AMD has released their 4th quarterly & Fiscal Year earnings. China’s recent economic slowdown partly to blame..
AMD has released their 4th quarterly & Fiscal Year earnings. China’s recent economic slowdown partly to blame..
Gross margin is 23% lower than last years FY, AMD continues the struggle to turn their profit margins around.
AMD’s president and CEO Dr. Lisa Su explains:
“While 2015 was challenging from a financial perspective, key R&D investments and a sharpened focus on innovation position us well to deliver great products, improved financial results and share gains in 2016.”
FBR Capital Markets & Co analyst Christopher Rolland explains:
“I think there is probably some downward expectations in here from China, but there is a possibility it could get worse,”
Here are the GAAP results:
Here are the non-GAAP results:
AMD Shares over the past year:
2015 Annual results:
– Revenue of $3.99 billion, down 28 percent year-over-year, primarily due to lower client processor sales.
– Gross margin of 27 percent, down 6 percentage points year-over-year and non-GAAP(1) gross margin of 28 percent, down 7 percentage points year-over-year. The year-over-year declines were primarily due to lower unit volumes and product
mix.
– Operating loss of $481 million and non-GAAP(1) operating loss of $253 million, compared to a loss of $155 million and non-GAAP(1) operating income of $316 million in 2014 primarily due to lower revenue and gross margin.
– Net loss of $660 million, loss per share of $0.84, and non-GAAP(1) net loss of $419 million, non-GAAP(1) loss per share of $0.54, compared to a net loss of $403 million, loss per share of $0.53, and non-GAAP(1) net income of $132 million,
non-GAAP(1) earnings per share of $0.16 in 2014.
– Gross margin of 27 percent, down 6 percentage points year-over-year and non-GAAP(1) gross margin of 28 percent, down 7 percentage points year-over-year. The year-over-year declines were primarily due to lower unit volumes and product
mix.
– Operating loss of $481 million and non-GAAP(1) operating loss of $253 million, compared to a loss of $155 million and non-GAAP(1) operating income of $316 million in 2014 primarily due to lower revenue and gross margin.
– Net loss of $660 million, loss per share of $0.84, and non-GAAP(1) net loss of $419 million, non-GAAP(1) loss per share of $0.54, compared to a net loss of $403 million, loss per share of $0.53, and non-GAAP(1) net income of $132 million,
non-GAAP(1) earnings per share of $0.16 in 2014.
Q4 2015 results:
– Revenue of $958 million, down 10 percent sequentially primarily driven by seasonally lower sales of semi-custom SoCs and down 23 percent year-over-year, primarily due to lower client processor sales.
– Gross margin of 30 percent, up 7 percentage points sequentially. Q3 2015 gross margin was negatively impacted by an inventory write-down of $65 million, or 6 percentage points. Excluding the Q3 2015 inventory write-down, non-GAAP gross
margin improved 1 percentage point sequentially, primarily due to improved product mix in the Computing and Graphics segment.
– Operating loss of $49 million, compared to an operating loss of $158 million for the prior quarter. Non-GAAP(1) operating loss of $39 million, compared to non-GAAP(1) operating loss of $97 million in Q3 2015, primarily due to higher gross
margin and lower operating expenses.
– Net loss of $102 million, loss per share of $0.13, and non-GAAP(1) net loss of $79 million, non-GAAP(1) loss per share of $0.10, compared to a net loss of $197 million, loss per share of $0.25 and non-GAAP(1) net loss of $136 million,
non-GAAP(1) loss per share of $0.17 in Q3 2015.
– Cash and cash equivalents were $785 million at the end of the quarter, up $30 million from the end of the prior quarter, primarily due to improved operating cash flow.
– Total debt at the end of the quarter was $2.26 billion, flat from the end of the prior quarter.
– Gross margin of 30 percent, up 7 percentage points sequentially. Q3 2015 gross margin was negatively impacted by an inventory write-down of $65 million, or 6 percentage points. Excluding the Q3 2015 inventory write-down, non-GAAP gross
margin improved 1 percentage point sequentially, primarily due to improved product mix in the Computing and Graphics segment.
– Operating loss of $49 million, compared to an operating loss of $158 million for the prior quarter. Non-GAAP(1) operating loss of $39 million, compared to non-GAAP(1) operating loss of $97 million in Q3 2015, primarily due to higher gross
margin and lower operating expenses.
– Net loss of $102 million, loss per share of $0.13, and non-GAAP(1) net loss of $79 million, non-GAAP(1) loss per share of $0.10, compared to a net loss of $197 million, loss per share of $0.25 and non-GAAP(1) net loss of $136 million,
non-GAAP(1) loss per share of $0.17 in Q3 2015.
– Cash and cash equivalents were $785 million at the end of the quarter, up $30 million from the end of the prior quarter, primarily due to improved operating cash flow.
– Total debt at the end of the quarter was $2.26 billion, flat from the end of the prior quarter.
You an review the full report here.
2016 will be an important year for AMD; with the release of their 4th generation GCN architecture Polaris & their new CPU architecture Zen with a claimed 40% Instructions Per Clock (IPC) performance improvement over Excavator.
