01—Abstract
Summary
Summary of the 10-Q filed May 8, 2017. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) reported its first quarter 2017 results, showing a notable increase in net revenue of 18% year-over-year to $984 milliona.
This growth was primarily driven by a 29% increase in the Computing and Graphics segment, bolstered by higher average selling prices, especially from the new Ryzen desktop processors. The company also demonstrated improved profitability with a reduced net loss of $73 million compared to $109 millionb in the prior year's quarter, and an operating loss of $29 million versus $68 million in Q1 2016.
Gross margin also improved to 34% from 32% year-over-year, attributed to a richer product mix. Despite these positive trends, the company's cash position decreased to $943 millionc from $1.26 billion at the end of 2016 due to operating and investing activities.
02—Key points
Key Highlights
- Net revenue increased 18% year-over-year to $984 million, driven by strong performance in the Computing and Graphics segment.
- Gross margin improved to 34% from 32% year-over-year, benefiting from a richer product mix, including new Ryzen processors.
- Net loss narrowed to $73 million ($0.08 per share) from $109 million ($0.14 per share) in the prior year's quarter.
- Operating loss decreased to $29 million from $68 million year-over-year.
- Cash, cash equivalents, and marketable securities decreased to $943 million from $1.26 billion at the end of 2016.
- The company made progress on its debt management, with total debt decreasing slightly to $1.41 billion.
- Introduced AMD Ryzen™ 7 desktop processors based on the new 'Zen' core microarchitecture, which saw strong initial customer demand and positively impacted gross margin.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2017, Advanced Micro Devices Inc lost $0.03.
- Revenue$1.18B100.0%
- Cost of revenue−$800.0M67.9%
- Gross profit$378.0M32.1%
- Operating costs−$367.0M31.2%
- Operating income$11.0M0.9%
- Interest, other & tax−$44.0M3.7%
- Net income−$33.0M2.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2017filed May 8, 2017Financial Statements
Q2 FY2017 against Q2 FY2016
| Line item | Q2 FY2017Q2 FY2016 | Change |
|---|---|---|
| Revenue | $1.18B$1.03B | +14.7% |
| Cost of Revenue | $800.00M$708.00M | +13.0% |
| Gross Profit | $378.00M$319.00M | +18.5% |
| R&D Expenses | $271.00M$243.00M | +11.5% |
| SG&A Expenses | $123.00M$117.00M | +5.1% |
| Operating Income | $11.00M-$8.00M | +237.5% |
| Interest Expense | $32.00M$41.00M | −22.0% |
| Net Income | -$33.00M$69.00M | −147.8% |
| EPS (Basic) | $-0.04$0.09 | −144.4% |
| EPS (Diluted) | $-0.04$0.08 | −150.0% |
| Shares Outstanding (Basic) | 939.00M794.00M | +18.3% |
| Shares Outstanding (Diluted) | 939.00M821.00M | +14.4% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMD's revenue growth in Q1 2017?
Revenue growth was primarily driven by the Computing and Graphics segment, which saw a 29% increase year-over-year. This was largely due to a 24% increase in average selling prices, particularly from the new AMD Ryzen™ desktop processors and desktop GPU products.
How did AMD's profitability change in Q1 2017 compared to Q1 2016?
AMD showed improved profitability. The net loss decreased to $73 million from $109 million, and the operating loss narrowed to $29 million from $68 million. The gross margin also improved to 34% from 32%, mainly due to a better product mix.
What is the current status of AMD's cash position and debt?
As of the end of Q1 2017, AMD's cash, cash equivalents, and marketable securities decreased to $943 million from $1.26 billion at the end of 2016. Total debt saw a slight decrease to $1.41 billion.
What are the implications of the new Ryzen processors for AMD?
The introduction of AMD Ryzen™ 7 desktop processors, based on the new 'Zen' core microarchitecture, has been positively received with strong initial customer demand. These sales were accretive to gross margin in the first quarter, indicating a positive impact on profitability and competitive positioning in the high-performance desktop market.
06—Continue