AMD Reports Fourth Quarter and Full Year 2022 Financial Results

Record full year reve짯nue of $23.6 Bil짯li짯on up 44% year-over-year 

SANTA CLARA, Calif., Jan. 31, 2023 (GLOBE NEWSWIRE)  AMD (NASDAQ:AMD) today announ짯ced reve짯nue for the fourth quar짯ter of 2022 of $5.6 bil짯li짯on, gross mar짯gin of 43%, ope짯ra짯ting loss of $149 mil짯li짯on, net inco짯me of $21 mil짯li짯on and diluted ear짯nings per share of $0.01. On a non-GAAP(*) basis, gross mar짯gin was 51%, ope짯ra짯ting inco짯me was $1.3 bil짯li짯on, net inco짯me was $1.1 bil짯li짯on and diluted ear짯nings per share was $0.69.

For full year 2022, the com짯pa짯ny repor짯ted reve짯nue of $23.6 bil짯li짯on, gross mar짯gin of 45%, ope짯ra짯ting inco짯me of $1.3 bil짯li짯on, net inco짯me of $1.3 bil짯li짯on and diluted ear짯nings per share of $0.84. On a non-GAAP(*) basis, gross mar짯gin was 52%, ope짯ra짯ting inco짯me was $6.3 bil짯li짯on, net inco짯me was $5.5 bil짯li짯on and diluted ear짯nings per share was $3.50.

GAAP Quar짯ter짯ly Finan짯cial Results

  Q4 2022 Q4 2021 Y/Y
Reve짯nue ($M) $5,599 $4,826 Up 16%
Gross pro짯fit ($M) $2,403 $2,426 Flat
Gross mar짯gin % 43% 50% Down 740 bps
Ope짯ra짯ting expen짯ses ($M) $2,557 $1,223 Up 109%
Ope짯ra짯ting inco짯me (loss) ($M) $(149) $1,207 Down 112%
Ope짯ra짯ting margin % (3)% 25% Down 28pp
Net inco짯me ($M) $21 $974 Down 98%
Ear짯nings per share $0.01 $0.80 Down 99%

Non-GAAP(*) Quar짯ter짯ly Finan짯cial Results

  Q4 2022 Q4 2021 Y/Y
Reve짯nue ($M) $5,599 $4,826 Up 16%
Gross pro짯fit ($M) $2,859 $2,427 Up 18%
Gross mar짯gin % 51% 50% Up 70 bps
Ope짯ra짯ting expen짯ses ($M) $1,602 $1,103 Up 45%
Ope짯ra짯ting inco짯me ($M) $1,262 $1,328 Down 5%
Ope짯ra짯ting margin % 23% 27% Down 4pp
Net inco짯me ($M) $1,113 $1,122 Flat
Ear짯nings per share $0.69 $0.92 Down 25%

Annu짯al Finan짯cial Results

  GAAP Non-GAAP(*)
  2022 2021 Y/Y 2022 2021 Y/Y
Reve짯nue ($M) $23,601 $16,434 Up 44% $23,601 $16,434 Up 44%
Gross pro짯fit ($M) $10,603 $7,929 Up 34% $12,273 $7,934 Up 55%
Gross mar짯gin % 45% 48% Down 330bps 52% 48% Up 370bps
Ope짯ra짯ting expen짯ses ($M) $9,441 $4,293 Up 120% $6,030 $3,877 Up 56%
Ope짯ra짯ting inco짯me ($M) $1,264 $3,648 Down 65% $6,345 $4,069 Up 56%
Ope짯ra짯ting margin % 5% 22% Down 17pp 27% 25% Up 2pp
Net inco짯me ($M) $1,320 $3,162 Down 58% $5,504 $3,435 Up 60%
Ear짯nings per share $0.84 $2.57 Down 67% $3.50 $2.79 Up 25%

2022 was a strong year for AMD as we deli짯ver짯ed best-in-class growth and record reve짯nue despi짯te the weak PC envi짯ron짯ment in the second half of the year, said AMD Chair and CEO Dr. Lisa Su. 쏻e acce짯le짯ra짯ted our data cen짯ter momen짯tum and clo짯sed our stra짯te짯gic acqui짯si짯ti짯on of Xilinx, signi짯fi짯cant짯ly diver짯si짯fy짯ing our busi짯ness and streng짯thening our finan짯cial model. Alt짯hough the demand envi짯ron짯ment is mixed, we are con짯fi짯dent in our abili짯ty to gain mar짯ket share in 2023 and deli짯ver long-term growth based on our dif짯fe짯ren짯tia짯ted pro짯duct portfolio.

Q4 2022 Results

  • Reve짯nue of $5.6 bil짯li짯on increased 16% year-over-year pri짯ma짯ri짯ly dri짯ven by growth across the Embedded and Data Cen짯ter seg짯ments, par짯ti짯al짯ly off짯set by lower Cli짯ent and Gam짯ing seg짯ment revenue.
  • Gross mar짯gin was 43%, a decrease of 7 per짯cen짯ta짯ge points year-over-year, pri짯ma짯ri짯ly due to amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on. Non-GAAP gross mar짯gin was 51%, an increase of 1 per짯cen짯ta짯ge point year-over-year, pri짯ma짯ri짯ly dri짯ven by a richer pro짯duct mix with hig짯her Embedded and Data Cen짯ter seg짯ment reve짯nue, par짯ti짯al짯ly off짯set by lower Cli짯ent seg짯ment revenue.
  • Ope짯ra짯ting loss was $149 mil짯li짯on, com짯pared to ope짯ra짯ting inco짯me of $1.2 bil짯li짯on, or 25% of reve짯nue a year ago. The loss was pri짯ma짯ri짯ly due to the amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on. Non-GAAP ope짯ra짯ting inco짯me was $1.3 bil짯li짯on, or 23% of reve짯nue, com짯pared to $1.3 bil짯li짯on or 27% a year ago. The non-GAAP ope짯ra짯ting mar짯gin decli짯ne was pri짯ma짯ri짯ly due to lower Cli짯ent seg짯ment ope짯ra짯ting income.
  • Net inco짯me was $21 mil짯li짯on com짯pared to net inco짯me of $974 mil짯li짯on a year ago pri짯ma짯ri짯ly due to the amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on, par짯ti짯al짯ly off짯set by a $154 mil짯li짯on tax bene짯fit in the quar짯ter. Non-GAAP net inco짯me was $1.1 bil짯li짯on, flat from a year ago.
  • Diluted ear짯nings per share was $0.01 com짯pared to $0.80 a year ago pri짯ma짯ri짯ly due to the amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on, par짯ti짯al짯ly off짯set by a $154 mil짯li짯on tax bene짯fit in the quar짯ter. Non-GAAP diluted ear짯nings per share was $0.69 com짯pared to $0.92 a year ago pri짯ma짯ri짯ly due to lower Cli짯ent seg짯ment ope짯ra짯ting income.
  • Cash, cash equi짯va짯lents and short-term invest짯ments were $5.9 bil짯li짯on at the end of the quar짯ter. The com짯pa짯ny retur짯ned $250 mil짯li짯on to share짯hol짯ders through share repurcha짯ses in the quarter.
  • Cash from ope짯ra짯ti짯ons was $567 mil짯li짯on in the quar짯ter, com짯pared to $822 mil짯li짯on a year ago. Free cash flow was $443 mil짯li짯on in the quar짯ter com짯pared to $736 mil짯li짯on a year ago.
  • Good짯will and acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets asso짯cia짯ted with the acqui짯si짯ti짯ons of Xilinx and Pen짯san짯do were $48.3 bil짯li짯on at the end of the quarter.

Quar짯ter짯ly Finan짯cial Seg짯ment Summary

  • Pri짯or peri짯od results have been con짯for짯med to the cur짯rent report짯ing seg짯ments for com짯pa짯ri짯son purposes. 
  • Data Cen짯ter seg짯ment reve짯nue was $1.7 bil짯li짯on, up 42% year-over-year pri짯ma짯ri짯ly dri짯ven by strong sales of EPYC꽓 ser짯ver pro짯ces짯sors. Ope짯ra짯ting inco짯me was $444 mil짯li짯on, or 27% of reve짯nue, com짯pared to $369 mil짯li짯on or 32% a year ago. The ope짯ra짯ting inco짯me increase was pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue, par짯ti짯al짯ly off짯set by hig짯her R&D invest짯ments to sup짯port growth. The ope짯ra짯ting mar짯gin decrease was pri짯ma짯ri짯ly due to hig짯her R&D invest짯ments to sup짯port growth.
  • Cli짯ent seg짯ment reve짯nue was $903 mil짯li짯on, down 51% year-over-year due to redu짯ced pro짯ces짯sor ship짯ments resul짯ting from a weak PC mar짯ket and a signi짯fi짯cant inven짯to짯ry cor짯rec짯tion across the PC sup짯p짯ly chain. Cli짯ent pro짯ces짯sor ASP was flat year-over-year. Ope짯ra짯ting loss was $152 mil짯li짯on, com짯pared to ope짯ra짯ting inco짯me of $530 mil짯li짯on or 29% of reve짯nue a year ago pri짯ma짯ri짯ly due to lower revenue.
  • Gam짯ing seg짯ment reve짯nue was $1.6 bil짯li짯on, down 7% year-over-year dri짯ven by lower gam짯ing gra짯phics sales par짯ti짯al짯ly off짯set by hig짯her semi-cus짯tom pro짯duct reve짯nue. Ope짯ra짯ting inco짯me was $266 mil짯li짯on, or 16% of reve짯nue, com짯pared to $407 mil짯li짯on or 23% a year ago. The ope짯ra짯ting inco짯me and mar짯gin decrea짯ses were pri짯ma짯ri짯ly due to lower gra짯phics revenue.
  • Embedded seg짯ment reve짯nue was $1.4 bil짯li짯on, up 1,868% year-over-year pri짯ma짯ri짯ly dri짯ven by the inclu짯si짯on of Xilinx embedded reve짯nue. Ope짯ra짯ting inco짯me was $699 mil짯li짯on, or 50% of reve짯nue, com짯pared to $18 mil짯li짯on or 25% a year ago. The ope짯ra짯ting inco짯me and mar짯gin increa짯ses were pri짯ma짯ri짯ly dri짯ven by hig짯her revenue.
  • All Other ope짯ra짯ting loss was $1.4 bil짯li짯on as com짯pared to $117 mil짯li짯on a year ago pri짯ma짯ri짯ly due to amor짯tiza짯ti짯on of intan짯gi짯ble assets lar짯ge짯ly asso짯cia짯ted with the Xilinx acquisition.

2022 Annu짯al Results

  • Reve짯nue of $23.6 bil짯li짯on was up 44% over 2021 dri짯ven by hig짯her Embedded, Data Cen짯ter, and Gam짯ing seg짯ment reve짯nue, par짯ti짯al짯ly off짯set by lower Cli짯ent seg짯ment reve짯nue. On a com짯bi짯ned AMD and Xilinx com짯pa짯ny basis, 2022 pro for짯ma reve짯nue was $24.1 bil짯li짯on, up 20% com짯pared to $20.1 bil짯li짯on in 2021.
  • Gross mar짯gin was 45%, a decrease of 3 per짯cen짯ta짯ge points over 2021 pri짯ma짯ri짯ly due to amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on. Non-GAAP gross mar짯gin was 52%, an increase of 4 per짯cen짯ta짯ge points com짯pared to a year ago, pri짯ma짯ri짯ly dri짯ven by a richer pro짯duct mix with hig짯her Embedded and Data Cen짯ter seg짯ment reve짯nue, par짯ti짯al짯ly off짯set by lower Cli짯ent seg짯ment revenue.
  • Ope짯ra짯ting inco짯me was $1.3 bil짯li짯on com짯pared to $3.6 bil짯li짯on in the pri짯or year. The decrease was pri짯ma짯ri짯ly due to the amor짯tiza짯ti짯on of intan짯gi짯ble assets asso짯cia짯ted with the Xilinx acqui짯si짯ti짯on. Non-GAAP ope짯ra짯ting inco짯me was $6.3 bil짯li짯on com짯pared to $4.1 bil짯li짯on in the pri짯or year pri짯ma짯ri짯ly dri짯ven by hig짯her reve짯nue and gross mar짯gin expansion.
  • Net inco짯me was $1.3 bil짯li짯on com짯pared to $3.2 bil짯li짯on in the pri짯or year. Non-GAAP net inco짯me was $5.5 bil짯li짯on com짯pared to $3.4 bil짯li짯on in the pri짯or year.
  • Diluted ear짯nings per share was $0.84 com짯pared to $2.57 in the pri짯or year. Non-GAAP diluted ear짯nings per share was $3.50 com짯pared to $2.79 in the pri짯or year.
  • Cash, cash equi짯va짯lents and short-term invest짯ments were $5.9 bil짯li짯on at the end of the year. The com짯pa짯ny retur짯ned a total of $3.7 bil짯li짯on to share짯hol짯ders through share repurcha짯ses in 2022.
  • Cash from ope짯ra짯ti짯ons was $3.6 bil짯li짯on, com짯pared to $3.5 bil짯li짯on in the pri짯or year. Free cash flow was $3.1 bil짯li짯on com짯pared to $3.2 bil짯li짯on in the pri짯or year.

Recent PR Highlights

  • AMD show짯ca짯sed con짯tin짯ued growth and momen짯tum in the data cen짯ter with AMD EPYC pro짯ces짯sors powe짯ring the modern data cen짯ter and cri짯ti짯cal cloud workloads. 
    • AMD announ짯ced the avai짯la짯bi짯li짯ty of 4th Gen AMD EPYC CPUs, deli짯ve짯ring lea짯der짯ship per짯for짯mance and ener짯gy effi짯ci짯en짯cy. The latest AMD EPYC pro짯ces짯sors, built on the 쏾en 4 core, deli짯ver next-gene짯ra짯ti짯on archi짯tec짯tu짯re, tech짯no짯lo짯gy and fea짯tures to power the modern data cen짯ter. Cloud ser짯vice pro짯vi짯ders inclu짯ding Goog짯le Cloud, Micro짯soft and Ora짯cle Cloud Infra짯struc짯tu짯re announ짯ced plan짯ned solu짯ti짯ons lever짯aging the per짯for짯mance and secu짯ri짯ty fea짯tures of 4th Gen AMD EPYC CPUs.
    • AMD powers 101 super짯com짯pu짯ters in the latest Top500 list of the most powerful super짯com짯pu짯ters in the world and 75% of the top 20 sys짯tems on the Green500 list of the world셲 most ener짯gy effi짯ci짯ent supercomputers.
  • AMD deli짯ver짯ed the ope짯ning key짯note at CES 2023 along짯side part짯ners Micro짯soft, HP, Leno짯vo, Magic Leap and Intui짯ti짯ve Sur짯gi짯cal high짯light짯ing next-gene짯ra짯ti짯on AMD tech짯no짯lo짯gies advan짯cing AI, hybrid work, gam짯ing, health짯ca짯re, aero짯space and sus짯tainable com짯pu짯ting. During the key짯note, AMD announced: 
    • The broa짯dest port짯fo짯lio of high-per짯for짯mance PC pro짯ducts for mobi짯le and desk짯top appli짯ca짯ti짯ons, inclu짯ding Ryzen꽓 7000X3D Series Desk짯top pro짯ces짯sors that bring the power of AMD 3D V멌ache꽓 tech짯no짯lo짯gy to gamers and crea짯tors and Ryzen 7000 Series Mobi짯le pro짯ces짯sors that deli짯ver unpar짯al짯le짯led per짯for짯mance for deman짯ding workloads with up to 16 powerful 쏾en 4 cores and bring new Ryzen AI tech짯no짯lo짯gy to sel짯ect lap짯top devices.
    • AMD Rade짯on꽓 RX 7000 Series Gra짯phics for lap짯top PCs, built on AMD RDNA꽓 3 archi짯tec짯tu짯re and desi짯gned to deli짯ver excep짯tio짯nal ener짯gy effi짯ci짯en짯cy and per짯for짯mance to power 1080p gam짯ing at ultra-set짯tings and advan짯ced con짯tent crea짯ti짯on appli짯ca짯ti짯ons on next-gene짯ra짯ti짯on pre짯mi짯um laptops.
    • The AMD Alveo꽓 V70 AI Acce짯le짯ra짯tor with indus짯try-lea짯ding per짯for짯mance and ener짯gy effi짯ci짯en짯cy for mul짯ti짯ple AI infe짯rence workloads.
    • A pre짯view of the world셲 first inte짯gra짯ted data cen짯ter CPU and GPU, the AMD Instinct꽓 MI300. Desi짯gned for lea짯der짯ship HPC and AI per짯for짯mance, MI300 acce짯le짯ra짯tors levera짯ge chip짯let design com짯bi짯ning AMD CDNA꽓 3 GPU archi짯tec짯tu짯re, 쏾en 4 CPU cores, and HBM.
    • AMD Vitis꽓 Medi짯cal Ima짯ging libra짯ri짯es to bring pre짯mi짯um medi짯cal ima짯ging pro짯ducts to mar짯ket fas짯ter by redu짯cing deve짯lo짯p짯ment times. The짯se soft짯ware libra짯ri짯es acce짯le짯ra짯te pre짯mi짯um medi짯cal ima짯ging on AMD Ver짯sal꽓 SoC devices with AI Engi짯nes to deli짯ver health짯ca짯re pro짯vi짯ders and their pati짯ents high-qua짯li짯ty, low-laten짯cy imaging.
  • AMD con짯tin짯ued to show짯ca짯se its embedded mar짯ket leadership. 
    • AMD announ짯ced its col짯la짯bo짯ra짯ti짯on with the Ener짯gy Sci짯en짯ces Net짯work on the launch of ESnet6, the newest gene짯ra짯ti짯on of the U.S. Depart짯ment of Energy셲 high-per짯for짯mance net짯work dedi짯ca짯ted to science.
    • AMD announ짯ced it com짯ple짯ted Class B qua짯li짯fi짯ca짯ti짯on for the company셲 first space-gra짯de Ver짯sal adap짯ti짯ve SoCs.
    • AMD shared that the AMD Xilinx Auto짯mo짯ti짯ve (XA) Zynq꽓 UltraS짯ca짯le+꽓 MPSoC plat짯form has been sel짯ec짯ted to power the Aisin Auto짯ma짯ted Par짯king-Assist (APA) system.
    • AMD unvei짯led the new Alveo X3 series net짯work cards, the first AMD net짯work cards desi짯gned with scree짯ned FPGAs and opti짯mi짯zed spe짯ci짯fi짯cal짯ly for low laten짯cy trading.
    • AMD and Viet짯tel High Tech announ짯ced a col짯la짯bo짯ra짯ti짯on on a 5G mobi짯le net짯work expansion.
    • AMD announ짯ced that its adap짯ti짯ve com짯pu짯ting tech짯no짯lo짯gy is powe짯ring lea짯ding mobi짯li짯ty sup짯pli짯er DENSO Corporation셲 next-gene짯ra짯ti짯on LiDAR platform.
  • AMD announ짯ced the Rade짯on RX 7900 series gra짯phics cards, the world셲 first gam짯ing gra짯phics cards to fea짯ture an advan짯ced AMD chip짯let design, deli짯ve짯ring excep짯tio짯nal per짯for짯mance and ener짯gy effi짯ci짯en짯cy to power high-frame짯ra짯te 4K and hig짯her reso짯lu짯ti짯on gam짯ing in the most deman짯ding titles.
  • AMD announ짯ced chan짯ges to its seni짯or lea짯der짯ship team, inclu짯ding the reti짯re짯ment of exe짯cu짯ti짯ve vice pre짯si짯dent, chief finan짯cial offi짯cer and tre짯asurer Devin짯der Kumar after 39 years with the com짯pa짯ny. The com짯pa짯ny appoin짯ted Jean Hu as AMD exe짯cu짯ti짯ve vice pre짯si짯dent, chief finan짯cial offi짯cer and tre짯asurer, effec짯ti짯ve Janu짯ary 23, 2023 and announ짯ced the pro짯mo짯ti짯on of For짯rest Nor짯rod to exe짯cu짯ti짯ve vice pre짯si짯dent and gene짯ral mana짯ger of the Data Cen짯ter Solu짯ti짯ons busi짯ness group.

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 2023, AMD expects reve짯nue to be appro짯xi짯m짯ate짯ly $5.3 bil짯li짯on, plus or minus $300 mil짯li짯on, a decrease of appro짯xi짯m짯ate짯ly 10% year-over-year. Year-over-year the Cli짯ent and Gam짯ing seg짯ments are expec짯ted to decli짯ne, par짯ti짯al짯ly off짯set by Embedded and Data Cen짯ter seg짯ment growth. AMD expects non-GAAP gross mar짯gin to be appro짯xi짯m짯ate짯ly 50% in the first quar짯ter of 2023.

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 2022 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 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
GAAP gross profit   $ 2,403     $ 2,426     $ 10,603     $ 7,929  
GAAP gross margin %     43 %     50 %     45 %     48 %
Stock-based com짯pen짯sa짯ti짯on     9       1       29       5  
Acqui짯si짯ti짯on-rela짯ted cos짯ts(1)     4             193        
Amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets     443             1,448        
Non-GAAP gross profit   $ 2,859     $ 2,427     $ 12,273     $ 7,934  
Non-GAAP gross margin %     51 %     50 %     52 %     48 %
                 
GAAP ope짯ra짯ting expenses   $ 2,557     $ 1,223     $ 9,441     $ 4,293  
GAAP ope짯ra짯ting expenses/revenue %     46 %     25 %     40 %     26 %
Stock-based com짯pen짯sa짯ti짯on     301       111       983       374  
Acqui짯si짯ti짯on-rela짯ted cos짯ts(1)     53       9       328       42  
Amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets     601             2,100        
Non-GAAP ope짯ra짯ting expenses   $ 1,602     $ 1,103     $ 6,030     $ 3,877  
Non-GAAP ope짯ra짯ting expenses/revenue %     29 %     23 %     26 %     24 %
                 
GAAP ope짯ra짯ting inco짯me (loss)   $ (149 )   $ 1,207     $ 1,264     $ 3,648  
GAAP ope짯ra짯ting margin %   (3)%     25 %     5 %     22 %
Stock-based com짯pen짯sa짯ti짯on     310       112       1,012       379  
Acqui짯si짯ti짯on-rela짯ted cos짯ts(1)     57       9       521       42  
Amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets     1,044             3,548        
Non-GAAP ope짯ra짯ting income   $ 1,262     $ 1,328     $ 6,345     $ 4,069  
Non-GAAP ope짯ra짯ting margin %     23 %     27 %     27 %     25 %
    Three Months Ended Year Ended
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
GAAP net inco짯me / ear짯nings per share   $ 21     $ 0.01     $ 974     $ 0.80     $ 1,320     $ 0.84     $ 3,162     $ 2.57  
Loss on debt redemption/conversion                                         7        
(Gains) los짯ses on equi짯ty invest짯ments, net     5             (4 )           62       0.04       (56 )     (0.04 )
Stock-based com짯pen짯sa짯ti짯on     310       0.19       112       0.09       1,012       0.64       379       0.31  
Equi짯ty inco짯me in investee     (3 )                       (14 )     (0.01 )     (6 )      
Acqui짯si짯ti짯on-rela짯ted cos짯ts(1)     57       0.04       9             521       0.33       42       0.03  
Amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets     1,044       0.65                   3,548       2.26              
Inco짯me tax provision     (321 )     (0.20 )     31       0.03       (945 )     (0.60 )     (93 )     (0.08 )
Non-GAAP net inco짯me / ear짯nings per share   $ 1,113     $ 0.69     $ 1,122     $ 0.92     $ 5,504     $ 3.50     $ 3,435     $ 2.79  
(1)   Acqui짯si짯ti짯on-rela짯ted cos짯ts pri짯ma짯ri짯ly com짯pri짯sed of tran짯sac짯tion cos짯ts, purcha짯se pri짯ce adjus짯t짯ments for inven짯to짯ry and cer짯tain com짯pen짯sa짯ti짯on charges
     
 
RECONCILIATION OF AMD AS-REPORTED REVENUE TO PRO FORMA REVENUE
(in bil짯li짯ons) (Unau짯di짯ted)
   
  Year Ended
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
AMD Net Reve짯nue As reported 23.6     16.4  
Pre-Acqui짯si짯ti짯on Reve짯nue(1) 0.5     3.7  
AMD Net Reve짯nue Pro for짯ma(2) 24.1     20.1  
(1)   Pre-acqui짯si짯ti짯on reve짯nue for the year ended Decem짯ber 31, 2022 includes unau짯di짯ted Xilinx reve짯nue from Janu짯ary 2, 2022 to Febru짯ary 13, 2022. Pre-acqui짯si짯ti짯on reve짯nue for the year ended Decem짯ber 25, 2021 includes unau짯di짯ted Xilinx reve짯nue for the twel짯ve months ended Janu짯ary 1, 2022.
     
(2)   The unau짯di짯ted AMD net reve짯nue pre짯pared on a pro for짯ma basis repres짯ents the Company셲 con짯so짯li짯da짯ted reve짯nue for the year ended Decem짯ber 31, 2022 and Decem짯ber 25, 2021, as if the acqui짯si짯ti짯ons had been con짯sum짯ma짯ted as of the begin짯ning of the fis짯cal year 2021 (i.e., Decem짯ber 27, 2020). The unau짯di짯ted pro for짯ma reve짯nue is pre짯sen짯ted on the basis of the Company셲 fis짯cal year and com짯bi짯nes the his짯to짯ri짯cal results of the fis짯cal peri짯ods of the Com짯pa짯ny with the fol짯lo짯wing his짯to짯ri짯cal results of Xilinx: the year ended Decem짯ber 31, 2022 includes Xilinx reve짯nue for the twel짯ve-month peri짯od begin짯ning Janu짯ary 2, 2022 through Decem짯ber 31, 2022; and the year ended Decem짯ber 25, 2021 includes Xilinx reve짯nue for the twel짯ve months ended Janu짯ary 1, 2022.

The unau짯di짯ted pro for짯ma finan짯cial reve짯nue pre짯sen짯ted is for infor짯ma짯tio짯nal pur짯po짯ses only and is not neces짯s짯a짯ri짯ly indi짯ca짯ti짯ve of the results of ope짯ra짯ti짯ons that would have been achie짯ved if the Xilinx acqui짯si짯ti짯ons were com짯ple짯ted at the begin짯ning of fis짯cal year 2021 and are not indi짯ca짯ti짯ve of the future ope짯ra짯ting results of the com짯bi짯ned company.

     

About AMD
For more than 50 years AMD has dri짯ven inno짯va짯ti짯on in high-per짯for짯mance com짯pu짯ting, gra짯phics and visua짯liza짯ti짯on tech짯no짯lo짯gies. AMD employees are focu짯sed on buil짯ding lea짯der짯ship high-per짯for짯mance and adap짯ti짯ve pro짯ducts that push the boun짯da짯ries of what is pos짯si짯ble. Bil짯li짯ons of peo짯p짯le, lea짯ding For짯tu짯ne 500 busi짯nesses and cut짯ting-edge sci짯en짯ti짯fic rese짯arch insti짯tu짯ti짯ons around the world rely on AMD tech짯no짯lo짯gy dai짯ly to impro짯ve how they live, work and play. 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 AMD셲 abili짯ty to gain mar짯ket share in 2023 and deli짯ver long-term growth based on its dif짯fe짯ren짯tia짯ted pro짯duct port짯fo짯lio; the fea짯tures, func짯tion짯a짯li짯ty, per짯for짯mance, avai짯la짯bi짯li짯ty, timing and expec짯ted bene짯fits of AMD pro짯ducts; and AMD셲 expec짯ted first quar짯ter of 2023 finan짯cial out짯look, inclu짯ding reve짯nue and non-GAAP gross mar짯gin and expec짯ted dri짯vers based on cur짯rent expec짯ta짯ti짯ons, 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; cycli짯cal natu짯re of the semi짯con짯duc짯tor indus짯try; mar짯ket con짯di짯ti짯ons of the indus짯tries in which AMD pro짯ducts are sold; 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; 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; poten짯ti짯al dif짯fi짯cul짯ties in upgrading and ope짯ra짯ting AMD셲 new enter짯pri짯se resour짯ce plan짯ning sys짯tem; 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, inclu짯ding acqui짯si짯ti짯ons of Xilinx and Pen짯san짯do, on AMD셲 busi짯ness and AMD셲 abili짯ty to inte짯gra짯te acqui짯red busi짯nesses;  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, the gua짯ran짯tees of Xilinx셲 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, non-GAAP diluted 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 2022, AMD uses a non-GAAP tax rate of 13%, 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. In addi짯ti짯on, AMD pro짯vi짯ded pro for짯ma reve짯nue for the year ended Decem짯ber 31, 2022 and Decem짯ber 25, 2021 which include unau짯di짯ted Xilinx pre-acqui짯si짯ti짯on reve짯nue from Janu짯ary 2, 2022 to Febru짯ary 13, 2022 and for the twel짯ve months ended Janu짯ary 1, 2022, respec짯tively, as sup짯ple짯men짯tal infor짯ma짯ti짯on. 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 in 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 Janu짯ary 31, 2023 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, Thre짯ad짯rip짯per, Ver짯sal 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 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
Net reve짯nue   $ 5,599     $ 4,826     $ 23,601     $ 16,434  
Cost of sales     2,753       2,400       11,550       8,505  
Amor짯tiza짯ti짯on of acqui짯si짯ti짯on-rela짯ted intangibles     443             1,448        
Total cost of sales     3,196       2,400       12,998       8,505  
Gross pro짯fit     2,403       2,426       10,603       7,929  
Gross mar짯gin %     43 %     50 %     45 %     48 %
Rese짯arch and development     1,366       811       5,005       2,845  
Mar짯ke짯ting, gene짯ral and administrative     590       412       2,336       1,448  
Amor짯tiza짯ti짯on of acqui짯si짯ti짯on-rela짯ted intangibles     601             2,100        
Licen짯sing gain     (5 )     (4 )     (102 )     (12 )
Ope짯ra짯ting inco짯me (loss)     (149 )     1,207       1,264       3,648  
Inte짯rest expense     (19 )     (8 )     (88 )     (34 )
Other inco짯me (expen짯se), net     32       4       8       55  
Inco짯me (loss) befo짯re inco짯me taxes and equi짯ty income     (136 )     1,203       1,184       3,669  
Inco짯me tax pro짯vi짯si짯on (bene짯fit)     (154 )     229       (122 )     513  
Equi짯ty inco짯me in investee     3             14       6  
Net inco짯me   $ 21     $ 974     $ 1,320     $ 3,162  
Ear짯nings per share                
Basic   $ 0.01     $ 0.81     $ 0.85     $ 2.61  
Diluted   $ 0.01     $ 0.80     $ 0.84     $ 2.57  
Shares used in per share calculation                
Basic     1,613       1,208       1,561       1,213  
Diluted     1,618       1,222       1,571       1,229  
                                 
 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Mil짯li짯ons)
         
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
    (Unau짯di짯ted)    
ASSETS        
Cur짯rent assets:        
Cash and cash equivalents   $ 4,835     $ 2,535  
Short-term invest짯ments     1,020       1,073  
Accounts receiva짯ble, net     4,126       2,706  
Invent짯ories     3,771       1,955  
Receiv짯a짯bles from rela짯ted parties     2       2  
Pre짯paid expen짯ses and other cur짯rent assets     1,265       312  
Total cur짯rent assets     15,019       8,583  
Pro짯per짯ty and equip짯ment, net     1,513       702  
Ope짯ra짯ting lea짯se right-of use assets     460       367  
Good짯will     24,177       289  
Acqui짯si짯ti짯on-rela짯ted intan짯gi짯bles, net     24,118        
Invest짯ment: equi짯ty method     83       69  
Defer짯red tax assets     58       931  
Other non-cur짯rent assets     2,152       1,478  
Total Assets   $ 67,580     $ 12,419  
         
LIABILITIES AND STOCKHOLDERS EQUITY        
Cur짯rent liabilities:        
Accounts paya짯ble   $ 2,493     $ 1,321  
Paya짯bles to rela짯ted parties     463       85  
Accrued lia짯bi짯li짯ties     3,077       2,424  
Cur짯rent por짯ti짯on of long-term debt, net           312  
Other cur짯rent liabilities     336       98  
Total cur짯rent liabilities     6,369       4,240  
Long-term debt, net of cur짯rent portion     2,467       1  
Long-term ope짯ra짯ting lea짯se liabilities     396       348  
Defer짯red tax liabilities     1,934       12  
Other long-term liabilities     1,664       321  
         
Stock짯hol짯ders equity:        
Capi짯tal stock:        
Com짯mon stock, par value     16       12  
Addi짯tio짯nal paid-in capital     58,005       11,069  
Tre짯asu짯ry stock, at cost     (3,099 )     (2,130 )
Accu짯mu짯la짯ted deficit     (131 )     (1,451 )
Accu짯mu짯la짯ted other com짯pre짯hen짯si짯ve loss     (41 )     (3 )
Total stock짯hol짯ders equity   $ 54,750     $ 7,497  
Total Lia짯bi짯li짯ties and Stock짯hol짯ders Equity   $ 67,580     $ 12,419  
                 
 
ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Mil짯li짯ons) (Unau짯di짯ted)
         
    Three Months Ended   Year Ended
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
Net cash pro짯vi짯ded by (used in)                
Ope짯ra짯ting activities   $ 567     $ 822     $ 3,565     $ 3,521  
Inves짯t짯ing activities   $ 1,067     $     $ 1,999     $ (686 )
Finan짯cing activities   $ (197 )   $ (727 )   $ (3,264 )   $ (1,895 )
                                 
 
SELECTED CORPORATE DATA
(Mil짯li짯ons) (Unau짯di짯ted)
         
    Three Months Ended   Year Ended
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
Seg짯ment and Cate짯go짯ry Infor짯ma짯ti짯on(1)                
Data Cen짯ter                
Net reve짯nue   $ 1,655     $ 1,163     $ 6,043     $ 3,694  
Ope짯ra짯ting income   $ 444     $ 369     $ 1,848     $ 991  
Cli짯ent                
Net reve짯nue   $ 903     $ 1,829     $ 6,201     $ 6,887  
Ope짯ra짯ting inco짯me (loss)   $ (152 )   $ 530     $ 1,190     $ 2,088  
Gam짯ing                
Net reve짯nue   $ 1,644     $ 1,763     $ 6,805     $ 5,607  
Ope짯ra짯ting income   $ 266     $ 407     $ 953     $ 934  
Embedded                
Net reve짯nue   $ 1,397     $ 71     $ 4,552     $ 246  
Ope짯ra짯ting income   $ 699     $ 18     $ 2,252     $ 44  
All Other                
Net reve짯nue   $     $     $     $  
Ope짯ra짯ting loss   $ (1,406 )   $ (117 )   $ (4,979 )   $ (409 )
Total                
Net reve짯nue   $ 5,599     $ 4,826     $ 23,601     $ 16,434  
Ope짯ra짯ting inco짯me (loss)   $ (149 )   $ 1,207     $ 1,264     $ 3,648  
                 
Other Data                
Capi짯tal expenditures   $ 124     $ 86     $ 450     $ 301  
Adjus짯ted EBITDA(2)   $ 1,438     $ 1,446     $ 6,971     $ 4,476  
Cash, cash equi짯va짯lents and short-term investments   $ 5,855     $ 3,608     $ 5,855     $ 3,608  
Free cash flow(3)   $ 443     $ 736     $ 3,115     $ 3,220  
Total assets   $ 67,580     $ 12,419     $ 67,580     $ 12,419  
Total debt   $ 2,467     $ 313     $ 2,467     $ 313  
(1)   The Data Cen짯ter seg짯ment pri짯ma짯ri짯ly includes ser짯ver micro짯pro짯ces짯sors (CPUs) and gra짯phics pro짯ces짯sing units (GPUs), data pro짯ces짯sing units (DPUs), Field Pro짯gramma짯ble Gate Arrays (FPGAs) and Adap짯ti짯ve Sys짯tem-on-Chip (SoC) pro짯ducts for data centers.
     
    The Cli짯ent seg짯ment pri짯ma짯ri짯ly includes CPUs, acce짯le짯ra짯ted pro짯ces짯sing units that inte짯gra짯te micro짯pro짯ces짯sors and GPUs (APUs), and chip짯sets for desk짯top and note짯book per짯so짯nal computers.
     
    The Gam짯ing seg짯ment pri짯ma짯ri짯ly includes dis짯crete GPUs, semi-cus짯tom SoC pro짯ducts and deve짯lo짯p짯ment services.
     
    The Embedded seg짯ment pri짯ma짯ri짯ly includes embedded CPUs and GPUs, FPGAs, and Adap짯ti짯ve SoC products.
     
    From time to time, the Com짯pa짯ny may also sell or licen짯se por짯ti짯ons of its IP portfolio.
     
    All Other cate짯go짯ry pri짯ma짯ri짯ly includes cer짯tain expen짯ses and cre짯dits that are not allo짯ca짯ted to any of the ope짯ra짯ting seg짯ments, such as acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble asset amor짯tiza짯ti짯on expen짯se, employee stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts and licen짯sing gain.
(2)   Recon짯ci짯lia짯ti짯on of GAAP Net Inco짯me to Adjus짯ted EBITDA
    Three Months Ended   Year Ended
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
GAAP net income   $ 21     $ 974     $ 1,320     $ 3,162  
Inte짯rest expense     19       8       88       34  
Other (inco짯me) expen짯se, net     (32 )     (4 )     (8 )     (55 )
Inco짯me tax pro짯vi짯si짯on (bene짯fit)     (154 )     229       (122 )     513  
Equi짯ty inco짯me in investee     (3 )           (14 )     (6 )
Stock-based com짯pen짯sa짯ti짯on     310       112       1,012       379  
Depre짯cia짯ti짯on and amortization     176       118       626       407  
Amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets     1,044             3,548        
Acqui짯si짯ti짯on-rela짯ted costs     57       9       521       42  
Adjus짯ted EBITDA   $ 1,438     $ 1,446     $ 6,971     $ 4,476  

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 (bene짯fit), equi짯ty inco짯me in inves짯tee, stock-based com짯pen짯sa짯ti짯on, depre짯cia짯ti짯on and amor짯tiza짯ti짯on expen짯se and acqui짯si짯ti짯on-rela짯ted cos짯ts. The Com짯pa짯ny also included amor짯tiza짯ti짯on of acqui짯red intan짯gi짯ble assets for the three months and year ended Decem짯ber 31, 2022. 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.

(3)   Recon짯ci짯lia짯ti짯on of GAAP Net Cash Pro짯vi짯ded by Ope짯ra짯ting Acti짯vi짯ties to Free Cash Flow
    Three Months Ended   Year Ended
    Decem짯ber 31,
2022
  Decem짯ber 25,
2021
  Decem짯ber 31,
2022
  Decem짯ber 25,
2021
GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities   $ 567     $ 822     $ 3,565     $ 3,521  
Ope짯ra짯ting cash flow margin %     10 %     17 %     15 %     21 %
Purcha짯ses of pro짯per짯ty and equipment   $ (124 )   $ (86 )   $ (450 )   $ (301 )
Free cash flow   $ 443     $ 736     $ 3,115     $ 3,220  
Free cash flow margin %     8 %     15 %     13 %     20 %

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, and free cash flow mar짯gin % is free cash flow expres짯sed as a per짯cen짯ta짯ge of the Company셲 net reve짯nue. 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.