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AMD Reports Record Second Quarter Revenue

AMD Reports Record Second Quarter Revenue

 

- AMD revenue $1.65 billion, 5 percent sequential increase and 40 percent increase year-over-year

 

- Net loss $43 million, net loss per share $0.06, operating income $125 million

 

- Non-GAAP1,2 net income $83 million, EPS $0.11, operating income $138 million

 

- Gross margin 45 percent

 

SUNNYVALE, Calif. -7/15/2010

 

AMD (NYSE:AMD) today announced revenue for the second quarter of 2010 of $1.65 billion, a net loss of $43

 

million, or $0.06 per share, and operating income of $125 million. The company reported non-GAAP net income

 

of $83 million, or $0.11 per share, and non-GAAP operating income of $138 million.

 

"Robust demand for our latest mobile platforms and solid execution drove record second quarter revenue and a

 

healthy gross margin," said Dirk Meyer, AMD President and CEO. "Our unmatched combination of microprocessor

 

and graphics capabilities resulted in customers launching a record number of new mobile and desktop platforms.

 

We added Sony as a microprocessor customer and continue to see our existing customers expand their AMD-based

 

platform offerings."

 

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Quarterly Summary

 

Gross margin was 45 percent

 

Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.90 billion,

 

approximately flat from the first quarter.

 

During the quarter, AMD used $200 million to repurchase $206 million principal amount of our 6.00 percent

 

Convertible Senior Notes due 2015.

 

Computing Solutions segment revenue increased 4 percent sequentially and 31 percent year-over-year. The

 

increases were primarily driven by record notebook microprocessor and chipset unit shipments.

 

Operating income was $128 million, compared with $146 million in Q1-10 and an operating loss of $67 million in

 

Q2-09.

 

Microprocessor average selling price (ASP) was flat sequentially and increased year-over-year.

 

AMD demonstrated the world's first Fusion Accelerated Processing Units (APU), codenamed "Ontario" and "Llano",

 

at Computex. Fusion APUs combine the microprocessor and graphics processor unit (GPU) onto a single piece of

 

silicon to deliver breakthroughs in visual computing, user interface and performance-per-watt while enabling

 

new PC designs.

 

Sony joined the ranks of global PC companies offering AMD microprocessor-based solutions. Acer, Dell, HP,

 

Lenovo, Sony, and Toshiba announced new notebooks featuring VISION Technology from AMD for the back-to-school

 

and holiday buying periods. Global PC manufacturers have tripled the number of notebook offerings featuring

 

VISION Technology in the last year.

 

AMD launched the world's first server platform designed specifically for cloud and hyperscale data centers,

 

featuring the industry's lowest power-per-core x86 server processor. Acer, Dell, HP and Supermicro announced

 

plans to adopt the Opteron™ 4000 Series for their product offerings.

 

AMD microprocessors power the highest-performing supercomputer in the world and three of the top four systems

 

in the most recent TOP500 Supercomputers list. AMD is the only company with both microprocessor and GPU

 

technology on the list.

 

Graphics segment revenue increased 8 percent sequentially and 87 percent year-over-year. The sequential

 

increase was driven by record GPU unit shipments, partially offset by a decrease in ASP. The year-over-year

 

increase was driven by an increase in GPU shipments and ASP. Operating income was $33 million, compared with

 

$47 million in Q1-10 and a loss of $17 million in Q2-09.

 

In just three quarters, AMD has shipped more than 16 million Microsoft DirectX 11-capable GPUs. The ATI

 

Radeon™ HD 5000 series remains the industry's only complete top-to-bottom family of DirectX11-compatible

 

graphics solutions.

 

Dell adopted the latest ATI FirePro™ professional graphics products in its highest-performing workstations

 

designed for graphics-intensive professions.

 

Current Outlook

 

AMD's outlook statements are based on current expectations. The following statements are forward looking, and

 

actual results could differ materially depending on market conditions and the factors set forth under

 

"Cautionary Statement" below.

 

AMD expects revenue to be up seasonally for the third quarter of 2010.

 

AMD Teleconference

 

AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss

 

its second quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on

 

the Investor Relations page of its Web site at AMD. The webcast will be available for 10 days after the

 

conference call.

 

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