Early Access

10-QPeriod: Q3 FY2015

ADVANCED MICRO DEVICES INC Quarterly Report for Q3 Ended Sep 26, 2015

Filed November 3, 2015For Securities:AMD

Summary

Advanced Micro Devices (AMD) reported a significant net loss of $197 million ($0.25 per share) for the third quarter of 2015, a stark contrast to the modest net income of $17 million ($0.02 per share) in the same period last year. This downturn was primarily driven by a substantial decrease in net revenue, which fell 26% year-over-year to $1.06 billion. The company faced challenges in both its Computing and Graphics segment, which saw revenue drop significantly, and its Enterprise, Embedded and Semi-Custom segment, which experienced a slight decline. Compounding these revenue pressures were significant restructuring charges related to a workforce reduction and organizational changes. An inventory write-down of $65 million, largely due to lower demand for older-generation APUs, also impacted gross margins, which fell to 23% from 35% in the prior year. Despite these headwinds, AMD is actively pursuing strategic initiatives, including a joint venture for its assembly, test, mark, and pack (ATMP) operations, which is expected to close in the first half of 2016 and bring in approximately $320 million in net proceeds.

Financial Highlights

54 data points
Beta

Revenue

$1.06B

0.2% Gross Margin

Net Income

-$197.00M

-0.2% Net Margin

EPS (Diluted)

$-0.25

Total Assets

$3.23B

Cash & Equivalents

$755.00M

Free Cash Flow

-$81.00M

Financial Statements
Beta
Revenue$1.06B
Cost of Revenue$822.00M
Gross Profit$239.00M
R&D Expenses$241.00M
SG&A Expenses$108.00M
Operating Income-$158.00M
Interest Expense$39.00M
Net Income-$197.00M
EPS (Basic)$-0.25
EPS (Diluted)$-0.25
Shares Outstanding (Basic)785.00M
Shares Outstanding (Diluted)785.00M

Key Highlights

  • 1Net loss of $197 million in Q3 2015, compared to a net income of $17 million in Q3 2014.
  • 2Net revenue decreased by 26% year-over-year to $1.06 billion in Q3 2015.
  • 3Gross margin percentage declined to 23% in Q3 2015 from 35% in Q3 2014, impacted by a $65 million inventory write-down.
  • 4Significant restructuring charges were recorded, including a 5% global headcount reduction and outsourcing of IT services, totaling $48 million in Q3 2015.
  • 5The company announced a proposed joint venture to sell 85% of its ATMP operations for approximately $320 million net proceeds, expected to close in H1 2016.
  • 6Operating loss in the Computing and Graphics segment widened to $181 million from $17 million in the prior year period.
  • 7Cash and cash equivalents decreased to $755 million from $805 million at the beginning of the year.

Frequently Asked Questions