AMD Reports Fourth Quarter and Full Year 2021 Financial Results

Record quar짯ter짯ly reve짯nue of $4.8B up 49% y/y; Record full year reve짯nue of $16.4B up 68%;
Gross mar짯gin expan짯ded and ope짯ra짯ting inco짯me more than dou짯bled from pri짯or year 

SANTA CLARA, Calif., Feb. 01, 2022 (GLOBE NEWSWIRE)  AMD (NASDAQ:AMD) today announ짯ced reve짯nue for the fourth quar짯ter of 2021 of $4.8 bil짯li짯on, ope짯ra짯ting inco짯me of $1.2 bil짯li짯on, net inco짯me of $974 mil짯li짯on and diluted ear짯nings per share of $0.80. On a non-GAAP(*) basis, ope짯ra짯ting inco짯me was $1.3 bil짯li짯on, net inco짯me was $1.1 bil짯li짯on and diluted ear짯nings per share was $0.92.

For full year 2021, the com짯pa짯ny repor짯ted reve짯nue of $16.4 bil짯li짯on, ope짯ra짯ting inco짯me of $3.6 bil짯li짯on, net inco짯me of $3.2 bil짯li짯on and diluted ear짯nings per share of $2.57. On a non-GAAP(*) basis, ope짯ra짯ting inco짯me was $4.1 bil짯li짯on, net inco짯me was $3.4 bil짯li짯on and diluted ear짯nings per share was $2.79.

GAAP Quar짯ter짯ly Finan짯cial Results

  Q4 2021 Q4 2020 Y/Y Q3 2021 Q/Q
Reve짯nue ($M) $4,826 $3,244 Up 49% $4,313 Up 12%
Gross pro짯fit ($M) $2,426 $1,451 Up 67% $2,086 Up 16%
Gross mar짯gin % 50% 45% Up 560 bps 48% Up 190 bps
Ope짯ra짯ting expen짯ses ($M) $1,223 $881 Up 39% $1,141 Up 7%
Ope짯ra짯ting inco짯me ($M) $1,207 $570 Up 112% 948 Up 27%
Ope짯ra짯ting margin % 25% 18% Up 7pp 22% Up 3pp
Tax valua짯ti짯on allo짯wan짯ce release bene짯fit ($M)(1) - $1,301 - - -
Net inco짯me ($M) $974 $1,781 Down 45% $923 Up 6%
Ear짯nings per share(1) $0.80 $1.45 Down 45% $0.75 Up 7%

Non-GAAP(*) Quar짯ter짯ly Finan짯cial Results

  Q4 2021 Q4 2020 Y/Y Q3 2021 Q/Q
Reve짯nue ($M) $4,826 $3,244 Up 49% $4,313 Up 12%
Gross pro짯fit ($M) $2,427 $1,452 Up 67% $2,087 Up 16%
Gross mar짯gin % 50% 45% Up 560 bps 48% Up 190 bps
Ope짯ra짯ting expen짯ses ($M) $1,103 $789 Up 40% $1,035 Up 7%
Ope짯ra짯ting inco짯me ($M) $1,328 $663 Up 100% $1,055 Up 26%
Ope짯ra짯ting margin % 27% 20% Up 7pp 24% Up 3pp
Net inco짯me ($M) $1,122 $636 Up 76% $893 Up 26%
Ear짯nings per share $0.92 $0.52 Up 77% $0.73 Up 26%

Annu짯al Finan짯cial Results

  GAAP Non-GAAP(*)
  2021 2020 Y/Y 2021 2020 Y/Y
Reve짯nue ($M) $16,434 $9,763 Up 68% $16,434 $9,763 Up 68%
Gross pro짯fit ($M) $7,929 $4,347 Up 82% $7,934 $4,353 Up 82%
Gross mar짯gin % 48% 45% Up 370 bps 48% 45% Up 370bps
Ope짯ra짯ting expen짯ses ($M) $4,293 $2,978 Up 44% $3,877 $2,696 Up 44%
Ope짯ra짯ting inco짯me ($M) $3,648 $1,369 Up 166% $4,069 $1,657 Up 146%
Ope짯ra짯ting margin % 22% 14% Up 8pp 25% 17% Up 8pp
Tax valua짯ti짯on allo짯wan짯ce release bene짯fit ($M)(1) - $1,301 - - - -
Net inco짯me ($M) $3,162 $2,490 Up 27% $3,435 $1,575 Up 118%
Ear짯nings per share(1) $2.57 $2.06 Up 25% $2.79 $1.29 Up 117%

 

(1) The fourth quar짯ter of 2020 included an inco짯me tax bene짯fit of $1.3 bil짯li짯on asso짯cia짯ted with a valua짯ti짯on allo짯wan짯ce release which con짯tri짯bu짯ted $1.06 per share to EPS for Q4 2020 and $1.07 per share to EPS for FY 2020 on a GAAP basis.

2021 was an out짯stan짯ding year for AMD with record annu짯al reve짯nue and pro짯fi짯ta짯bi짯li짯ty, said AMD Pre짯si짯dent and CEO Dr. Lisa Su. 쏣ach of our busi짯nesses per짯for짯med extre짯me짯ly well, with data cen짯ter reve짯nue doubling year-over-year dri짯ven by gro짯wing adop짯ti짯on of AMD EPYC pro짯ces짯sors across cloud and enter짯pri짯se cus짯to짯mers. We expect ano짯ther year of signi짯fi짯cant growth in 2022 as we ramp our cur짯rent port짯fo짯lio and launch our next gene짯ra짯ti짯on of PC, gam짯ing and data cen짯ter products.

Q4 2021 Results

  • Reve짯nue of $4.8 bil짯li짯on was up 49 per짯cent year-over-year and 12 per짯cent quar짯ter-over-quar짯ter dri짯ven by hig짯her reve짯nue in the Com짯pu짯ting and Gra짯phics and Enter짯pri짯se, Embedded and Semi-Cus짯tom segments.
  • Gross mar짯gin was 50 per짯cent, an increase of more than 5 per짯cen짯ta짯ge points year-over-year and appro짯xi짯m짯ate짯ly 2 per짯cen짯ta짯ge points quar짯ter-over-quar짯ter. The year-over-year and quar짯ter-over-quar짯ter increa짯ses were pri짯ma짯ri짯ly dri짯ven by a richer pro짯duct mix.
  • Ope짯ra짯ting inco짯me was $1.2 bil짯li짯on com짯pared to $570 mil짯li짯on a year ago and $948 mil짯li짯on in the pri짯or quar짯ter. Non-GAAP ope짯ra짯ting inco짯me was $1.3 bil짯li짯on com짯pared to $663 mil짯li짯on a year ago and $1.1 bil짯li짯on in the pri짯or quar짯ter. Ope짯ra짯ting inco짯me impro짯ve짯ments were pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue and gross mar짯gin expansion.
  • Net inco짯me was $974 mil짯li짯on com짯pared to $1.8 bil짯li짯on a year ago, which included a $1.3 bil짯li짯on inco짯me tax bene짯fit asso짯cia짯ted with a valua짯ti짯on allo짯wan짯ce release, and $923 mil짯li짯on in the pri짯or quar짯ter. Non-GAAP net inco짯me was $1.1 bil짯li짯on com짯pared to $636 mil짯li짯on a year ago and $893 mil짯li짯on in the pri짯or quarter.
  • Diluted ear짯nings per share was $0.80 com짯pared to $1.45 a year ago, which included a $1.06 per share inco짯me tax bene짯fit, and $0.75 in the pri짯or quar짯ter. Non-GAAP diluted ear짯nings per share was $0.92 com짯pared to $0.52 a year ago and $0.73 in the pri짯or quarter.
  • Cash, cash equi짯va짯lents and short-term invest짯ments were $3.6 bil짯li짯on at the end of the quar짯ter. The com짯pa짯ny repurcha짯sed $756 mil짯li짯on of com짯mon stock during the quarter.
  • Cash from ope짯ra짯ti짯ons was $822 mil짯li짯on in the quar짯ter com짯pared to $554 mil짯li짯on a year ago and $849 mil짯li짯on in the pri짯or quar짯ter. Free cash flow was $736 mil짯li짯on in the quar짯ter com짯pared to $480 mil짯li짯on a year ago and $764 mil짯li짯on in the pri짯or quar짯ter. Fourth quar짯ter cash from ope짯ra짯ti짯ons and free cash flow included stra짯te짯gic invest짯ments in long-term sup짯p짯ly chain capa짯ci짯ty to sup짯port future reve짯nue growth.

Quar짯ter짯ly Finan짯cial Seg짯ment Summary

  • Com짯pu짯ting and Gra짯phics seg짯ment reve짯nue was $2.6 bil짯li짯on, up 32 per짯cent year-over-year and up 8 per짯cent quar짯ter-over-quar짯ter. The year-over-year and quar짯ter-over-quar짯ter increa짯ses were dri짯ven by Ryzen꽓 and Rade짯on꽓 pro짯ces짯sor sales. 
    • Cli짯ent pro짯ces짯sor avera짯ge sel짯ling pri짯ce (ASP) increased year-over-year and quar짯ter-over-quar짯ter due to a richer mix of Ryzen pro짯ces짯sor sales.
    • GPU ASP increased year-over-year pri짯ma짯ri짯ly dri짯ven by Rade짯on pro짯duct sales and decreased quar짯ter-over-quar짯ter due to pro짯duct mix.
    • Ope짯ra짯ting inco짯me was $566 mil짯li짯on com짯pared to $420 mil짯li짯on a year ago and $513 mil짯li짯on in the pri짯or quar짯ter. Ope짯ra짯ting inco짯me impro짯ve짯ments were pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue, par짯ti짯al짯ly off짯set by hig짯her ope짯ra짯ting expenses.
  • Enter짯pri짯se, Embedded and Semi-Cus짯tom seg짯ment reve짯nue was $2.2 bil짯li짯on, up 75 per짯cent year-over-year and 17 per짯cent quar짯ter-over-quar짯ter dri짯ven by hig짯her EPYC꽓 and semi-cus짯tom pro짯ces짯sor sales. 
    • Ope짯ra짯ting inco짯me was $762 mil짯li짯on com짯pared to $243 mil짯li짯on a year ago and $542 mil짯li짯on in the pri짯or quar짯ter. Ope짯ra짯ting inco짯me impro짯ve짯ments were pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue and richer pro짯duct mix, par짯ti짯al짯ly off짯set by hig짯her ope짯ra짯ting expenses.
  • All Other ope짯ra짯ting loss was $121 mil짯li짯on as com짯pared to ope짯ra짯ting los짯ses of $93 mil짯li짯on a year ago and $107 mil짯li짯on in the pri짯or quarter.

2021 Annu짯al Results

  • Reve짯nue of $16.4 bil짯li짯on was up 68 per짯cent over 2020 dri짯ven by hig짯her reve짯nue in the Com짯pu짯ting and Gra짯phics and Enter짯pri짯se, Embedded and Semi-Cus짯tom segments.
  • Gross mar짯gin was 48 per짯cent, an increase of more than 3 per짯cen짯ta짯ge points over 2020. Gross mar짯gin expan짯si짯on was dri짯ven by a richer mix of EPYC, Rade짯on and Ryzen pro짯ces짯sor sales.
  • Ope짯ra짯ting inco짯me was $3.6 bil짯li짯on com짯pared to $1.4 bil짯li짯on in the pri짯or year. Non-GAAP ope짯ra짯ting inco짯me was $4.1 bil짯li짯on com짯pared to $1.7 bil짯li짯on in the pri짯or year. The ope짯ra짯ting inco짯me impro짯ve짯ment was pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue and gross mar짯gin expansion.
  • Net inco짯me was $3.2 bil짯li짯on com짯pared to $2.5 bil짯li짯on in the pri짯or year, which included a $1.3 bil짯li짯on inco짯me tax bene짯fit recor짯ded in the fourth quar짯ter of 2020. Non-GAAP net inco짯me was $3.4 bil짯li짯on com짯pared to $1.6 bil짯li짯on in the pri짯or year.
  • Diluted ear짯nings per share was $2.57 com짯pared to $2.06 in the pri짯or year (which included a $1.07 per share inco짯me tax bene짯fit). Non-GAAP diluted ear짯nings per share was $2.79 com짯pared to $1.29 in the pri짯or year.
  • Cash, cash equi짯va짯lents and short-term invest짯ments were $3.6 bil짯li짯on at the end of the year. The com짯pa짯ny repurcha짯sed $1.8 bil짯li짯on of com짯mon stock during 2021.
  • Cash from ope짯ra짯ti짯ons was $3.5 bil짯li짯on com짯pared to $1.1 bil짯li짯on in the pri짯or year. Free cash flow was $3.2 bil짯li짯on com짯pared to $777 mil짯li짯on in the pri짯or year. Annu짯al cash from ope짯ra짯ti짯ons and free cash flow in 2021 included stra짯te짯gic invest짯ments in long-term sup짯p짯ly chain capa짯ci짯ty to sup짯port future reve짯nue growth.

Recent PR Highlights

  • AMD announ짯ced it recei짯ved appr짯oval from the Sta짯te Admi짯nis짯tra짯ti짯on for Mar짯ket Regu짯la짯ti짯on (SAMR) of the People셲 Repu짯blic of Chi짯na for the acqui짯si짯ti짯on of Xilinx. AMD anti짯ci짯pa짯tes that the acqui짯si짯ti짯on will clo짯se in the first quar짯ter of 2022.
  • AMD con짯ti짯nues to dri짯ve strong momen짯tum in the data cen짯ter with gro짯wing adop짯ti짯on of powerful AMD EPYC pro짯ces짯sors, AMD Instinct꽓 acce짯le짯ra짯tors and data cen짯ter solu짯ti짯ons with new cus짯to짯mers and expan짯ded cloud offerings. 
    • Lea짯ding cloud pro짯vi짯ders expan짯ded their AMD-powered offe짯rings with more than 130 new public ins짯tances laun짯ching in the quar짯ter inclu짯ding: Ama짯zon Web Ser짯vices, Inc. (AWS) intro짯du짯ced the new Ama짯zon EC2 Hpc6a ins짯tances that make high per짯for짯mance com짯pu짯ting more acces짯si짯ble for cus짯to짯mers with com짯pu짯te-inten짯si짯ve workloads and the new gene짯ral-pur짯po짯se Ama짯zon EC2 M6a ins짯tancesGoog짯le Cloud laun짯ched mul짯ti짯ple gene짯ral pur짯po짯se and com짯pu짯te- and memo짯ry-inten짯si짯ve ins짯tances; IBM Cloud laun짯ched new bare metal ser짯vice offe짯rings for deman짯ding workloads and solu짯ti짯ons; and Micro짯soft Azu짯re announ짯ced the latest gene짯ra짯ti짯on of Dasv5 and Easv5 Azu짯re Vir짯tu짯al Machi짯nes (VMs) and new con짯fi짯den짯ti짯al VMs, DCasv5 and ECasv5.
    • AMD and Meta work짯ed tog짯e짯ther to defi짯ne an open, cloud-sca짯le, sin짯gle-socket ser짯ver based on AMD EYPC CPUs for Meta셲 newest 쏯orth Dome sys짯tems with lea짯der짯ship per짯for짯mance-per-watt across major workloads.
    • AMD announ짯ced the new AMD Instinct MI200 series acce짯le짯ra짯tors, the fas짯test acce짯le짯ra짯tors for HPC and AI appli짯ca짯ti짯ons. The MI200 series acce짯le짯ra짯tors are powe짯ring Oak Ridge Natio짯nal Laboratory셲 Fron짯tier super짯com짯pu짯ter, the first Exas짯ca짯le super짯com짯pu짯ter in the United States.
    • In the latest Top500 list, AMD now powers 73 super짯com짯pu짯ters, a more than 3x increase com짯pared to the Novem짯ber 2020 list. AMD also powers four out of the top 10 most powerful super짯com짯pu짯ters in the world, as well as the most powerful super짯com짯pu짯ter in EMEA.
    • NVIDIA is adop짯ting Ryzen꽓 Thre짯ad짯rip짯per꽓 PRO pro짯ces짯sors to help power next-gene짯ra짯ti짯on cloud gam짯ing experiences.
    • AMD announ짯ced the AMD Rade짯on PRO V620 GPU, deli짯ve짯ring powerful data cen짯ter visu짯al per짯for짯mance for 3D workloads, modern office pro짯duc짯ti짯vi짯ty appli짯ca짯ti짯ons and cloud gam짯ing, inclu짯ding Tencent셲 upco짯ming cloud gam짯ing service.
  • At its 2022 Pro짯duct Pre짯mie짯re event, AMD announ짯ced the AMD Ryzen 6000 Series pro짯ces짯sors, built on the high짯ly effi짯ci짯ent 6nm 쏾en 3+ core archi짯tec짯tu짯re, and inclu짯ding AMD RDNA꽓 2 archi짯tec짯tu짯re-based inte짯gra짯ted gra짯phics to pro짯vi짯de the fas짯test Ryzen mobi짯le pro짯ces짯sor expe짯ri짯ence ever. AMD expects first sys짯tem avai짯la짯bi짯li짯ty start짯ing in February.
  • AMD announ짯ced new updates to its gra짯phics pro짯ces짯sor lin짯e짯up and soft짯ware port짯fo짯lio, inclu짯ding new AMD Rade짯on RX 6000M Series and AMD Rade짯on RX 6000S Series mobi짯le gra짯phics for pre짯mi짯um and thin-and-light gam짯ing lap짯tops, three new AMD Rade짯on RX 6000 Series desk짯top gra짯phics cards for 1080p gam짯ing, and AMD Rade짯on Super Reso짯lu짯ti짯on, a new dri짯ver-based spa짯ti짯al ups짯ca짯ling tech짯no짯lo짯gy available in the upco짯ming update to the AMD Soft짯ware: Adre짯na짯lin Edi짯ti짯on application.
  • AMD deli짯ver짯ed a first look at its next wave of lea짯der짯ship data cen짯ter and desk짯top PC pro짯ces짯sors which will set the pace of indus짯try innovation. 
    • AMD pro짯vi짯ded a pre짯view of 3rd Gen AMD EPYC pro짯ces짯sors with AMD 3D V멌ache꽓, the 쏾en 4 pro짯ces짯sor core powe짯ring the next gene짯ra짯ti짯on of EPYC pro짯ces짯sors, code짯na짯med 쏥en짯oa, and the new 쏾en 4c pro짯ces짯sor core, which is desi짯gned for cloud nati짯ve workloads and will power the EPYC pro짯ces짯sor code짯na짯med 쏝er짯ga짯mo.
    • AMD also announ짯ced the first AMD Ryzen pro짯ces짯sors with AMD 3D V멌ache tech짯no짯lo짯gy to power incre짯di짯ble gam짯ing expe짯ri짯en짯ces and pre짯view짯ed its Ryzen 7000 Series pro짯ces짯sors, which will be based on the 5nm 쏾en 4 archi짯tec짯tu짯re and are expec짯ted to be available in the second half of 2022.
  • AMD was reco짯gni짯zed on Newsweek셲 America셲 Most Respon짯si짯ble Com짯pa짯nies 2022 list for envi짯ron짯men짯tal, social and cor짯po짯ra짯te gover짯nan짯ce efforts.

Cur짯rent Outlook
AMD셲 out짯look state짯ments are based on cur짯rent expec짯ta짯ti짯ons. The fol짯lo짯wing state짯ments are for짯ward-loo짯king and actu짯al results could dif짯fer mate짯ri짯al짯ly depen짯ding on mar짯ket con짯di짯ti짯ons and the fac짯tors set forth under 쏞au짯tio짯na짯ry State짯ment below.

For the first quar짯ter of 2022, AMD expects reve짯nue to be appro짯xi짯m짯ate짯ly $5.0 bil짯li짯on, plus or minus $100 mil짯li짯on, an increase of appro짯xi짯m짯ate짯ly 45 per짯cent year-over-year and appro짯xi짯m짯ate짯ly 4 per짯cent quar짯ter-over-quar짯ter. The year-over-year increase is expec짯ted to be dri짯ven by growth across all busi짯nesses. The quar짯ter-over-quar짯ter increase is expec짯ted to be dri짯ven by hig짯her ser짯ver and cli짯ent pro짯ces짯sor reve짯nue. AMD expects non-GAAP gross mar짯gin to be appro짯xi짯m짯ate짯ly 50.5 per짯cent in the first quar짯ter of 2022.

For the full year 2022, AMD expects reve짯nue to be appro짯xi짯m짯ate짯ly $21.5 bil짯li짯on, an increase of appro짯xi짯m짯ate짯ly 31 per짯cent over 2021 dri짯ven by growth across all busi짯nesses. AMD expects non-GAAP gross mar짯gin to be appro짯xi짯m짯ate짯ly 51 per짯cent for 2022.

AMD Tele짯con짯fe짯rence
AMD will hold a con짯fe짯rence call for the finan짯cial com짯mu짯ni짯ty at 2:00 p.m. PT (5:00 p.m. ET) today to dis짯cuss its fourth quar짯ter and full year 2021 finan짯cial results. AMD will pro짯vi짯de a real-time audio broad짯cast of the tele짯con짯fe짯rence on the Inves짯tor Rela짯ti짯ons page of its web짯site at www.amd.com.

 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In mil짯li짯ons, except per share data) (Unau짯di짯ted)        
    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
GAAP gross profit   $ 2,426     $ 2,086     $ 1,451     $ 7,929     $ 4,347  
GAAP gross margin %     50 %     48 %     45 %     48 %     45 %
Stock-based com짯pen짯sa짯ti짯on     1       1       1       5       6  
Non-GAAP gross profit   $ 2,427     $ 2,087     $ 1,452     $ 7,934     $ 4,353  
Non-GAAP gross margin %     50 %     48 %     45 %     48 %     45 %
                     
GAAP ope짯ra짯ting expenses   $ 1,223     $ 1,141     $ 881     $ 4,293     $ 2,978  
GAAP ope짯ra짯ting expenses/revenue %     25 %     26 %     27 %     26 %     31 %
Stock-based com짯pen짯sa짯ti짯on     111       98       78       374       268  
Acqui짯si짯ti짯on-rela짯ted costs     9       8       14       42       14  
Non-GAAP ope짯ra짯ting expenses   $ 1,103     $ 1,035     $ 789     $ 3,877     $ 2,696  
Non-GAAP ope짯ra짯ting expenses/revenue%     23 %     24 %     24 %     24 %     28 %
                     
GAAP ope짯ra짯ting income   $ 1,207     $ 948     $ 570     $ 3,648     $ 1,369  
GAAP ope짯ra짯ting margin %     25 %     22 %     18 %     22 %     14 %
Stock-based com짯pen짯sa짯ti짯on     112       99       79       379       274  
Acqui짯si짯ti짯on-rela짯ted costs     9       8       14       42       14  
Non-GAAP ope짯ra짯ting income   $ 1,328     $ 1,055     $ 663     $ 4,069     $ 1,657  
Non-GAAP ope짯ra짯ting margin %     27 %     24 %     20 %     25 %     17 %

 

    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
GAAP net inco짯me / ear짯nings per share   $ 974     $ 0.80     $ 923     $ 0.75     $ 1,781     $ 1.45     $ 3,162     $ 2.57     $ 2,490     $ 2.06  
Loss on debt redemption/conversion                             16       0.01       7             54       0.04  
(Gains) los짯ses on equi짯ty invest짯ments, net     (4 )           (60 )     (0.05 )                 (56 )     (0.04 )            
Non-cash inte짯rest expen짯se rela짯ted to con짯ver짯ti짯ble debt                                                     6        
Stock-based com짯pen짯sa짯ti짯on     112       0.09       99       0.08       79       0.06       379       0.31       274       0.22  
Equi짯ty inco짯me in investee                 (2 )           (3 )           (6 )           (5 )      
Acqui짯si짯ti짯on-rela짯ted costs     9             8       0.01       14       0.01       42       0.03       14       0.01  
Release of valua짯ti짯on allo짯wan짯ce on defer짯red tax assets                             (1,301 )     (1.06 )                 (1,301 )     (1.07 )
Inco짯me tax provision     31       0.03       (75 )     (0.06 )     50       0.05       (93 )     (0.08 )     43       0.03  
Non-GAAP net inco짯me / ear짯nings per share   $ 1,122     $ 0.92     $ 893     $ 0.73     $ 636     $ 0.52     $ 3,435     $ 2.79     $ 1,575     $ 1.29  
                                         
Shares used and net inco짯me adjus짯t짯ment in ear짯nings per share cal짯cu짯la짯ti짯on (1)                                        
Shares used in per share cal짯cu짯la짯ti짯on (GAAP)     1,222       1,230       1,226       1,229       1,207  
Inte짯rest expen짯se add-back to GAAP net income   $     $     $     $     $ 1  
Shares used in per share cal짯cu짯la짯ti짯on (Non-GAAP)     1,222       1,230       1,232       1,229       1,228  
Inte짯rest expen짯se add-back to Non-GAAP net income   $     $     $     $     $ 4  

 

(1)   For the three months ended Decem짯ber 26, 2020, GAAP diluted EPS cal짯cu짯la짯ti짯ons include 3 mil짯li짯on shares rela짯ted to the assu짯med con짯ver짯si짯on of the Company셲 2026 Con짯ver짯ti짯ble Notes and the asso짯cia짯ted $0 mil짯li짯on inte짯rest expen짯se add-back to net inco짯me under the 쐇f con짯ver짯ted method.

For the year ended Decem짯ber 26, 2020, GAAP diluted EPS cal짯cu짯la짯ti짯ons include 3 mil짯li짯on shares rela짯ted to the assu짯med con짯ver짯si짯on of the Company셲 2026 Con짯ver짯ti짯ble Notes and the asso짯cia짯ted $1 mil짯li짯on inte짯rest expen짯se add-back to net inco짯me under the 쐇f con짯ver짯ted method.

For the three months ended Decem짯ber 26, 2020, Non-GAAP diluted EPS cal짯cu짯la짯ti짯ons include 9 mil짯li짯on shares rela짯ted to the assu짯med con짯ver짯si짯on of the Company셲 2026 Con짯ver짯ti짯ble Notes and the asso짯cia짯ted $0 mil짯li짯on add-back to net inco짯me under the 쐇f con짯ver짯ted method.

For the year ended Decem짯ber 26, 2020. Non-GAAP diluted EPS cal짯cu짯la짯ti짯ons include 24 mil짯li짯on shares rela짯ted to the assu짯med con짯ver짯si짯on of the Company셲 2026 Con짯ver짯ti짯ble Notes and the asso짯cia짯ted $4 mil짯li짯on inte짯rest expen짯se add-back to net inco짯me under the 쐇f con짯ver짯ted method.

     

About AMD

For more than 50 years, AMD has dri짯ven inno짯va짯ti짯on in high-per짯for짯mance com짯pu짯ting, gra짯phics and visua짯liza짯ti짯on tech짯no짯lo짯gies the buil짯ding blocks for gam짯ing, immersi짯ve plat짯forms and the data cen짯ter. Hundreds of mil짯li짯ons of con짯su짯mers, lea짯ding For짯tu짯ne 500 busi짯nesses and cut짯ting-edge sci짯en짯ti짯fic rese짯arch faci짯li짯ties around the world rely on AMD tech짯no짯lo짯gy dai짯ly to impro짯ve how they live, work and play. AMD employees around the world are focu짯sed on buil짯ding gre짯at pro짯ducts that push the boun짯da짯ries of what is pos짯si짯ble. For more infor짯ma짯ti짯on about how AMD is enab짯ling today and inspi짯ring tomor짯row, visit the AMD (NASDAQ: AMDweb짯siteblogFace짯book and Twit짯ter pages.

Cau짯tio짯na짯ry Statement

This press release con짯ta짯ins for짯ward-loo짯king state짯ments con짯cer짯ning Advan짯ced Micro Devices, Inc. (AMD) such as the fea짯tures, func짯tion짯a짯li짯ty, per짯for짯mance, avai짯la짯bi짯li짯ty, timing and expec짯ted bene짯fits of AMD pro짯ducts; AMD셲 expec짯ted first quar짯ter 2022 and fis짯cal 2022 finan짯cial out짯look, inclu짯ding reve짯nue and non-GAAP gross mar짯gin and expec짯ted dri짯vers based on cur짯rent expec짯ta짯ti짯ons; expec짯ted growth in 2022; and the expec짯ted timing of the clo짯se of the Xilinx, Inc. tran짯sac짯tion, which are made pur짯su짯ant to the Safe Har짯bor pro짯vi짯si짯ons of the Pri짯va짯te Secu짯ri짯ties Liti짯ga짯ti짯on Reform Act of 1995. For짯ward-loo짯king state짯ments are com짯mon짯ly iden짯ti짯fied by words such as 쐗ould, 쐌ay, 쐃xpects, 쐀elie짯ves, 쐏lans, 쐇ntends, 쐏ro짯jects and other terms with simi짯lar mea짯ning. Inves짯tors are cau짯tio짯ned that the for짯ward-loo짯king state짯ments in this press release are based on cur짯rent beliefs, assump짯ti짯ons and expec짯ta짯ti짯ons, speak only as of the date of this press release and invol짯ve risks and uncer짯tain짯ties that could cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly from cur짯rent expec짯ta짯ti짯ons. Such state짯ments are sub짯ject to cer짯tain known and unknown risks and uncer짯tain짯ties, many of which are dif짯fi짯cult to pre짯dict and gene짯ral짯ly bey짯ond AMD셲 con짯trol, that could cau짯se actu짯al results and other future events to dif짯fer mate짯ri짯al짯ly from tho짯se expres짯sed in, or impli짯ed or pro짯jec짯ted by, the for짯ward-loo짯king infor짯ma짯ti짯on and state짯ments. Mate짯ri짯al fac짯tors that could cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly from cur짯rent expec짯ta짯ti짯ons include, wit짯hout limi짯ta짯ti짯on, the fol짯lo짯wing: Intel Corporation셲 domi짯nan짯ce of the micro짯pro짯ces짯sor mar짯ket and its aggres짯si짯ve busi짯ness prac짯ti짯ces; glo짯bal eco짯no짯mic uncer짯tain짯ty; loss of a signi짯fi짯cant cus짯to짯mer; impact of the COVID-19 pan짯de짯mic on AMD셲 busi짯ness, finan짯cial con짯di짯ti짯on and results of ope짯ra짯ti짯ons; com짯pe짯ti짯ti짯ve mar짯kets in which AMD셲 pro짯ducts are sold; mar짯ket con짯di짯ti짯ons of the indus짯tries in which AMD pro짯ducts are sold; cycli짯cal natu짯re of the semi짯con짯duc짯tor indus짯try; quar짯ter짯ly and sea짯so짯nal sales pat짯terns; AMD셲 abili짯ty to ade짯qua짯te짯ly pro짯tect its tech짯no짯lo짯gy or other intellec짯tu짯al pro짯per짯ty; unfa짯vorable cur짯ren짯cy exch짯an짯ge rate fluc짯tua짯tions; abili짯ty of third par짯ty manu짯fac짯tu짯r짯ers to manu짯fac짯tu짯re AMD셲 pro짯ducts on a time짯ly basis in suf짯fi짯ci짯ent quan짯ti짯ties and using com짯pe짯ti짯ti짯ve tech짯no짯lo짯gies; avai짯la짯bi짯li짯ty of essen짯ti짯al equip짯ment, mate짯ri짯als, sub짯stra짯tes or manu짯fac짯tu짯ring pro짯ces짯ses; abili짯ty to achie짯ve expec짯ted manu짯fac짯tu짯ring yields for AMD셲 pro짯ducts; AMD셲 abili짯ty to intro짯du짯ce pro짯ducts on a time짯ly basis with expec짯ted fea짯tures and per짯for짯mance levels; AMD셲 abili짯ty to gene짯ra짯te reve짯nue from its semi-cus짯tom SoC pro짯ducts; poten짯ti짯al secu짯ri짯ty vul짯nerabi짯li짯ties; poten짯ti짯al secu짯ri짯ty inci짯dents inclu짯ding IT outa짯ges, data loss, data brea짯ches and cyber-attacks; uncer짯tain짯ties invol짯ving the orde짯ring and ship짯ment of AMD셲 pro짯ducts; AMD셲 reli짯ance on third-par짯ty intellec짯tu짯al pro짯per짯ty to design and intro짯du짯ce new pro짯ducts in a time짯ly man짯ner; AMD셲 reli짯ance on third-par짯ty com짯pa짯nies for design, manu짯fac짯tu짯re and sup짯p짯ly of mother짯boards, soft짯ware and other com짯pu짯ter plat짯form com짯pon짯ents; AMD셲 reli짯ance on Micro짯soft and other soft짯ware ven짯dors sup짯port to design and deve짯lop soft짯ware to run on AMD셲 pro짯ducts; AMD셲 reli짯ance on third-par짯ty dis짯tri짯bu짯tors and add-in-board part짯ners; impact of modi짯fi짯ca짯ti짯on or inter짯rup짯ti짯on of AMD셲 inter짯nal busi짯ness pro짯ces짯ses and infor짯ma짯ti짯on sys짯tems; com짯pa짯ti짯bi짯li짯ty of AMD셲 pro짯ducts with some or all indus짯try-stan짯dard soft짯ware and hard짯ware; cos짯ts rela짯ted to defec짯ti짯ve pro짯ducts; effi짯ci짯en짯cy of AMD셲 sup짯p짯ly chain; AMD셲 abili짯ty to rely on third par짯ty sup짯p짯ly-chain logi짯stics func짯tions; AMD셲 abili짯ty to effec짯tively con짯trol sales of its pro짯ducts on the gray mar짯ket; impact of govern짯ment actions and regu짯la짯ti짯ons such as export admi짯nis짯tra짯ti짯on regu짯la짯ti짯ons, tariffs and trade pro짯tec짯tion mea짯su짯res; AMD셲 abili짯ty to rea짯li짯ze its defer짯red tax assets; poten짯ti짯al tax lia짯bi짯li짯ties; cur짯rent and future claims and liti짯ga짯ti짯on; impact of envi짯ron짯men짯tal laws, con짯flict mine짯rals-rela짯ted pro짯vi짯si짯ons and other laws or regu짯la짯ti짯ons; impact of acqui짯si짯ti짯ons, joint ven짯tures and/or invest짯ments on AMD셲 busi짯ness, inclu짯ding the announ짯ced acqui짯si짯ti짯on of Xilinx, and abili짯ty to inte짯gra짯te acqui짯red busi짯nesses; AMD셲 abili짯ty to com짯ple짯te the Xilinx mer짯ger; impact of the announce짯ment and pen짯den짯cy of the Xilinx mer짯ger on AMD셲 busi짯ness; impact of any impair짯ment of the com짯bi짯ned company셲 assets on the com짯bi짯ned company셲 finan짯cial posi짯ti짯on and results of ope짯ra짯ti짯on; rest짯ric짯tions impo짯sed by agree짯ments gover짯ning AMD셲 notes and the revol짯ving cre짯dit faci짯li짯ty; AMD셲 indeb짯ted짯ness; AMD셲 abili짯ty to gene짯ra짯te suf짯fi짯ci짯ent cash to meet its working capi짯tal requi짯re짯ments or gene짯ra짯te suf짯fi짯ci짯ent reve짯nue and ope짯ra짯ting cash flow to make all of its plan짯ned R&D or stra짯te짯gic invest짯ments; poli짯ti짯cal, legal, eco짯no짯mic risks and natu짯ral dis짯as짯ters; future impairm짯ents of good짯will and tech짯no짯lo짯gy licen짯se purcha짯ses; AMD셲 abili짯ty to attract and retain qua짯li짯fied per짯son짯nel; AMD셲 stock pri짯ce vola짯ti짯li짯ty; and world짯wi짯de poli짯ti짯cal con짯di짯ti짯ons. Inves짯tors are urged to review in detail the risks and uncer짯tain짯ties in AMD셲 Secu짯ri짯ties and Exch짯an짯ge Com짯mis짯si짯on filings, inclu짯ding but not limi짯t짯ed to AMD셲 most recent reports on Forms 10멚 and 10멡.

(*) In this ear짯nings press release, in addi짯ti짯on to GAAP finan짯cial results, AMD has pro짯vi짯ded non-GAAP finan짯cial mea짯su짯res inclu짯ding non-GAAP gross pro짯fit, non-GAAP ope짯ra짯ting expen짯ses, non-GAAP ope짯ra짯ting inco짯me, non-GAAP net inco짯me and non-GAAP ear짯nings per share. AMD uses a nor짯ma짯li짯zed tax rate in its com짯pu짯ta짯ti짯on of the non-GAAP inco짯me tax pro짯vi짯si짯on to pro짯vi짯de bet짯ter con짯sis짯ten짯cy across the report짯ing peri짯ods. For fis짯cal 2021, AMD uses a non-GAAP tax rate of 15%, which excludes the tax impact of pre-tax non-GAAP adjus짯t짯ments. AMD also pro짯vi짯ded adjus짯ted EBITDA and free cash flow as sup짯ple짯men짯tal non-GAAP mea짯su짯res of its per짯for짯mance. The짯se items are defi짯ned in the foot짯no짯tes to the sel짯ec짯ted cor짯po짯ra짯te data tables pro짯vi짯ded at the end of this ear짯nings press release. AMD is pro짯vi짯ding the짯se finan짯cial mea짯su짯res becau짯se it belie짯ves this non-GAAP pre짯sen짯ta짯ti짯on makes it easier for inves짯tors to compa짯re its ope짯ra짯ting results for cur짯rent and his짯to짯ri짯cal peri짯ods and also becau짯se AMD belie짯ves it assists inves짯tors in com짯pa짯ring AMD셲 per짯for짯mance across report짯ing peri짯ods on a con짯sis짯tent basis by exclu짯ding items that it does not belie짯ve are indi짯ca짯ti짯ve of its core ope짯ra짯ting per짯for짯mance and for the other reasons descri짯bed in the foot짯no짯tes to the sel짯ec짯ted data tables. The non-GAAP finan짯cial mea짯su짯res dis짯c짯lo짯sed in this ear짯nings press release should be view짯ed in addi짯ti짯on to and not as a sub짯sti짯tu짯te for or supe짯ri짯or to AMD셲 repor짯ted results pre짯pared in accordance with GAAP and should be read only in con짯junc짯tion with AMD셲 Con짯so짯li짯da짯ted Finan짯cial State짯ments pre짯pared in accordance with GAAP. The짯se non-GAAP finan짯cial mea짯su짯res refe짯ren짯ced are recon짯ci짯led to their most direct짯ly com짯pa짯ra짯ble GAAP finan짯cial mea짯su짯res in the data tables at the end of this ear짯nings press release. This ear짯nings press release also con짯ta짯ins for짯ward-loo짯king non-GAAP gross mar짯gin con짯cer짯ning AMD셲 finan짯cial out짯look, which is based on cur짯rent expec짯ta짯ti짯ons as of Febru짯ary 1, 2022 and assump짯ti짯ons and beliefs that invol짯ve num짯e짯rous risks and uncer짯tain짯ties. AMD under짯ta짯kes no intent or obli짯ga짯ti짯on to publicly update or revi짯se its out짯look state짯ments as a result of new infor짯ma짯ti짯on, future events or other짯wi짯se, except as may be requi짯red by law.

AMD, the AMD Arrow logo, EPYC, Rade짯on, Ryzen, Instinct, Thre짯ad짯rip짯per and com짯bi짯na짯ti짯ons the짯reof, are trade짯marks of Advan짯ced Micro Devices, Inc. Other names are for infor짯ma짯tio짯nal pur짯po짯ses only and used to iden짯ti짯fy com짯pa짯nies and pro짯ducts and may be trade짯marks of their respec짯ti짯ve owner.

 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Mil짯li짯ons except per share amounts and per짯cen짯ta짯ges) (Unau짯di짯ted)
         
    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
Net reve짯nue   $ 4,826     $ 4,313     $ 3,244     $ 16,434     $ 9,763  
Cost of sales     2,400       2,227       1,793       8,505       5,416  
Gross pro짯fit     2,426       2,086       1,451       7,929       4,347  
Gross mar짯gin %     50 %     48 %     45 %     48 %     45 %
Rese짯arch and development     811       765       573       2,845       1,983  
Mar짯ke짯ting, gene짯ral and administrative     412       376       308       1,448       995  
Licen짯sing gain     (4 )     (3 )           (12 )      
Ope짯ra짯ting income     1,207       948       570       3,648       1,369  
Inte짯rest expense     (8 )     (7 )     (9 )     (34 )     (47 )
Other inco짯me (expen짯se), net     4       62       (15 )     55       (47 )
Inco짯me befo짯re inco짯me taxes and equi짯ty income     1,203       1,003       546       3,669       1,275  
Inco짯me tax provision     229       82       (1,232 )     513       (1,210 )
Equi짯ty inco짯me in investee           2       3       6       5  
Net Inco짯me   $ 974     $ 923     $ 1,781     $ 3,162     $ 2,490  
Ear짯nings per share                    
Basic   $ 0.81     $ 0.76     $ 1.48     $ 2.61     $ 2.10  
Diluted   $ 0.80     $ 0.75     $ 1.45     $ 2.57     $ 2.06  
Shares used in per share calculation                    
Basic     1,208       1,214       1,205       1,213       1,184  
Diluted     1,222       1,230       1,226       1,229       1,207  
                                         

 

 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Mil짯li짯ons) (Unau짯di짯ted)
         
    Decem짯ber 25,
2021
  Decem짯ber 26,
2020
ASSETS        
Cur짯rent assets:        
Cash and cash equivalents   $ 2,535     $ 1,595  
Short-term invest짯ments     1,073       695  
Accounts receiva짯ble, net     2,706       2,066  
Invent짯ories     1,955       1,399  
Receiv짯a짯bles from rela짯ted parties     2       10  
Pre짯paid expen짯ses and other cur짯rent assets     312       378  
Total cur짯rent assets     8,583       6,143  
Pro짯per짯ty and equip짯ment, net     702       641  
Ope짯ra짯ting lea짯se right-of-use assets     367       208  
Good짯will     289       289  
Invest짯ment: equi짯ty method     69       63  
Defer짯red tax assets     931       1,245  
Other non-cur짯rent assets     1,478       373  
Total Assets   $ 12,419     $ 8,962  
         
LIABILITIES AND STOCKHOLDERS EQUITY        
Cur짯rent liabilities:        
Accounts paya짯ble     1,321       468  
Paya짯bles to rela짯ted parties     85       78  
Accrued lia짯bi짯li짯ties     2,424       1,796  
Short-term debt     312        
Other cur짯rent liabilities     98       75  
Total cur짯rent liabilities     4,240       2,417  
Long-term debt, net     1       330  
Long-term ope짯ra짯ting lea짯se liabilities     348       201  
Other long-term liabilities     333       177  
         
Stock짯hol짯ders equity:        
Capi짯tal stock:        
Com짯mon stock, par value     12       12  
Addi짯tio짯nal paid-in capital     11,069       10,544  
Tre짯asu짯ry stock, at cost     (2,130 )     (131 )
Accu짯mu짯la짯ted defi짯cit(1)     (1,451 )     (4,605 )
Accu짯mu짯la짯ted other com짯pre짯hen짯si짯ve income     (3 )     17  
Total stock짯hol짯ders equity   $ 7,497     $ 5,837  
Total Lia짯bi짯li짯ties and Stock짯hol짯ders equity   $ 12,419     $ 8,962  

 

(1)   During the first quar짯ter of 2021, the Com짯pa짯ny adopted ASU 2019-12, Inco짯me Taxes (Topic 740): Sim짯pli짯fy짯ing the Accoun짯ting for Inco짯me Taxes, using the modi짯fied retro짯s짯pec짯ti짯ve adop짯ti짯on method, which resul짯ted in $8 mil짯li짯on of defer짯red tax lia짯bi짯li짯ty asso짯cia짯ted with book-tax dif짯fe짯ren짯ces in a for짯eign equi짯ty method invest짯ment reco짯gni짯zed in Accu짯mu짯la짯ted deficit.
     

 

 
ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Mil짯li짯ons) (Unau짯di짯ted)
         
    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
Net cash pro짯vi짯ded by (used in)                    
Ope짯ra짯ting activities   $ 822     $ 849     $ 554     $ 3,521     $ 1,071  
Inves짯t짯ing activities   $     $ (83 )   $ (294 )   $ (686 )   $ (952 )
Finan짯cing activities   $ (727 )   $ (949 )   $ 35     $ (1,895 )   $ 6  
                                         

 

 
SELECTED CORPORATE DATA
(Mil짯li짯ons) (Unau짯di짯ted)
         
    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
Seg짯ment and Cate짯go짯ry Information                    
Com짯pu짯ting and Gra짯phics(1)                    
Net reve짯nue   $ 2,584     $ 2,398     $ 1,960     $ 9,332     $ 6,432  
Ope짯ra짯ting income   $ 566     $ 513     $ 420     $ 2,090     $ 1,266  
Enter짯pri짯se, Embedded and Semi-Cus짯tom(2)                    
Net reve짯nue   $ 2,242     $ 1,915     $ 1,284     $ 7,102     $ 3,331  
Ope짯ra짯ting income   $ 762     $ 542     $ 243     $ 1,979     $ 391  
All Other(3)                    
Net reve짯nue   $     $     $     $     $  
Ope짯ra짯ting loss   $ (121 )   $ (107 )   $ (93 )   $ (421 )   $ (288 )
Total                    
Net reve짯nue   $ 4,826     $ 4,313     $ 3,244     $ 16,434     $ 9,763  
Ope짯ra짯ting income   $ 1,207     $ 948     $ 570     $ 3,648     $ 1,369  
                     
                     
Other Data                    
Capi짯tal expenditures   $ 86     $ 85     $ 74     $ 301     $ 294  
Adjus짯ted EBITDA(4)   $ 1,446     $ 1,152     $ 753     $ 4,476     $ 1,969  
Cash, cash equi짯va짯lents and short-term investments   $ 3,608     $ 3,608     $ 2,290     $ 3,608     $ 2,290  
Free cash flow(5)   $ 736     $ 764     $ 480     $ 3,220     $ 777  
Total assets   $ 12,419     $ 11,153     $ 8,962     $ 12,419     $ 8,962  
Total debt   $ 313     $ 313     $ 330     $ 313     $ 330  

 

(1)   The Com짯pu짯ting and Gra짯phics seg짯ment, which pri짯ma짯ri짯ly includes desk짯top and note짯book pro짯ces짯sors and chip짯sets, dis짯crete and inte짯gra짯ted gra짯phics pro짯ces짯sing units (GPUs), data cen짯ter and pro짯fes짯sio짯nal GPUs and deve짯lo짯p짯ment ser짯vices. From time to time, the Com짯pa짯ny may also sell or licen짯se por짯ti짯ons of its IP portfolio.
   
(2)   The Enter짯pri짯se, Embedded and Semi-Cus짯tom seg짯ment, which pri짯ma짯ri짯ly includes ser짯ver and embedded pro짯ces짯sors, semi-cus짯tom Sys짯tem-on-Chip (SoC) pro짯ducts, deve짯lo짯p짯ment ser짯vices and tech짯no짯lo짯gy for game con짯so짯les. From time to time, the Com짯pa짯ny may also sell or licen짯se por짯ti짯ons of its IP portfolio.
   
(3)   All Other cate짯go짯ry pri짯ma짯ri짯ly includes cer짯tain expen짯ses and cre짯dits that are not allo짯ca짯ted to any of the ope짯ra짯ting seg짯ments. Also included in this cate짯go짯ry is stock-based com짯pen짯sa짯ti짯on expen짯se and acqui짯si짯ti짯on-rela짯ted costs.
   
(4)   Recon짯ci짯lia짯ti짯on of GAAP Net Inco짯me to Adjus짯ted EBITDA*

 

    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
GAAP net income   $ 974     $ 923     $ 1,781     $ 3,162     $ 2,490  
Inte짯rest expense     8       7       9       34       47  
Other (inco짯me) expen짯se, net     (4 )     (62 )     15       (55 )     47  
Inco짯me tax pro짯vi짯si짯on (bene짯fit)     229       82       (1,232 )     513       (1,210 )
Equi짯ty inco짯me in investee           (2 )     (3 )     (6 )     (5 )
Stock-based com짯pen짯sa짯ti짯on     112       99       79       379       274  
Depre짯cia짯ti짯on and amortization     118       97       90       407       312  
Acqui짯si짯ti짯on-rela짯ted costs     9       8       14       42       14  
Adjus짯ted EBITDA   $ 1,446     $ 1,152     $ 753     $ 4,476     $ 1,969  

 

(5)   Recon짯ci짯lia짯ti짯on of GAAP Net Cash Pro짯vi짯ded by Ope짯ra짯ting Acti짯vi짯ties to Free Cash Flow**

 

    Three Months Ended   Year Ended
    Decem짯ber 25,
2021
  Sep짯tem짯ber 25,
2021
  Decem짯ber 26,
2020
  Decem짯ber 25,
2021
  Decem짯ber 26,
2020
GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities   $ 822     $ 849     $ 554     $ 3,521     $ 1,071  
Ope짯ra짯ting cash flow margin %     17 %     20 %     17 %     21 %     11 %
Purcha짯ses of pro짯per짯ty and equipment     (86 )     (85 )     (74 )     (301 )     (294 )
Free cash flow   $ 736     $ 764     $ 480     $ 3,220     $ 777  
Free cash flow margin %     15 %     18 %     15 %     20 %     8 %

 

*   The Com짯pa짯ny pres짯ents 쏛djus짯ted EBITDA as a sup짯ple짯men짯tal mea짯su짯re of its per짯for짯mance. Adjus짯ted EBITDA for the Com짯pa짯ny is deter짯mi짯ned by adjus짯ting GAAP net inco짯me for inte짯rest expen짯se, other inco짯me (expen짯se), net, inco짯me tax pro짯vi짯si짯on, equi짯ty inco짯me in inves짯tee, stock-based com짯pen짯sa짯ti짯on, and depre짯cia짯ti짯on and amor짯tiza짯ti짯on expen짯se. The Com짯pa짯ny also included acqui짯si짯ti짯on-rela짯ted cos짯ts for the three months ended Decem짯ber 25, 2021, Sep짯tem짯ber 25, 2021 and Decem짯ber 26, 2020, and for the year ended Decem짯ber 25, 2021 and Decem짯ber 26, 2020. The Com짯pa짯ny cal짯cu짯la짯tes and pres짯ents Adjus짯ted EBITDA becau짯se manage짯ment belie짯ves it is of importance to inves짯tors and len짯ders in rela짯ti짯on to its over짯all capi짯tal struc짯tu짯re and its abili짯ty to bor짯row addi짯tio짯nal funds. In addi짯ti짯on, the Com짯pa짯ny pres짯ents Adjus짯ted EBITDA becau짯se it belie짯ves this mea짯su짯re assists inves짯tors in com짯pa짯ring its per짯for짯mance across report짯ing peri짯ods on a con짯sis짯tent basis by exclu짯ding items that the Com짯pa짯ny does not belie짯ve are indi짯ca짯ti짯ve of its core ope짯ra짯ting per짯for짯mance. The Company셲 cal짯cu짯la짯ti짯on of Adjus짯ted EBITDA may or may not be con짯sis짯tent with the cal짯cu짯la짯ti짯on of this mea짯su짯re by other com짯pa짯nies in the same indus짯try. Inves짯tors should not view Adjus짯ted EBITDA as an alter짯na짯ti짯ve to the GAAP ope짯ra짯ting mea짯su짯re of inco짯me or GAAP liqui짯di짯ty mea짯su짯res of cash flows from ope짯ra짯ting, inves짯t짯ing and finan짯cing acti짯vi짯ties. In addi짯ti짯on, Adjus짯ted EBITDA does not take into account chan짯ges in cer짯tain assets and lia짯bi짯li짯ties that can affect cash flows.
     
**   The Com짯pa짯ny also pres짯ents free cash flow as a sup짯ple짯men짯tal Non-GAAP mea짯su짯re of its per짯for짯mance. Free cash flow is deter짯mi짯ned by adjus짯ting GAAP net cash pro짯vi짯ded by ope짯ra짯ting acti짯vi짯ties for capi짯tal expen짯dit짯ures. The Com짯pa짯ny cal짯cu짯la짯tes and com짯mu짯ni짯ca짯tes free cash flow in the finan짯cial ear짯nings press release becau짯se manage짯ment belie짯ves it is of importance to inves짯tors to under짯stand the natu짯re of the짯se cash flows. The Company셲 cal짯cu짯la짯ti짯on of free cash flow may or may not be con짯sis짯tent with the cal짯cu짯la짯ti짯on of this mea짯su짯re by other com짯pa짯nies in the same indus짯try. Inves짯tors should not view free cash flow as an alter짯na짯ti짯ve to GAAP liqui짯di짯ty mea짯su짯res of cash flows from ope짯ra짯ting activities.
     
    The Com짯pa짯ny has pro짯vi짯ded recon짯ci짯lia짯ti짯ons within the ear짯nings press release of the짯se Non-GAAP finan짯cial mea짯su짯res to the most direct짯ly com짯pa짯ra짯ble GAAP finan짯cial measures.