GAAP Financial Results
----------------------------------------------------------------------------
Q3-16 Q2-16 Q3-15
----------------------------------------------------------------------------
Revenue $1,307M $1,027M $1,061M
----------------------------------------------------------------------------
Operating loss $(293)M $(8)M $(158)M
----------------------------------------------------------------------------
Net income (loss) / earnings
(loss) per share $(406)M/$(0.50) $69M/$0.08 $(197)M/$(0.25)
----------------------------------------------------------------------------
Non-GAAP Financial Results(1)
----------------------------------------------------------------------------
Q3-16 Q2-16 Q3-15
----------------------------------------------------------------------------
Revenue $1,307M $1,027M $1,061M
----------------------------------------------------------------------------
Operating income (loss) $70M $3M $(97)M
----------------------------------------------------------------------------
Net income (loss) / earnings
(loss) per share $27M/$0.03 $(40)M/$(0.05) $(136)M/$(0.17)
----------------------------------------------------------------------------
"Our third quarter financial results highlight the progress we are making across our business," said Lisa Su, AMD president and CEO. "We now expect to deliver higher 2016 annual revenue based on stronger demand for AMD semi-custom solutions and Polaris GPUs. This positions us well to accelerate our growth in 2017 as we introduce new high-performance computing and graphics products."
Q3 2016 Results
- Q3 2016, Q2 2016, and Q3 2015 were 13-week fiscal quarters.
- Revenue of $1,307 million, up 27 percent sequentially and up 23 percent year-over-year primarily due to record semi-custom SoC and higher GPU and mobile APU sales, partially offset by client desktop processor and chipset sales.
- Gross margin was 5 percent, down from 31 percent from the previous quarter due to a $340 million charge related to the 6th amendment to the Wafer Supply Agreement (WSA) with GLOBALFOUNDRIES (GF). Non-GAAP gross margin of 31 percent was flat quarter-over-quarter.
- Operating expenses of $376 million, compared to $353 million for the prior quarter. Non-GAAP operating expenses of $353 million, compared to non-GAAP operating expenses of $342 million in Q2 2016, driven by increased investments in research and development.
- Operating loss of $293 million, compared to an operating loss of $8 million in Q2 2016 due to a $340 million WSA charge. Non-GAAP(1) operating income of $70 million, compared to non-GAAP(1) operating income of $3 million in Q2 2016, primarily due to higher revenue.
- Net loss of $406 million, net loss per share of $0.50, compared to net income of $69 million, net earnings per share of $0.08 in Q2 2016. The decline was driven by a $340 million WSA charge and a $61 million loss on debt redemption offset by increased revenue. Q2 2016 net income included a $150 million pre-tax gain on the sale of 85 percent of assembly, test, mark, and pack (ATMP) facilities to Nantong Fujitsu Microelectronics (NFME).
- Non-GAAP(1) net income of $27 million, non-GAAP(1) earnings per share of $0.03. This compares to non-GAAP(1) net loss of $40 million and non-GAAP(1) loss per share of $0.05 in Q2 2016, primarily due to increased revenue in Q3 2016.
- Cash and cash equivalents were $1,258 million at the end of the quarter, up $301 million from the end of the prior quarter. The quarter-end cash balance includes approximately $274 million of net proceeds from recent capital markets transactions.
- Total debt at the end of the quarter was $1,632 million, down $606 million from the prior quarter as a result of the timing and execution of Q3 2016 debt reduction actions and due to bifurcation of the newly issued 2.125 percent Convertible Notes due 2026 into equity and liability components based on GAAP accounting regulations. We plan to further reduce debt by deploying a significant portion of the remaining cash from our capital markets transactions.
