Summary
Advanced Micro Devices, Inc. (AMD) reported its first quarter 2014 financial results, showcasing a significant year-over-year increase in net revenue, up 28% to $1.4 billion. This growth was primarily driven by the Graphics and Visual Solutions segment, which saw an 118% increase in revenue, largely due to the introduction of semi-custom System-on-Chip (SOC) products. Despite revenue growth, the company reported a net loss of $20 million for the quarter, an improvement from the $146 million net loss in the prior year's quarter. The company continued its transformation strategy, focusing on diversifying revenue streams. Operational expenses were managed effectively, and AMD strengthened its balance sheet through strategic debt management, including the issuance of new senior notes and repurchasing existing convertible notes. A key development was the fourth amendment to the Wafer Supply Agreement with GLOBALFOUNDRIES (GF), establishing purchase commitments for 2014 and reinforcing a critical supplier relationship, though it also entails a significant estimated obligation of $1.2 billion for the year.
Financial Highlights
54 data points| Revenue | $1.40B |
| Cost of Revenue | $910.00M |
| Gross Profit | $487.00M |
| R&D Expenses | $279.00M |
| SG&A Expenses | $156.00M |
| Operating Income | $49.00M |
| Interest Expense | $47.00M |
| Net Income | -$20.00M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 761.00M |
| Shares Outstanding (Diluted) | 761.00M |
Key Highlights
- 1Net revenue increased by 28% year-over-year to $1.397 billion, driven by strong performance in Graphics and Visual Solutions.
- 2Graphics and Visual Solutions segment revenue surged by 118% year-over-year to $734 million, boosted by semi-custom SOC products.
- 3The company narrowed its net loss to $20 million ($0.03 per share) from $146 million ($0.19 per share) in the first quarter of 2013.
- 4Operating income turned positive at $49 million, compared to an operating loss of $98 million in the prior year's quarter.
- 5AMD issued $600 million of 6.75% Senior Notes due 2019 and actively repurchased $423 million in principal of its 6.00% Convertible Senior Notes due 2015 and $48 million of its 8.125% Senior Notes due 2017.
- 6A fourth amendment to the Wafer Supply Agreement with GLOBALFOUNDRIES was executed, establishing volume purchase commitments and fixed pricing for 2014, with an estimated obligation of $1.2 billion for the year.
- 7Cash, cash equivalents, and marketable securities stood at $982 million, showing a decrease from the prior quarter largely due to a $200 million payment to GF.