ADVANCED MICRO DEVICES INC Quarterly Report for Q2 Ended Apr 1, 2017

Summary

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 million. 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 million 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 million from $1.26 billion at the end of 2016 due to operating and investing activities.

Key Highlights

• 1Net revenue increased 18% year-over-year to $984 million, driven by strong performance in the Computing and Graphics segment.
• 2Gross margin improved to 34% from 32% year-over-year, benefiting from a richer product mix, including new Ryzen processors.
• 3Net loss narrowed to $73 million ($0.08 per share) from $109 million ($0.14 per share) in the prior year's quarter.
• 4Operating loss decreased to $29 million from $68 million year-over-year.
• 5Cash, cash equivalents, and marketable securities decreased to $943 million from $1.26 billion at the end of 2016.
• 6The company made progress on its debt management, with total debt decreasing slightly to $1.41 billion.
• 7Introduced AMD Ryzen™ 7 desktop processors based on the new 'Zen' core microarchitecture, which saw strong initial customer demand and positively impacted gross margin.

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