AMD has announced revenue for the second quarter of 2015 of $942 million, operating loss of $137 million, and net loss of $181 million, or $0.23 per share. Non-GAAP operating loss was $87 million and non-GAAP net loss was $131 million, or $0.17 per share.
"Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs," said Dr. Lisa Su, president and CEO of AMD. "We continue to execute our long-term strategy while we navigate the current market environment. Our focus is on developing leadership computing and graphics products capable of driving profitable share growth across our target markets."
Q2 2015 Results
• Revenue of $942 million, down 8% sequentially and 35% year-over-year. The sequential decrease was primarily due to weaker than expected consumer PC demand impacting the company's Original Equipment Manufacturer (OEM) APU sales. The year-over-year decline was primarily due to decreased sales across client and graphics product lines.
• Gross margin of 25%, down 7% points sequentially, primarily due to a higher mix of Enterprise, Embedded and Semi-Custom segment sales, lower than anticipated Computing and Graphics segment APU unit volumes, and a charge of approximately $33 million associated with a technology node transition from 20 nanometer (nm) to FinFET. Non-GAAP gross margin, excluding the impact of the $33 million charge was 28%.
• Operating loss of $137 million, compared to an operating loss of $137 million for the prior quarter. Non-GAAP operating loss of $87 million, compared to non-GAAP operating loss of $30 million in Q1 2015, primarily due to lower revenue and gross margin driven by lower sales to OEMs attributable to a weak consumer PC market.
• Net loss of $181 million, loss per share of $0.23, and non-GAAP net loss of $131 million, non-GAAP loss per share of $0.17, compared to a net loss of $180 million, loss per share of $0.23 and non-GAAP net loss of $73 million, non-GAAP loss per share of $0.09 in Q1 2015.
• Cash, cash equivalents, and marketable securities were $829 million at the end of the quarter, down $77 million from the end of the prior quarter.
• Total debt at the end of the quarter was $2.27 billion, flat from the prior quarter.
Financial Segment Summary
• Computing and Graphics segment revenue decreased 29% sequentially and 54% from Q2 2014. The sequential decrease was primarily due to decreased sales to OEMs of client notebook processors and the annual decrease was driven by decreased sales across client and graphics product lines.
- Operating loss was $147 million, compared with an operating loss of $75 million in Q1 2015 and an operating loss of $6 million in Q2 2014. The sequential decrease was primarily driven by lower notebook processor sales. The year-over-year decrease was primarily driven by lower sales partially offset by lower operating expenses.
- Client average selling price (ASP) increased sequentially and year-over-year primarily driven by product mix.
- GPU ASP increased sequentially and year-over-year primarily due to higher channel and desktop GPU ASPs.
• Enterprise, Embedded and Semi-Custom segment revenue increased 13% sequentially, primarily driven by higher sales of semi-custom SoCs. The year-over-year decrease of 8% was primarily driven by decreased server sales and lower non-recurring engineering (NRE) revenue.
- Operating income was $27 million compared with $45 million in Q1 2015 and $97 million in Q2 2014. The sequential decrease was primarily driven by the technology node transition charge of $33 million. The year-over-year decrease was primarily driven by lower revenue and the technology node transition charge.
• All Other category operating loss was $17 million compared with operating losses of $107 million in Q1 2015 and $28 million in Q2 2014. The sequential improvement was primarily due to charges in Q1 2015 associated with exiting the dense server systems business. The year-over-year change was primarily due to lower stock-based compensation expense and the absence of amortization of acquired intangible assets.