- Preliminary third quarter income of roughly $5.6 billion, decrease than prior outlook of $6.7 billion plus or minus $200 million, primarily attributable to weaker Shopper phase income
- Income for Knowledge Heart, Gaming, and Embedded Segments every grew considerably year-over-year and in-line with the corporate’s expectations
- Administration to debate monetary outcomes and outlook on Nov. 1 earnings name
SANTA CLARA, Calif., Oct. 06, 2022 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) right now introduced chosen preliminary monetary outcomes for the third quarter of 2022.
Third quarter income is predicted to be roughly $5.6 billion, a rise of 29% year-over-year. AMD beforehand anticipated income to extend roughly 55% year-over-year on the mid-point of steerage. Preliminary outcomes replicate decrease than anticipated Shopper phase income ensuing from decreased processor shipments attributable to a weaker than anticipated PC market and vital stock correction actions throughout the PC provide chain.
Income for the Knowledge Heart, Gaming, and Embedded segments every elevated considerably year-over-year in-line with the corporate’s expectations.
Gross margin is predicted to be roughly 42% and non-GAAP(*) gross margin is predicted to be roughly 50%. AMD beforehand anticipated non-GAAP gross margin to be roughly 54%. The gross margin shortfall to expectations was primarily attributable to decrease income pushed by decrease Shopper processor unit shipments and common promoting value (ASP). As well as, the third quarter outcomes are anticipated to incorporate roughly $160 million of prices primarily for stock, pricing, and associated reserves within the graphics and consumer companies.
Third quarter working bills are anticipated to be roughly $2.4 billion and non-GAAP working bills are anticipated to be roughly $1.5 billion. Non-GAAP working bills are decrease than earlier expectations of $1.6 billion pushed by decrease variable compensation bills within the quarter.
“The PC market weakened considerably within the quarter,” mentioned AMD Chair and CEO Dr. Lisa Su. “Whereas our product portfolio stays very robust, macroeconomic circumstances drove decrease than anticipated PC demand and a big stock correction throughout the PC provide chain. As we navigate the present market circumstances, we’re happy with the efficiency of our Knowledge Heart, Embedded, and Gaming segments and the power of our diversified enterprise mannequin and stability sheet. We stay targeted on delivering our management product roadmap and sit up for launching our next-generation 5nm information heart and graphics merchandise later this quarter.”
Q3 FY22 Outlook(1)
|
Q3 FY22 Preliminary Outcomes |
|
Income |
~$6.7 billion, plus or minus $200 million |
~$5.6 billion |
Gross margin – GAAP |
– |
~42% |
Gross margin – non-GAAP |
~54% |
~50% |
Working bills – GAAP |
– |
~$2.4 billion |
Working bills – non-GAAP |
~$1.6 billion |
~$1.5 billion |
(1) Introduced with the corporate’s second quarter 2022 monetary leads to August 2022.
Section(2) Income ($ in billions) |
Q3 FY22 Preliminary Outcomes |
Q/Q |
Y/Y |
Knowledge Heart |
~$1.6 |
Up 8% |
Up 45% |
Shopper |
~$1.0 |
Down 53% |
Down 40% |
Gaming |
~$1.6 |
Flat |
Up 14% |
Embedded |
~$1.3 |
Up 4% |
Up 1,549% |
Whole |
~$5.6 |
Down 15% |
Up 29% |
This replace doesn’t current all needed info for an understanding of AMD’s monetary situation as of the date of this launch, or its outcomes of operations for the third quarter of 2022. As AMD completes its quarter-end monetary shut course of and finalizes its monetary statements for the quarter, it is going to be required to make judgments in various areas. It’s doable that AMD might determine objects that require it to make changes to the preliminary monetary info set forth above and people changes may very well be materials. AMD doesn’t intend to replace any monetary info previous to launch of its closing third quarter monetary assertion info, which is presently scheduled for Nov. 1, 2022.
AMD Q3’22 Earnings Convention Name
AMD will maintain a convention name for the monetary group at 2:00 p.m. PT (5:00 p.m. ET) on Nov. 1, 2022 to debate its third quarter 2022 monetary outcomes. AMD will present a real-time audio broadcast of the teleconference on the Investor Relations web page of its web site at www.amd.com.
About AMD
For greater than 50 years AMD has pushed innovation in high-performance computing, graphics and visualization applied sciences. AMD staff are targeted on constructing management high-performance and adaptive merchandise that push the boundaries of what’s doable. Billions of individuals, main Fortune 500 companies and cutting-edge scientific analysis establishments around the globe depend on AMD know-how every day to enhance how they stay, work and play. For extra details about how AMD is enabling right now and galvanizing tomorrow, go to the AMD (NASDAQ: AMD) web site, weblog, Fb and Twitter pages.
Cautionary Assertion
This press launch accommodates forward-looking statements regarding Superior Micro Units, Inc. (AMD) such AMD’s preliminary third quarter 2022 monetary outcomes, anticipated stock, pricing and associated reserve prices within the graphics and consumer companies; AMD’s means to ship its management product roadmap; and launching next-generation 5 nm information heart and graphics merchandise within the fourth quarter of 2022, that are made pursuant to the Secure Harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements are generally recognized by phrases resembling “would,” “might,” “expects,” “believes,” “plans,” “intends,” “tasks” and different phrases with related that means. Traders are cautioned that the forward-looking statements on this press launch are based mostly on present beliefs, assumptions and expectations, converse solely as of the date of this press launch and contain dangers and uncertainties that would trigger precise outcomes to vary materially from present expectations. Such statements are topic to sure recognized and unknown dangers and uncertainties, a lot of that are tough to foretell and usually past AMD’s management, that would trigger precise outcomes and different future occasions to vary materially from these expressed in, or implied or projected by, the forward-looking info and statements. Materials components that would trigger precise outcomes to vary materially from present expectations embody, with out limitation, the next: Intel Company’s dominance of the microprocessor market and its aggressive enterprise practices; world financial uncertainty; lack of a big buyer; influence of the COVID-19 pandemic on AMD’s enterprise, monetary situation and outcomes of operations; aggressive markets during which AMD’s merchandise are bought; market circumstances of the industries during which AMD merchandise are bought; cyclical nature of the semiconductor {industry}; quarterly and seasonal gross sales patterns; AMD’s means to adequately shield its know-how or different mental property; unfavorable forex trade price fluctuations; means of third celebration producers to fabricate AMD’s merchandise on a well timed foundation in enough portions and utilizing aggressive applied sciences; availability of important tools, supplies, substrates or manufacturing processes; means to realize anticipated manufacturing yields for AMD’s merchandise; AMD’s means to introduce merchandise on a well timed foundation with anticipated options and efficiency ranges; AMD’s means to generate income from its semi-custom SoC merchandise; potential safety vulnerabilities; potential safety incidents together with IT outages, information loss, information breaches and cyber-attacks; potential difficulties in upgrading and working AMD’s new enterprise useful resource planning system; uncertainties involving the ordering and cargo of AMD’s merchandise; AMD’s reliance on third-party mental property to design and introduce new merchandise in a well timed method; AMD’s reliance on third-party corporations for design, manufacture and provide of motherboards, software program and different laptop platform parts; AMD’s reliance on Microsoft and different software program distributors’ assist to design and develop software program to run on AMD’s merchandise; AMD’s reliance on third-party distributors and add-in-board companions; influence of modification or interruption of AMD’s inside enterprise processes and knowledge methods; compatibility of AMD’s merchandise with some or all industry-standard software program and {hardware}; prices associated to faulty merchandise; effectivity of AMD’s provide chain; AMD’s means to depend on third celebration supply-chain logistics capabilities; AMD’s means to successfully management gross sales of its merchandise on the grey market; influence of presidency actions and rules resembling export administration rules, tariffs and commerce safety measures; AMD’s means to comprehend its deferred tax belongings; potential tax liabilities; present and future claims and litigation; influence of environmental legal guidelines, battle minerals-related provisions and different legal guidelines or rules; influence of acquisitions, joint ventures and/or investments, together with acquisitions of Xilinx and Pensando, on AMD’s enterprise and AMD’s means to combine acquired companies; influence of any impairment of the mixed firm’s belongings on the mixed firm’s monetary place and outcomes of operation; restrictions imposed by agreements governing AMD’s notes, the ensures of Xilinx’s notes and the revolving credit score facility; AMD’s indebtedness; AMD’s means to generate enough money to fulfill its working capital necessities or generate enough income and working money circulate to make all of its deliberate R&D or strategic investments; political, authorized, financial dangers and pure disasters; future impairments of goodwill and know-how license purchases; AMD’s means to draw and retain certified personnel; AMD’s inventory value volatility; and worldwide political circumstances. Traders are urged to evaluate intimately the dangers and uncertainties in AMD’s Securities and Change Fee filings, together with however not restricted to AMD’s most up-to-date stories on Kinds 10-Ok and 10-Q.
| (*) | On this press launch, along with chosen preliminary GAAP monetary outcomes, AMD has offered preliminary non-GAAP monetary measures together with non-GAAP gross margin and non-GAAP working bills. AMD makes use of a normalized tax price in its computation of the non-GAAP earnings tax provision to supply higher consistency throughout the reporting intervals. For fiscal 2022, AMD makes use of a projected non-GAAP tax price of 13%, which excludes the tax influence of pre-tax non-GAAP changes, reflecting presently accessible info. AMD is offering these preliminary monetary measures as a result of it believes this non-GAAP presentation makes it simpler for buyers to match its working outcomes for present and historic intervals and in addition as a result of AMD believes it assists buyers in evaluating AMD’s efficiency throughout reporting intervals on a constant foundation by excluding objects that it doesn’t imagine are indicative of its core working efficiency. The preliminary non-GAAP monetary measures disclosed on this press launch ought to be seen along with and never as an alternative to or superior to AMD’s preliminary outcomes ready in accordance with GAAP. These preliminary non-GAAP monetary measures referenced are reconciled to their most immediately comparable preliminary GAAP monetary measures on the finish of this press launch. |
| (2) | The Knowledge Heart phase primarily contains server microprocessors, GPUs, information processing items (DPUs), Area Programmable Gate Arrays (FPGAs) and adaptive SoC merchandise for information facilities. | |
| The Shopper phase primarily contains microprocessors, accelerated processing items (APUs) that combine microprocessors and graphics, and chipsets for desktop and pocket book private computer systems. | ||
| The Gaming phase primarily contains discrete graphics processing items (GPUs), semi-custom System-on-Chip (SoC) merchandise and growth providers. | ||
| The Embedded phase primarily contains embedded microprocessors, GPUs, FPGAs, adaptive SoC merchandise, and Adaptive Compute Acceleration Platform (ACAP) merchandise. | ||
| Sometimes, the Firm can also promote or license parts of its IP portfolio. | ||
| All Different class primarily contains sure bills and credit that aren’t allotted to any of the working segments. Additionally included on this class are acquisition-related intangible asset amortization expense, stock-based compensation expense, acquisition-related prices and licensing acquire. | ||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||
| (Unaudited) | ||
| Q3 FY22 | ||
| Preliminary Outcomes | ||
| GAAP gross margin % | ~42% | |
| Inventory-based compensation, acquisition-related prices(3), amortization of acquired intangible belongings | ~8 pps | |
| Non-GAAP gross margin % | ~50% | |
| GAAP working bills ($ in billions) | ~$2.4 | |
| Inventory-based compensation, acquisition-related prices(3), amortization of acquired intangible belongings | ~$(0.9) | |
| Non-GAAP working bills | ~$1.5 | |
| (3) | Acquisition-related prices primarily comprised of transaction prices, buy value changes for stock and sure compensation prices | |
AMD, the AMD Arrow brand, EPYC, Radeon, Ryzen, Threadripper, Versal and combos thereof, are logos of Superior Micro Units, Inc. Different names are for informational functions solely and used to determine corporations and merchandise and could also be logos of their respective proprietor
Media Contact:
Drew Prairie
AMD Communications
512-602-4425
[email protected]
Investor Contact:
Ruth Cotter
AMD Investor Relations
408-749-3887
[email protected]
Supply: Superior Micro Units, Inc.
Launched October 6, 2022
