What Were Q4 Profits For 2018 Of Io

Author: admin December 13, 2022 10:16 December 13, 2022 6 views

AMD Reports 4th Quarter and Annual 2018 Fiscal Results

Annual revenue grew by more than than $1.2 billion with highest profitability in 7 years

SANTA CLARA, Calif., Jan. 29, 2019 (Earth NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for fiscal year 2018 of $half dozen.48 billion, operating income of $451 million, net income of $337 million and diluted earnings per share of $0.32. On a non-GAAP^(ane)
basis, operating income was $633 1000000, internet income was $514 one thousand thousand and diluted earnings per share was $0.46.

For the 4th quarter of 2018, the Company reported revenue of $one.42 billion, operating income of $28 meg, internet income of $38 million and diluted earnings per share of $0.04. On a non-GAAP⁽¹⁾
basis, operating income was $109 million, cyberspace income was $87 million and diluted earnings per share was $0.08.

Annual Financial

Results

GAAP

Non-GAAP

2018

2017

Y/Y

2018

2017

Y/Y

Acquirement ($B)

$vi.48

$five.25

Up 23%

$six.48

$5.25

Upwardly 23%

Gross margin

38%

34%

Upward iv pp

39%

34%

Upwardly 5 pp

Operating expense ($M)

$1,996

$1,712

Up $284

$ane,863

$i,617

Up $246

Operating income ($M)

$451

$127

Up $324

$633

$224

Upwards $409

Net income (loss) ($M)

$337

$(33)

Upwards $370

$514

$103

Up $411

Earnings (loss) per share

$0.32

$(0.03)

Up $0.35

$0.46

$0.10

Up $0.36

GAAP Quarterly Financial Results

	Q4 2018	Q4 2017	Y/Y	Q3 2018	Q/Q
Revenue ($B)	$1.42	$1.34	Upwardly 6%	$ane.65	Down xiv%
Gross margin	38%	34%	Up iv pp	forty%	Down 2 pp
Operating expense ($M)	$509	$454	Up $55	$511	Downward $2
Operating income (loss) ($M)	$28	$(2)	Upwardly $thirty	$150	Downward $122
Internet income (loss) ($M)	$38	$(19)	Up $57	$102	Down $64
Earnings (loss) per share	$0.04	$(0.02)	Up $0.06	$0.09	Down $0.05

Non-GAAP^(one)

Quarterly

Financial Results

	Q4 2018	Q4 2017	Y/Y	Q3 2018	Q/Q
Revenue ($B)	$1.42	$1.34	Up half-dozen%	$1.65	Downwardly 14%
Gross margin	41%	34%	Up 7 pp	40%	Upwards 1 pp
Operating expense ($M)	$474	$433	Up $41	$476	Down $2
Operating income ($Thou)	$109	$nineteen	Upwards $90	$186	Downwardly $77
Net income ($M)	$87	$8	Upward $79	$150	Down $63
Earnings per share	$0.08	$0.01	Upwardly $0.07	$0.thirteen	Down $0.05

“In 2018 we delivered our second straight twelvemonth of significant acquirement growth, market share gains, expanded gross margin and improved profitability based on our high-performance products. Importantly, we more than doubled our EPYC processor shipments sequentially and delivered tape GPU datacenter revenue in the quarter,” said Dr. Lisa Su, AMD president and CEO. “Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and near competitive production portfolio ever with our next-generation 7nm Ryzen, Radeon, and EPYC products.”

2018 Annual Results

Revenue of $6.48 billion was upwardly 23 percentage year-over-year primarily driven past higher revenue in the Calculating and Graphics segment.
Gross margin was 38 percent compared to 34 per centum for the prior yr. Not-GAAP^(ane)
gross margin was 39 per centum compared to 34 per centum in the prior year. Gross margin expansion was primarily driven by our new Ryzen™ , EPYC™ and Radeon™ products.
Operating income was $451 1000000 compared to $127 1000000 in the prior year. Non-GAAP operating income was $633 1000000 compared to $224 million in the prior year. The operating income improvement was primarily due to higher acquirement and gross margin expansion partially offset by college operating expenses.
Net income was $337 one thousand thousand compared to a net loss of $33 meg in the prior year. Non-GAAP internet income was $514 million compared to $103 one thousand thousand in the prior year.
Diluted earnings per share was $0.32 compared to a loss per share of $0.03 in 2017. Non-GAAP diluted earnings per share was $0.46 compared to $0.10 in the prior year.
Cash, cash equivalents and marketable securities were $1.sixteen billion at the end of the year, down slightly from $i.18 billion at the stop of 2017.
Gratis cash menses was negative $129 million for the year due to college inventory related to new products and to the timing of collections.

Q4 2018 Results

Revenue of $i.42 billion was upward half dozen percent twelvemonth-over-year primarily driven by the Computing and Graphics segment. Revenue was down 14 percent compared to the prior quarter as a upshot of lower acquirement in the Enterprise, Embedded and Semi-Custom segment. Third quarter 2018 included approximately $125 million of IP-related revenue.
Gross margin was 38 pct compared to 34 percent a twelvemonth ago and 40 per centum in the prior quarter. 4th quarter gross margin included a $45 million accuse related to older technology licenses that are no longer existence used. Non-GAAP gross margin was 41 percent compared to 34 per centum a year agone and 40 percent in the prior quarter. Gross margin improvements were primarily driven by Ryzen and EPYC processor sales.
Operating income was $28 million compared to an operating loss of $two million a year ago and operating income of $150 million in the prior quarter. On a non-GAAP basis, operating income was $109 million compared to $19 one thousand thousand a year ago and $186 million in the prior quarter. The yr-over-twelvemonth comeback was primarily due to the ramp of higher margin products in the Calculating and Graphics segment. The subtract compared to the prior quarter was primarily due to seasonally lower Enterprise, Embedded and Semi-Custom segment revenue and the absence of IP-related revenue, partially kickoff by the benefit of new Ryzen, EPYC and Radeon products.
Net income was $38 million compared to a net loss of $nineteen 1000000 a yr ago and net income of $102 million in the prior quarter. On a not-GAAP footing, internet income was $87 million compared to $8 million a year ago and $150 one thousand thousand in the prior quarter.
Diluted earnings per share was $0.04 compared to a loss per share of $0.02 a year ago and diluted earnings per share of $0.09 in the prior quarter. On a not-GAAP basis, diluted earnings per share was $0.08 compared to $0.01 a year ago and $0.thirteen in the prior quarter.
Cash, greenbacks equivalents and marketable securities were $ane.16 billion at the end of the quarter as compared to $1.06 billion at the end of the prior quarter.
Gratis cash flow was $79 1000000 for the quarter.

Quarterly Financial Segment Summary

Computing and Graphics segment revenue was $986 1000000, up ix percent year-over-yr and v percent compared to the prior quarter driven by strong sales of Ryzen processors.
- Operating income was $115 meg compared to $33 million a year agone and $100 1000000 in the prior quarter. The year-over-year improvement was primarily driven by the ramp of Ryzen processors. The comeback compared to the prior quarter was primarily driven by Ryzen processors and datacenter GPUs, which more than offset the do good of IP-related revenue in the third quarter of 2018.
- Client processor average selling price (ASP) was up year-over-year and sequentially driven by Ryzen processor sales.
- GPU ASP was up year-over-year and sequentially primarily due to higher datacenter GPU sales.
Enterprise, Embedded and Semi-Custom segment revenue was $433 meg, flat year-over-year. Revenue declined 39 per centum compared to the prior quarter driven by seasonally lower semi-custom sales, partially offset by stiff EPYC datacenter processor sales.
- Operating loss was $6 1000000 compared to an operating loss of $13 meg a year ago and operating income of $86 million in the prior quarter. The yr-over-twelvemonth improvement was primarily due to higher EPYC datacenter processor revenue partially offset by lower semi-custom sales and server-related investments. The subtract compared to the prior quarter was due to seasonally lower semi-custom sales, partially beginning by higher EPYC datacenter processor acquirement.
All Other operating loss was $81 million compared to operating losses of $22 meg year-over-year and $36 meg in the prior quarter, primarily due to the $45 million charge related to older technology licenses.

Wafer Supply Understanding Update

Today AMD announced it entered into a seventh amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). GF continues to be a long-term strategic partner to AMD for the 12nm node and to a higher place and the subpoena establishes purchase commitments and pricing at 12nm and to a higher place for the years 2019 through 2021. The amendment provides AMD full flexibility for wafer purchases from any foundry at the 7nm node and beyond without any one-fourth dimension payments or royalties.

Contempo PR Highlights

At CES 2019, AMD highlighted leaps in computing, gaming and visualization technologies expected this year based on a combination of the advanced computing and graphics designs and leading-border 7nm manufacturing.
- AMD unveiled the Radeon™ Seven graphics card, the world’s first 7nm gaming GPU, which features 2X the retentivity and 2.1X the retentiveness bandwidth and is designed to evangelize upwards to 29 pct college gaming performance and up to 36 pct higher content creation functioning compared to the previous generation. It is expected to be bachelor February 2019.
- AMD delivered the beginning public demonstration of its third Generation AMD Ryzen™ processor, a loftier performance and highly efficient desktop processor expected to be bachelor in mid-2019.
- AMD announced a comprehensive notebook processor line up that further expands the company’due south footprint in this growing PC market segment:
  - ii^nd
    Gen AMD Ryzen™ 3000 Series Mobile Processors for ultrathin notebooks
  - AMD Athlon™ 300 Series Mobile Processors for mainstream notebooks based on the “Zen” core compages
  - AMD 7^th
    Generation A-Series processors, the company’south first-always solutions targeting the growing Chromebook market. Acer and HP both launched products based on these new processors at the tradeshow.
- AMD also demonstrated the side by side generation AMD EPYC processors, delivering a significant increase in datacenter processing functioning compared to electric current server processors. The next generation AMD EPYC processor is on rail to start aircraft in mid-2019.
AMD joined the NASDAQ-100® Index composed of the 100 largest not-fiscal companies listed on The NASDAQ Stock Market® based on market capitalization.
At AMD’s Next Horizon issue in November, the Company demonstrated 7nm compute and graphics products delivering datacenter innovation:
- AMD launched the world’due south beginning 7nm datacenter GPUs, the AMD Radeon Instinct™ MI60 and MI50 accelerators, designed for deep learning, HPC, cloud computing and rendering workloads.
- AMD shared new details on its upcoming “Zen two” processor cadre architecture, including its revolutionary chiplet-based x86 CPU design which leverages AMD Infinity Material interconnect to link carve up pieces of silicon within a single processor bundle. AMD provided the starting time public demonstration of the “Zen 2” cadre with its upcoming next-generation AMD EPYC processor, offering upwardly to 64-cores per socket and revolutionary I/O.
- AMD announced ROCm ii.0, a new version of its open-source software platform that allows customers to deploy high-performance, energy-efficient heterogeneous calculating systems in an open environment.
New datacenter design wins and deployments demonstrate the power of AMD EPYC and AMD Radeon Instinct products for high-performance calculating applications:
- Amazon Web Services announced the availability of the first EPYC processor-based instances on Amazon Rubberband Compute Cloud.
- Lawrence Livermore National Laboratories and the High-Performance Computing Center of the University of Stuttgart selected AMD EPYC CPUs and AMD Radeon Instinct™ GPUs to power their new supercomputers.
- The Department of Energy announced the new AMD EPYC processor-powered NERSC-9 supercomputer, “Perlmutter,” scheduled for delivery in 2020.
AMD further expanded the number one selling high-end desktop processor family with the availability of new AMD Ryzen™ Threadripper™ processors, powering the ultimate computing experiences for gamers, creators and enthusiasts. AMD also introduced new AMD Athlon™ processors with Radeon™ Vega graphics.
AMD provided gamers and creators with powerful new graphics and software solutions:
- AMD unveiled AMD Radeon™ Vega Mobile graphics processors, including the AMD Radeon™ Pro Vega 20 and Radeon™ Pro Vega 16 graphics, which are bachelor in Apple tree’s 15-inch MacBook Pro. Radeon Vega Mobile graphics enable creators with amazing performance in creative applications and evangelize stunning 1080p Hard disk drive gaming.
- AMD introduced the Radeon™ RX 590, an advanced 12nm GPU powered past the AMD “Polaris” architecture, delivering amazing gaming experiences and outstanding operation for the latest AAA, esports and VR game titles.
- AMD released the next generation of its consumer-focused software suite for Radeon GPUs, AMD Radeon™ Software Adrenalin 2019 Edition, delivering up to 15 percent average college performance for some of today’due south meridian game titles compared to the previous version, and new features such as device-independent wireless PC-to-VR streaming.

Current Outlook

AMD’s outlook statements are based on current expectations. The following statements are forrad-looking, and actual results could differ materially depending on marketplace weather and the factors set up forth under “Cautionary Argument” beneath.

For the first quarter of 2019, AMD expects revenue to be approximately $1.25 billion, plus or minus $l meg, a subtract of approximately 12 percentage sequentially and 24 percentage year-over-yr. The sequential decrease is expected to be primarily driven by continued softness in the graphics aqueduct and seasonality across the business concern. The year-over-twelvemonth decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales. In improver, semi-custom revenue is expected to be lower twelvemonth-over-year while Ryzen, EPYC and Radeon datacenter GPU product sales are expected to increase. AMD expects non-GAAP gross margin to be approximately 41 pct in the first quarter of 2019. In addition, the Company expects to record a $60 one thousand thousand IP licensing gain which will be a benefit to operating income and recorded on the licensing gain line of the P&L.

For full year 2019, AMD expects high single digit percentage revenue growth driven by Ryzen, EPYC and Radeon datacenter GPU production sales as the Company ramps 7nm products throughout the yr. AMD expects not-GAAP gross margin to be greater than 41 per centum for 2019.

AMD Teleconference

AMD will hold a conference phone call for the financial community at 2:thirty p.chiliad. PT (5:30 p.m. ET) today to hash out its fourth quarter and financial twelvemonth 2018 financial results. AMD will provide a real-fourth dimension audio broadcast of the teleconference on the Investor Relations page of its website at world wide web.amd.com. The webcast will be bachelor for 12 months after the briefing telephone call.

RECONCILIATION OF GAAP TO Not-GAAP FINANCIAL MEASURES
(In millions, except per share data)	Three Months Concluded									Year Ended
	December 29, 2018			September 29, 2018			Dec thirty, 2017			December 29, 2018			Dec xxx, 2017
GAAP gross margin	$	537		$	661		$	452		$	2,447		$	one,787
*GAAP gross margin %*	38		%	*forty*		%	34		%	38		%	34		%
Damage of technology licenses	45			—			—			45			—
Stock-based compensation	1			1			—			iv			2
Non-GAAP gross margin	$	583		$	662		$	452		$	2,496		$	one,789
*Non-GAAP gross margin %*	41		%	40		%	34		%	39		%	34		%

GAAP operating expenses	$	509		$	511		$	454		$	1,996		$	1,712
Stock-based compensation	35			35			21			133			95
Non-GAAP operating expenses	$	474		$	476		$	433		$	1,863		$	1,617

GAAP operating income (loss)	$	28		$	150		$	(two	)	$	451		$	127
Impairment of applied science licenses	45			—			—			45			—
Stock-based compensation	36			36			21			137			97
Non-GAAP operating income	$	109		$	186		$	xix		$	633		$	224

	Three Months Ended																Year Ended
	December 29, 2018						September 29, 2018				Dec 30, 2017						December 29, 2018						Dec 30, 2017
GAAP cyberspace income (loss) / earnings (loss) per share	$	38		$	0.04		$	102	$	0.09	$	(19	)	$	(0.02	)	$	337		$	0.32		$	(33	)	$	(0.03	)
Loss on debt redemption	5			—			6		—		3			—			12			0.01			12			0.01
Non-cash interest expense related to convertible debt	six			0.01			half dozen		0.01		v			—			24			0.02			22			0.02
Stock-based compensation	36			0.03			36		0.03		21			0.02			137			0.11			97			0.09
Gain on sale of 85% of ATMP	—			—			—		—		(iii		)	—			—			—			(3		)	—
Taxation provision related to sale of 85% of ATMP JV	—			—			—		—		1			—			—			—			1			—
Impairment of applied science licenses	45			0.04			—		—		—			—			45			0.04			—			—
Equity loss in investee	—			—			—		—		—			—			2			—			seven			0.01
Withholding tax refund including interest	(43		)	(0.04		)	—		—		—			—			(43		)	(0.04		)	—			—
Non-GAAP net income / earnings per share	$	87		$	0.08		$	150	$	0.thirteen	$	eight		$	0.01		$	514		$	0.46		$	103		$	0.x

Shares used and net income adjustment in earnings (loss) per share calculation
Shares used in per share calculation (GAAP) ⁽¹⁾	1,079						1,076				965						i,064						952
Interest expense add together-dorsum to GAAP net income	$	—					$	—			$	—					$	—					$	—
Shares used in per share adding (Non-GAAP)	1,180						i,177				1,037						1,165						i,039
Interest expense add-back to Non-GAAP net income ⁽²⁾	$	five					$	4			$	—					$	18					$	—

⁽¹⁾ The three months and yr ended December 30, 2017 GAAP net loss per share is calculated using basic shares.
⁽²⁾ The iii months and twelvemonth ended December 30, 2017 do non include 100.6 million shares related to the conversion of the Visitor’southward 2026 Convertible Notes and the involvement expense add-dorsum to Non-GAAP internet income because their inclusion would take been anti-dilutive under the "if-converted" method.

Almost AMD

For nearly 50 years, AMD has driven innovation in high-performance computing, graphics and visualization technologies - the building blocks for gaming, immersive platforms and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities around the world rely on AMD engineering daily to ameliorate how they live, work and play. AMD employees around the globe are focused on building great products that push the boundaries of what is possible. For more data about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

Cautionary Argument

This document contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, availability, timing and expected benefits of AMD’s future products and technologies including, Radeon™ Seven graphics processors, AMD’southward 3^rd
Generation AMD Ryzen™ processors, and the next generation AMD EPYC™ processors, codenamed “Rome”; AMD’s expected outset quarter 2019 and fiscal 2019 financial outlook including, revenue along with the expected drivers of such revenue, and non-GAAP gross margin; and expected IP licensing proceeds, which are made pursuant to the Safety Harbor provisions of the Individual Securities Litigation Reform Act of 1995. Forward looking statements are commonly identified past words such every bit "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the frontward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to sure known and unknown risks and uncertainties, many of which are hard to predict and generally beyond AMD's control, that could cause actual results and other futurity events to differ materially from those expressed in, or implied or projected by, the forwards-looking information and statements. Material factors that could cause bodily results to differ materially from electric current expectations include, without limitation, the following: Intel Corporation’south potency of the microprocessor market and its ambitious business concern practices may limit AMD’s ability to compete effectively; AMD has a wafer supply agreement with GF with obligations to buy all of its microprocessor and APU production requirements, and a certain portion of its GPU product requirements from GF with limited exceptions. If GF is not able to satisfy AMD’south manufacturing requirements, AMD’s business could exist adversely impacted; AMD relies on third parties to industry its products, and if they are unable to practise then on a timely footing in sufficient quantities and using competitive technologies, AMD’s business organization could exist materially adversely affected; failure to attain expected manufacturing yields for AMD’s products could negatively impact its financial results; the success of AMD’s business is dependent upon its ability to introduce products on a timely basis with features and performance levels that provide value to its customers while supporting and congruent with significant industry transitions; if AMD cannot generate sufficient acquirement and operating cash menses or obtain external financing, information technology may face a greenbacks shortfall and be unable to make all of its planned investments in research and development or other strategic investments; the loss of a meaning customer may accept a material adverse effect on AMD; AMD’south receipt of revenue from its semi-custom SoC products is dependent upon its technology being designed into 3rd-party products and the success of those products; AMD’due south products may exist subject to security vulnerabilities that could accept a fabric adverse event on AMD; data breaches and cyber-attacks could compromise AMD’s intellectual property or other sensitive information, be costly to remediate and cause significant damage to its business and reputation; AMD’s operating results are subject to quarterly and seasonal sales patterns; global economic uncertainty may adversely impact AMD’s business concern and operating results; AMD may not be able to generate sufficient greenbacks to service its debt obligations or meet its working uppercase requirements; AMD has a large amount of indebtedness which could adversely affect its financial position and prevent it from implementing its strategy or fulfilling its contractual obligations; the agreements governing AMD’s notes and the Secured Revolving Line of Credit impose restrictions on AMD that may adversely touch on AMD’s ability to operate its business; the markets in which AMD’southward products are sold are highly competitive; AMD’southward worldwide operations are subject to political, legal and economic risks and natural disasters, which could take a material agin consequence on it; AMD’due south issuance to Due west Declension Hitech Fifty.P. (WCH) of warrants to purchase 75 meg shares of its common stock, if and when exercised, will dilute the ownership interests of AMD’south existing stockholders, and the conversion of the 2.125% Convertible Senior Notes due 2026 (ii.125% Notes) may dilute the ownership interest of AMD’s existing stockholders, or may otherwise depress the price of its common stock; uncertainties involving the ordering and shipment of AMD’s products could materially adversely touch on it; the demand for AMD’s products depends in part on the market place conditions in the industries into which they are sold. Fluctuations in demand for AMD’s products or a market decline in any of these industries could have a material agin outcome on its results of operations; AMD’southward ability to pattern and introduce new products in a timely way is dependent upon 3rd-party intellectual property; AMD depends on tertiary-party companies for the design, industry and supply of motherboards, software and other figurer platform components to support its business; if AMD loses Microsoft Corporation’s support for its products or other software vendors do not design and develop software to run on AMD’s products, its ability to sell its products could be materially adversely affected; AMD’due south reliance on third-party distributors and add-in-board (AIB) partners subjects it to sure risks; AMD may incur hereafter impairments of goodwill and engineering science license purchases; AMD’due south inability to continue to attract and retain qualified personnel may hinder its business; in the outcome of a change of control, AMD may non exist able to repurchase its outstanding debt every bit required by the applicable indentures and its Secured Revolving Line of Credit, which would result in a default under the indentures and its Secured Revolving Line of Credit; the semiconductor industry is highly cyclical and has experienced severe downturns that take materially adversely affected, and may keep to materially adversely touch its concern in the future; acquisitions, divestitures and/or articulation ventures could disrupt its business, impairment its financial condition and operating results or dilute, or adversely affect the price of, its common stock; AMD’due south business is dependent upon the proper functioning of its internal business processes and data systems and modification or interruption of such systems may disrupt its business organisation, processes and internal controls; if essential equipment, materials or manufacturing processes are not bachelor to manufacture its products, AMD could be materially adversely afflicted; if AMD’due south products are non compatible with some or all industry-standard software and hardware, information technology could be materially adversely affected; costs related to defective products could have a material adverse effect on AMD; if AMD fails to maintain the efficiency of its supply concatenation as it responds to changes in customer demand for its products, its business concern could be materially adversely affected; AMD outsources to third parties certain supply-chain logistics functions, including portions of its production distribution, transportation management and information technology support services; AMD’s stock cost is subject to volatility; worldwide political conditions may adversely affect demand for AMD’south products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD’s disability to effectively command the sales of its products on the gray market could have a material adverse issue on it; if AMD cannot fairly protect its applied science or other intellectual property in the United States and abroad, through patents, copyrights, trade secrets, trademarks and other measures, it may lose a competitive reward and incur significant expenses; AMD is a party to litigation and may get a party to other claims or litigation that could cause information technology to incur substantial costs or pay substantial damages or prohibit it from selling its products; AMD’s concern is subject to potential tax liabilities; and AMD is subject to environmental laws, conflict minerals-related provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act as well every bit a variety of other laws or regulations that could result in additional costs and liabilities. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's Quarterly Report on Form x-Q for the quarter ended September 29, 2018.

In this earnings press release, in improver to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating expense, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this earnings press release. AMD also provided adjusted EBITDA and free cash flow every bit supplemental not-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these fiscal measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for electric current and historical periods and also because AMD believes it assists investors in comparison AMD’southward performance across reporting periods on a consistent ground by excluding items that it does non believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to the data tables at the end of this earnings printing release.

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Threadripper and combinations thereof, are trademarks of Avant-garde Micro Devices, Inc. Other names are for advisory purposes but and used to place companies and products and may be trademarks of their respective owner.

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)

	Three Months Ended									Year Ended
	December 29, 2018			September 29, 2018			December 30, 2017			December 29, 2018			December xxx, 2017
Internet revenue	$	one,419		$	ane,653		$	1,340		$	6,475		$	5,253
Cost of sales		882			992			888			4,028			3,466
Gross margin		537			661			452			2,447			i,787
Gross margin %		38	%		40	%		34	%		38	%		34	%
Research and development		371			363			320			one,434			1,196
Marketing, general and administrative		138			148			134			562			516
Licensing gain		-			-			-			-			(52	)
Operating income (loss)		28			150			(2	)		451			127
Interest expense		(29	)		(30	)		(31	)		(121	)		(126	)
Other income (expense), net		4			(6	)		ii			-			(nine	)
Income (loss) before equity loss and income taxes		iii			114			(31	)		330			(8	)
Provision (benefit) for income taxes		(35	)		12			(12	)		(9	)		xviii
Equity loss in investee		-			-			-			(2	)		(7	)
Internet Income (loss)	$	38		$	102		$	(xix	)	$	337		$	(33	)
Earnings (loss) per share
Basic	$	0.04		$	0.10		$	(0.02	)	$	0.34		$	(0.03	)
Diluted	$	0.04		$	0.09		$	(0.02	)	$	0.32		$	(0.03	)
Shares used in per share calculation
Basic		1,002			987			965			982			952
Diluted		1,079			1,076			965			1,064			952

Advanced MICRO DEVICES, INC.
CONDENSED CONSOLIDATED Rest SHEETS
(Millions)

	December 29, 2018			Dec 30, 2017
Assets
Electric current assets:
Cash and cash equivalents	$	1,078		$	1,185
Marketable securities		78			-
Accounts receivable, internet		1,235			454
Inventories, internet		845			694
Prepayment and receivables - related parties		52			33
Prepaid expenses		57			77
Other electric current avails		195			191

Total current assets		3,540			2,634
Property and equipment, net		348			261
Goodwill		289			289
Investment: equity method		58			58
Other avails		321			310

Full Assets	$	4,556		$	iii,552

Liabilities and Stockholders' Disinterestedness
Current liabilities:
Short-term debt	$	136		$	seventy
Accounts payable		528			384
Payables to related parties		533			412
Accrued liabilities		763			555
Other current liabilities		24			92

Total current liabilities		ane,984			one,513
Long-term debt, net		i,114			ane,325
Other long-term liabilities		192			118

Stockholders' equity:
Capital stock:
Mutual stock, par value		ten			9
Boosted paid-in upper-case letter		8,750			8,464
Treasury stock, at cost		(50	)		(108	)
Accumulated deficit		(7,436	)		(seven,775	)
Accumulated other comprehensive income (loss)		(8	)		6

Total Stockholders' equity		1,266			596
Total Liabilities and Stockholders' Equity	$	4,556		$	3,552

ADVANCED MICRO DEVICES, INC.
SELECTED Cash FLOW INFORMATION
(Millions)

	Three Months Concluded			Year Ended
	December 29, 2018			December 29, 2018
Cyberspace cash provided by (used in)
Operating activities	$	120		$	34
Investing activities	$	(88	)	$	(170	)
Financing activities	$	-		$	28

During 2018, the Visitor adopted Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows - Classification of Sure Greenbacks Receipts and Cash Payments which reclassified sure greenbacks receipts from operating activities to investing activities, with retrospective awarding. All periods presented adapt to the classification requirements of the standard. The adoption of this standard does not reverberate a modify in the underlying business organization or activities and had no fabric impact on the Company's consolidated statements of cash flows.

ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE Data
(Millions)

	3 Months Ended									Yr Ended
Segment and Category Information	December 29, 2018			September 29, 2018			December xxx, 2017			December 29, 2018			Dec 30, 2017

Computing and Graphics ⁽¹⁾
Internet revenue	$	986		$	938		$	908		$	4,125		$	2,977
Operating income	$	115		$	100		$	33		$	470		$	92

Enterprise, Embedded and Semi-Custom ^(two)
Internet acquirement	$	433		$	715		$	432		$	two,350		$	2,276
Operating income (loss)	$	(6	)	$	86		$	(13	)	$	163		$	132

All Other ^(three)
Net revenue		-			-			-			-			-
Operating loss	$	(81	)	$	(36	)	$	(22	)	$	(182	)	$	(97	)

Total
Internet acquirement	$	1,419		$	1,653		$	1,340		$	six,475		$	v,253
Operating income (loss)	$	28		$	150		$	(2	)	$	451		$	127


Other Data

Upper-case letter expenditures	$	41		$	33		$	44		$	163		$	113
Adjusted EBITDA⁽⁴⁾	$	152		$	227		$	58		$	803		$	368
Cash, cash equivalents and marketable securities	$	1,156		$	1,056		$	one,185		$	ane,156		$	1,185
Gratuitous greenbacks menses ⁽⁵⁾	$	79		$	44		$	322		$	(129	)	$	(105	)
Full assets	$	4,556		$	4,347		$	three,552		$	four,556		$	3,552
Total debt	$	1,250		$	1,303		$	one,395		$	one,250		$	i,395


Run into footnotes on the next page

⁽¹⁾	The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs) and professional GPUs. The Company also licenses portions of its intellectual property portfolio.
⁽²⁾	The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom Organization-on-Chip (SoC) products, evolution services and technology for game consoles. The Company as well licenses portions of its intellectual property portfolio.
⁽³⁾	All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category is stock-based compensation expense. In addition, the Company besides included an impairment of applied science licenses in the three months and yr concluded December 29, 2018.
^(four)	Reconciliation of GAAP Operating Income (Loss) to Adjusted EBITDA*
		3 Months Concluded									Year Ended
		December 29, 2018			September 29, 2018			December 30, 2017			Dec 29, 2018			December 30, 2017
	GAAP operating income (loss)	$	28		$	150		$	(2	)	$	451		$	127
	Impairment of technology licenses		45			-			-			45			-
	Stock-based compensation		36			36			21			137			97
	Depreciation and amortization		43			41			39			170			144
	Adapted EBITDA	$	152		$	227		$	58		$	803		$	368

^(v)	Reconciliation of GAAP Internet Cash Provided by Operating Activities to Gratuitous Cash Menses**
		3 Months Ended									Year Ended
		December 29, 2018			September 29, 2018			December xxx, 2017			December 29, 2018			Dec 30, 2017
	GAAP net cash provided by operating activities	$	120		$	77		$	366		$	34		$	viii
	Purchases of property and equipment		(41	)		(33	)		(44	)		(163	)		(113	)
	Complimentary greenbacks flow	$	79		$	44		$	322		$	(129	)	$	(105	)


*	The Company presents “Adjusted EBITDA” as a supplemental measure out of its performance. Adapted EBITDA for the Company is determined by adjusting operating income for stock-based compensation and depreciation and acquittal expense. In addition, the Company as well included an impairment of technology licenses in the three months and year ended December 29, 2018. The Company calculates and presents Adapted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital construction and its power to borrow boosted funds. In addition, the Visitor presents Adjusted EBITDA because it believes this measure out assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Visitor’s calculation of Adapted EBITDA may or may non be consequent with the calculation of this measure by other companies in the aforementioned manufacture. Investors should non view Adapted EBITDA as an alternative to the GAAP operating measure of operating income (loss) or GAAP liquidity measures of cash flows from operating, investing and financing activities. In add-on, Adapted EBITDA does non take into business relationship changes in sure assets and liabilities as well every bit involvement income and expense and income taxes that can touch cash flows.
**	The Visitor besides presents gratuitous greenbacks catamenia every bit a supplemental Non-GAAP measure of its functioning. Free cash flow is determined by adjusting GAAP net greenbacks provided by (used in) operating activities for capital expenditures. The Company calculates and communicates free cash flow in the financial earnings printing release because management believes it is of importance to investors to understand the nature of these cash flows. The Visitor’s calculation of free cash menstruum may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash menses equally an alternative to GAAP liquidity measures of cash flows from operating activities. In 2018, the Company adopted Accounting Standards Update (ASU) 2016-xv, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, which reclassified certain cash receipts from operating activities to investing activities, with retrospective application. All periods presented conform to the classification requirements of the standard. The adoption of this standard does not reflect a change in the underlying business or activities and had no material impact on the Company'due south consolidated statements of cash flows.
	The Company has provided reconciliations within the earnings press release of these not-GAAP financial measures to the most straight comparable GAAP financial measures.