01—Abstract
Summary
Summary of the 10-Q filed August 1, 2013. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) reported its financial results for the second quarter and first six months of fiscal year 2013, ending June 29, 2013.
The company experienced a significant decline in net revenue compared to the prior year, with Q2 2013 revenue at $1.16 billiona, down 18% from $1.41 billion in Q2 2012. For the six-month period, revenue was $2.25 billion, a decrease from $3.00 billion in the same period last year. This revenue decline was primarily driven by challenging market conditions in the computing solutions segment and to a lesser extent, graphics and visual solutions.
The company reported a net loss of $74 millionb ($0.10 per diluted share) for the second quarter of 2013, a stark contrast to a net income of $37 million ($0.05 per diluted share) in the prior year's quarter. For the first six months of 2013, the net loss widened to $220 million ($0.29 per diluted share) from a loss of $553 million ($0.75 per diluted share) in the first half of 2012. Operating expenses saw reductions due to restructuring efforts, but the overall financial performance indicated ongoing challenges in its core markets.
02—Key points
Key Highlights
- Net revenue for Q2 2013 was $1.16 billion, an 18% decrease year-over-year, reflecting challenging market conditions.
- The company reported a net loss of $74 million for Q2 2013, compared to a net income of $37 million in Q2 2012.
- For the six months ended June 29, 2013, net revenue decreased to $2.25 billion from $3.00 billion in the prior year.
- The Computing Solutions segment's revenue declined by 20% year-over-year in Q2 2013, impacted by decreased unit shipments and average selling price.
- The Graphics and Visual Solutions segment's revenue decreased by 13% year-over-year in Q2 2013, primarily due to lower GPU product revenue.
- Operating expenses were reduced, with R&D and SG&A expenses showing year-over-year decreases as part of restructuring efforts.
- Cash, cash equivalents, and marketable securities remained relatively stable at approximately $1.0 billion as of June 29, 2013.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2013, Advanced Micro Devices Inc lost $0.06.
- Revenue$1.16B100.0%
- Cost of revenue−$702.0M60.5%
- Gross profit$459.0M39.5%
- Operating costs−$488.0M42.0%
- Operating income−$29.0M2.5%
- Interest, other & tax−$45.0M3.9%
- Net income−$74.0M6.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2013filed August 1, 2013Financial Statements
Q2 FY2013 against Q2 FY2012
| Line item | Q2 FY2013Q2 FY2012 | Change |
|---|---|---|
| Revenue | $1.16B$1.41B | −17.8% |
| Cost of Revenue | $702.00M$775.00M | −9.4% |
| Gross Profit | $459.00M$638.00M | −28.1% |
| R&D Expenses | $308.00M$345.00M | −10.7% |
| SG&A Expenses | $171.00M$212.00M | −19.3% |
| Operating Income | -$29.00M$77.00M | −137.7% |
| Interest Expense | $42.00M$43.00M | −2.3% |
| Net Income | -$74.00M$37.00M | −300.0% |
| EPS (Basic) | $-0.10$0.05 | −300.0% |
| EPS (Diluted) | $-0.10$0.05 | −300.0% |
| Shares Outstanding (Basic) | 752.00M739.00M | +1.8% |
| Shares Outstanding (Diluted) | 752.00M755.00M | −0.4% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of AMD in Q2 2013?
AMD reported a net revenue of $1.16 billion for the second quarter of 2013, an 18% decrease compared to $1.41 billion in the same quarter of 2012. The company incurred a net loss of $74 million for Q2 2013, contrasting with a net income of $37 million in Q2 2012.
What are the primary drivers behind the revenue decline?
The revenue decline was primarily attributed to challenging market conditions, particularly within the Computing Solutions segment, which experienced a 20% year-over-year decrease in revenue. This was driven by lower unit shipments and average selling prices for microprocessors and chipsets, reflecting reduced demand for PC products and increased competition.
Has AMD made progress in managing its expenses?
Yes, AMD has been focused on reducing operating expenses. Research and Development (R&D) expenses decreased by 11% year-over-year in Q2 2013, and Marketing, General and Administrative (MG&A) expenses decreased by 19% year-over-year. These reductions are largely a result of the 2012 restructuring plan.
What is the company's liquidity position?
AMD's liquidity remains stable. As of June 29, 2013, the company reported cash, cash equivalents, and marketable securities totaling approximately $1.0 billion, which was consistent with the prior quarter. The company indicated it believes its cash balance and available external financing will be sufficient to fund operations over the next twelve months.
06—Continue