SANTA CLARA, Calif., Jan. 30, 2018 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2017 of $1.48 billion, operating income of $82 million and net income of $61 million or diluted earnings per share of $0.06. Non-GAAP⁽¹⁾ operating income was $103 million, non-GAAP⁽¹⁾ net income was $88 million and non-GAAP⁽¹⁾ diluted earnings per share was $0.08.

For fiscal 2017, the Company reported revenue of $5.33 billion, operating income of $204 million and net income of $43 million or diluted earnings per share of $0.04.  Non-GAAP⁽¹⁾ operating income was $301 million, non-GAAP⁽¹⁾ net income was $179 million and non-GAAP⁽¹⁾ diluted earnings per share was $0.17.

“2017 marked a key inflection point for AMD as we re-shaped our product portfolio, delivered 25 percent annual revenue growth, expanded gross margin and achieved full-year profitability," said Dr. Lisa Su, AMD president and CEO. "We are even more excited about 2018 as we launch our next wave of high-performance products and continue to position AMD as one of the premier long-term growth companies in the technology industry.”

Q4 2017 Results

• Revenue of $1.48 billion was up 34 percent year-over-year, primarily driven by strong sales of Radeon™ graphics and Ryzen™ processors. Revenue was down 10 percent sequentially, primarily driven by seasonally lower sales of semi-custom SoCs.
• Gross margin was 35 percent, up 3 percentage points year-over-year and flat sequentially.
• On a GAAP basis, operating income was $82 million compared to an operating loss of $3 million a year ago and operating income of $126 million in the prior quarter. The year-over-year increase was primarily due to higher revenue from the Computing and Graphics segment, while the sequential decrease was primarily due to seasonally lower Enterprise, Embedded and Semi-Custom segment revenue. Net income was $61 million compared to a net loss of $51 million a year ago and net income of $71 million in the prior quarter. Diluted earnings per share was $0.06 compared to a loss per share of $0.06 a year ago and diluted earnings per share of $0.07 in the prior quarter.
• On a non-GAAP basis, operating income was $103 million compared to operating income of $26 million a year ago and $155 million in the prior quarter. The year-over-year improvement was primarily due to higher revenue from the Computing and Graphics segment, while the sequential decrease was primarily due to seasonally lower Enterprise, Embedded and Semi-Custom segment revenue. Net income was $88 million compared to net loss of $8 million a year ago and net income of $110 million in the prior quarter. Diluted earnings per share was $0.08 compared to a loss per share of $0.01 a year ago and diluted earnings per share of $0.10 in the prior quarter.
• Cash and cash equivalents were $1.18 billion at the end of the quarter, up $306 million from the end of the prior quarter.

2017 Annual Results

• Revenue of $5.33 billion, up 25 percent on an annual basis, was driven by an increase in the Computing and Graphics segment.
• On a GAAP basis, gross margin was 34 percent, up 11 percentage points from the prior year primarily due to the absence of a $340 million charge (WSA charge) recorded in 2016 associated with an amendment to our wafer supply agreement with GLOBALFOUNDRIES. Operating income was $204 million compared to an operating loss of $372 million in the prior year. The operating income improvement was primarily due to higher revenue and gross margin expansion in 2017, and the absence of the WSA charge recorded in 2016, partially offset by higher operating expenses. Net income was $43 million compared to a net loss of $497 million in the prior year. Diluted earnings per share was $0.04 compared to a loss per share of $0.60 in 2016.
• On a non-GAAP ⁽¹⁾ basis, gross margin was 34 percent, up 3 percentage points year-over-year primarily due to improved revenue mix from new products. Operating income was $301 million compared to an operating income of $44 million in the prior year. Operating income improvement was primarily related to higher revenue and gross margin expansion, partially offset by higher operating expenses. Net income was $179 million compared to a net loss of $117 million in the prior year. Diluted earnings per share was $0.17 compared to a loss per share of $0.14 in 2016.
• Cash and cash equivalents were $1.18 billion at the end of the year, down from $1.26 billion at the end of 2016.