Summary
Advanced Micro Devices (AMD) reported a net loss of $109 million for the first quarter of 2016, a decrease from the $180 million net loss in the same period of the prior year. Net revenue also declined by 19% year-over-year to $832 million, primarily driven by lower sales in both the Computing and Graphics segment and the Enterprise, Embedded and Semi-Custom segment. Despite the revenue decline, gross margin remained stable at 32%. The company highlighted progress on its product roadmap, including the demonstration of its Polaris GPU architecture and the launch of new APUs and processors. Significant strategic developments include the formation of two joint ventures in China related to intellectual property licensing and ATMP services, expected to close in Q2 2016. AMD also continues to manage its debt, maintaining a cash balance of $716 million, with management expressing confidence in its ability to fund operations over the next 12 months.
Financial Highlights
50 data points| Revenue | $832.00M |
| Cost of Revenue | $563.00M |
| Gross Profit | $269.00M |
| R&D Expenses | $242.00M |
| SG&A Expenses | $105.00M |
| Operating Income | -$68.00M |
| Interest Expense | $40.00M |
| Net Income | -$109.00M |
| EPS (Basic) | $-0.14 |
| EPS (Diluted) | $-0.14 |
| Shares Outstanding (Basic) | 793.00M |
| Shares Outstanding (Diluted) | 793.00M |
Key Highlights
- 1Net loss narrowed to $109 million from $180 million in Q1 2015.
- 2Net revenue decreased 19% year-over-year to $832 million.
- 3Gross margin remained flat at 32%.
- 4Continued execution on product roadmap with new GPU and processor introductions.
- 5Two joint ventures formed in China for IP licensing and ATMP services, with expected closing in Q2 2016.
- 6Cash and cash equivalents stood at $716 million, with management confident in liquidity for the next 12 months.
- 7Total debt remained stable at approximately $2.2 billion.