AMD has announced their third quarter earnings for fiscal year 2015. AMD saw a 13% increase in revenue over Q2 2015, but revenues were down almost 26% over their Q3 2014 numbers. Revenue for the quarter was $1.06 billion USD, down from $1.43 billion a year ago. AMD continues to use GAAP and Non-GAAP earnings to help show the state of the business in greater detail. On a GAAP basis, AMD had an operating loss of $158 million for the quarter, and a $197 million net loss, which works out to $0.25 per share. Compared to last quarter, both losses were larger despite the increased revenue, and the numbers are down significantly over the $17 million net income a year ago.
| AMD Q3 2015 Financial Results (GAAP) | |||||
| Q3’2015 | Q2’2015 | Q3’2014 | |||
| Revenue | $1.06B | $942M | $1.43B | ||
| Gross Margin | 23% | 25% | 35% | ||
| Operating Income | -$158M | -$137M | $63M | ||
| Net Income | -$197M | -$181M | $17M | ||
| Earnings Per Share | -$0.25 | -$0.23 | $0.02 | ||
On a Non-GAAP basis, AMD had a $97 million operating loss, which is once again a larger loss than last quarter, and down 211% from the $87 million in operating income last year. Net loss was $136 million, or $0.17 per share, compared to a $41 million net profit and $0.05 per share last year. GAAP to Non-GAAP differences are due to $48 million in restructuring fees and $13 million in stock based compensation.
| AMD Q3 2015 Financial Results (Non-GAAP) | |||||
| Q3’2015 | Q2’2015 | Q3’2014 | |||
| Revenue | $1.06B | $942M | $1.43B | ||
| Gross Margin | 23% | 28% | 35% | ||
| Operating Income | -$97M | -$87M | $87M | ||
| Net Income | -$136M | -$131M | $41M | ||
| Earnings Per Share | -$0.17 | -$0.17 | $0.05 | ||
The Computing and Graphics segment continues to struggle, although AMD did see stronger sequential growth here with the recent launch of Carrizo. Revenue increased 12% over last quarter, although it is still down 46% year-over-year. This segment had an operating loss of $181 million for the quarter, up from a loss of $147 million last quarter and a loss of $17 million a year ago. Sequentially, the loss is mostly attributed to a write-down of $65 million which AMD is taking on older-generation products. Annually, the decrease is due to lower overall sales. Unlike Intel, AMD processors had a decrease in Average Selling Price (ASP) both sequentially and year-over-year, so there was no help there from the lower sales volume. The GPU ASP was a different story, staying flat sequentially and increasing year-over-year. Recent launches of new AMD graphics cards have helped here.
| AMD Q3 2015 Computing and Graphics | |||||
| Q3’2015 | Q2’2015 | Q3’2014 | |||
| Revenue | $424M | $379M | $781M | ||
| Operating Income | -$181M | -$147M | -$17M | ||
The Enterprise, Embedded, and Semi-Custom segment had a better showing. Revenue increased 13% over last quarter, and was down only 2% year-over-year. Semi-custom sales (read Consoles) drove the sequential increase but lower embedded and server processor sales caused a year-over-year decline. Operating income for this segment came in at $84 million, up from $27 million in Q2 but down from $108 million in Q3 2014. Q2’s numbers were skewed though by a $33 million hit on moving to a new process node.
| AMD Q3 2015 Enterprise, Embedded and Semi-Custom | |||||
| Q3’2015 | Q2’2015 | Q3’2014 | |||
| Revenue | $637M | $563M | $648M | ||
| Operating Income | $84M | $27M | $108M | ||
All Other had an operating loss of $61 million for the quarter, up from $17 million loss in Q2 and a $28 million loss in Q3 2014. This is where they stick their “restructuring charges” and they nicely align with the GAAP vs Non-GAAP values.
