- AMD unveiled further details on its ambidextrous computing roadmap, including a 64-bit ARM architecture license and plans to develop custom high-performance ARM and x86 processor cores for 2016. The company's differentiated x86 and ARM strategy is designed to deliver unmatched computing and graphics performance using a shared, flexible infrastructure to drive new innovations.
- AMD appointed Dr. Lisa Su to Chief Operating Officer, responsible for overseeing the company's previously separate global operations, operating segments and sales organization to drive growth in both traditional PC and adjacent markets.
- AMD
realigned its organization structure to deliver unmatched customer value in both traditional PC markets and adjacent high-growth markets. Effective July 1, 2014, AMD's two new reportable segments are as follows:
- Computing and Graphics segment, which will primarily include desktop and notebook processors and chipsets, discrete GPUs and professional graphics;
- Enterprise, Embedded and Semi-Custom segment, which will primarily include server and embedded processors, dense servers, semi-custom SoC products, development services and technology for game consoles.
- AMD's Quarterly Report on Form 10-Q for the quarter ended September 27, 2014 will reflect this new segment reporting structure.
- AMD detailed its plans to accelerate the energy efficiency of its accelerated processing units (APUs) delivering 25x efficiency improvements by 2020 through design optimizations, intelligent power management and Heterogeneous System Architecture advances that are expected to enable AMD to outpace the industry's historical energy efficiency trend by at least 70 percent.
- AMD continued to gain momentum with its embedded products in the second quarter.
- The company introduced the 2nd-generation embedded R-Series APU as well as the AMD embedded G-Series SoC and CPU solutions, which will power HP thin clients and Advantech's new embedded industrial solution and are ideally suited for ATMs, kiosks and medical equipment applications.
- AMD embedded Radeon™ graphics were selected by Boeing for its next-generation advanced cockpit display systems.
- AMD publicly demonstrated for the first time its 64-bit ARM-based AMD Opteron™ A-Series processor, codenamed "Seattle," a significant step forward in expanding the footprint of ultra-efficient 64-bit ARM solutions for cloud computing and the Internet of Things.
- AMD expanded its mobile APU offerings in the quarter:
- Acer, Dell, HP and Lenovo have all introduced notebooks powered by AMD's newest 3rd-generation mainstream mobile APUs, which combine category-leading compute performance(2,3) with unique features and rich user interactions.
- AMD also launched its most advanced mobile APUs for consumer and commercial notebooks. The new 2014 performance mobile APUs include AMD's first FX-branded enthusiast class APU for notebooks as well as AMD Pro A-Series APUs. HP is offering the AMD PRO A-Series APUs across its Elite 700-Series notebooks, desktops and all-in-ones, with additional OEMs expected to introduce systems later this year.
- AMD expanded its 2nd-generation Graphics Core Next-based professional graphics solutions with the introduction of the AMD FirePro W8100 professional graphics card, which delivers 38x more performance(4) than the closest competitive offerings based on double precision testing. Dell, HP and more than 10 workstation system integrators have all announced systems featuring the new card.
- AMD's groundbreaking Mantle API, which creates more immersive experiences that take fuller advantage of modern APUs and GPUs to deliver console-like experiences, will be used by Electronic Arts in the upcoming Battlefield Hardline™, Dragon Age: Inquisition™ and Plants vs. Zombies: Garden Warfare™ games. More than 40 game titles supporting Mantle are in development with more than 50 developers actively working with the API for future titles.
Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.
For the third quarter of 2014, AMD expects revenue to increase 2 percent, plus or minus 3 percent, sequentially.
For additional details regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:30 p.m. PT (5:30 p.m. ET) today to discuss its second quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its web site at www.amd.com. The webcast will be available for 12 months after the conference call.
Reconciliation of GAAP to Non-GAAP Operating
Income (Loss)(1)
---------------------------
(Millions) Q2-14 Q1-14 Q2-13
----------------------------------------------------------------------------
GAAP operating income (loss) $ 63 $ 49 $ (29)
----------------------------------------------------------------------------
Workforce rebalancing severance charges - 14 -
----------------------------------------------------------------------------
Amortization of acquired intangible assets 4 3 4
----------------------------------------------------------------------------
Restructuring and other special charges, net - - 5
----------------------------------------------------------------------------
Non-GAAP operating income (loss) $ 67 $ 66 $ (20)
----------------------------------------------------------------------------
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)
------------------------------------------------
(Millions except per share
amounts) Q2-14 Q1-14 Q2-13
----------------------------------------------------------------------------
GAAP net loss / Loss per
share $ (36) $(0.05) $ (20) $(0.03) $ (74) $(0.10)
----------------------------------------------------------------------------
Workforce rebalancing
severance charges - - 14 0.02 - -
----------------------------------------------------------------------------
Loss on debt redemption 49 0.06 15 0.02 - -
----------------------------------------------------------------------------
Amortization of acquired
intangible assets 4 0.01 3 0.00 4 0.01
----------------------------------------------------------------------------
Restructuring and other
special charges, net - - - - 5 0.01
----------------------------------------------------------------------------
Non-GAAP net income (loss) /
Earnings (loss) per share $ 17 $ 0.02 $ 12 $ 0.02 $ (65) $(0.09)
----------------------------------------------------------------------------
