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 fourth quarter of 2017, AMD expects revenue to decrease approximately 15 percent sequentially, plus or minus 3 percent. The midpoint of guidance would result in fourth quarter 2017 revenue increasing approximately 26 percent year-over-year. AMD now expects annual 2017 revenue to increase by greater than 20 percent, compared to prior guidance of mid-to-high teens percentage.
For additional details regarding AMD’s results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its third quarter 2017 financial results. AMD will provide a real-time audio broadcast of the teleconference on the
Investor Relations page of its website at
www.amd.com. The webcast will be available for 12 months after the conference call.
| Reconciliation of GAAP to Non-GAAP Gross Margin | ||||||||||||
| (Millions except percentages) | Q3-17 | Q2-17 | Q3-16 | |||||||||
| GAAP Gross Margin | $ | 573 | $ | 404 | $ | 59 | ||||||
| GAAP Gross Margin % | 35 | % | 33 | % | 5 | % | ||||||
| Charge related to the sixth amendment to the WSA with GF | — | — | 340 | |||||||||
| Stock-based compensation | 1 | 1 | — | |||||||||
| Non-GAAP Gross Margin | $ | 574 | $ | 405 | $ | 399 | ||||||
| Non-GAAP Gross Margin % | 35 | % | 33 | % | 31 | % | ||||||
| Reconciliation of GAAP Operating Income (loss) to Non-GAAP Operating Income | ||||||||||||
| (Millions) | Q3-17 | Q2-17 | Q3-16 | |||||||||
| GAAP operating income (loss) | $ | 126 | $ | 25 | $ | (293 | ) | |||||
| Charge related to the sixth amendment to the WSA with GF | — | — | 340 | |||||||||
| Stock-based compensation | 29 | 24 | 23 | |||||||||
| Non-GAAP operating income | $ | 155 | $ | 49 | $ | 70 | ||||||
| Reconciliation of GAAP Net Income (Loss) / Earnings (Loss) Per Share to Non-GAAP Net Income / Diluted Earnings Per Share | ||||||||||||||||||||||||
| (Millions except per share amounts) | Q3-17 | Q2-17 | Q3-16 | |||||||||||||||||||||
| GAAP net income (loss) / earnings (loss) per share | $ | 71 | $ | 0.07 | $ | (16 | ) | $ | (0.02 | ) | $ | (406 | ) | $ | (0.50 | ) | ||||||||
| Charge related to the sixth amendment to the WSA with GF | — | — | — | — | 340 | 0.39 | ||||||||||||||||||
| Loss on debt redemption | 2 | — | 3 | — | 61 | 0.07 | ||||||||||||||||||
| Non-cash interest expense related to convertible debt | 6 | 0.01 | 5 | 0.01 | 1 | — | ||||||||||||||||||
| Stock-based compensation | 29 | 0.02 | 24 | 0.02 | 23 | 0.03 | ||||||||||||||||||
| Equity loss in investee | 2 | — | 3 | — | 5 | 0.01 | ||||||||||||||||||
| Gain on sale of 85% of ATMP JV | — | — | — | — | 4 | — | ||||||||||||||||||
| Tax provision related to sale of 85% of ATMP JV | — | — | — | — | (1 | ) | — | |||||||||||||||||
| Non-GAAP net income / diluted earnings per share | $ | 110 | $ | 0.10 | $ | 19 | $ | 0.02 | $ | 27 | $ | 0.03 | ||||||||||||
| Q3 2017 GAAP diluted earnings per share calculated based on 1,042 million shares and non-GAAP diluted earnings per share is calculated based on 1,143 million shares, which includes 100.6 million shares related to the Company’s 2026 convertible notes and also includes a $5 million cash interest expense add-back to net income under the "if converted" method.
Q3 2016 GAAP basic net loss per share is calculated based on 815 million shares and non-GAAP diluted earnings per share is calculated based on 865 million shares. | ||||||||||||||||||||||||
