to record mobile processor unit shipments and overall microprocessor unit shipments. Despite revenue decline, the gross margin improved to 46% from 45% year-over-year, driven by the richer product mix of APUs. Operating expenses remained flat, leading to operating income of $105 million, down from $125 million in Q2 2010. For the six-month period, net revenue was $3.19 billion, slightly down from $3.23 billion in the prior year, with gross margin at 44% compared to 46% in the prior year. The company's net income for the quarter was $61 million, or $0.08 per diluted share, a significant improvement from a net loss of $43 million in the same quarter last year, largely due to a substantial gain recognized from dilution of its equity interest in GLOBALFOUNDRIES (GF). The balance sheet shows total assets of $5.22 billion and total liabilities and stockholders' equity of $5.22 billion, with cash and marketable securities totaling $1.86 billion. A significant development during the quarter was the amendment of the Wafer Supply Agreement (WSA) with GLOBALFOUNDRIES, which altered pricing methodologies for wafers. The company also continued to manage its debt, with long-term debt remaining flat at $2.2 billion. AMD's strategic focus remains on its APU products, with strong initial adoption, while facing ongoing competitive pressures in the semiconductor market.
Financial Highlights
54 data points| Revenue | $1.57B |
| Cost of Revenue | $854.00M |
| Gross Profit | $720.00M |
| R&D Expenses | $367.00M |
| SG&A Expenses | $239.00M |
| Operating Income | $105.00M |
| Interest Expense | $47.00M |
| Net Income | $61.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 724.00M |
| Shares Outstanding (Diluted) | 743.00M |
Key Highlights
- 1Net revenue for Q2 2011 was $1.57 billion, a decrease of 5% year-over-year, while gross margin improved to 46% from 45% due to a richer product mix of APUs.
- 2The company reported a net income of $61 million ($0.08 per diluted share) for Q2 2011, a significant improvement from a net loss of $43 million ($0.06 per diluted share) in Q2 2010.
- 3Strong customer demand for AMD Fusion APU products ('Brazos' and 'Llano') led to record mobile processor unit shipments and overall microprocessor unit shipments.
- 4Operating income decreased to $105 million in Q2 2011 from $125 million in Q2 2010, primarily due to revenue decline and increased R&D expenses in the Graphics segment.
- 5The company amended its Wafer Supply Agreement (WSA) with GLOBALFOUNDRIES, impacting pricing methodologies for future wafer purchases.
- 6Total cash, cash equivalents, and marketable securities stood at $1.86 billion as of July 2, 2011, slightly up from $1.79 billion at the end of the previous fiscal year.
- 7The company recognized a non-cash gain of $492 million in the first quarter of 2011 related to the dilution of its ownership in GLOBALFOUNDRIES, which significantly impacted the six-month net income.