{"id":34408,"date":"2017-10-25T08:02:37","date_gmt":"2017-10-25T06:02:37","guid":{"rendered":"http:\/\/www.planet3dnow.de\/cms\/?p=34408"},"modified":"2017-10-25T08:02:37","modified_gmt":"2017-10-25T06:02:37","slug":"amd-reports-third-quarter-2017-financial-results","status":"publish","type":"post","link":"https:\/\/www.planet3dnow.de\/cms\/34408-amd-reports-third-quarter-2017-financial-results\/","title":{"rendered":"<span class=\"caps\">AMD<\/span> Reports Third Quarter 2017 Financial Results"},"content":{"rendered":"<div class=\"page-border\">\n<div class=\"content\">\n<div data-name=\"ContentPlaceHolderMain\">\n<div class=\"pageContentFull\">\n<div class=\"prContent\">\n<div class=\"columnContainer\">\n<div class=\"prSubhead\">\n<div id=\"ctl00_PlaceHolderMain_ctl01__ControlWrapper_RichHtmlField\" class=\"ms-rtestate-field\" aria-labelledby=\"ctl00_PlaceHolderMain_ctl01_label\">\n<p>Reve\u00adnue Increased 26 Per\u00adcent Year-over-Year<\/p>\n<\/div>\n<\/div>\n<div class=\"prLocationDate\"><span class=\"caps\">SUNNYVALE<\/span>, Calif. 10\/24\/2017<\/div>\n<div class=\"prBody\">\n<div id=\"ctl00_PlaceHolderMain_ctl04__ControlWrapper_RichHtmlField\" class=\"ms-rtestate-field\" aria-labelledby=\"ctl00_PlaceHolderMain_ctl04_label\">\n<p>\u200b<a href=\"http:\/\/www.amd.com\/\"><span class=\"caps\">AMD<\/span><\/a>&nbsp;(<span class=\"caps\">NASDAQ<\/span>:<span class=\"caps\">AMD<\/span>) today announ\u00adced reve\u00adnue for the third quar\u00adter of 2017 of $1.64 bil\u00adli\u00adon, ope\u00adra\u00adting inco\u00adme of $126 mil\u00adli\u00adon and net inco\u00adme of $71 mil\u00adli\u00adon, and diluted ear\u00adnings per share of $0.07. On a non-GAAP<sup>(1)<\/sup>&nbsp;basis, ope\u00adra\u00adting inco\u00adme was $155 mil\u00adli\u00adon, net inco\u00adme was $110 mil\u00adli\u00adon, and diluted ear\u00adnings per share was $0.10.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-1.jpg\" alt>&nbsp;<\/p>\n<p><span class=\"dquo\">\u201c<\/span>Strong cus\u00adto\u00admer adop\u00adti\u00adon of our new high-per\u00adfor\u00admance pro\u00adducts dro\u00adve signi\u00adfi\u00adcant reve\u00adnue growth and impro\u00adved finan\u00adcial results from a year ago,\u201d said Dr. Lisa Su, <span class=\"caps\">AMD<\/span> pre\u00adsi\u00addent and <span class=\"caps\">CEO<\/span>. \u201cOur third quar\u00adter new pro\u00adduct intro\u00adduc\u00adtions and finan\u00adcial exe\u00adcu\u00adti\u00adon mark ano\u00adther important mile\u00adstone as we estab\u00adlish <span class=\"caps\">AMD<\/span> as a pre\u00admier growth com\u00adpa\u00adny in the tech\u00adno\u00adlo\u00adgy industry.\u201d<\/p>\n<h3><span class=\"caps\">Q3<\/span> 2017 Results<\/h3>\n<ul>\n<li>Reve\u00adnue was $1.64 bil\u00adli\u00adon, up 26 per\u00adcent year-over-year, pri\u00adma\u00adri\u00adly dri\u00adven by hig\u00adher reve\u00adnue in the Com\u00adpu\u00adting and Gra\u00adphics seg\u00adment (<span class=\"caps\">CG<\/span>). Reve\u00adnue was up 34 per\u00adcent sequen\u00adti\u00adal\u00adly, dri\u00adven by the Enter\u00adpri\u00adse Embedded and Semi-Cus\u00adtom seg\u00adment (<span class=\"caps\">EESC<\/span>) reve\u00adnue sea\u00adso\u00adna\u00adli\u00adty and hig\u00adher reve\u00adnue in <span class=\"caps\">CG<\/span>. In the quar\u00adter, <span class=\"caps\">AMD<\/span> clo\u00adsed a patent licen\u00adsing tran\u00adsac\u00adtion which posi\u00adtively impac\u00adted reve\u00adnue in the segments.<\/li>\n<li>On a <span class=\"caps\">GAAP<\/span> basis, gross mar\u00adgin was 35 per\u00adcent, up 30 per\u00adcen\u00adta\u00adge points year-over-year pri\u00adma\u00adri\u00adly due to a $340 mil\u00adli\u00adon char\u00adge rela\u00adted to our <span class=\"caps\">GLOBALFOUNDRIES<\/span> Wafer Sup\u00adp\u00adly Agree\u00adment (<span class=\"caps\">WSA<\/span>) in the year ago peri\u00adod (<span class=\"caps\">WSA<\/span> char\u00adge). In addi\u00adti\u00adon, the gross mar\u00adgin increase was pri\u00adma\u00adri\u00adly dri\u00adven by the bene\u00adfit from <span class=\"caps\">IP<\/span> rela\u00adted reve\u00adnue and a richer reve\u00adnue mix from <span class=\"caps\">CG<\/span> par\u00adti\u00adal\u00adly off\u00adset by cos\u00adts asso\u00adcia\u00adted with the <span class=\"caps\">WSA<\/span> for cer\u00adtain wafers purcha\u00adsed at ano\u00adther foundry. Gross mar\u00adgin was up 2 per\u00adcen\u00adta\u00adge points sequen\u00adti\u00adal\u00adly pri\u00adma\u00adri\u00adly dri\u00adven by the bene\u00adfit from <span class=\"caps\">IP<\/span> rela\u00adted reve\u00adnue, par\u00adti\u00adal\u00adly off\u00adset by cos\u00adts asso\u00adcia\u00adted with the <span class=\"caps\">WSA<\/span> for cer\u00adtain wafers purcha\u00adsed at ano\u00adther foundry. Ope\u00adra\u00adting inco\u00adme was $126 mil\u00adli\u00adon com\u00adpared to an ope\u00adra\u00adting loss of $293 mil\u00adli\u00adon a year ago and ope\u00adra\u00adting inco\u00adme of $25 mil\u00adli\u00adon in the pri\u00ador quar\u00adter. Net inco\u00adme was $71 mil\u00adli\u00adon com\u00adpared to net los\u00adses of $406 mil\u00adli\u00adon a year ago and $16 mil\u00adli\u00adon in the pri\u00ador quar\u00adter. Diluted ear\u00adnings per share was $0.07 com\u00adpared to los\u00adses per share of $0.50 a year ago and $0.02 in the pri\u00ador quarter.<\/li>\n<li>On a non-GAAP<sup>(1)<\/sup>&nbsp;basis, gross mar\u00adgin was 35 per\u00adcent, up 4 per\u00adcen\u00adta\u00adge points year-over-year pri\u00adma\u00adri\u00adly dri\u00adven by the bene\u00adfit from <span class=\"caps\">IP<\/span> rela\u00adted reve\u00adnue and a richer reve\u00adnue mix from <span class=\"caps\">CG<\/span>, par\u00adti\u00adal\u00adly off\u00adset by cos\u00adts asso\u00adcia\u00adted with the <span class=\"caps\">WSA<\/span> for cer\u00adtain wafers purcha\u00adsed at ano\u00adther foundry. Gross mar\u00adgin was up 2 per\u00adcen\u00adta\u00adge points sequen\u00adti\u00adal\u00adly pri\u00adma\u00adri\u00adly dri\u00adven by the bene\u00adfit from <span class=\"caps\">IP<\/span> rela\u00adted reve\u00adnue, par\u00adti\u00adal\u00adly off\u00adset by cos\u00adts asso\u00adcia\u00adted with the <span class=\"caps\">WSA<\/span> for cer\u00adtain wafers purcha\u00adsed at ano\u00adther foundry. Ope\u00adra\u00adting inco\u00adme was $155 mil\u00adli\u00adon com\u00adpared to $70 mil\u00adli\u00adon a year ago and $49 mil\u00adli\u00adon in the pri\u00ador quar\u00adter. Net inco\u00adme was $110 mil\u00adli\u00adon com\u00adpared to $27 mil\u00adli\u00adon a year ago and $19 mil\u00adli\u00adon in the pri\u00ador quar\u00adter. Diluted ear\u00adnings per share was $0.10 com\u00adpared to $0.03 a year ago and $0.02 in the pri\u00ador quarter.<\/li>\n<li>Cash, cash equi\u00adva\u00adlents, and mar\u00adke\u00adta\u00adble secu\u00adri\u00adties were $879 mil\u00adli\u00adon at the end of the quar\u00adter, com\u00adpared to $844 mil\u00adli\u00adon in the pri\u00ador quarter.<\/li>\n<\/ul>\n<h3>Quarterly Financial Segment Summary<\/h3>\n<ul>\n<li>Com\u00adpu\u00adting and Gra\u00adphics seg\u00adment reve\u00adnue was $819 mil\u00adli\u00adon, up 74 per\u00adcent year-over-year pri\u00adma\u00adri\u00adly dri\u00adven by strong sales of Rade\u00adon\u2122 gra\u00adphics and Ryzen\u2122 desk\u00adtop processors.&nbsp;<ul>\n<li>Cli\u00adent avera\u00adge sel\u00adling pri\u00adce (<span class=\"caps\">ASP<\/span>) increased signi\u00adfi\u00adcant\u00adly year-over-year, due to hig\u00adher desk\u00adtop pro\u00adces\u00adsor <span class=\"caps\">ASP<\/span> dri\u00adven by Ryzen\u2122 pro\u00adces\u00adsor&nbsp;sales.<\/li>\n<li><span class=\"caps\">GPU<\/span> <span class=\"caps\">ASP<\/span> increased signi\u00adfi\u00adcant\u00adly year-over-year.<\/li>\n<li>Ope\u00adra\u00adting inco\u00adme was $70 mil\u00adli\u00adon, com\u00adpared to an ope\u00adra\u00adting loss of $66 mil\u00adli\u00adon a year ago. The year-over-year impro\u00adve\u00adment was pri\u00adma\u00adri\u00adly dri\u00adven by hig\u00adher revenue.<\/li>\n<\/ul>\n<\/li>\n<li>Enter\u00adpri\u00adse, Embedded and Semi-Cus\u00adtom seg\u00adment reve\u00adnue was $824 mil\u00adli\u00adon, appro\u00adxi\u00adm\u00adate\u00adly flat year-over-year pri\u00adma\u00adri\u00adly dri\u00adven by lower semi-cus\u00adtom SoC sales, most\u00adly off\u00adset by <span class=\"caps\">IP<\/span> rela\u00adted and <span class=\"caps\">EPYC<\/span>\u2122 pro\u00adces\u00adsor revenue.&nbsp;<ul>\n<li>Ope\u00adra\u00adting inco\u00adme was $84 mil\u00adli\u00adon, com\u00adpared to $136 mil\u00adli\u00adon a year ago. The year-over-year decrease was pri\u00adma\u00adri\u00adly due to hig\u00adher cos\u00adts par\u00adti\u00adal\u00adly off\u00adset by the net bene\u00adfit of <span class=\"caps\">IP<\/span> rela\u00adted&nbsp;items.<\/li>\n<\/ul>\n<\/li>\n<li>All Other ope\u00adra\u00adting loss was $28 mil\u00adli\u00adon com\u00adpared with an ope\u00adra\u00adting loss of $363 mil\u00adli\u00adon a year ago. The year-over-year dif\u00adfe\u00adrence in ope\u00adra\u00adting loss was pri\u00adma\u00adri\u00adly rela\u00adted to the <span class=\"caps\">WSA<\/span> char\u00adge in the year ago period.<\/li>\n<\/ul>\n<h3><span class=\"caps\">Q3<\/span> 2017 Highlights<\/h3>\n<ul>\n<li><span class=\"caps\">AMD<\/span> con\u00adtin\u00adued dri\u00adving inno\u00adva\u00adti\u00adon and com\u00adpe\u00adti\u00adti\u00adon into the con\u00adsu\u00admer and com\u00admer\u00adcial <span class=\"caps\">PC<\/span> mar\u00adkets with new Ryzen\u2122 processors:&nbsp;<ul>\n<li>Ryzen\u2122 Thre\u00adad\u00adrip\u00adper\u2122 pro\u00adces\u00adsors&nbsp;<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/amd-launches-the-2017aug10.aspx\">laun\u00adched for the High End Desk\u00adtop and work\u00adsta\u00adtion mar\u00adkets<\/a>. Available in 8\u2011, 16- and 12-core vari\u00adants, Thre\u00adad\u00adrip\u00adper\u2122 pro\u00adces\u00adsors are available from over 90 retail\u00aders, OEMs, and sys\u00adtem inte\u00adgra\u00adtors world\u00adwi\u00adde, inclu\u00adding in the Ali\u00aden\u00adwa\u00adre Area-51 Thre\u00adad\u00adrip\u00adper\u2122 Edi\u00adti\u00adon gam\u00ading <span class=\"caps\">PC<\/span>,&nbsp;<a href=\"http:\/\/www.boxx.com\/press-releases\/boxx-introduces-workstation-featuring-amd-ryzen%E2%84%A2-threadripper%E2%84%A2-processor\" target=\"_blank\" rel=\"noopener\"><span class=\"caps\">BOXX<\/span> <span class=\"caps\">APEXX<\/span> 4 6301<\/a>&nbsp;and<a href=\"https:\/\/edge.nextcomputing.com\/nextcomputing-announces-edge-tr-workstation-with-threadripper\/\" target=\"_blank\" rel=\"noopener\">Next\u00adCom\u00adpu\u00adting Edge <span class=\"caps\">TR<\/span>&nbsp;<\/a>work\u00adsta\u00adtions.<\/li>\n<li><a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/amd-completes-ryzen-2017jul27.aspx\">Ryzen\u2122 3 CPUs<\/a>&nbsp;offer excep\u00adtio\u00adnal respon\u00adsi\u00adve\u00adness and per\u00adfor\u00admance at main\u00adstream pri\u00adcing, com\u00adple\u00adting the Ryzen\u2122 main\u00adstream desk\u00adtop lineup.<\/li>\n<li>Ryzen\u2122 <span class=\"caps\">PRO<\/span> desk\u00adtop solu\u00adti\u00adons have&nbsp;<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/ryzen-pro-desktop-2017aug31.aspx\">recei\u00adved<\/a>&nbsp;broad sup\u00adport from top glo\u00adbal com\u00admer\u00adcial <span class=\"caps\">PC<\/span> sup\u00adpli\u00aders, inclu\u00adding Dell, <span class=\"caps\">HP<\/span>, and Lenovo.<\/li>\n<\/ul>\n<\/li>\n<li><span class=\"caps\">AMD<\/span> expan\u00added its gra\u00adphics offe\u00adrings with new con\u00adsu\u00admer, pro\u00adfes\u00adsio\u00adnal, and embedded gra\u00adphics solutions:&nbsp;<ul>\n<li>Laun\u00adched the \u201cVega\u201d archi\u00adtec\u00adtu\u00adre-based&nbsp;<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/amd-redefines-2017jul30.aspx\">Rade\u00adon\u2122 <span class=\"caps\">RX<\/span> Vega fami\u00adly of GPUs<\/a>, mar\u00adking a return to the enthu\u00adsi\u00adast-class gam\u00ading seg\u00adment. The\u00adse new \u201cVega\u201d archi\u00adtec\u00adtu\u00adre-based GPUs\u00adcom\u00adbi\u00adne cut\u00adting-edge capa\u00adbi\u00adli\u00adties with <span class=\"caps\">8GB<\/span> of <span class=\"caps\">HBM2<\/span> memo\u00adry to deli\u00adver up to 13.7 <span class=\"caps\">TFLOPS<\/span> of peak performance.<\/li>\n<li>Laun\u00adched the&nbsp;<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/radeon-pro-wx-9100-2017jul30.aspx\">Rade\u00adon\u2122 Pro <span class=\"caps\">WX<\/span> 9100<\/a>&nbsp;pro\u00adfes\u00adsio\u00adnal gra\u00adphics card, deli\u00adve\u00adring up to 12.3 <span class=\"caps\">TFLOPS<\/span> of peak sin\u00adgle pre\u00adcis\u00adi\u00adon com\u00adpu\u00adte performance.<\/li>\n<li>Laun\u00adched the&nbsp;<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/new-amd-gpu-2017oct03.aspx\">Embedded Rade\u00adon\u2122 <span class=\"caps\">E9170<\/span> Series <span class=\"caps\">GPU<\/span><\/a>, which deli\u00advers up to <span class=\"caps\">3X<\/span> the per\u00adfor\u00admance-per-watt over pre\u00advious gene\u00adra\u00adti\u00adons, and is tar\u00adge\u00adted at digi\u00adtal casi\u00adno games, thin cli\u00adents, medi\u00adcal dis\u00adplays, digi\u00adtal and retail signage, and indus\u00adtri\u00adal sys\u00adtems<sup>(2)<\/sup>.<\/li>\n<\/ul>\n<\/li>\n<li>With new announce\u00adments from Ama\u00adzon Web Ser\u00advices (<span class=\"caps\">AWS<\/span>), and Ten\u00adcent, <span class=\"caps\">AMD<\/span> enter\u00adpri\u00adse solu\u00adti\u00adons have now been cho\u00adsen by five of the \u201c<a href=\"https:\/\/www.networkcomputing.com\/data-centers\/data-center-lessons-super-7\/1620233264\" target=\"_blank\" rel=\"noopener\">Super 7<\/a>\u201d dat\u00ada\u00adcen\u00adter and cloud ser\u00advices com\u00adpa\u00adnies. Pre\u00advious\u00adly announ\u00adced col\u00adla\u00adbo\u00adra\u00adti\u00adons include<a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/amd-epyc-datacenter-2017jun20.aspx\">Ali\u00adbaba, Bai\u00addu and Micro\u00adsoft Azu\u00adre<\/a>.\n<ul>\n<li>Ama\u00adzon Web Ser\u00advices sel\u00adec\u00adted&nbsp;<a href=\"https:\/\/pro.radeon.com\/en\/secure-mobility-amd-radeon-pro-gpus-bring-cutting-edge-graphics-virtualization-to-amazon-appstream-2-0\/\" target=\"_blank\" rel=\"noopener\"><span class=\"caps\">AMD<\/span> Rade\u00adon\u2122 Pro MxG\u00adPU tech\u00adno\u00adlo\u00adgy<\/a>&nbsp;for the new Gra\u00adphics Design ins\u00adtance type on Ama\u00adzon App\u00adStream 2.0, which allows users to run gra\u00adphics-acce\u00adle\u00adra\u00adted appli\u00adca\u00adti\u00adons at a frac\u00adtion of the cost of using gra\u00adphics workstations.<\/li>\n<li><a href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/amd-epyc-momentum-2017aug23.aspx\">Ten\u00adcent<\/a>&nbsp;announ\u00adced plans to use <span class=\"caps\">AMD<\/span> <span class=\"caps\">EPYC<\/span>\u2122 7000 series ser\u00adver pro\u00adces\u00adsors in their datacenters.<\/li>\n<\/ul>\n<\/li>\n<li>Ata\u00adri&nbsp;<a href=\"https:\/\/www.atari.com\/news\/atari-reveals-more-details-about-ataribox\" target=\"_blank\" rel=\"noopener\">dis\u00adc\u00adlo\u00adsed<\/a>&nbsp;that a cus\u00adto\u00admi\u00adzed <span class=\"caps\">AMD<\/span> pro\u00adces\u00adsor fea\u00adturing Rade\u00adon\u2122 gra\u00adphics tech\u00adno\u00adlo\u00adgy will power the upco\u00adming Ata\u00adri\u00adbox game con\u00adso\u00adle, which is tar\u00adge\u00adted for glo\u00adbal launch in spring 2018.<\/li>\n<\/ul>\n<h3>Current Outlook<\/h3>\n<p><span class=\"caps\">AMD<\/span>\u2019s out\u00adlook state\u00adments are based on cur\u00adrent expec\u00adta\u00adti\u00adons. The fol\u00adlo\u00adwing state\u00adments are for\u00adward-loo\u00adking, and actu\u00adal results could dif\u00adfer mate\u00adri\u00adal\u00adly depen\u00adding on mar\u00adket con\u00addi\u00adti\u00adons and the fac\u00adtors set forth under \u201cCau\u00adtio\u00adna\u00adry State\u00adment\u201d&nbsp;below.<\/p>\n<p>For the fourth quar\u00adter of 2017, <span class=\"caps\">AMD<\/span> expects reve\u00adnue to decrease appro\u00adxi\u00adm\u00adate\u00adly 15 per\u00adcent sequen\u00adti\u00adal\u00adly, plus or minus 3 per\u00adcent. The mid\u00adpoint of gui\u00addance would result in fourth quar\u00adter 2017 reve\u00adnue incre\u00adasing appro\u00adxi\u00adm\u00adate\u00adly 26 per\u00adcent year-over-year. <span class=\"caps\">AMD<\/span> now expects annu\u00adal 2017 reve\u00adnue to increase by grea\u00adter than 20 per\u00adcent, com\u00adpared to pri\u00ador gui\u00addance of mid-to-high teens percentage.<\/p>\n<p>For addi\u00adtio\u00adnal details regar\u00adding <span class=\"caps\">AMD<\/span>\u2019s results and out\u00adlook plea\u00adse see the <span class=\"caps\">CFO<\/span> com\u00admen\u00adta\u00adry pos\u00adted at<a href=\"http:\/\/quarterlyearnings.amd.com\/phoenix.zhtml?c=74093&amp;p=quarterlyearnings\">quarterlyearnings.amd.com<\/a>.<\/p>\n<h3><span class=\"caps\">AMD<\/span> Teleconference<\/h3>\n<p><span class=\"caps\">AMD<\/span> will hold a con\u00adfe\u00adrence call for the finan\u00adcial com\u00admu\u00adni\u00adty at 2:00 p.m. <span class=\"caps\">PT<\/span> (5:00 p.m. <span class=\"caps\">ET<\/span>) today to dis\u00adcuss its third quar\u00adter 2017 finan\u00adcial results. <span class=\"caps\">AMD<\/span> will pro\u00advi\u00adde a real-time audio broad\u00adcast of the tele\u00adcon\u00adfe\u00adrence on the&nbsp;<a href=\"http:\/\/quarterlyearnings.amd.com\/phoenix.zhtml?c=74093&amp;p=irol-irhome\">Inves\u00adtor Rela\u00adti\u00adons<\/a>&nbsp;page of its web\u00adsite at&nbsp;<a href=\"http:\/\/www.amd.com\/\">www.amd.com<\/a>. The web\u00adcast will be available for 12 months after the con\u00adfe\u00adrence&nbsp;call.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-2.jpg\" alt>&nbsp;<\/p>\n<p><span class=\"caps\">Q3<\/span> 2017 <span class=\"caps\">GAAP<\/span> diluted ear\u00adnings per share cal\u00adcu\u00adla\u00adted based on 1,042 mil\u00adli\u00adon shares and non-GAAP diluted ear\u00adnings per share is cal\u00adcu\u00adla\u00adted based on 1,143 mil\u00adli\u00adon shares, which includes 100.6 mil\u00adli\u00adon shares rela\u00adted to the Company\u2019s 2026 con\u00adver\u00adti\u00adble notes and also includes a $5 mil\u00adli\u00adon cash inte\u00adrest expen\u00adse add-back to net inco\u00adme under the \u201cif con\u00adver\u00adted\u201d method.<\/p>\n<p><span class=\"caps\">Q3<\/span> 2016 <span class=\"caps\">GAAP<\/span> basic net loss per share is cal\u00adcu\u00adla\u00adted based on 815 mil\u00adli\u00adon shares and non-GAAP diluted ear\u00adnings per share is cal\u00adcu\u00adla\u00adted based on 865 mil\u00adli\u00adon shares.<\/p>\n<h3>About <span class=\"caps\">AMD<\/span><\/h3>\n<p>For more than 45 years, <span class=\"caps\">AMD<\/span> has dri\u00adven inno\u00adva\u00adti\u00adon in high-per\u00adfor\u00admance com\u00adpu\u00adting, gra\u00adphics, and visua\u00adliza\u00adti\u00adon tech\u00adno\u00adlo\u00adgies \u2014 the buil\u00adding blocks for gam\u00ading, immersi\u00adve plat\u00adforms, and the dat\u00ada\u00adcen\u00adter. Hundreds of mil\u00adli\u00adons of con\u00adsu\u00admers, lea\u00adding For\u00adtu\u00adne 500 busi\u00adnesses, and cut\u00adting-edge sci\u00aden\u00adti\u00adfic rese\u00adarch faci\u00adli\u00adties around the world rely on <span class=\"caps\">AMD<\/span> tech\u00adno\u00adlo\u00adgy dai\u00adly to impro\u00adve how they live, work, and play. <span class=\"caps\">AMD<\/span> employees around the world are focu\u00adsed on buil\u00adding gre\u00adat pro\u00adducts that push the boun\u00adda\u00adries of what is pos\u00adsi\u00adble. For more infor\u00adma\u00adti\u00adon about how <span class=\"caps\">AMD<\/span> is enab\u00adling today and inspi\u00adring tomor\u00adrow, visit the <span class=\"caps\">AMD<\/span> (<span class=\"caps\">NASDAQ<\/span>: <span class=\"caps\">AMD<\/span>)&nbsp;<a href=\"http:\/\/www.amd.com\/en\">web\u00adsite<\/a>,&nbsp;<a href=\"https:\/\/community.amd.com\/welcome\" target=\"_blank\" rel=\"noopener\">blog<\/a>,&nbsp;<a href=\"https:\/\/www.facebook.com\/AMD\" target=\"_blank\" rel=\"noopener\">Face\u00adbook<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/twitter.com\/amd\" target=\"_blank\" rel=\"noopener\">Twit\u00adter<\/a>&nbsp;pages.<\/p>\n<h3>Cautionary Statement<\/h3>\n<p>This docu\u00adment con\u00adta\u00adins for\u00adward-loo\u00adking state\u00adments con\u00adcer\u00adning Advan\u00adced Micro Devices, Inc. (<span class=\"caps\">AMD<\/span>) inclu\u00adding <span class=\"caps\">AMD<\/span>\u2019s abili\u00adty to beco\u00adme a pre\u00admier growth com\u00adpa\u00adny in the tech\u00adno\u00adlo\u00adgy indus\u00adtry and <span class=\"caps\">AMD<\/span>\u2019s expec\u00adted fourth quar\u00adter 2017 reve\u00adnue and annu\u00adal 2017 reve\u00adnue, which are made pur\u00adsu\u00adant to the Safe Har\u00adbor pro\u00advi\u00adsi\u00adons of the Pri\u00adva\u00adte Secu\u00adri\u00adties Liti\u00adga\u00adti\u00adon Reform Act of 1995. For\u00adward-loo\u00adking state\u00adments are com\u00admon\u00adly iden\u00adti\u00adfied by words such as \u201cwould,\u201d \u201cmay,\u201d \u201cexpects,\u201d \u201cbelie\u00adves,\u201d \u201cplans,\u201d \u201cintends,\u201d \u201cpro\u00adjects\u201d and other terms with simi\u00adlar mea\u00adning. Inves\u00adtors are cau\u00adtio\u00adned that the for\u00adward-loo\u00adking state\u00adments in this docu\u00adment are based on cur\u00adrent beliefs, assump\u00adti\u00adons and expec\u00adta\u00adti\u00adons, speak only as of the date of this docu\u00adment and invol\u00adve risks and uncer\u00adtain\u00adties that could cau\u00adse actu\u00adal results to dif\u00adfer mate\u00adri\u00adal\u00adly from cur\u00adrent expec\u00adta\u00adti\u00adons. Such state\u00adments are sub\u00adject to cer\u00adtain known and unknown risks and uncer\u00adtain\u00adties, many of which are dif\u00adfi\u00adcult to pre\u00addict and gene\u00adral\u00adly bey\u00adond <span class=\"caps\">AMD<\/span>\u2019s con\u00adtrol, that could cau\u00adse actu\u00adal results and other future events to dif\u00adfer mate\u00adri\u00adal\u00adly from tho\u00adse expres\u00adsed in, or impli\u00aded or pro\u00adjec\u00adted by, the for\u00adward-loo\u00adking infor\u00adma\u00adti\u00adon and state\u00adments. Mate\u00adri\u00adal fac\u00adtors that could cau\u00adse actu\u00adal results to dif\u00adfer mate\u00adri\u00adal\u00adly from cur\u00adrent expec\u00adta\u00adti\u00adons include, wit\u00adhout limi\u00adta\u00adti\u00adon, the fol\u00adlo\u00adwing: Intel Corporation\u2019s domi\u00adnan\u00adce of the micro\u00adpro\u00adces\u00adsor mar\u00adket and its aggres\u00adsi\u00adve busi\u00adness prac\u00adti\u00adces may limit <span class=\"caps\">AMD<\/span>\u2019s abili\u00adty to com\u00adpe\u00adte effec\u00adtively; <span class=\"caps\">AMD<\/span> has a wafer sup\u00adp\u00adly agree\u00adment with <span class=\"caps\">GLOBALFOUNDRIES<\/span> Inc. (<span class=\"caps\">GF<\/span>) with obli\u00adga\u00adti\u00adons to purcha\u00adse all of its micro\u00adpro\u00adces\u00adsor and <span class=\"caps\">APU<\/span> pro\u00adduct requi\u00adre\u00adments, and a cer\u00adtain por\u00adti\u00adon of its <span class=\"caps\">GPU<\/span> pro\u00adduct requi\u00adre\u00adments from <span class=\"caps\">GF<\/span> with limi\u00adt\u00aded excep\u00adti\u00adons. If <span class=\"caps\">GF<\/span> is not able to satis\u00adfy <span class=\"caps\">AMD<\/span>\u2019s manu\u00adfac\u00adtu\u00adring requi\u00adre\u00adments, <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness could be adver\u00adse\u00adly impac\u00adted; <span class=\"caps\">AMD<\/span> reli\u00ades on third par\u00adties to manu\u00adfac\u00adtu\u00adre its pro\u00adducts, and if they are unable to do so on a time\u00adly basis in suf\u00adfi\u00adci\u00adent quan\u00adti\u00adties and using com\u00adpe\u00adti\u00adti\u00adve tech\u00adno\u00adlo\u00adgies, <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness could be mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted; fail\u00adure to achie\u00adve expec\u00adted manu\u00adfac\u00adtu\u00adring yields for <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts could nega\u00adtively impact its finan\u00adcial results; the suc\u00adcess of <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness is depen\u00addent upon its abili\u00adty to intro\u00addu\u00adce pro\u00adducts on a time\u00adly basis with fea\u00adtures and per\u00adfor\u00admance levels that pro\u00advi\u00adde value to its cus\u00adto\u00admers while sup\u00adport\u00ading and coin\u00adci\u00adding with signi\u00adfi\u00adcant indus\u00adtry tran\u00adsi\u00adti\u00adons; if <span class=\"caps\">AMD<\/span> can\u00adnot gene\u00adra\u00adte suf\u00adfi\u00adci\u00adent reve\u00adnue and ope\u00adra\u00adting cash flow or obtain exter\u00adnal finan\u00adcing, it may face a cash short\u00adfall and be unable to make all of its plan\u00adned invest\u00adments in rese\u00adarch and deve\u00adlo\u00adp\u00adment or other stra\u00adte\u00adgic invest\u00adments; the loss of a signi\u00adfi\u00adcant cus\u00adto\u00admer may have a mate\u00adri\u00adal adver\u00adse effect on <span class=\"caps\">AMD<\/span>; <span class=\"caps\">AMD<\/span>\u2019s receipt of reve\u00adnue from its semi-cus\u00adtom SoC pro\u00adducts is depen\u00addent upon its tech\u00adno\u00adlo\u00adgy being desi\u00adgned into third-par\u00adty pro\u00adducts and the suc\u00adcess of tho\u00adse pro\u00adducts; glo\u00adbal eco\u00adno\u00admic uncer\u00adtain\u00adty may adver\u00adse\u00adly impact <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness and ope\u00adra\u00adting results; the mar\u00adkets in which <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts are sold are high\u00adly com\u00adpe\u00adti\u00adti\u00adve; <span class=\"caps\">AMD<\/span> may not be able to gene\u00adra\u00adte suf\u00adfi\u00adci\u00adent cash to ser\u00advice its debt obli\u00adga\u00adti\u00adons or meet its working capi\u00adtal requi\u00adre\u00adments; <span class=\"caps\">AMD<\/span> has a lar\u00adge amount of indeb\u00adted\u00adness which could adver\u00adse\u00adly affect its finan\u00adcial posi\u00adti\u00adon and pre\u00advent it from imple\u00admen\u00adting its stra\u00adtegy or ful\u00adfil\u00adling its con\u00adtrac\u00adtu\u00adal obli\u00adga\u00adti\u00adons; the agree\u00adments gover\u00adning <span class=\"caps\">AMD<\/span>\u2019s notes and the Secu\u00adred Revol\u00adving Line of Cre\u00addit impo\u00adse rest\u00adric\u00adtions on <span class=\"caps\">AMD<\/span> that may adver\u00adse\u00adly affect its abili\u00adty to ope\u00adra\u00adte its busi\u00adness; <span class=\"caps\">AMD<\/span>\u2019s issu\u00adan\u00adce to West Coast Hitech L.P. (<span class=\"caps\">WCH<\/span>) of war\u00adrants to purcha\u00adse 75 mil\u00adli\u00adon shares of its com\u00admon stock, if and when exer\u00adcis\u00aded, will dilute the owner\u00adship inte\u00adrests of <span class=\"caps\">AMD<\/span>\u2019s exis\u00adting stock\u00adhol\u00adders, and the con\u00adver\u00adsi\u00adon of the 2.125% Con\u00adver\u00adti\u00adble Seni\u00ador Notes due 2026 may dilute the owner\u00adship inte\u00adrest of <span class=\"caps\">AMD<\/span>\u2019s exis\u00adting stock\u00adhol\u00adders, or may other\u00adwi\u00adse depress the pri\u00adce of its com\u00admon stock; uncer\u00adtain\u00adties invol\u00adving the orde\u00adring and ship\u00adment of <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts could mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affect it; the demand for <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts depends in part on the mar\u00adket con\u00addi\u00adti\u00adons in the indus\u00adtries into which they are sold. Fluc\u00adtua\u00adtions in demand for <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts or a mar\u00adket decli\u00adne in any of the\u00adse indus\u00adtries could have a mate\u00adri\u00adal adver\u00adse effect on its results of ope\u00adra\u00adti\u00adons; <span class=\"caps\">AMD<\/span>\u2019s abili\u00adty to design and intro\u00addu\u00adce new pro\u00adducts in a time\u00adly man\u00adner is depen\u00addent upon third-par\u00adty intellec\u00adtu\u00adal pro\u00adper\u00adty; <span class=\"caps\">AMD<\/span> depends on third-par\u00adty com\u00adpa\u00adnies for the design, manu\u00adfac\u00adtu\u00adre and sup\u00adp\u00adly of mother\u00adboards, soft\u00adware and other com\u00adpu\u00adter plat\u00adform com\u00adpon\u00adents to sup\u00adport its busi\u00adness; if <span class=\"caps\">AMD<\/span> loses Micro\u00adsoft Corporation\u2019s sup\u00adport for its pro\u00adducts or other soft\u00adware ven\u00addors do not design and deve\u00adlop soft\u00adware to run on <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts, its abili\u00adty to sell its pro\u00adducts could be mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted; <span class=\"caps\">AMD<\/span>\u2019s reli\u00adance on third-par\u00adty dis\u00adtri\u00adbu\u00adtors and <span class=\"caps\">AIB<\/span> part\u00adners sub\u00adjects it to cer\u00adtain risks; <span class=\"caps\">AMD<\/span>\u2019s ina\u00adbi\u00adli\u00adty to con\u00adti\u00adnue to attract and retain qua\u00adli\u00adfied per\u00adson\u00adnel may hin\u00adder its busi\u00adness; in the event of a chan\u00adge of con\u00adtrol, <span class=\"caps\">AMD<\/span> may not be able to repurcha\u00adse its out\u00adstan\u00adding debt as requi\u00adred by the appli\u00adca\u00adble inden\u00adtures and its Secu\u00adred Revol\u00adving Line of Cre\u00addit, which would result in a default under the inden\u00adtures and its Secu\u00adred Revol\u00adving Line of Cre\u00addit; the semi\u00adcon\u00adduc\u00adtor indus\u00adtry is high\u00adly cycli\u00adcal and has expe\u00adri\u00aden\u00adced seve\u00adre down\u00adturns that have mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted, and may con\u00adti\u00adnue to mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affect its busi\u00adness in the future; acqui\u00adsi\u00adti\u00adons, dives\u00adti\u00adtures and\/or joint ven\u00adtures could dis\u00adrupt its busi\u00adness, harm its finan\u00adcial con\u00addi\u00adti\u00adon and ope\u00adra\u00adting results or dilute, or adver\u00adse\u00adly affect the pri\u00adce of, its com\u00admon stock; <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness is depen\u00addent upon the pro\u00adper func\u00adtio\u00adning of its inter\u00adnal busi\u00adness pro\u00adces\u00adses and infor\u00adma\u00adti\u00adon sys\u00adtems and modi\u00adfi\u00adca\u00adti\u00adon or inter\u00adrup\u00adti\u00adon of such sys\u00adtems may dis\u00adrupt its busi\u00adness, pro\u00adces\u00adses and inter\u00adnal con\u00adtrols; data brea\u00adches and cyber-attacks could com\u00adpro\u00admi\u00adse <span class=\"caps\">AMD<\/span>\u2019s intellec\u00adtu\u00adal pro\u00adper\u00adty or other sen\u00adsi\u00adti\u00adve infor\u00adma\u00adti\u00adon, be cos\u00adt\u00adly to reme\u00addia\u00adte and cau\u00adse signi\u00adfi\u00adcant dama\u00adge to its busi\u00adness and repu\u00adta\u00adti\u00adon; <span class=\"caps\">AMD<\/span>\u2019s ope\u00adra\u00adting results are sub\u00adject to quar\u00adter\u00adly and sea\u00adso\u00adnal sales pat\u00adterns; if essen\u00adti\u00adal equip\u00adment, mate\u00adri\u00adals or manu\u00adfac\u00adtu\u00adring pro\u00adces\u00adses are not available to manu\u00adfac\u00adtu\u00adre its pro\u00adducts, <span class=\"caps\">AMD<\/span> could be mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted; if <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts are not com\u00adpa\u00adti\u00adble with some or all indus\u00adtry-stan\u00addard soft\u00adware and hard\u00adware, it could be mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted; cos\u00adts rela\u00adted to defec\u00adti\u00adve pro\u00adducts could have a mate\u00adri\u00adal adver\u00adse effect on <span class=\"caps\">AMD<\/span>; if <span class=\"caps\">AMD<\/span> fails to main\u00adtain the effi\u00adci\u00aden\u00adcy of its sup\u00adp\u00adly chain as it responds to chan\u00adges in cus\u00adto\u00admer demand for its pro\u00adducts, its busi\u00adness could be mate\u00adri\u00adal\u00adly adver\u00adse\u00adly affec\u00adted; <span class=\"caps\">AMD<\/span> out\u00adsour\u00adces to third par\u00adties cer\u00adtain sup\u00adp\u00adly-chain logi\u00adstics func\u00adtions, inclu\u00adding por\u00adti\u00adons of its pro\u00adduct dis\u00adtri\u00adbu\u00adti\u00adon, trans\u00adpor\u00adta\u00adti\u00adon manage\u00adment and infor\u00adma\u00adti\u00adon tech\u00adno\u00adlo\u00adgy sup\u00adport ser\u00advices; <span class=\"caps\">AMD<\/span> may incur future impairm\u00adents of good\u00adwill; <span class=\"caps\">AMD<\/span>\u2019s stock pri\u00adce is sub\u00adject to vola\u00adti\u00adli\u00adty; <span class=\"caps\">AMD<\/span>\u2019s world\u00adwi\u00adde ope\u00adra\u00adti\u00adons are sub\u00adject to poli\u00adti\u00adcal, legal and eco\u00adno\u00admic risks and natu\u00adral dis\u00adas\u00adters, which could have a mate\u00adri\u00adal adver\u00adse effect on it; world\u00adwi\u00adde poli\u00adti\u00adcal con\u00addi\u00adti\u00adons may adver\u00adse\u00adly affect demand for <span class=\"caps\">AMD<\/span>\u2019s pro\u00adducts; unfa\u00advorable cur\u00adren\u00adcy exch\u00adan\u00adge rate fluc\u00adtua\u00adtions could adver\u00adse\u00adly affect <span class=\"caps\">AMD<\/span>; <span class=\"caps\">AMD<\/span>\u2019s ina\u00adbi\u00adli\u00adty to effec\u00adtively con\u00adtrol the sales of its pro\u00adducts on the gray mar\u00adket could have a mate\u00adri\u00adal adver\u00adse effect on it; if <span class=\"caps\">AMD<\/span> can\u00adnot ade\u00adqua\u00adte\u00adly pro\u00adtect its tech\u00adno\u00adlo\u00adgy or other intellec\u00adtu\u00adal pro\u00adper\u00adty in the United Sta\u00adtes and abroad, through patents, copy\u00adrights, trade secrets, trade\u00admarks and other mea\u00adsu\u00adres, it may lose a com\u00adpe\u00adti\u00adti\u00adve advan\u00adta\u00adge and incur signi\u00adfi\u00adcant expen\u00adses; <span class=\"caps\">AMD<\/span> is a par\u00adty to liti\u00adga\u00adti\u00adon and may beco\u00adme a par\u00adty to other claims or liti\u00adga\u00adti\u00adon that could cau\u00adse it to incur sub\u00adstan\u00adti\u00adal cos\u00adts or pay sub\u00adstan\u00adti\u00adal dama\u00adges or pro\u00adhi\u00adbit it from sel\u00adling its pro\u00adducts; <span class=\"caps\">AMD<\/span>\u2019s busi\u00adness is sub\u00adject to poten\u00adti\u00adal tax lia\u00adbi\u00adli\u00adties; and <span class=\"caps\">AMD<\/span> is sub\u00adject to envi\u00adron\u00admen\u00adtal laws, con\u00adflict mine\u00adrals-rela\u00adted pro\u00advi\u00adsi\u00adons of the Dodd-Frank Wall Street Reform and Con\u00adsu\u00admer Pro\u00adtec\u00adtion Act as well as a varie\u00adty of other laws or regu\u00adla\u00adti\u00adons that could result in addi\u00adtio\u00adnal cos\u00adts and lia\u00adbi\u00adli\u00adties. Inves\u00adtors are urged to review in detail the risks and uncer\u00adtain\u00adties in <span class=\"caps\">AMD<\/span>\u2019s Secu\u00adri\u00adties and Exch\u00adan\u00adge Com\u00admis\u00adsi\u00adon filings, inclu\u00adding but not limi\u00adt\u00aded to <span class=\"caps\">AMD<\/span>\u2019s Quar\u00adter\u00adly Report on Form 10\u2011Q for the quar\u00adter ended July 1,&nbsp;2017.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-3.jpg\" alt>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-4.jpg\" alt>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-5.jpg\" alt>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-6.jpg\" alt>&nbsp;<\/p>\n<p>(1) The Com\u00adpu\u00adting and Gra\u00adphics seg\u00adment pri\u00adma\u00adri\u00adly includes desk\u00adtop and note\u00adbook pro\u00adces\u00adsors and chip\u00adsets, dis\u00adcrete gra\u00adphics pro\u00adces\u00adsing units (GPUs) and pro\u00adfes\u00adsio\u00adnal gra\u00adphics pro\u00adces\u00adsors. The Com\u00adpa\u00adny also licen\u00adses por\u00adti\u00adons of its intellec\u00adtu\u00adal pro\u00adper\u00adty portfolio.<\/p>\n<p>(2) The Enter\u00adpri\u00adse, Embedded and Semi-Cus\u00adtom seg\u00adment pri\u00adma\u00adri\u00adly includes ser\u00adver and embedded pro\u00adces\u00adsors, semi-cus\u00adtom Sys\u00adtem-on-Chip (SoC) pro\u00adducts, deve\u00adlo\u00adp\u00adment ser\u00advices and tech\u00adno\u00adlo\u00adgy for game con\u00adso\u00adles. The Com\u00adpa\u00adny also licen\u00adses por\u00adti\u00adons of its intellec\u00adtu\u00adal pro\u00adper\u00adty portfolio.<\/p>\n<p>(3) All Other cate\u00adgo\u00adry pri\u00adma\u00adri\u00adly includes cer\u00adtain expen\u00adses and cre\u00addits that are not allo\u00adca\u00adted to any of the ope\u00adra\u00adting seg\u00adments. Also included in this cate\u00adgo\u00adry is stock-based com\u00adpen\u00adsa\u00adti\u00adon expen\u00adse. In addi\u00adti\u00adon, the Com\u00adpa\u00adny also included a char\u00adge rela\u00adted to the sixth amend\u00adment to the <span class=\"caps\">WSA<\/span> with <span class=\"caps\">GF<\/span> for the three and nine months ended Sep\u00adtem\u00adber 24, 2016 and res\u00adtruc\u00adtu\u00adring and other spe\u00adcial char\u00adges, net for the nine months ended Sep\u00adtem\u00adber 24,&nbsp;2016.<\/p>\n<p>(4) Start\u00ading in <span class=\"caps\">Q1<\/span> 2017, the Com\u00adpa\u00adny clas\u00adsi\u00adfies pro\u00adduc\u00adtion mask sets as pro\u00adper\u00adty, plant and equip\u00adment on its balan\u00adce&nbsp;sheet.<\/p>\n<p>(5) Recon\u00adci\u00adlia\u00adti\u00adon of <span class=\"caps\">GAAP<\/span> Ope\u00adra\u00adting Inco\u00adme (Loss) to Adjus\u00adted <span class=\"caps\">EBITDA<\/span>*<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-7.jpg\" alt>&nbsp;&nbsp;<\/p>\n<p>(6) Free cash flow reconciliation**<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.amd.com\/PublishingImages\/graphics\/tables\/968px\/earningsq2017\/61215-3q-2017-earnings-chart-8.jpg\" alt>&nbsp;<\/p>\n<p>* The Com\u00adpa\u00adny pres\u00adents \u201cAdjus\u00adted <span class=\"caps\">EBITDA<\/span>\u201d as a sup\u00adple\u00admen\u00adtal mea\u00adsu\u00adre of its per\u00adfor\u00admance. Adjus\u00adted <span class=\"caps\">EBITDA<\/span> for the Com\u00adpa\u00adny is deter\u00admi\u00adned by adjus\u00adting ope\u00adra\u00adting inco\u00adme (loss) for depre\u00adcia\u00adti\u00adon and amor\u00adtiza\u00adti\u00adon and stock-based com\u00adpen\u00adsa\u00adti\u00adon expen\u00adse. In addi\u00adti\u00adon, the Com\u00adpa\u00adny excluded a char\u00adge rela\u00adted to the sixth amend\u00adment to the <span class=\"caps\">WSA<\/span> with <span class=\"caps\">GF<\/span> for the three and nine months ended Sep\u00adtem\u00adber 24, 2016 and res\u00adtruc\u00adtu\u00adring and other spe\u00adcial char\u00adges, net for the nine months ended Sep\u00adtem\u00adber 24, 2016. The Com\u00adpa\u00adny cal\u00adcu\u00adla\u00adtes and pres\u00adents Adjus\u00adted <span class=\"caps\">EBITDA<\/span> becau\u00adse manage\u00adment belie\u00adves it is of importance to inves\u00adtors and len\u00adders in rela\u00adti\u00adon to its over\u00adall capi\u00adtal struc\u00adtu\u00adre and its abili\u00adty to bor\u00adrow addi\u00adtio\u00adnal funds. In addi\u00adti\u00adon, the Com\u00adpa\u00adny pres\u00adents Adjus\u00adted <span class=\"caps\">EBITDA<\/span> becau\u00adse it belie\u00adves this mea\u00adsu\u00adre assists inves\u00adtors in com\u00adpa\u00adring its per\u00adfor\u00admance across report\u00ading peri\u00adods on a con\u00adsis\u00adtent basis by exclu\u00adding items that the Com\u00adpa\u00adny does not belie\u00adve are indi\u00adca\u00adti\u00adve of its core ope\u00adra\u00adting per\u00adfor\u00admance. The Company\u2019s cal\u00adcu\u00adla\u00adti\u00adon of Adjus\u00adted <span class=\"caps\">EBITDA<\/span> may or may not be con\u00adsis\u00adtent with the cal\u00adcu\u00adla\u00adti\u00adon of this mea\u00adsu\u00adre by other com\u00adpa\u00adnies in the same indus\u00adtry. Inves\u00adtors should not view Adjus\u00adted <span class=\"caps\">EBITDA<\/span> as an alter\u00adna\u00adti\u00adve to the <span class=\"caps\">GAAP<\/span> ope\u00adra\u00adting mea\u00adsu\u00adre of ope\u00adra\u00adting inco\u00adme (loss) or <span class=\"caps\">GAAP<\/span> liqui\u00addi\u00adty mea\u00adsu\u00adres of cash flows from ope\u00adra\u00adting, inves\u00adt\u00ading and finan\u00adcing acti\u00advi\u00adties. In addi\u00adti\u00adon, Adjus\u00adted <span class=\"caps\">EBITDA<\/span> does not take into account chan\u00adges in cer\u00adtain assets and lia\u00adbi\u00adli\u00adties as well as inte\u00adrest inco\u00adme and expen\u00adse and inco\u00adme taxes that can affect cash&nbsp;flows.<\/p>\n<p>** The Com\u00adpa\u00adny also pres\u00adents free cash flow as a sup\u00adple\u00admen\u00adtal Non-GAAP mea\u00adsu\u00adre of its per\u00adfor\u00admance. Free cash flow is deter\u00admi\u00adned by adjus\u00adting <span class=\"caps\">GAAP<\/span> net cash pro\u00advi\u00added by (used in) ope\u00adra\u00adting acti\u00advi\u00adties for capi\u00adtal expen\u00addit\u00adures. The Com\u00adpa\u00adny cal\u00adcu\u00adla\u00adtes and com\u00admu\u00adni\u00adca\u00adtes free cash flow in the finan\u00adcial ear\u00adnings press release becau\u00adse manage\u00adment belie\u00adves it is of importance to inves\u00adtors to under\u00adstand the natu\u00adre of the\u00adse cash flows. The Company\u2019s cal\u00adcu\u00adla\u00adti\u00adon of free cash flow may or may not be con\u00adsis\u00adtent with the cal\u00adcu\u00adla\u00adti\u00adon of this mea\u00adsu\u00adre by other com\u00adpa\u00adnies in the same indus\u00adtry. Inves\u00adtors should not view free cash flow as an alter\u00adna\u00adti\u00adve to <span class=\"caps\">GAAP<\/span> liqui\u00addi\u00adty mea\u00adsu\u00adres of cash flows from ope\u00adra\u00adting activities.<\/p>\n<p>The Com\u00adpa\u00adny has pro\u00advi\u00added recon\u00adci\u00adlia\u00adti\u00adons within the ear\u00adnings press release of the\u00adse non-GAAP finan\u00adcial mea\u00adsu\u00adres to the most direct\u00adly com\u00adpa\u00adra\u00adble <span class=\"caps\">GAAP<\/span> finan\u00adcial measures.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"prContact\">\n<div id=\"ctl00_PlaceHolderMain_ctl05__ControlWrapper_RichHtmlField\" class=\"ms-rtestate-field\" aria-labelledby=\"ctl00_PlaceHolderMain_ctl05_label\">\n<p>\u200b<\/p>\n<div class=\"promo\">\n<div class=\"promoheader\">Cont\u00adact Information<\/div>\n<div class=\"promodescription\">Drew Prai\u00adrie<br>\nMedia Contact<br>\n512\u2013602-4425<br>\n<a href=\"mailto:drew.prairie@amd.com\">drew.prairie@amd.com<\/a><\/div>\n<\/div>\n<div class=\"promo\">\n<div class=\"promoheader\">Cont\u00adact Information<\/div>\n<div class=\"promodescription\">Lau\u00adra Graves<br>\nInves\u00adtor Contact<br>\n408\u2013749-5467<br>\n<a href=\"mailto:laura.graves@amd.com\">laura.graves@amd.com<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"footerAccordion\"><a id=\"footerLink\" class=\"footerOpen footerClosed\" href=\"http:\/\/www.amd.com\/en-us\/press-releases\/Pages\/press-release-2017oct24.aspx#\"><span class=\"caps\">FOOTNOTES<\/span><\/a><\/div>\n<div class=\"pageFooter\">\n<div id=\"ctl00_PlaceHolderMain_ctl06__ControlWrapper_RichHtmlField\" class=\"ms-rtestate-field\" aria-labelledby=\"ctl00_PlaceHolderMain_ctl06_label\">\n<p><span class=\"caps\">AMD<\/span>, the <span class=\"caps\">AMD<\/span> Arrow logo, <span class=\"caps\">EPYC<\/span>, Rade\u00adon, Rade\u00adon Instinct, Ryzen, and com\u00adbi\u00adna\u00adti\u00adons the\u00adreof, are trade\u00admarks of Advan\u00adced Micro Devices, Inc. Other names are for infor\u00adma\u00adtio\u00adnal pur\u00adpo\u00adses only and used to iden\u00adti\u00adfy com\u00adpa\u00adnies and pro\u00adducts and may be trade\u00admarks of their respec\u00adti\u00adve&nbsp;owner.<\/p>\n<ol>\n<li>In this ear\u00adnings press release, in addi\u00adti\u00adon to <span class=\"caps\">GAAP<\/span> finan\u00adcial results, <span class=\"caps\">AMD<\/span> has pro\u00advi\u00added non-GAAP finan\u00adcial mea\u00adsu\u00adres inclu\u00adding non-GAAP gross mar\u00adgin, non-GAAP ope\u00adra\u00adting inco\u00adme (loss), non-GAAP net inco\u00adme (loss) and non-GAAP ear\u00adnings (loss) per share. The\u00adse non-GAAP finan\u00adcial mea\u00adsu\u00adres reflect cer\u00adtain adjus\u00adt\u00adments as pre\u00adsen\u00adted in the tables in this ear\u00adnings press release. <span class=\"caps\">AMD<\/span> also pro\u00advi\u00added adjus\u00adted <span class=\"caps\">EBITDA<\/span> and free cash flow as sup\u00adple\u00admen\u00adtal non-GAAP mea\u00adsu\u00adres of its per\u00adfor\u00admance. The\u00adse items are defi\u00adned in the foot\u00adno\u00adtes to the sel\u00adec\u00adted cor\u00adpo\u00adra\u00adte data tables pro\u00advi\u00added at the end of this ear\u00adnings press release. <span class=\"caps\">AMD<\/span> is pro\u00advi\u00adding the\u00adse finan\u00adcial mea\u00adsu\u00adres becau\u00adse it belie\u00adves this non-GAAP pre\u00adsen\u00adta\u00adti\u00adon makes it easier for inves\u00adtors to compa\u00adre its ope\u00adra\u00adting results for cur\u00adrent and his\u00adto\u00adri\u00adcal peri\u00adods and also becau\u00adse <span class=\"caps\">AMD<\/span> belie\u00adves it assists inves\u00adtors in com\u00adpa\u00adring <span class=\"caps\">AMD<\/span>\u2019s per\u00adfor\u00admance across report\u00ading peri\u00adods on a con\u00adsis\u00adtent basis by exclu\u00adding items that it does not belie\u00adve are indi\u00adca\u00adti\u00adve of its core ope\u00adra\u00adting per\u00adfor\u00admance and for the other reasons descri\u00adbed in the foot\u00adno\u00adtes to the sel\u00adec\u00adted data tables. Refer to the data tables at the end of this ear\u00adnings press release.<\/li>\n<li><span class=\"caps\">AMD<\/span> Embedded Rade\u00adon\u2122 <span class=\"caps\">E6760<\/span> with 6 com\u00adpu\u00adte units (<span class=\"caps\">CU<\/span>) and con\u00adfi\u00adgu\u00adred at stan\u00addard engi\u00adne clock speed 600 MHz can reach a maxi\u00admum of 461 <span class=\"caps\">GFLOPS<\/span> <span class=\"caps\">SP<\/span> within ther\u00admal design power (<span class=\"caps\">TDP<\/span>) of <span class=\"caps\">30W<\/span>, yiel\u00adding 15.36 <span class=\"caps\">GFLOPS<\/span>\/W. <span class=\"caps\">AMD<\/span> Embedded Rade\u00adon\u2122 <span class=\"caps\">E9173<\/span> with 8 CUs and con\u00adfi\u00adgu\u00adred at stan\u00addard engi\u00adne clock speed 1124 MHz can reach a maxi\u00admum of 1151 <span class=\"caps\">GFLOPS<\/span> <span class=\"caps\">SP<\/span> within <span class=\"caps\">TDP<\/span> of <span class=\"caps\">25W<\/span>, yiel\u00adding 46.04 <span class=\"caps\">GFLOPS<\/span>\/W, achie\u00adving near\u00adly 3x per\u00adfor\u00admance-per-watt com\u00adpared to <span class=\"caps\">AMD<\/span> Embedded Rade\u00adon\u2122 <span class=\"caps\">E6760<\/span>, <span class=\"caps\">EMB-142<\/span>.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u200bReve\u00adnue Increased 26 Per\u00adcent Year-over-Year<br>\n (\u2026) <a class=\"moretag\" href=\"https:\/\/www.planet3dnow.de\/cms\/34408-amd-reports-third-quarter-2017-financial-results\/\">Wei\u00adter\u00adle\u00adsen&nbsp;\u00bb<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-34408","post","type-post","status-publish","format-standard","hentry","category-pressemitteilungen","entry"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/34408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/comments?post=34408"}],"version-history":[{"count":1,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/34408\/revisions"}],"predecessor-version":[{"id":34409,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/posts\/34408\/revisions\/34409"}],"wp:attachment":[{"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/media?parent=34408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/categories?post=34408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.planet3dnow.de\/cms\/wp-json\/wp\/v2\/tags?post=34408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}