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1. In this earnings press release, in addition to GAAP financial results,
AMD has provided non-GAAP financial measures including non-GAAP gross
margin, non-GAAP operating income (loss), non-GAAP operating expenses,
non-GAAP net income (loss) and non-GAAP earnings (loss) per share.
These non-GAAP financial measures reflect certain adjustments as
presented in the tables in this earnings press release. AMD also
provided adjusted EBITDA and non-GAAP free cash flow as supplemental
measures of its performance. These items are defined in the footnotes
to the selected corporate data tables provided at the end of this
earnings press release. AMD is providing these financial measures
because it believes this non-GAAP presentation makes it easier for
investors to compare its operating results for current and historical
periods and also because AMD believes it assists investors in comparing
AMD's performance across reporting periods on a consistent basis by
excluding items that it does not believe are indicative of its core
operating performance and for the other reasons described in the CFO
Commentary.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)
Three Months Ended Six Months Ended
----------------------------- ------------------
June 25, March 26, June 27, June 25, June 27,
2016 2016 2015 2016 2015
-------- --------- -------- -------- --------
Net revenue $ 1,027 $ 832 $ 942 $ 1,859 $ 1,972
Cost of sales 708 563 710 1,271 1,414
-------- --------- -------- -------- --------
Gross margin 319 269 232 588 558
Gross margin % 31% 32% 25% 32% 28%
Research and development 243 242 235 485 477
Marketing, general and
administrative 117 105 134 222 265
Amortization of acquired
intangible assets - - - - 3
Restructuring and other
special charges, net (7) (3) - (10) 87
Licensing gain (26) (7) - (33) -
-------- --------- -------- -------- --------
Operating loss (8) (68) (137) (76) (274)
Interest expense (41) (40) (40) (81) (80)
Other income (expense),
net 150 - (3) 150 (3)
-------- --------- -------- -------- --------
Income (loss) before
equity loss and income
taxes 101 (108) (180) (7) (357)
Provision for income
taxes 29 1 1 30 4
Equity in income (loss)
of ATMP JV (3) - - (3) -
-------- --------- -------- -------- --------
Net income (loss) $ 69 $ (109) $ (181) $ (40) $ (361)
Net income (loss) per
share
Basic $ 0.09 $ (0.14) $ (0.23) $ (0.05) $ (0.46)
Diluted $ 0.08 $ (0.14) $ (0.23) $ (0.05) $ (0.46)
-------- --------- -------- -------- --------
Shares used in per share
calculation
Basic 794 793 778 794 778
Diluted 821 793 778 794 778
-------- --------- -------- -------- --------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Millions)
Three Months Ended Six Months Ended
----------------------------- ------------------
June 25, March 26, June 27, June 25, June 27,
2016 2016 2015 2016 2015
-------- --------- -------- -------- --------
Total comprehensive
income (loss) $ 72 $ (107) $ (174) $ (35) $ (361)
-------- --------- -------- -------- --------
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (1) (2)
(Millions)
June 25, March 26, December 26,
2016 2016 2015
---------- ---------- ------------
Assets
Current assets:
Cash and cash equivalents $ 957 $ 716 $ 785
Accounts receivable, net 671 508 533
Inventories, net 743 675 678
Prepayment and other -
GLOBALFOUNDRIES 12 26 33
Prepaid expenses 68 49 43
Other current assets 55 252 248
---------- ---------- ------------
Total current assets 2,506 2,226 2,320
Property, plant and equipment, net 169 176 188
Goodwill 289 278 278
Investment in ATMP JV 62 - -
Other assets 290 301 298
---------- ---------- ------------
Total Assets $ 3,316 $ 2,981 $ 3,084
========== ========== ============
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Short-term debt $ 226 $ 230 $ 230
Accounts payable 616 324 279
Payable to GLOBALFOUNDRIES 94 233 245
Payable to ATMP JV 150 - -
Accrued liabilities 392 347 472
Other current liabilities 61 151 124
Deferred income on shipments to
distributors 42 43 53
---------- ---------- ------------
Total current liabilities 1,581 1,328 1,403
Long-term debt 2,012 2,006 2,007
Other long-term liabilities 136 150 86
Stockholders' equity (deficit):
Capital stock:
Common stock, par value 8 8 8
Additional paid-in capital 7,053 7,033 7,017
Treasury stock, at cost (125) (123) (123)
Accumulated deficit (7,346) (7,415) (7,306)
Accumulated other comprehensive loss (3) (6) (8)
---------- ---------- ------------
Total Stockholders' equity
(deficit) (413) (503) (412)
---------- ---------- ------------
Total Liabilities and Stockholders'
Equity (Deficit) $ 3,316 $ 2,981 $ 3,084
========== ========== ============
(1) Amounts reflected adoption of FASB ASU 2015-17, Balance Sheet
Classification of Deferred Taxes beginning in the first quarter of 2016.
(2) Amounts reflected adoption of FASB ASU 2015-03, Simplifying the
Presentation of Debt Issuance Costs beginning in the first quarter of
2016.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Three Months Six Months
Ended Ended
------------ ------------
June 25, June 25,
2016 2016
------------ ------------
Cash flows from operating activities:
Net income (loss) $ 69 $ (40)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Gain on sale of equity interests in ATMP JV (150) (150)
Equity in income (loss) of ATMP JV (1) (1)
Depreciation and amortization 33 66
Provision for deferred income taxes 11 11
Stock-based compensation expense 18 34
Non-cash interest expense 3 7
Other (1) (6)
Changes in operating assets and liabilities:
Accounts receivable (164) (138)
Inventories (69) (66)
Prepayment and other - GLOBALFOUNDRIES 14 21
Prepaid expenses and other assets (139) (117)
Payable to ATMP JV 150 150
Payable to GLOBALFOUNDRIES (139) (151)
Accounts payable, accrued liabilities and
other 280 253
------------ ------------
Net cash used in operating activities $ (85) $ (127)
------------ ------------
Cash flows from investing activities:
Purchases of property, plant and equipment (21) (47)
Proceeds from sale of equity interests in ATMP
JV 351 351
Other (1) (1)
------------ ------------
Net cash provided by investing activities $ 329 $ 303
------------ ------------
Cash flows from financing activities:
Proceeds from issuance of common stock 2 2
Repayments of borrowings, net (4) (4)
Other (1) (2)
------------ ------------
Net cash used in financing activities $ (3) $ (4)
------------ ------------
Net increase in cash and cash equivalents 241 172
------------ ------------
Cash and cash equivalents at beginning of period $ 716 $ 785
------------ ------------
Cash and cash equivalents at end of period $ 957 $ 957
------------ ------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Three Months Ended Six Months Ended
-------------------------------------------------------- -------------------
Segment and Category June 25, March 26, June 27, June 25, June 27,
Information 2016 2016 2015 2016 2015
-------------------------------------------------------- -------------------
Computing and Graphics
(1)
Net revenue $ 435 $ 460 $ 379 $ 895 $ 911
Operating loss $ (81) $ (70) $ (147) $ (151) $ (222)
Enterprise, Embedded
and Semi-Custom (2)
Net revenue $ 592 $ 372 $ 563 $ 964 $ 1,061
Operating income $ 84 $ 16 $ 27 $ 100 $ 72
All Other (3)
Net revenue - - - - -
Operating loss $ (11) $ (14) $ (17) $ (25) $ (124)
Total
Net revenue $ 1,027 $ 832 $ 942 $ 1,859 $ 1,972
Operating loss $ (8) $ (68) $ (137) $ (76) $ (274)
-------------------------------------------------------- -------------------
Other Data
Depreciation and
amortization,
excluding amortization
of acquired intangible
assets $ 33 $ 33 $ 45 $ 66 $ 88
Capital additions $ 21 $ 26 $ 17 $ 47 $ 39
Adjusted EBITDA (4) $ 36 $ (22) $ (42) $ 14 $ (29)
Cash and cash
equivalents $ 957 $ 716 $ 829 $ 957 $ 829
Non-GAAP free cash flow
(5) $ (106) $ (68) $ (74) $ (174) $ (268)
Total assets $ 3,316 $ 2,981 $ 3,353 $ 3,316 $ 3,353
Total debt $ 2,238 $ 2,236 $ 2,241 $ 2,238 $ 2,241
Headcount 8,099 9,047 9,469 8,099 9,469
-------------------------------------------------------- -------------------
