AMD Reports Fourth Quarter and Annual 2016 Financial Results

Annu­al reve­nue incre­a­sed 7 per­cent; fourth quar­ter reve­nue grew 15 per­cent year-over-year
SUNNYVALE, CA — (Mar­ket­wired) — 01/31/17 — AMD (NASDAQ: AMD) today announ­ced reve­nue for the fourth quar­ter of 2016 of $1.11 bil­li­on, ope­ra­ting loss of $3 mil­li­on and net loss of $51 mil­li­on, or $0.06 per share. Non-GAAP(1) ope­ra­ting inco­me was $26 mil­li­on, non-GAAP(1) net loss was $8 mil­li­on and non-GAAP(1) loss per share was $0.01.
 
GAAP Finan­cial Results
 
    Q4-16   Q3-16   Q4-15   2016   2015
Reve­nue   $1.11B   $1.31B   $958M   $4.27B   $3.99B
Ope­ra­ting loss   $(3)M   $(293)M   $(49)M   $(372)M   $(481)M
Net loss   $(51)M   $(406)M   $(102)M   $(497)M   $(660)M
Loss per share   $(0.06)   $(0.50)   $(0.13)   $(0.60)   $(0.84)
 
Non-GAAP Finan­cial Results(1)
 
    Q4-16   Q3-16   Q4-15   2016   2015
Reve­nue   $1.11B   $1.31B   $958M   $4.27B   $3.99B
Ope­ra­ting inco­me (loss)   $26M   $70M   $(39)M   $44M   $(253)M
Net inco­me (loss)   $(8)M   $27M   $(79)M   $(117)M   $(419)M
Ear­nings (loss) per share   $(0.01)   $0.03   $(0.10)   $(0.14)   $(0.54)
                     

We met our stra­te­gic objec­ti­ves in 2016, suc­cess­ful­ly exe­cu­ting our pro­duct road­maps, regai­ning share in key mar­kets, streng­t­he­ning our finan­cial foun­da­ti­on, and deli­vering annu­al reve­nue growth,” said Dr. Lisa Su, AMD pre­si­dent and CEO. “As we enter 2017, we are well posi­tio­ned and on-track to deli­ver our stron­gest set of high-per­for­mance com­pu­ting and gra­phics pro­ducts in more than a decade.”

  • Q4 2016 Results
    • Q4 2016 was a 14-week fis­cal quar­ter com­pa­red to 13-week fis­cal quar­ters for Q3 2016 and Q4 2015.
    • Reve­nue of $1.11 bil­li­on was up 15 per­cent year-over-year, pri­ma­ri­ly due to hig­her GPU sales. Reve­nue was down 15 per­cent sequen­ti­al­ly, pri­ma­ri­ly dri­ven by sea­so­nal­ly lower sales of semi-cus­tom SoCs.
    • On a GAAP basis, gross mar­gin was 32 per­cent, up 2 per­cen­ta­ge points year-over-year and up 27 per­cen­ta­ge points sequen­ti­al­ly as Q3 2016 gross mar­gin was nega­tively impac­ted by a $340 mil­li­on char­ge (WSA char­ge) rela­ted to the sixth amend­ment of the wafer sup­ply agree­ment with GLOBALFOUNDRIES. Ope­ra­ting loss was $3 mil­li­on com­pa­red to an ope­ra­ting loss of $49 mil­li­on a year ago and an ope­ra­ting loss of $293 mil­li­on in the pri­or quar­ter. The year-over-year impro­ve­ment was pri­ma­ri­ly due to hig­her reve­nue and IP mone­tiz­a­ti­on licen­sing gain while the sequen­ti­al impro­ve­ment is pri­ma­ri­ly due to the absence of the WSA char­ge off­set by lower fourth quar­ter reve­nue. Net loss was $51 mil­li­on com­pa­red to a net loss of $102 mil­li­on a year ago and net loss of $406 mil­li­on in the pri­or quar­ter. Loss per share was $0.06 com­pa­red to a loss per share of $0.13 a year ago and loss per share of $0.50 in the pri­or quarter.
    • On a non-GAAP(1) basis, gross mar­gin was 32 per­cent, up 2 per­cen­ta­ge points year-over-year and up 1 per­cen­ta­ge point sequen­ti­al­ly pri­ma­ri­ly due to hig­her Com­pu­ting and Gra­phics seg­ment reve­nue. Ope­ra­ting inco­me was $26 mil­li­on com­pa­red to an ope­ra­ting loss of $39 mil­li­on a year ago and ope­ra­ting inco­me of $70 mil­li­on in the pri­or quar­ter. Ope­ra­ting inco­me was lower in the cur­rent quar­ter due to lower reve­nue. Net loss was $8 mil­li­on com­pa­red to net loss of $79 mil­li­on a year ago and net inco­me of $27 mil­li­on in the pri­or quar­ter. Loss per share was $0.01 com­pa­red to a loss per share of $0.10 a year ago and ear­nings per share of $0.03 in the pri­or quarter.
    • Cash and cash equi­va­lents were $1.26 bil­li­on at the end of the quar­ter, up $6 mil­li­on from the end of the pri­or quarter.
  • 2016 Annu­al Results
    • Reve­nue of $4.27 bil­li­on, up 7 per­cent on an annu­al basis, incre­a­sed in both repor­ta­ble segments.
    • On a GAAP basis, gross mar­gin was 23 per­cent, down 4 per­cen­ta­ge points from the pri­or year pri­ma­ri­ly due to the WSA char­ge. Ope­ra­ting loss was $372 mil­li­on com­pa­red to an ope­ra­ting loss of $481 mil­li­on in the pri­or year. Ope­ra­ting loss impro­ve­ment was due to hig­her reve­nue, lower rest­ruc­tu­ring char­ges, and an IP mone­tiz­a­ti­on licen­sing gain, off­set by the WSA char­ge. Net loss was $497 mil­li­on com­pa­red to a net loss of $660 mil­li­on in the pri­or year. Loss per share was $0.60 com­pa­red to a loss per share of $0.84 in 2015.
    • On a non-GAAP(1) basis, gross mar­gin was 31 per­cent, up 3 per­cen­ta­ge points year-over-year pri­ma­ri­ly due to impro­ved pro­duct mix and an inven­to­ry wri­te-down recor­ded in Q3 2015. Ope­ra­ting inco­me was $44 mil­li­on com­pa­red to an ope­ra­ting loss of $253 mil­li­on in the pri­or year. Ope­ra­ting inco­me impro­ve­ment was pri­ma­ri­ly rela­ted to hig­her reve­nue and the IP mone­tiz­a­ti­on licen­sing gain. Net loss was $117 mil­li­on com­pa­red to a net loss of $419 mil­li­on in the pri­or year. Loss per share was $0.14 com­pa­red to a loss per share of $0.54 in 2015.
    • Cash and cash equi­va­lents were $1.26 bil­li­on at the end of the year, up from $785 mil­li­on at the end of the pri­or year.

Quar­ter­ly Finan­cial Seg­ment Summary

  • Com­pu­ting and Gra­phics seg­ment reve­nue was $600 mil­li­on, up 28 per­cent year-over-year and 27 per­cent sequen­ti­al­ly. The year-over-year incre­a­se was pri­ma­ri­ly dri­ven by hig­her GPU sales. The sequen­ti­al incre­a­se was pri­ma­ri­ly due to hig­her GPU and cli­ent pro­ces­sor sales. 
    • Ope­ra­ting loss was $21 mil­li­on, com­pa­red to an ope­ra­ting loss of $99 mil­li­on in Q4 2015 and an ope­ra­ting loss of $66 mil­li­on in Q3 2016. The year-over-year and sequen­ti­al impro­ve­ments were dri­ven pri­ma­ri­ly by hig­her revenue.
    • Cli­ent average sel­ling pri­ce (ASP) was down year-over-year dri­ven by desk­top pro­ces­sors, and down sequen­ti­al­ly dri­ven by desk­top and mobi­le processors.
    • GPU ASP incre­a­sed year-over-year due to hig­her desk­top and pro­fes­sio­nal gra­phics ASPs. GPU ASP incre­a­sed sequen­ti­al­ly due to hig­her mobi­le and pro­fes­sio­nal gra­phics ASPs.
  • Enter­pri­se, Embed­ded and Semi-Cus­tom seg­ment reve­nue was $506 mil­li­on, up 4 per­cent year-over-year pri­ma­ri­ly dri­ven by hig­her embed­ded and semi-cus­tom SoC reve­nue. Sequen­ti­al­ly, reve­nue decre­a­sed 39 per­cent due to sea­so­nal­ly lower sales of semi-cus­tom SoCs. 
    • Ope­ra­ting inco­me was $47 mil­li­on com­pa­red to $59 mil­li­on in Q4 2015 and $136 mil­li­on in Q3 2016. The year-over-year decre­a­se was pri­ma­ri­ly dri­ven by hig­her R&D invest­ments in Q4 2016, par­ti­al­ly off­set by an IP mone­tiz­a­ti­on licen­sing gain. The sequen­ti­al decre­a­se was pri­ma­ri­ly due to sea­so­nal­ly lower sales of semi-cus­tom SoCs.
  • All Other ope­ra­ting loss was $29 mil­li­on com­pa­red with an ope­ra­ting loss of $9 mil­li­on in Q4 2015 and an ope­ra­ting loss of $363 mil­li­on in Q3 2016. The year-over-year ope­ra­ting loss incre­a­se was pri­ma­ri­ly rela­ted to hig­her stock-based com­pen­sa­ti­on char­ges in Q4 2016. The sequen­ti­al impro­ve­ment was pri­ma­ri­ly due to the absence of the WSA charge.

Q4 2016 Highlights

  • AMD dis­c­lo­sed new details on its upco­m­ing CPU and GPU archi­tec­tures and offerings: 
    • AMD deli­ve­r­ed new details on the archi­tec­tu­re, go-to-mar­ket plans, and per­for­mance of upco­m­ing “Zen”-based processors: 
      • Reve­a­led Ryzen™, the brand that will span “Zen”-based desk­top (code­n­a­med “Sum­mit Ridge”) and note­book (code­n­a­med “Raven Ridge”) products.
      • Intro­du­ced AMD Sen­se­MI tech­no­lo­gy, a set of sen­sing, adap­ting, and lear­ning fea­tures built into AMD Ryzen™ pro­ces­sors. AMD Sen­se­MI tech­no­lo­gy is a key enab­ler of AMD’s land­mark genera­tio­nal incre­a­se of grea­ter than 40 per­cent in inst­ruc­tions per clock with its “Zen” core architecture.
      • Deli­ve­r­ed a first look at the impres­si­ve gaming capa­bi­li­ties of an AMD Ryzen™ CPU and Vega GPU-based desk­top sys­tem run­ning Star Wars©: Battle­front™ — Rogue One in 4K at more than 60 frames per second.
      • Show­ca­sed eco­sys­tem rea­di­ness and the bre­adth of part­ner sup­port for forth­co­m­ing Ryzen™ desk­top pro­ces­sors with new AM4 mother­boards and ‘Dream PCs’ from glo­bal sys­tem inte­gra­tors (SIs), as well as upco­m­ing third-par­ty AM4 ther­mal solutions.
  • AMD intro­du­ced preli­mi­na­ry details of its forth­co­m­ing Vega GPU archi­tec­tu­re desi­gned to address the most data- and visual­ly-inten­si­ve next-genera­ti­on workloads. Key archi­tec­tu­re advan­ce­ments inclu­de a dif­fe­ren­tia­ted memo­ry sub­sys­tem, next-genera­ti­on geo­me­try pipe­line, new com­pu­te engi­ne, and a new pixel engi­ne. GPU pro­ducts based on the Vega archi­tec­tu­re are expec­ted to ship in the second quar­ter of 2017.
  • AMD announ­ced a new col­la­bo­ra­ti­on with Goog­le, making Rade­on™ GPU tech­no­lo­gy avail­ab­le to Goog­le Cloud Plat­form users world­wi­de star­ting in 2017 to help acce­le­ra­te Goog­le Com­pu­te Engi­ne and Goog­le Cloud Machi­ne Lear­ning services.
  • To acce­le­ra­te the machi­ne intel­li­gence era in ser­ver com­pu­ting, AMD unvei­led the Rade­on™ Instinct initia­ti­ve, a new suite of GPU hard­ware and open-source soft­ware offe­rings desi­gned to dra­ma­ti­cal­ly incre­a­se per­for­mance, effi­ci­en­cy, and ease of imple­men­ta­ti­on of deep lear­ning and high-per­for­mance com­pu­te (HPC) workloads. Rade­on™ Instinct pro­ducts are expec­ted to ship in 1H 2017.
  • AMD intro­du­ced several new pro­ducts and tech­no­lo­gies in the quar­ter, including: 
    • New 7th Genera­ti­on AMD PRO Pro­ces­sor-based com­mer­cial desk­tops and note­books from Lenovo.
  • Rade­on™ Pro WX Seri­es of pro­fes­sio­nal gra­phics cards based on the Pola­ris archi­tec­tu­re, fea­turing fourth-genera­ti­on Gra­phics Core Next (GCN) tech­no­lo­gy, and engi­nee­red on the 14nm Fin­FET process.
  • A new fami­ly of power-effi­ci­ent gra­phics pro­ces­sors, the Rade­on™ Pro 400 Seri­es, first avail­ab­le in the all-new 15-inch Apple Mac­Book Pro.
  • Rade­on Free­Sync™ 2 tech­no­lo­gy, the next major mile­stone in deli­vering smooth game­play and advan­ced pixel inte­gri­ty to gamers, with plan­ned avai­la­bi­li­ty to con­su­mers in 1H 2017, adding to the 100+ Free­Sync™ moni­tors alrea­dy avail­ab­le today.
  • Rade­on™ Pro Soft­ware Enter­pri­se, Rade­on Soft­ware Crim­son ReLi­ve Edi­ti­on, and updates to the Rade­on Open Com­pu­te Plat­form (ROCm) soft­ware solutions.

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.

For Q1 2017, AMD expects reve­nue to decre­a­se 11 per­cent sequen­ti­al­ly, plus or minus 3 per­cent. The mid­point of gui­d­ance would result in Q1 2017 reve­nue incre­a­sing appro­xi­mate­ly 18 per­cent year-over-year. For addi­tio­nal details regar­ding AMD’s results and out­look plea­se see the CFO com­men­ta­ry pos­ted at quarterlyearnings.amd.com.

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 fourth quar­ter and fis­cal year 2016 finan­cial results. AMD will pro­vi­de a real-time audio broad­cast of the telecon­fe­rence on the Inves­tor Rela­ti­ons page of its web­site at www.amd.com. The web­cast will be avail­ab­le for 12 mon­ths after the con­fe­rence call.

   
Recon­ci­lia­ti­on of GAAP to Non-GAAP Gross Margin  
(Mil­li­ons except percentages)   Q4-16     Q3-16     Q4-15     2016     2015  
GAAP Gross Margin   $ 351     $ 59     $ 283     $ 998     $ 1,080  
GAAP Gross Margin %     32 %     5 %     30 %     23 %     27 %
  Tech­no­lo­gy node tran­si­ti­on charge     -       -       -       -       33  
  Stock-based com­pen­sa­ti­on     1       -       1       2       3  
  Char­ge rela­ted to the sixth amend­ment to the WSA with GF     -       340       -       340       -  
Non-GAAP Gross Margin   $ 352     $ 399     $ 284     $ 1,340     $ 1,116  
Non-GAAP Gross Margin %     32 %     31 %     30 %     31 %     28 %
                                         
   
Recon­ci­lia­ti­on of GAAP Ope­ra­ting Loss to Non-GAAP Ope­ra­ting Inco­me (Loss)  
(Mil­li­ons)   Q4-16     Q3-16     Q4-15     2016     2015  
GAAP ope­ra­ting loss   $ (3 )   $ (293 )   $ (49 )   $ (372 )   $ (481 )
  Char­ge rela­ted to the sixth amend­ment to the WSA with GF     -       340       -       340       -  
  Tech­no­lo­gy node tran­si­ti­on charge     -       -       -       -       33  
  Rest­ruc­tu­ring and other spe­cial char­ges, net     -       -       (6 )     (10 )     129  
  Amor­tiz­a­ti­on of acqui­red intan­gi­ble assets     -       -       -       -       3  
  Stock-based com­pen­sa­ti­on     29       23       16       86       63  
Non-GAAP ope­ra­ting inco­me (loss)   $ 26     $ 70     $ (39 )   $ 44     $ (253 )
                                         

Recon­ci­lia­ti­on of GAAP Net Loss/Loss per Share to Non-GAAP Net Inco­me (Loss)/Earnings (Loss) per Share

(Mil­li­ons except per share amounts)   Q4-16     Q3-16     Q4-15     2016     2015  
GAAP net loss /loss per share   $ (51 )   $ (0.06 )   $ (406 )   $ (0.50 )   $ (102 )   $ (0.13 )   $ (497 )   $ (0.60 )   $ (660 )   $ (0.84 )
  Char­ge rela­ted to the sixth amend­ment to the WSA with GF     -       -       340       0.39       -       -       340       0.41       -       -  
  Tech­no­lo­gy node tran­si­ti­on charge     -       -       -       -       -       -       -       -       33       0.04  
  Rest­ruc­tu­ring and other spe­cial char­ges, net     -       -       -       -       (6 )     (0.01 )     (10 )     (0.01 )     129       0.16  
  Amor­tiz­a­ti­on of acqui­red intan­gi­ble assets     -       -       -       -       -       -       -       -       3       -  
  Stock-based com­pen­sa­ti­on     29       0.03       23       0.03       16       0.02       86       0.10       63       0.08  
  Loss on debt redemption     7       0.01       61       0.07       -       -       68       0.08       -       -  
  Non-cash inte­rest expen­se rela­ted to con­ver­ti­ble debt     5       0.01       1       -       -       -       6       0.01       -       -  
  Gain on sale of 85% of ATMP JV     -       -       4       -       -       -       (146 )     (0.17 )     -       -  
  Tax pro­vi­si­on (bene­fit) rela­ted to sale of 85% of ATMP JV     -       -       (1 )     -       -       -       26       0.03       -       -  
  Tax sett­le­ment in for­eign jurisdiction     -       -       -       -       13       0.02       -       -       13       0.02  
  Equi­ty in inco­me (loss) of ATMP JV     2       -       5       0.01       -       -       10       0.01       -       -  
Non-GAAP net inco­me (loss) / ear­nings (loss) per share   $ (8 )   $ (0.01 )   $ 27     $ 0.03     $ (79 )   $ (0.10 )   $ (117 )   $ (0.14 )   $ (419 )   $ (0.54 )
                                                                                 
                                                                                 

About AMD
For more than 45 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 tech­no­lo­gy dai­ly to impro­ve how they live, work, and play. AMD employees around the world are focu­sed on buil­ding gre­at pro­ducts that push the bounda­ries of what is pos­si­ble. For more infor­ma­ti­on about how AMD is enab­ling today and inspi­ring tomor­row, visit the AMD (NASDAQ: AMD) web­site, blog, Face­book and Twit­ter pages.

Cau­tio­na­ry Statement
This press release con­tains for­ward-loo­king state­ments con­cer­ning Advan­ced Micro Devices, Inc. (AMD) inclu­ding, AMD’s abi­li­ty to deli­ver the stron­gest set of high-per­for­mance com­pu­ting and gra­phics pro­ducts in more than a deca­de; the fea­tures, func­tio­n­a­li­ty, timing, avai­la­bi­li­ty and expec­ted bene­fits of AMD’s new pro­ducts and tech­no­lo­gies; and AMD’s expec­ted first quar­ter 2017 reve­nue, 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 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 cer­tain known and unknown risks and uncer­tain­ties, many of which are dif­fi­cult to pre­dict and gene­ral­ly bey­ond AMD’s con­trol, that could cau­se actu­al results and other future events to dif­fer mate­ri­al­ly from tho­se expres­sed in, or implied or pro­jec­ted by, the for­ward-loo­king infor­ma­ti­on and state­ments. Mate­ri­al fac­tors that could cau­se actu­al results to dif­fer mate­ri­al­ly from cur­rent expec­ta­ti­ons inclu­de, without limi­ta­ti­on, the fol­lowing: Intel Corporation’s domi­nan­ce of the micro­pro­ces­sor mar­ket and its aggres­si­ve busi­ness prac­ti­ces may limit AMD’s abi­li­ty to com­pe­te effec­tively; AMD is par­ty to a wafer sup­ply agree­ment with GF with obli­ga­ti­ons to manu­fac­tu­re pro­ducts at GF with cer­tain excep­ti­ons. If GF is not able to satisfy AMD’s manu­fac­tu­ring requi­re­ments, its busi­ness could be adver­se­ly impac­ted; AMD reli­es on third par­ties to manu­fac­tu­re its pro­ducts, and if they are unab­le to do so on a time­ly basis in suf­fi­ci­ent quan­ti­ties and using com­pe­ti­ti­ve tech­no­lo­gies, AMD’s busi­ness could be mate­ri­al­ly adver­se­ly affec­ted; fail­u­re to achie­ve 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 coin­ci­ding with signi­fi­cant indus­try tran­si­ti­ons; if AMD can­not gene­ra­te suf­fi­ci­ent reve­nue and ope­ra­ting cash flow or obtain exter­nal finan­cing, it may face a cash short­fall and be unab­le to make all of its plan­ned invest­ments in rese­arch and deve­lo­p­ment or other stra­te­gic invest­ments; the loss of a signi­fi­cant cus­to­mer may have a mate­ri­al adver­se effect on AMD; AMD’s rece­i­pt of reve­nue from its semi-cus­tom SoC pro­ducts is depen­dent upon its tech­no­lo­gy being desi­gned into third-par­ty pro­ducts and the suc­cess of tho­se pro­ducts; glo­bal eco­no­mic uncer­tain­ty may adver­se­ly impact AMD’s busi­ness and ope­ra­ting results; the mar­kets in which AMD’s pro­ducts are sold are high­ly com­pe­ti­ti­ve; AMD may not be able to gene­ra­te suf­fi­ci­ent cash to ser­vice its debt obli­ga­ti­ons or meet its working capi­tal requi­re­ments; AMD has a sub­stan­ti­al 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 affect its abi­li­ty to ope­ra­te its busi­ness; uncer­tain­ties invol­ving the orde­ring and ship­ment of AMD’s pro­ducts could mate­ri­al­ly adver­se­ly affect it; the demand for AMD’s pro­ducts depends in part on the mar­ket 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 adver­se effect on its results of ope­ra­ti­ons; AMD’s abi­li­ty to design and intro­du­ce new pro­ducts in a time­ly man­ner is depen­dent upon third-par­ty intel­lec­tu­al pro­per­ty; AMD depends on third-par­ty com­pa­nies for the design, manu­fac­tu­re and sup­ply of mother­boards, soft­ware and other com­pu­ter 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’s reli­an­ce on third-par­ty dis­tri­bu­tors and AIB part­ners sub­jects it to cer­tain risks; AMD’s ina­bi­li­ty to con­ti­nue to attract and retain qua­li­fied per­son­nel may hin­der its pro­duct deve­lo­p­ment pro­grams; AMD’s issu­an­ce to West Coast Hitech L.P. of war­rants to purcha­se 75 mil­li­on shares of AMD’s com­mon stock, if and when exer­cis­ed, will dilu­te the owners­hip inte­rests of AMD’s exis­ting stock­hol­ders, and the con­ver­si­on of the 2.125% Con­ver­ti­ble Seni­or Notes due 2026 may dilu­te the owners­hip inte­rest of AMD’s exis­ting stock­hol­ders, or may other­wi­se depress the pri­ce of AMD’s com­mon stock; in the event of a chan­ge of con­trol, AMD may not be able to repurcha­se its out­stan­ding debt as 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 have mate­ri­al­ly adver­se­ly affec­ted, and may con­ti­nue to mate­ri­al­ly adver­se­ly affect its busi­ness in the future; acqui­si­ti­ons, dive­s­ti­tures and/or joint ven­tures could dis­rupt its busi­ness, harm its finan­cial con­di­ti­on and ope­ra­ting results or dilu­te, or adver­se­ly affect the pri­ce of, its com­mon stock; AMD’s busi­ness is depen­dent upon the pro­per func­tio­n­ing of its inter­nal busi­ness pro­ces­ses and infor­ma­ti­on sys­tems and modi­fi­ca­ti­on or inter­rup­ti­on of such sys­tems may dis­rupt its busi­ness, pro­ces­ses and inter­nal con­trols; 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; if essen­ti­al equip­ment, mate­ri­als or manu­fac­tu­ring pro­ces­ses are not avail­ab­le to manu­fac­tu­re its pro­ducts, AMD could be mate­ri­al­ly adver­se­ly affec­ted; if AMD’s pro­ducts are not com­pa­ti­ble with some or all indus­try-stan­dard soft­ware and hard­ware, it 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 chain as it responds to chan­ges in cus­to­mer demand for its pro­ducts, its busi­ness could be mate­ri­al­ly adver­se­ly affec­ted; AMD out­sour­ces to third par­ties cer­tain sup­ply-chain logistics func­tions, inclu­ding por­ti­ons of its pro­duct dis­tri­bu­ti­on, trans­por­ta­ti­on manage­ment and infor­ma­ti­on tech­no­lo­gy sup­port ser­vices; the com­ple­ti­on and impact of the 2015 rest­ruc­tu­ring plan, its trans­for­ma­ti­on initia­ti­ves and any future rest­ruc­tu­ring actions could adver­se­ly affect it; AMD may incur future impairments of good­will; AMD’s world­wi­de ope­ra­ti­ons are sub­ject to poli­ti­cal, legal and eco­no­mic risks and natu­ral dis­as­ters, which could have a mate­ri­al adver­se effect on it; world­wi­de poli­ti­cal con­di­ti­ons may adver­se­ly affect demand for AMD’s pro­ducts; unfa­vor­able cur­ren­cy exchan­ge rate fluc­tua­tions could adver­se­ly affect AMD; AMD’s ina­bi­li­ty to effec­tively con­trol the sales of its pro­ducts on the gray mar­ket could have a mate­ri­al adver­se effect on it; if AMD can­not ade­qua­te­ly pro­tect its tech­no­lo­gy or other intel­lec­tu­al pro­per­ty in the United Sta­tes and abroad, through patents, copy­rights, tra­de secrets, trade­marks and other mea­su­res, it may lose a com­pe­ti­ti­ve advan­ta­ge and incur signi­fi­cant expen­ses; AMD is a par­ty to liti­ga­ti­on and may beco­me a par­ty to other claims or liti­ga­ti­on that could cau­se it to incur sub­stan­ti­al cos­ts or pay sub­stan­ti­al dama­ges or pro­hi­bit it from sel­ling its pro­ducts; AMD’s busi­ness 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 as 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 10‑Q for the quar­ter ended Sep­tem­ber 24, 2016.

AMD, the AMD Arrow logo, AMD Opte­ron, AMD Rade­on and com­bi­na­ti­ons the­re­of, are trade­marks of Advan­ced Micro Devices, Inc. Other names are for infor­ma­tio­nal pur­po­ses only and used to iden­ti­fy com­pa­nies and pro­ducts and may be trade­marks of their respec­ti­ve owner.

     
1.   In this ear­nings press release, in addi­ti­on to GAAP finan­cial results, AMD has pro­vi­ded non-GAAP finan­cial mea­su­res inclu­ding non-GAAP gross mar­gin, 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 non-GAAP free cash flow as sup­ple­men­tal 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 finan­cial mea­su­res becau­se it belie­ves this non-GAAP pre­sen­ta­ti­on makes it easier for inves­tors to com­pa­re its ope­ra­ting results for cur­rent and his­to­ri­cal peri­ods and also becau­se AMD belie­ves it assists inves­tors in com­pa­ring AMD’s per­for­mance across repor­ting peri­ods on a con­sis­tent basis by exclu­ding items that it does not 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 press release.
   
   
ADVANCED MICRO DEVICES, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(Mil­li­ons except per share amounts and percentages)  
   
  Three Mon­ths Ended     Year Ended  
  Decem­ber 31, 2016     Sep­tem­ber 24, 2016     Decem­ber 26, 2015     Decem­ber 31, 2016     Decem­ber 26, 2015  
Net reve­nue $ 1,106     $ 1,307     $ 958     $ 4,272     $ 3,991  
Cost of sales   755       1,248       675       3,274       2,911  
Gross mar­gin   351       59       283       998       1,080  
Gross mar­gin %   32 %     5 %     30 %     23 %     27 %
Rese­arch and development   264       259       229       1,008       947  
Mar­ke­ting, gene­ral and administrative   121       117       109       460       482  
Amor­tiz­a­ti­on of acqui­red intan­gi­ble assets   -       -       -       -       3  
Rest­ruc­tu­ring and other spe­cial char­ges, net   -       -       (6 )     (10 )     129  
Licen­sing gain   (31 )     (24 )     -       (88 )     -  
Ope­ra­ting loss   (3 )     (293 )     (49 )     (372 )     (481 )
Inte­rest expense   (34 )     (41 )     (41 )     (156 )     (160 )
Other inco­me (expen­se), net   (7 )     (63 )     (2 )     80       (5 )
Loss befo­re inco­me taxes   (44 )     (397 )     (92 )     (448 )     (646 )
Pro­vi­si­on for inco­me taxes   5       4       10       39       14  
Equi­ty in inco­me (loss) of ATMP JV   (2 )     (5 )     -       (10 )     -  
Net loss $ (51 )   $ (406 )   $ (102 )   $ (497 )   $ (660 )
Net loss per share                                      
  Basic $ (0.06 )   $ (0.50 )   $ (0.13 )   $ (0.60 )   $ (0.84 )
  Dilu­t­ed $ (0.06 )   $ (0.50 )   $ (0.13 )   $ (0.60 )   $ (0.84 )
Shares used in per share calculation                                      
  Basic   931       815       791       835       783  
  Dilu­t­ed   931       815       791       835       783  
                                       
ADVANCED MICRO DEVICES, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS  
(Mil­li­ons)  
   
  Three Mon­ths Ended     Year Ended  
  Decem­ber 31, 2016     Sep­tem­ber 24, 2016     Decem­ber 26, 2015     Decem­ber 31, 2016     Decem­ber 26, 2015  
Total com­pre­hen­si­ve loss $ (53 )   $ (406 )   $ (95 )   $ (494 )   $ (663 )
                                       
                                       
                                       
ADVANCED MICRO DEVICES, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS (1)(2)  
(Mil­li­ons)  
   
    Decem­ber 31,
2016
    Sep­tem­ber 24,
2016
    Decem­ber 26,
2015
 
Assets                        
Cur­rent assets:                        
  Cash and cash equivalents   $ 1,264     $ 1,258     $ 785  
  Accounts receiva­ble, net     311       640       533  
  Invent­ories, net     751       772       678  
  Pre­pay­ment and other — GLOBALFOUNDRIES     32       13       33  
  Pre­paid expenses     63       63       43  
  Other cur­rent assets     109       78       248  
    Total cur­rent assets     2,530       2,824       2,320  
Pro­per­ty, plant and equip­ment, net     164       161       188  
Good­will     289       289       278  
Invest­ment in ATMP JV     59       60       -  
Other assets     279       282       298  
Total Assets   $ 3,321     $ 3,616     $ 3,084  
                         
Lia­bi­li­ties and Stock­hol­ders’ Equi­ty (Defi­cit)                        
Cur­rent liabilities:                        
  Short-term debt   $ -     $ -     $ 230  
  Accounts paya­ble     440       582       279  
  Paya­ble to GLOBALFOUNDRIES     255       284       245  
  Paya­ble to ATMP JV     128       144       -  
  Accrued lia­bi­li­ties     391       384       472  
  Other cur­rent liabilities     69       25       124  
  Defer­red inco­me on ship­ments to distributors     63       54       53  
    Total cur­rent liabilities     1,346       1,473       1,403  
Long-term debt, net     1,435       1,632       2,007  
Other long-term liabilities     124       126       86  
                         
Stock­hol­ders’ equi­ty (defi­cit):                        
  Capi­tal stock:                        
    Com­mon stock, par value     9       9       8  
    Addi­tio­nal paid-in capital     8,334       8,258       7,017  
    Tre­a­su­ry stock, at cost     (119 )     (127 )     (123 )
  Accu­mu­la­ted deficit     (7,803 )     (7,752 )     (7,306 )
  Accu­mu­la­ted other com­pre­hen­si­ve loss     (5 )     (3 )     (8 )
    Total Stock­hol­ders’ equi­ty (defi­cit)     416       385       (412 )
Total Lia­bi­li­ties and Stock­hol­ders’ Equi­ty (Defi­cit)   $ 3,321     $ 3,616     $ 3,084  
                         
(1) Amounts reflec­ted adop­ti­on of FASB ASU 2015–17, Balan­ce Sheet Clas­si­fi­ca­ti­on of Defer­red Taxes begin­ning in the first quar­ter of 2016.  
   
(2) Amounts reflec­ted adop­ti­on of FASB ASU 2015-03, Sim­pli­fy­ing the Pre­sen­ta­ti­on of Debt Issu­an­ce Cos­ts begin­ning in the first quar­ter of 2016.  
   
   
   
ADVANCED MICRO DEVICES, INC.  
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS  
(Mil­li­ons)  
   
    Three Mon­ths Ended     Year Ended  
    Decem­ber 31,
2016
    Decem­ber 31,
2016
 
                 
Cash flows from ope­ra­ting activities:                
  Net loss   $ (51 )   $ (497 )
  Adjus­t­ments to recon­ci­le net loss to net cash pro­vi­ded by (used in) ope­ra­ting activities:                
    Net gain on sale of equi­ty inte­rests in ATMP JV     -       (146 )
    Equi­ty in loss of ATMP JV     1       2  
    Depre­cia­ti­on and amortization     34       133  
    Pro­vi­si­on for defer­red inco­me taxes     -       11  
    Stock-based com­pen­sa­ti­on expense     29       86  
    Non-cash inte­rest expense     10       21  
    Loss on debt redemption     7       68  
    Fair value of war­rant issued rela­ted to sixth amend­ment to the WSA     -       240  
    Other     (3 )     (8 )
  Chan­ges in ope­ra­ting assets and liabilities:                
    Accounts receiva­ble     329       222  
    Invent­ories     21       (73 )
    Pre­pay­ment and other — GLOBALFOUNDRIES     (19 )     1  
    Pre­paid expen­ses and other assets     (32 )     (166 )
    Paya­ble to ATMP JV     (16 )     128  
    Paya­ble to GLOBALFOUNDRIES     (29 )     10  
    Accounts paya­ble, accrued lia­bi­li­ties and other     (93 )     58  
Net cash pro­vi­ded by ope­ra­ting activities   $ 188     $ 90  
                 
Cash flows from inves­ting activities:                
  Purcha­ses of pro­per­ty, plant and equipment     (21 )     (77 )
  Net pro­ceeds from sale of equi­ty inte­rests in ATMP JV     (4 )     342  
  Other     (1 )     2  
Net cash pro­vi­ded by (used in) inves­ting activities   $ (26 )   $ 267  
                 
Cash flows from finan­cing activities:                
  Pro­ceeds from issu­an­ce of com­mon stock, net of issu­an­ce costs     (1 )     667  
  Pro­ceeds from issu­an­ce of con­ver­ti­ble seni­or notes, net of issu­an­ce costs     101       782  
  Pro­ceeds from issu­an­ce of com­mon stock under stock-based com­pen­sa­ti­on equi­ty plans     8       20  
  Repay­ments of long-term debt     (265 )     (1,113 )
  Repay­ments of bor­ro­wings, net     -       (230 )
  Other     1       (4 )
Net cash pro­vi­ded by (used in) finan­cing activities   $ (156 )   $ 122  
Net incre­a­se in cash and cash equivalents     6       479  
Cash and cash equi­va­lents at begin­ning of period   $ 1,258     $ 785  
Cash and cash equi­va­lents at end of period   $ 1,264     $ 1,264  
                 
                 
                 
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Mil­li­ons)
 
    Three Mon­ths Ended   Year Ended
Seg­ment and Cate­go­ry Information   Decem­ber 31, 2016   Sep­tem­ber 24, 2016   Decem­ber 26, 2015   Decem­ber 31, 2016   Decem­ber 26, 2015
                                         
  Com­pu­ting and Gra­phics (1)                                        
    Net reve­nue   $ 600     $ 472     $ 470     $ 1,967     $ 1,805  
    Ope­ra­ting loss   $ (21 )   $ (66 )   $ (99 )   $ (238 )   $ (502 )
                                           
  Enter­pri­se, Embed­ded and Semi-Cus­tom (2)                                        
    Net reve­nue   $ 506     $ 835     $ 488     $ 2,305     $ 2,186  
    Ope­ra­ting income   $ 47     $ 136     $ 59     $ 283     $ 215  
                                           
  All Other (3)                                        
    Net reve­nue     -       -       -       -       -  
    Ope­ra­ting loss   $ (29 )   $ (363 )   $ (9 )   $ (417 )   $ (194 )
                                           
  Total                                        
    Net reve­nue   $ 1,106     $ 1,307     $ 958     $ 4,272     $ 3,991  
    Ope­ra­ting loss   $ (3 )   $ (293 )   $ (49 )   $ (372 )   $ (481 )
                                         
                                         
Other Data                                        
                                         
  Depre­cia­ti­on and amor­tiz­a­ti­on, exclu­ding amor­tiz­a­ti­on of acqui­red intan­gi­ble assets   $ 34     $ 33     $ 34     $ 133     $ 164  
  Capi­tal additions   $ 21     $ 9     $ 32     $ 77     $ 96  
  Adjus­ted EBITDA (4)   $ 60     $ 103     $ (5 )   $ 177     $ (89 )
  Cash and cash equivalents   $ 1,264     $ 1,258     $ 785     $ 1,264     $ 785  
  Non-GAAP free cash flow (5)   $ 167     $ 20     $ 27     $ 13     $ (322 )
  Total assets   $ 3,321     $ 3,616     $ 3,084     $ 3,321     $ 3,084  
  Total debt   $ 1,435     $ 1,632     $ 2,237     $ 1,435     $ 2,237  
                                         
                                         
                               
(1) Com­pu­ting and Gra­phics seg­ment pri­ma­ri­ly inclu­des desk­top and note­book pro­ces­sors and chip­sets, dis­cre­te gra­phics pro­ces­sing units (GPUs) and pro­fes­sio­nal graphics.  
(2) Enter­pri­se, Embed­ded and Semi-Cus­tom seg­ment pri­ma­ri­ly inclu­des ser­ver and embed­ded pro­ces­sors, semi-cus­tom Sys­tem-on-Chip (SoC) pro­ducts and tech­no­lo­gy for game con­so­les. We also licen­se por­ti­ons of our 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 also inclu­ded char­ges rela­ted to: rest­ruc­tu­ring and other spe­cial char­ges, net for 2016, the fourth quar­ter of 2015 and 2015, the sixth amend­ment to the WSA with GF for the third quar­ter of 2016 and 2016 and amor­tiz­a­ti­on of acqui­red intan­gi­ble assets for 2015.  
                               
(4) Recon­ci­lia­ti­on of GAAP Ope­ra­ting Loss to Adjus­ted EBITDA*  
    Three Mon­ths Ended     Year Ended  
    Decem­ber 31, 2016     Sep­tem­ber 24, 2016     Decem­ber 26, 2015     Decem­ber 31, 2016     Decem­ber 26, 2015  
  GAAP ope­ra­ting loss $ (3 )   $ (293 )   $ (49 )   $ (372 )   $ (481 )
  Char­ge rela­ted to the sixth amend­ment to the WSA with GF   -       340       -       340       -  
  Rest­ruc­tu­ring and other spe­cial char­ges, net   -       -       (6 )     (10 )     129  
  Tech­no­lo­gy node tran­si­ti­on charge   -       -       -       -       33  
  Stock-based com­pen­sa­ti­on expense   29       23       16       86       63  
  Amor­tiz­a­ti­on of acqui­red intan­gi­ble assets   -       -       -       -       3  
  Depre­cia­ti­on and amortization   34       33       34       133       164  
  Adjus­ted EBITDA $ 60     $ 103     $ (5 )   $ 177     $ (89 )
                                         
(5) Non-GAAP free cash flow reconciliation**          
    Three Mon­ths Ended     Year Ended  
    Decem­ber 31, 2016     Sep­tem­ber 24, 2016     Decem­ber 26, 2015     Decem­ber 31, 2016     Decem­ber 26, 2015  
  GAAP net cash pro­vi­ded by (used in) ope­ra­ting activities $ 188     $ 29     $ 59     $ 90     $ (226 )
  Purcha­ses of pro­per­ty, plant and equipment   (21 )     (9 )     (32 )     (77 )     (96 )
  Non-GAAP free cash flow $ 167     $ 20     $ 27     $ 13     $ (322 )
                                         
                                         
* The Com­pa­ny pres­ents “Adjus­ted EBITDA” as a sup­ple­men­tal mea­su­re of its per­for­mance. Adjus­ted EBITDA for the Com­pa­ny is deter­mi­ned by adjus­ting ope­ra­ting inco­me (loss) for depre­cia­ti­on and amor­tiz­a­ti­on and stock-based com­pen­sa­ti­on expen­se. In addi­ti­on, the Com­pa­ny exclu­ded a char­ge rela­ted to the sixth amend­ment to the WSA with GF for the third quar­ter of 2016 and 2016, rest­ruc­tu­ring and other spe­cial char­ges, net for 2016, the fourth quar­ter of 2015 and 2015, a tech­no­lo­gy node tran­si­ti­on char­ge and amor­tiz­a­ti­on of acqui­red intan­gi­ble assets for 2015. The Com­pa­ny cal­cu­la­tes and com­mu­ni­ca­tes Adjus­ted EBITDA becau­se the Company’s manage­ment belie­ves it is of impor­t­ance to inves­tors and len­ders in rela­ti­on to its over­all capi­tal struc­tu­re and its abi­li­ty to bor­row addi­tio­nal funds. In addi­ti­on, the Com­pa­ny pres­ents Adjus­ted EBITDA becau­se it belie­ves this mea­su­re 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 Company’s cal­cu­la­ti­on of Adjus­ted EBITDA may or may not be con­sis­tent with the cal­cu­la­ti­on of this mea­su­re by other com­pa­nies in the same indus­try. Inves­tors should not view Adjus­ted 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 addi­ti­on, Adjus­ted EBITDA does not take into account chan­ges in cer­tain assets and lia­bi­li­ties as well as inte­rest and inco­me taxes that can affect cash flows.  
     
** The Com­pa­ny also pres­ents non-GAAP free cash flow as a sup­ple­men­tal mea­su­re of its per­for­mance. Non-GAAP free cash flow is deter­mi­ned by adjus­ting GAAP net cash pro­vi­ded by (used in) ope­ra­ting acti­vi­ties for capi­tal expen­dit­ures. The Com­pa­ny cal­cu­la­tes and com­mu­ni­ca­tes non-GAAP free cash flow in the finan­cial ear­nings press release becau­se the Company’s manage­ment belie­ves it is of impor­t­ance to inves­tors to under­stand the natu­re of the­se cash flows. The Company’s cal­cu­la­ti­on of non-GAAP free cash flow may or may not be con­sis­tent with the cal­cu­la­ti­on of this mea­su­re by other com­pa­nies in the same indus­try. Inves­tors should not view non-GAAP free cash flow as an alter­na­ti­ve to GAAP liqui­di­ty mea­su­res of cash flows from ope­ra­ting acti­vi­ties. The Com­pa­ny has pro­vi­ded recon­ci­lia­ti­ons wit­hin the ear­nings press release of the­se non-GAAP finan­cial mea­su­res to the most direct­ly com­pa­ra­ble GAAP finan­cial measures.  
     

Media Con­ta­ct
Drew Prai­rie
512–602-4425
drew.prairie@amd.com

Inves­tor Contact
Lau­ra Graves
408–749-5467
laura.graves@amd.com

Source: Advan­ced Micro Devices