AMD Reports Third Quarter Results

  • AMD revenue $1.69 billion, 7 percent sequential increase and 4 percent increase year-over-year
  • Net income $97 million, earnings per share $0.13, operating income $138 million
  • Non-GAAP7 net income $110 million, earnings per share $0.15, operating income $146 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
SUNNYVALE, Calif. 10/27/2011

AMD (NYSE:AMD) today announced revenue for the third quarter of 2011 of $1.69 billion, net income of $97 million, or $0.13 per share, and operating income of $138 million.  The company reported non-GAAP net income of $110 million, or $0.15 per share, and non-GAAP operating income of $146 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 Results8

  Q3-11 Q2-11 Q3-10
Revenue $1.69B $1.57B $1.62B
Operating income $138M $105M $128M
Net income  (loss) / Earnings (loss) per share $97M/$0.13 $61M/$0.08 $(118)M/$(0.17)

Non-GAAP Financial Results7

  Q3-11 Q2-11 Q3-10
Revenue $1.69B $1.57B $1.62B
Operating income $146M $114M $144M
Net income / Earnings per share $110M/$0.15 $70M/$0.09 $108M/$0.15


Quarterly Summary

  • Gross margin was 45 percent.
  • Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.86 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 $149 million, compared with $142 million in Q2 11 and $164 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 life9 to users worldwide.
    • Acer, ASUS, HP, Lenovo, MSI, SamsungSony 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’.10
      • 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 $12 million, compared with operating loss of $7 million in Q2 11 and operating income of $1 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 product11 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

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 third 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.


Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income7


Reconciliation of GAAP to Non-GAAP Operating Income7

About AMD

AMD (NYSE: AMD) is a semiconductor design innovator leading the next era of vivid digital experiences with its groundbreaking AMD Fusion Accelerated Processing Units (APUs) that power a wide range of computing devices. AMD’s server computing products are focused on driving industry-leading cloud computing and virtualization environments. AMD’s superior graphics technologies are found in a variety of solutions ranging from game consoles, PCs to supercomputers. For more information, visit

Cautionary Statement

This release contains forward-looking statements concerning AMD, its fourth quarter 2011 revenue, demand for its products, supply of products from GLOBALFOUNDRIES, growth opportunities in low power, emerging markets and the cloud, and the timing of future product releases, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects," and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities targeting the company's business will prevent attainment of the company's current plans; the company will be unable to develop, launch and ramp new products and technologies in the volumes and mix required by the market and at mature yields on a timely basis; GLOBALFOUNDRIES will be unable to manufacture the company’s products on a timely basis in sufficient quantities and using competitive technologies; the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will under-utilize its commitment with respect to GLOBALFOUNDRIES' microprocessor manufacturing facilities; the company will be unable to transition its products to advanced manufacturing process technologies in a timely and effective way; global business and economic conditions will not continue to improve or will worsen resulting in lower than currently expected demand; demand for computers and consumer electronics products and, in turn, demand for the company's products will be lower than currently expected; customers stop buying the company's products or materially reduce their demand for its products; the company will require additional funding and may not be able to raise funds on favorable terms or at all; there will be unexpected variations in market growth and demand for the company's products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; and the company will be unable to maintain the level of investment in research and development that is required to remain competitive. Investors are urged to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended July 2, 2011.





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