Press Releases

AMD Reports Third Quarter Results

Overview

For the third quarter of 2011, AMD recorded revenue of 1.2€ billion, net income of 69.1€ million, or 0.09€ per share, and operating incom98.3€e of million. Non-GAAP net income78.36€ was millio0.11€n, or per share, and non-GAAP operating incom104€e was million.

• Third-quarter demand for new AMD platforms was strong.

• Our exciting new AMD Fusion architecture is a unique and differentiated approach, and we are seeing strong interest from the marketplace. It is particularly well-targeted to lower-power form factors and high-volume price bands.

• Our new AMD Opteron™ server technology is well-tuned to increasingly important workloads like virtualization and cloud-based servers. We are seeing a nice uptick in our server business—something that is long overdue.

In Q3:

• We achieved record mobile processor shipments and revenue. Revenue was up 35% sequentially and 20% year-over-year, significantly outgrowing the market.

• More than 90% of our mobile units were AMD Fusion APUs, which are uniquely suited to meet the advanced processing needs of today’s mainstream and entry-level mobile PC buyers.

• Server revenue grew 27% sequentially, with solid customer demand for our next-generation of AMD Opteron processor offerings and strong traction in the high-performance computing space.

• AMD’s graphics segment continues to be a solid business for us, with revenue up 10% sequentially and 4% from Q3 2010. This growth was driven largely by a strong seasonal revenue increase in the AIB (add-in board) channel.

More information on the press release below

AMD Reports Third Quarter Results

• AMD revenue 1.2€ billion, 7 percent sequential increase and 4 percent increase year-over-year
• Net income 69.1€ million, earnings 0.09€per share operati98.3€ng income million
• Non-GAAP¹ net income 78.36€ million, earnings per share 0.11€ operating income 104€ million
• Gross margin 45 percent
• More than 60 percent sequential increase in mobile Accelerated Processor Unit (APU) shipments drives record mobile microprocessor revenue and unit shipments

Madrid. – Oct. 28, 2011 – AMD (NYSE:AMD) today announced revenue for the third quarter of 2011 of 1.2€ billion, net income of 69.1€0.09€ million, or per share, and operati98.3€ng income of million.  The comp78.36€any reported 0.11€non-GAAP net income 104€of million, or per share, and non-GAAP operating income of million.

“Strong adoption of AMD APUs drove a 35 percent sequential revenue increase in our mobile business,” said Rory Read, AMD president and CEO.  “Despite supply constraints, we saw double digit revenue and unit shipment growth in emerging markets like China and India as well as overall notebook share gains in retail at mainstream price points. Through disciplined execution and continued innovation we will look to accelerate our growth and refine our focus on lower power, emerging markets, and the cloud.”

GAAP Financial Results²

Non-GAAP Financial Results¹ 

Quarterly Summary

• Gross margin was 45 percent.
• Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was 1.32€ billion at the end of the quarter.
• Computing Solutions segment revenue increased 6 percent sequentially and 5 percent year-over-year. Sequentially, higher mobile and server microprocessor revenues were partially offset by lower desktop revenue.  The year-over-year increase was primarily driven by higher mobile processor and chipset revenue.
• Operating income was 106.14€ million, comp101.15€ared with million in 116.83€Q2 11 and million in Q3 10.
• Microprocessor ASP increased sequentially and decreased year-over-year.
• Leading notebook manufacturers including Acer, ASUS, Dell, HP, Lenovo, Samsung and Toshiba continued to increase global availability of their notebook platforms based on the AMD A-Series APUs, bringing brilliant HD graphics and up to 10.5 hours of battery life³ to users worldwide.
• Acer, ASUS, HP, Lenovo, MSI, Samsung, Sony and Toshiba also introduced ultraportable notebooks with improved performance and battery life based on the updated AMD C- and E-Series APUs.
• AMD introduced the first processors based on the next-generation x86 “Bulldozer” architecture.
• AMD launched the AMD FX series of desktop processors, including the first-ever eight-core desktop processor that enables extreme multi-display gaming, mega-tasking and HD content creation. The 8-core AMD FX desktop processor also set the Guinness World Record for ‘Highest Frequency of a Computer Processor’.⁴
• The next-generation AMD Opteron™ processor codenamed “Interlagos” began shipping in the quarter and has been integrated into a significant number of new or upgraded supercomputer installations including the High Performance Computing Center Stuttgart, the UK’s National Academic Supercomputer Service, the Swiss National Supercomputing Center and the Department of Energy’s (DOE) Oak Ridge National Laboratory (ORNL) “Titan,” which is expected to be one of the world’s fastest supercomputers.
• AMD announced two advances in its work with the software community to promote development of applications that take full advantage of the computing power found in APUs and discrete graphics processor units (GPUs).
• AMD announced an AMD Fusion Fund investment in BlueStacks, whose software enables Android applications to run on Windows®-based devices.
• AMD software partner MotionDSP announced that it has optimized the industry-leading Ikena real-time video reconstruction software for OpenCL™, to enable a 60 percent improvement on AMD FirePro™ professional graphics.
• Graphics segment revenue increased 10 percent sequentially and 4 percent year-over-year.  The sequential increase was driven primarily by seasonality in the add-in-board market.  The year-over-year increase was primarily driven by increased discrete mobile graphics revenue.
• Operating income was 8.55€ million, compared with operatin4.99€g loss of million in Q2 11 and operating 0.71€income of million in Q3 10.
• GPU ASP increased sequentially and year-over-year.
• AMD demonstrated the industry’s first 28 nanometer mobile GPU.  AMD’s next-generation family of high-performance graphics cards is expected to ship for revenue later this year.
• AMD launched the AMD Radeon™ HD 6990M GPU, the world’s fastest mobile graphics product⁵ with support for DirectX®11 gaming, AMD Eyefinity Technology multi-monitor configurations driving up to six monitors, and AMD App Acceleration that enhances the performance of a growing number of games as well as multimedia and productivity applications.
• AMD expanded the company’s professional graphics solutions to the real-time professional video and broadcast graphics market with the launch of AMD FirePro™ SDI-Link.

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 increase 3 percent, plus or minus 2 percent, sequentially for the fourth quarter of 2011.

For additional detail regarding AMD’s results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income¹

Reconciliation of GAAP to Non-GAAP Operating Income¹