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AMD Reports 2016 First Quarter Results + Conference Call [3 semi-customs this year]

R

Rösti

Unconfirmed Member
SUNNYVALE, CA -- (Marketwired) -- 04/21/16 -- AMD (NASDAQ: AMD) today announced revenue for the first quarter of 2016 of $832 million, operating loss of $68 million, and net loss of $109 million, or $0.14 per share. Non-GAAP(1) operating loss was $55 million and non-GAAP(1) net loss was $96 million, or $0.12 per share.

"Our strategy to build a strong business foundation and improve financial performance through delivering great products is beginning to show benefits," said Lisa Su, AMD president and CEO. "We continued to strengthen the performance of our Computing and Graphics business as our customers and partners show a growing preference for AMD. We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins."
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Q1 2016 Results


  • Q1 2016 was a 13-week fiscal quarter.
  • Revenue of $832 million, down 13 percent sequentially and down 19 percent year-over-year. The sequential decrease was primarily due to lower sales of semi-custom SoCs. The year-over-year decline was primarily due to lower sales of semi-custom SoCs and client notebook processors.
  • Gross margin of 32 percent, up 2 percentage points sequentially, due primarily to a richer product mix and the mix of revenue between business segments.
  • Operating expenses of $344 million, compared to $332 million for the prior quarter. Non-GAAP operating expenses of $332 million, compared to non-GAAP operating expenses of $323 million in Q4 2015, primarily due to increased R&D expenses related to new products, partially offset by lower SG&A expenses.
  • Operating loss of $68 million, compared to an operating loss of $49 million for the prior quarter. Non-GAAP(1) operating loss of $55 million, compared to non-GAAP(1) operating loss of $39 million in Q4 2015, primarily due to lower sales.
  • Net loss of $109 million, loss per share of $0.14, and non-GAAP(1) net loss of $96 million, non-GAAP(1) loss per share of $0.12, compared to a net loss of $102 million, loss per share of $0.13 and non-GAAP(1) net loss of $79 million, non-GAAP(1) loss per share of $0.10 in Q4 2015.
  • Cash and cash equivalents were $716 million at the end of the quarter, down $69 million from the end of the prior quarter, due to lower sales and higher debt interest payments, partially offset by $52 million of cash received related to our newly announced IP licensing agreement.
  • Total debt at the end of the quarter was $2.24 billion, flat from the prior quarter.
Click to expand...
Financial Segment Summary


  • Computing and Graphics segment revenue of $460 million decreased 2 percent sequentially and decreased 14 percent from Q1 2015. The sequential decrease was primarily due to decreased sales of client desktop processors and the year-over-year decrease was driven primarily by decreased sales of client notebook processors.
  • Operating loss was $70 million, compared with an operating loss of $99 million in Q4 2015 and an operating loss of $75 million in Q1 2015. The sequential improvement was primarily driven by lower operating expenses. The year-over-year improvement was primarily driven by lower operating expenses.
  • Client processor average selling price (ASP) decreased sequentially driven by a lower desktop processor ASP and decreased year-over-year primarily due to a lower notebook processor ASP.
  • GPU ASP decreased sequentially driven by lower consumer GPU ASPs and increased year-over-year due to higher channel and professional graphics ASPs.
  • Enterprise, Embedded and Semi-Custom segment revenue of $372 million decreased 24 percent sequentially and 25 percent year-over-year. The decreases were primarily driven by lower sales of semi-custom SoCs.
  • Operating income was $16 million compared with $59 million in Q4 2015 and $45 million in Q1 2015. The sequential and year-over-year decrease was primarily due to lower sales and higher R&D expenses associated with new product investments, partially offset by a $7 million IP licensing gain.
  • All Other category operating loss was $14 million compared with operating losses of $9 million in Q4 2015 and $107 million in Q1 2015. The year-over-year decrease was primarily due to the absence of restructuring and other special charges associated with the exit from the dense server systems business.
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Source: http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=2159398

AMD will webcast its earnings conference call on Thursday, April 21, 2016 at 5:00 p.m. EDT / 2:00 p.m. PDT to discuss the results of its fiscal first quarter ended March 26, 2016. All interested parties will have the opportunity to listen to the real-time audio webcast of the teleconference over the Internet through AMD's website at ir.amd.com. An archive of the webcast will be available for approximately one year after the conference call.
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http://edge.media-server.com/m/p/me7hjshq/lan/en

I'm gonna tune in to the conference call mainly to hear if they will share some info on new consoles (NX, PS4K etc.). There will be a transcript of the call posted x hours after the call has ended.

Presentation slides

http://phx.corporate-ir.net/Externa...yfFBhcmVudElEPTUyMjMwODZ8Q2hpbGRJRD02MzAyNTQ=

slide6dsdc.png
Click to expand...
 
A

anexanhume

Member
You wonder why the semi-custom business suffers, but you have to remember that AMD has/had silicon in 5 of the 6 consoles for sale over the last year, so market contracting as a whole hurts them, even with Gen 8 growing.

I like the continuity of half step consoles for their semi-custom team, though. Between that and die size shrinks, they should be able to be kept busy year over year.
 
blu

blu

Wants the largest console games publisher to avoid Nintendo's platforms.
Thanks, Rösti. Appreciated, as usual.
 
Coulomb_Barrier

Coulomb_Barrier

Member
'We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins.'

They have managed to acquire some positive design wins which makes me optimistic for their future - PS4K, NX, and apparently Apple wants Polaris in their iMacs.
 
A

anexanhume

Member
Coulomb_Barrier said:
'We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins.'

They have managed to acquire some positive design wins which makes me optimistic for their future - PS4K, NX, and apparently Apple wants Polaris in their iMacs.
Click to expand...

Apple wants Polaris in the high end iMacs and retina macbook pros. They've gone intregrated for everything but the top tier.

The gaming market is craving Polaris and Pascal though, I know. I'm looking to build within the next year and I haven't built a PC since 2003.
 
W

weekev

Banned
Maybe not relevant to discussion but it seems weird to be reporting on calendar year quarters instead of fiscal year.
 
D

DieH@rd

Banned
Thankfully they are not haemorrhaging big money. Their PC CPU lineup is so old, and 28nm GCN will finally go to die this year.

Hopefully they will get big boost with the arrival of Zen, Polaris, Vega and chips for customers.
 
T

Thraktor

Member
ekim said:
Will there be a transcript?
Click to expand...

As far as I'm aware AMD themselves won't publish transcripts, but they should be available from sites such as SeekingAlpha.com. Anything potentially relevant to upcoming games consoles will likely be published quite widely in the gaming press, though.
 
R

Rösti

Unconfirmed Member
T

Theorry

Member
"ZhugeEX ‏@ZhugeEX
AMD says their increase in revenue next quarter will be heavily weighted on semi custom."
 
A

anexanhume

Member
Semi-custom: 3Q is always peak, will be peak this year as well. 2Q ramp starts up, but 3Q is peak this year. They think segment will grow year over year.
 
D

Deleted member 465307

Unconfirmed Member
Would the Apple contracts be semi-custom or just regular? I'm trying to understand if the section highlighted in ZhugeEX's tweet guarantees a game console launching this year or if it could just be Apple's product refreshes.
 
N

No_Style

Member
kirbyfan407 said:
Would the Apple contracts be semi-custom chips or just regular chips? I'm trying to understand if the section highlighted in ZhugeEX's tweet this guarantees a game console launching this year or if it could just be Apple's product refreshes.
Click to expand...

Depends if Apple asks for drastic changes that would warrant customizing.
 
A

anexanhume

Member
Total of 3 design wins lifetime revenue 1.5B, come across next 3-4 years. Current console business too (PS4, XB1, Wii U?). They expect to hit steady state in a few years.

So this is 3 new wins in addition to current console revenue.
 
T

Theorry

Member
Theorry said:
"@ZhugeEX
AMD say they have 3 design wins in total for Semi Custom.

Expect to ramp new business in H2 2016."
Click to expand...

"ZhugeEX ‏@ZhugeEX
Just to clarify the above. AMD did not say all 3 design wins will ramp in H2 2016. Could be 1? Could be all 3?

But they say H2 2016 & 2017"
 
T

thuway

Member
Consoles and server farms are literally the only reason AMD is still in business. Let's hope they get the boost they need to officially become strong enough to mantain profitability outside the core ventures.
 
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