Category: Business News Today

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Amazon stock drops after revenue beat, EPS miss

Amazon stock drops after revenue beat, EPS miss

Amazon’s (AMZN) Q4 2022 earnings report, unveiled on Feb. 2, highlighted combined final results. The business clocked a profits conquer, but skipped the two EPS and Q1 steerage estimates.

The e-commerce giant’s shares are down about 3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in following-several hours investing.

What follows are some key quantities from the report, as compared to analysts’ anticipations compiled by Bloomberg.

Q4 Web Product sales: $149.2 billion real versus $145.8 billion expected

Q4 Online Stores Net Revenue: $64.5 billion real versus $65.03 billion expected

Q4 Bodily Stores Web Sales: $4.95 billion real vs . $4.93 billion envisioned

Q4 Earnings For every Share (EPS): 3 cents precise vs . 17 cents predicted

Q4 Amazon Internet Expert services (AWS) Internet Sales: $21.3 billion actual compared to $21.76 billion expected

Q4 Running Money: $2.7 billion billion real versus $2.51 billion expected

That overlook on AWS product sales is primarily a blow for Amazon, as its cloud division has lengthy thrived as a stalwart of the company’s enterprise. Having said that, the cloud pass up possibly shouldn’t be a shock – last week, Microsoft (MSFT) warned in its earnings call that cloud advancement deceleration was on the horizon.

Further more, in 2022 all round, Amazon noted a internet loss of $2.7 billion, tying off a rough calendar year for Amazon. That decline is a vital one – it is really Amazon’s 1st given that 2014 and and the firm’s premier yearly loss on-report, according to Morningstar.

Around the training course of 2022, the company’s shares declined about 47{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} amid the much-talked over electronic advertising slowdown, higher inflation, and soaring curiosity rates. The organization experienced developed quickly in the early times of the pandemic, at a time when demand skyrocketed although shoppers have been at dwelling amid shelter-in-place orders. Having said that, the significantly-achieving economic uncertainty of 2022 sent Amazon – and its inventory – careening back again to Earth.

It appears that, for now, Amazon continues to be in a bind. The business lately declared some of Major Tech’s most notable layoffs, wanting to lose 18,000 workforce in its major layoff at any time.

“In the short expression, we face an uncertain economic system, but we continue to be quite optimistic about the very long-term options for Amazon,” CEO Andy Jassy said in a statement.

“When you also element in our investments and innovation in many other wide customer activities (e.g. streaming leisure, consumer-first health care, broadband satellite connectivity for extra communities globally), there is supplemental explanation to sense optimistic about what the upcoming retains,” Jassy continued.

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Abide by her on Twitter at @agarfinks and on LinkedIn.

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Bed Bath and Beyond is closing 87 more stores. See the list

Bed Bath and Beyond is closing 87 more stores. See the list


New York
CNN
 — 

Bed Bath and Beyond is closing another 87 stores as the struggling retailer barrels toward bankruptcy.

These closures are in addition to the 150 closures Bed Bath and Beyond announced last August. Included in the new list are 5 buybuy Baby locations and all 49 remaining Harmon Face Value stores, which sold cosmetics, plus several of the retailer’s flagship-brand stores across the country.

“As we continue to work with our advisors to consider multiple paths, we are implementing actions to manage our business as efficiently as possible,” a Bed Bath and Beyond spokesperson told CNN. “This store fleet reduction expands the company’s ongoing closure program.”

A company spokesperson also confirmed Wednesday night that it missed a bond payment on February 1, and that it entered a month-long grace period. Debtors will often have a 30-day grace period to make payments before they enter default.

“We are committed to updating all stakeholders on our plans as they develop and finalize,” the spokesperson said.

The spokesperson did not confirm the amount Bed Bath and Beyond owes. However, the Wall Street Journal reported Bed Bath and Beyond “failed to pay more than $28 million on three tranches of notes totaling roughly $1.2 billion due on Feb. 1.”

Founded in 1971, Bed Bath & Beyond became a staple for affordable home decor, kitchenware and college dorm room furniture. The retailer became known for its ubiquitous 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} off blue coupons, and cavernous stores with merchandise stacked high to the ceilings. Bed Bath grew its corporate footprint aggressively, peaking at 1,552 stores in 2017.

But it struggled to make the transition to online shopping and to fend off larger chains like Walmart and Target. The retailer started making small trims in 2018 and, in the first year of the pandemic, started closing hundreds of stores, primarily its Bed, Bath and Beyond operations, and getting rid of some of its weaker brands, such as its Christmas Tree Shops.

As of last February, the company had 953 stores left, and it has announced plans to close more than 200 additional stores since then.

The closings not only reduced employee head count and salary expenses, but also the rent it pays. The company’s total store square footage fell by 36{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the four fiscal years ending in February in 2022.

But few troubled retailers have turned around long-term problems through store closings alone. Closings not only reduce costs, they reduces sales. Still, for a cash-starved company, like Bed, Bath and Beyond, the liquidation of inventory can help to raise the cash it needs to help fund operations through a reorganization.

Last week, the company warned in a regulatory filing that it received a notice of default from its lender, JPMorgan Chase. The company said that “at this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the US Bankruptcy Code.”

Bed Bath and Beyond defaulted “on or around” January 13, according to the Securities and Exchange Commission filing. It could be forced to file for Chapter 11 bankruptcy reorganization due to its financial woes.

These are the locations Bed Bath and Beyond plans to close in the coming weeks:

  • 6850 US Highway 90 Anchor D in Daphne, Alabama
  • 4122 McCain Blvd. in North Little Rock, Arkansas
  • 1834 South Signal Butte Road in Mesa, Arizona
  • 1905 Calle Barcelona Suite 100 in Carlsbad, California
  • 10822 Jefferson Blvd. in Culver City, California
  • 2385 Iron Point Road. in Folsom, California
  • 1405 East Gladstone Street in Glendora, California
  • 14351 Hindry Avenue in Hawthorne, California
  • 72459 Highway 111 in Palm Desert, California
  • 10537 4S Commons Drive, Suite 170 in San Diego, California
  • 165 S. Las Posas Road in San Marcos, California
  • 1865 North Campus Avenue, Building #15 in Upland, California
  • 3125 South Mooney Blvd. in Visalia, California
  • 1605 Fall River Drive in Loveland, Colorado
  • 16531 Washington Street in Thornton, Colorado
  • 20 Hazard Avenue in Enfield, Connecticut
  • 2260 Kings Highway in Fairfield, Connecticut
  • 835 Queen Street in Southington, Connecticut
  • 1065 Silas Deane Highway in Weathersfield, Connecticut
  • 2239 East Semoran Blvd in Apopka, Florida
  • 20560 State Road 7 in Boca Raton, Florida
  • 371 North Congress Ave. in Boynton Beach, Florida
  • 320 Brandon Town Center Dr. in Brandon, Florida
  • 4631 North University Dr. in Coral Springs, Florida
  • 14824 South Military Trail in Delray Beach, Florida
  • 1460 West 49th St. in Hialeah, Florida
  • 6001 24 Argyle Forest Blvd in Jacksonville, Florida
  • 3221 City Station Drive, Suite 125 in Jacksonville, Florida
  • 397 North Alafaya Trail in Orlando, Florida
  • 540 North State Road 7 in Royal Palm Beach, Florida
  • 1 Buckhead Loop in Atlanta, Georgia
  • 3615 South Federal Way in Boise, Idaho
  • 9650 South Ridgeland Avenue in Chicago Ridge, Illinois
  • 5786 Northwest Highway in Crystal Lake, Illinois
  • 215 Harlem Avenue in Forest Park, Illinois
  • 1584 South Randall Rd. in Geneva, Illinois
  • 3232 Lake Ave., Suite 125 in Wilmette, Illinois
  • 2515 Corridor Way Suite 5 in Coralville, Iowa
  • 15335 West 119th Street in Olathe, Kansas
  • 4350 Summit Plaza Drive in Louisville, Kentucky
  • 200 Harker Place Suite 200 in Annapolis, Maryland
  • 12641 Ocean Gateway Suite 240 in Ocean City, Maryland
  • 200 Clifton Blvd in Westminster, Maryland
  • 3 Abbott Park in Burlington, Massachusetts
  • 820 Providence Highway in Dedham, Massachusetts
  • 458 State Road, Rt 6, Suite 100 in North Dartmouth, Massachusetts
  • 665 Merrill Road in Pittsfield, Massachusetts
  • 600 South Street West, Suite 13 in Raynham, Massachusetts
  • 7961 Southtown Center in Bloomington, Minnesota
  • 10770 Sunset Hills Plaza in St. Louis, Missouri
  • 155 Promenade Blvd. in Bridgewater, New Jersey
  • 276 Route 202/31 in Flemington, New Jersey
  • 1160 Route 23 North in Kinnelon, New Jersey
  • 1121 Highway 34, Suite A in Matawan, New Jersey
  • 190 Hamilton Commons in Mays Landing, New Jersey
  • 8 Centerton Road in Mt. Laurel, New Jersey
  • 5131 Sunrise Highway in Bohemia, New York
  • 850 Third Avenue in Brooklyn, New York
  • 459 Gateway Drive in Brooklyn, New York
  • 72 15 25th Avenue in East Elmhurst, New York
  • 251 East Main Street in Elmsford, New York
  • 1490 Union Turnpike in New Hyde Park, New York
  • 2020 South Road, Suite 3 in Poughkeepsie, New York
  • 3064 Route 50 in Saratoga Springs, New York
  • 1455 East Lasalle Drive in Bismarck, North Dakota
  • 3750 Easton Market in Columbus, Ohio
  • 1700 Oxford Drive in Bethel Park, Pennsylvania
  • 3739 William Penn Highway in Monroeville, Pennsylvania
  • 1261 Knapp Road in North Wales, Pennsylvania
  • 160 Quinn Drive in Pittsburgh, Pennsylvania
  • 205 West Blackstock Road in Spartanburg, South Carolina
  • 5523 Highway 153, Suite 112 in Hixson, Tennessee
  • 870 South White Station Road in Memphis, Tennessee
  • 420 East FM 3040 Suite 300 in Lewisville, Texas
  • 6400 West Plano Parkway, Suite 125 in Plano, Texas
  • 2112 SW HK Dodgen Loop in Temple, Texas
  • 1678 West Redstone Center Drive in Park City, Utah
  • 1324 Greenbrier Parkway in Chesapeake, Virginia
  • 24670 Dulles Landing Dr Unit 150 in Dulles, Virginia
  • 12100 Fairfax Towne Center in Fairfax, Virginia
  • 6642 Loisdale Rd. in Springfield, Virginia
  • 4900 Monticello Ave, Suite 4 in Williamsburg, Virginia
  • 2540 South Pleasant Valley Road in Winchester, Virginia
  • 7809B Vancouver Plaza Dr #102 in Vancouver, Washington
  • 1630 West Poplar Street in Walla Walla, Washington
  • 395 Target Way in Morgantown, West Virginia
  • 3575 Rib Mountain Drive in Wausau, Wisconsin

– CNN’s Chris Isidore contributed to this report

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Advanced Micro Devices, Inc. (AMD)

Advanced Micro Devices, Inc. (AMD)








― Record full year revenue of $23.6 Billion up 44{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year ―

SANTA CLARA, Calif., Jan. 31, 2023 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2022 of $5.6 billion, gross margin of 43{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, operating loss of $149 million, net income of $21 million and diluted earnings per share of $0.01. On a non-GAAP(*) basis, gross margin was 51{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.69.

For full year 2022, the company reported revenue of $23.6 billion, gross margin of 45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, operating income of $1.3 billion, net income of $1.3 billion and diluted earnings per share of $0.84. On a non-GAAP(*) basis, gross margin was 52{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, operating income was $6.3 billion, net income was $5.5 billion and diluted earnings per share was $3.50.

GAAP Quarterly Financial Results

  Q4 2022 Q4 2021 Y/Y
Revenue ($M) $5,599 $4,826 Up 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Gross profit ($M) $2,403 $2,426 Flat
Gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 43{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Down 740 bps
Operating expenses ($M) $2,557 $1,223 Up 109{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating income (loss) ($M) $(149) $1,207 Down 112{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} (3){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Down 28pp
Net income ($M) $21 $974 Down 98{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Earnings per share $0.01 $0.80 Down 99{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Non-GAAP(*) Quarterly Financial Results

  Q4 2022 Q4 2021 Y/Y
Revenue ($M) $5,599 $4,826 Up 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Gross profit ($M) $2,859 $2,427 Up 18{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 51{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Up 70 bps
Operating expenses ($M) $1,602 $1,103 Up 45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating income ($M) $1,262 $1,328 Down 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 23{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 27{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Down 4pp
Net income ($M) $1,113 $1,122 Flat
Earnings per share $0.69 $0.92 Down 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Annual Financial Results

  GAAP Non-GAAP(*)
  2022 2021 Y/Y 2022 2021 Y/Y
Revenue ($M) $23,601 $16,434 Up 44{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $23,601 $16,434 Up 44{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Gross profit ($M) $10,603 $7,929 Up 34{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $12,273 $7,934 Up 55{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 48{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Down 330bps 52{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 48{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Up 370bps
Operating expenses ($M) $9,441 $4,293 Up 120{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $6,030 $3,877 Up 56{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating income ($M) $1,264 $3,648 Down 65{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $6,345 $4,069 Up 56{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Operating margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 22{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Down 17pp 27{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Up 2pp
Net income ($M) $1,320 $3,162 Down 58{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $5,504 $3,435 Up 60{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Earnings per share $0.84 $2.57 Down 67{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} $3.50 $2.79 Up 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

“2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year,” said AMD Chair and CEO Dr. Lisa Su. “We accelerated our data center momentum and closed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio.”

Q4 2022 Results

  • Revenue of $5.6 billion increased 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year primarily driven by growth across the Embedded and Data Center segments, partially offset by lower Client and Gaming segment revenue.
  • Gross margin was 43{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a decrease of 7 percentage points year-over-year, primarily due to amortization of intangible assets associated with the Xilinx acquisition. Non-GAAP gross margin was 51{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, an increase of 1 percentage point year-over-year, primarily driven by a richer product mix with higher Embedded and Data Center segment revenue, partially offset by lower Client segment revenue.
  • Operating loss was $149 million, compared to operating income of $1.2 billion, or 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue a year ago. The loss was primarily due to the amortization of intangible assets associated with the Xilinx acquisition. Non-GAAP operating income was $1.3 billion, or 23{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue, compared to $1.3 billion or 27{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} a year ago. The non-GAAP operating margin decline was primarily due to lower Client segment operating income.
  • Net income was $21 million compared to net income of $974 million a year ago primarily due to the amortization of intangible assets associated with the Xilinx acquisition, partially offset by a $154 million tax benefit in the quarter. Non-GAAP net income was $1.1 billion, flat from a year ago.
  • Diluted earnings per share was $0.01 compared to $0.80 a year ago primarily due to the amortization of intangible assets associated with the Xilinx acquisition, partially offset by a $154 million tax benefit in the quarter. Non-GAAP diluted earnings per share was $0.69 compared to $0.92 a year ago primarily due to lower Client segment operating income.
  • Cash, cash equivalents and short-term investments were $5.9 billion at the end of the quarter. The company returned $250 million to shareholders through share repurchases in the quarter.
  • Cash from operations was $567 million in the quarter, compared to $822 million a year ago. Free cash flow was $443 million in the quarter compared to $736 million a year ago.
  • Goodwill and acquisition-related intangible assets associated with the acquisitions of Xilinx and Pensando were $48.3 billion at the end of the quarter.

Quarterly Financial Segment Summary

  • Prior period results have been conformed to the current reporting segments for comparison purposes.  
  • Data Center segment revenue was $1.7 billion, up 42{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year primarily driven by strong sales of EPYC™ server processors. Operating income was $444 million, or 27{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue, compared to $369 million or 32{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} a year ago. The operating income increase was primarily driven by higher revenue, partially offset by higher R&D investments to support growth. The operating margin decrease was primarily due to higher R&D investments to support growth.
  • Client segment revenue was $903 million, down 51{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year due to reduced processor shipments resulting from a weak PC market and a significant inventory correction across the PC supply chain. Client processor ASP was flat year-over-year. Operating loss was $152 million, compared to operating income of $530 million or 29{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue a year ago primarily due to lower revenue.
  • Gaming segment revenue was $1.6 billion, down 7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year driven by lower gaming graphics sales partially offset by higher semi-custom product revenue. Operating income was $266 million, or 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue, compared to $407 million or 23{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} a year ago. The operating income and margin decreases were primarily due to lower graphics revenue.
  • Embedded segment revenue was $1.4 billion, up 1,868{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year primarily driven by the inclusion of Xilinx embedded revenue. Operating income was $699 million, or 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue, compared to $18 million or 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} a year ago. The operating income and margin increases were primarily driven by higher revenue.
  • All Other operating loss was $1.4 billion as compared to $117 million a year ago primarily due to amortization of intangible assets largely associated with the Xilinx acquisition.

2022 Annual Results

  • Revenue of $23.6 billion was up 44{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over 2021 driven by higher Embedded, Data Center, and Gaming segment revenue, partially offset by lower Client segment revenue. On a combined AMD and Xilinx company basis, 2022 pro forma revenue was $24.1 billion, up 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} compared to $20.1 billion in 2021.
  • Gross margin was 45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a decrease of 3 percentage points over 2021 primarily due to amortization of intangible assets associated with the Xilinx acquisition. Non-GAAP gross margin was 52{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, an increase of 4 percentage points compared to a year ago, primarily driven by a richer product mix with higher Embedded and Data Center segment revenue, partially offset by lower Client segment revenue.
  • Operating income was $1.3 billion compared to $3.6 billion in the prior year. The decrease was primarily due to the amortization of intangible assets associated with the Xilinx acquisition. Non-GAAP operating income was $6.3 billion compared to $4.1 billion in the prior year primarily driven by higher revenue and gross margin expansion.
  • Net income was $1.3 billion compared to $3.2 billion in the prior year. Non-GAAP net income was $5.5 billion compared to $3.4 billion in the prior year.
  • Diluted earnings per share was $0.84 compared to $2.57 in the prior year. Non-GAAP diluted earnings per share was $3.50 compared to $2.79 in the prior year.
  • Cash, cash equivalents and short-term investments were $5.9 billion at the end of the year. The company returned a total of $3.7 billion to shareholders through share repurchases in 2022.
  • Cash from operations was $3.6 billion, compared to $3.5 billion in the prior year. Free cash flow was $3.1 billion compared to $3.2 billion in the prior year.

Recent PR Highlights

  • AMD showcased continued growth and momentum in the data center with AMD EPYC processors powering the modern data center and critical cloud workloads.
    • AMD announced the availability of 4th Gen AMD EPYC CPUs, delivering leadership performance and energy efficiency. The latest AMD EPYC processors, built on the “Zen 4” core, deliver next-generation architecture, technology and features to power the modern data center. Cloud service providers including Google Cloud, Microsoft and Oracle Cloud Infrastructure announced planned solutions leveraging the performance and security features of 4th Gen AMD EPYC CPUs.
    • AMD powers 101 supercomputers in the latest Top500 list of the most powerful supercomputers in the world and 75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the top 20 systems on the Green500 list of the world’s most energy efficient supercomputers.
  • AMD delivered the opening keynote at CES 2023 alongside partners Microsoft, HP, Lenovo, Magic Leap and Intuitive Surgical highlighting next-generation AMD technologies advancing AI, hybrid work, gaming, healthcare, aerospace and sustainable computing. During the keynote, AMD announced:
    • The broadest portfolio of high-performance PC products for mobile and desktop applications, including Ryzen™ 7000X3D Series Desktop processors that bring the power of AMD 3D V-Cache™ technology to gamers and creators and Ryzen 7000 Series Mobile processors that deliver unparalleled performance for demanding workloads with up to 16 powerful “Zen 4” cores and bring new Ryzen AI technology to select laptop devices.
    • AMD Radeon™ RX 7000 Series Graphics for laptop PCs, built on AMD RDNA™ 3 architecture and designed to deliver exceptional energy efficiency and performance to power 1080p gaming at ultra-settings and advanced content creation applications on next-generation premium laptops.
    • The AMD Alveo™ V70 AI Accelerator with industry-leading performance and energy efficiency for multiple AI inference workloads.
    • A preview of the world’s first integrated data center CPU and GPU, the AMD Instinct™ MI300. Designed for leadership HPC and AI performance, MI300 accelerators leverage chiplet design combining AMD CDNA™ 3 GPU architecture, “Zen 4” CPU cores, and HBM.
    • AMD Vitis™ Medical Imaging libraries to bring premium medical imaging products to market faster by reducing development times. These software libraries accelerate premium medical imaging on AMD Versal™ SoC devices with AI Engines to deliver healthcare providers and their patients high-quality, low-latency imaging.
  • AMD continued to showcase its embedded market leadership.
    • AMD announced its collaboration with the Energy Sciences Network on the launch of ESnet6, the newest generation of the U.S. Department of Energy’s high-performance network dedicated to science.
    • AMD announced it completed Class B qualification for the company’s first space-grade Versal adaptive SoCs.
    • AMD shared that the AMD Xilinx Automotive (XA) Zynq™ UltraScale+™ MPSoC platform has been selected to power the Aisin Automated Parking-Assist (APA) system.
    • AMD unveiled the new Alveo X3 series network cards, the first AMD network cards designed with screened FPGAs and optimized specifically for low latency trading.
    • AMD and Viettel High Tech announced a collaboration on a 5G mobile network expansion.
    • AMD announced that its adaptive computing technology is powering leading mobility supplier DENSO Corporation’s next-generation LiDAR platform.
  • AMD announced the Radeon RX 7900 series graphics cards, the world’s first gaming graphics cards to feature an advanced AMD chiplet design, delivering exceptional performance and energy efficiency to power high-framerate 4K and higher resolution gaming in the most demanding titles.
  • AMD announced changes to its senior leadership team, including the retirement of executive vice president, chief financial officer and treasurer Devinder Kumar after 39 years with the company. The company appointed Jean Hu as AMD executive vice president, chief financial officer and treasurer, effective January 23, 2023 and announced the promotion of Forrest Norrod to executive vice president and general manager of the Data Center Solutions business group.

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 first quarter of 2023, AMD expects revenue to be approximately $5.3 billion, plus or minus $300 million, a decrease of approximately 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year. Year-over-year the Client and Gaming segments are expected to decline, partially offset by Embedded and Data Center segment growth. AMD expects non-GAAP gross margin to be approximately 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the first quarter of 2023.

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 fourth quarter and full-year 2022 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.

       
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)
    Three Months Ended   Year Ended
    December 31,
2022 		  December 25,
2021 		  December 31,
2022 		  December 25,
2021
GAAP gross profit   $ 2,403     $ 2,426     $ 10,603     $ 7,929  
GAAP gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     43 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     45 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     48 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Stock-based compensation     9       1       29       5  
Acquisition-related costs(1)     4       —       193       —  
Amortization of acquired intangible assets     443       —       1,448       —  
Non-GAAP gross profit   $ 2,859     $ 2,427     $ 12,273     $ 7,934  
Non-GAAP gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     51 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     52 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     48 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
                 
GAAP operating expenses   $ 2,557     $ 1,223     $ 9,441     $ 4,293  
GAAP operating expenses/revenue {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     46 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     25 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     40 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     26 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Stock-based compensation     301       111       983       374  
Acquisition-related costs(1)     53       9       328       42  
Amortization of acquired intangible assets     601       —       2,100       —  
Non-GAAP operating expenses   $ 1,602     $ 1,103     $ 6,030     $ 3,877  
Non-GAAP operating expenses/revenue {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     29 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     23 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     26 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     24 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
                 
GAAP operating income (loss)   $ (149 )   $ 1,207     $ 1,264     $ 3,648  
GAAP operating margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}   (3){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     25 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     22 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Stock-based compensation     310       112       1,012       379  
Acquisition-related costs(1)     57       9       521       42  
Amortization of acquired intangible assets     1,044       —       3,548       —  
Non-GAAP operating income   $ 1,262     $ 1,328     $ 6,345     $ 4,069  
Non-GAAP operating margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     23 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     27 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     27 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     25 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
    Three Months Ended Year Ended
    December 31,
2022 		  December 25,
2021 		  December 31,
2022 		  December 25,
2021
GAAP net income / earnings per share   $ 21     $ 0.01     $ 974     $ 0.80     $ 1,320     $ 0.84     $ 3,162     $ 2.57  
Loss on debt redemption/conversion     —       —       —       —       —       —       7       —  
(Gains) losses on equity investments, net     5       —       (4 )     —       62       0.04       (56 )     (0.04 )
Stock-based compensation     310       0.19       112       0.09       1,012       0.64       379       0.31  
Equity income in investee     (3 )     —       —       —       (14 )     (0.01 )     (6 )     —  
Acquisition-related costs(1)     57       0.04       9       —       521       0.33       42       0.03  
Amortization of acquired intangible assets     1,044       0.65       —       —       3,548       2.26       —       —  
Income tax provision     (321 )     (0.20 )     31       0.03       (945 )     (0.60 )     (93 )     (0.08 )
Non-GAAP net income / earnings per share   $ 1,113     $ 0.69     $ 1,122     $ 0.92     $ 5,504     $ 3.50     $ 3,435     $ 2.79  
(1)   Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges
     
 
RECONCILIATION OF AMD AS-REPORTED REVENUE TO PRO FORMA REVENUE
(in billions) (Unaudited)
   
  Year Ended
  December 31,
2022
 		  December 25,
2021
AMD Net Revenue – As reported 23.6     16.4  
Pre-Acquisition Revenue(1) 0.5     3.7  
AMD Net Revenue – Pro forma(2) 24.1     20.1  
(1)   Pre-acquisition revenue for the year ended December 31, 2022 includes unaudited Xilinx revenue from January 2, 2022 to February 13, 2022. Pre-acquisition revenue for the year ended December 25, 2021 includes unaudited Xilinx revenue for the twelve months ended January 1, 2022.
     
(2)   The unaudited AMD net revenue prepared on a pro forma basis represents the Company’s consolidated revenue for the year ended December 31, 2022 and December 25, 2021, as if the acquisitions had been consummated as of the beginning of the fiscal year 2021 (i.e., December 27, 2020). The unaudited pro forma revenue is presented on the basis of the Company’s fiscal year and combines the historical results of the fiscal periods of the Company with the following historical results of Xilinx: the year ended December 31, 2022 includes Xilinx revenue for the twelve-month period beginning January 2, 2022 through December 31, 2022; and the year ended December 25, 2021 includes Xilinx revenue for the twelve months ended January 1, 2022.

The unaudited pro forma financial revenue presented is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the Xilinx acquisitions were completed at the beginning of fiscal year 2021 and are not indicative of the future operating results of the combined company.
     

About AMD
For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s ability to gain market share in 2023 and deliver long-term growth based on its differentiated product portfolio; the features, functionality, performance, availability, timing and expected benefits of AMD products; and AMD’s expected first quarter of 2023 financial outlook, including revenue and non-GAAP gross margin and expected drivers based on current expectations, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; global economic uncertainty; cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; impact of the COVID-19 pandemic on AMD’s business, financial condition and results of operations; competitive markets in which AMD’s products are sold; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to introduce products on a timely basis with expected features and performance levels; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyber-attacks; potential difficulties in upgrading and operating AMD’s new enterprise resource planning system; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD’s supply chain; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of government actions and regulations such as export administration regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals-related provisions and other laws or regulations; impact of acquisitions, joint ventures and/or investments, including acquisitions of Xilinx and Pensando, on AMD’s business and AMD’s ability to integrate acquired businesses;  impact of any impairment of the combined company’s assets on the combined company’s financial position and results of operation; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit facility; AMD’s indebtedness; AMD’s ability to generate sufficient cash to meet its working capital requirements or generate sufficient revenue and operating cash flow to make all of its planned R&D or strategic investments; political, legal, economic risks and natural disasters; future impairments of goodwill and technology license purchases; AMD’s ability to attract and retain qualified personnel; AMD’s stock price volatility; and worldwide political conditions. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

(*) In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2022, AMD uses a non-GAAP tax rate of 13{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provided adjusted EBITDA and free cash flow as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. In addition, AMD provided pro forma revenue for the year ended December 31, 2022 and December 25, 2021 which include unaudited Xilinx pre-acquisition revenue from January 2, 2022 to February 13, 2022 and for the twelve months ended January 1, 2022, respectively, as supplemental information. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of January 31, 2023 and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Threadripper, Versal and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
         
    Three Months Ended   Year Ended
    December 31,
2022		   December 25,
2021		   December 31,
2022		   December 25,
2021
Net revenue   $ 5,599     $ 4,826     $ 23,601     $ 16,434  
Cost of sales     2,753       2,400       11,550       8,505  
Amortization of acquisition-related intangibles     443       —       1,448       —  
Total cost of sales     3,196       2,400       12,998       8,505  
Gross profit     2,403       2,426       10,603       7,929  
Gross margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     43 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     45 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     48 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Research and development     1,366       811       5,005       2,845  
Marketing, general and administrative     590       412       2,336       1,448  
Amortization of acquisition-related intangibles     601       —       2,100       —  
Licensing gain     (5 )     (4 )     (102 )     (12 )
Operating income (loss)     (149 )     1,207       1,264       3,648  
Interest expense     (19 )     (8 )     (88 )     (34 )
Other income (expense), net     32       4       8       55  
Income (loss) before income taxes and equity income     (136 )     1,203       1,184       3,669  
Income tax provision (benefit)     (154 )     229       (122 )     513  
Equity income in investee     3       —       14       6  
Net income   $ 21     $ 974     $ 1,320     $ 3,162  
Earnings per share                
Basic   $ 0.01     $ 0.81     $ 0.85     $ 2.61  
Diluted   $ 0.01     $ 0.80     $ 0.84     $ 2.57  
Shares used in per share calculation                
Basic     1,613       1,208       1,561       1,213  
Diluted     1,618       1,222       1,571       1,229  
                                 
 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
         
    December 31,
2022		   December 25,
2021
    (Unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $ 4,835     $ 2,535  
Short-term investments     1,020       1,073  
Accounts receivable, net     4,126       2,706  
Inventories     3,771       1,955  
Receivables from related parties     2       2  
Prepaid expenses and other current assets     1,265       312  
Total current assets     15,019       8,583  
Property and equipment, net     1,513       702  
Operating lease right-of use assets     460       367  
Goodwill     24,177       289  
Acquisition-related intangibles, net     24,118       —  
Investment: equity method     83       69  
Deferred tax assets     58       931  
Other non-current assets     2,152       1,478  
Total Assets   $ 67,580     $ 12,419  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable   $ 2,493     $ 1,321  
Payables to related parties     463       85  
Accrued liabilities     3,077       2,424  
Current portion of long-term debt, net     —       312  
Other current liabilities     336       98  
Total current liabilities     6,369       4,240  
Long-term debt, net of current portion     2,467       1  
Long-term operating lease liabilities     396       348  
Deferred tax liabilities     1,934       12  
Other long-term liabilities     1,664       321  
         
Stockholders’ equity:        
Capital stock:        
Common stock, par value     16       12  
Additional paid-in capital     58,005       11,069  
Treasury stock, at cost     (3,099 )     (2,130 )
Accumulated deficit     (131 )     (1,451 )
Accumulated other comprehensive loss     (41 )     (3 )
Total stockholders’ equity   $ 54,750     $ 7,497  
Total Liabilities and Stockholders’ Equity   $ 67,580     $ 12,419  
                 
 
ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions) (Unaudited)
         
    Three Months Ended   Year Ended
    December 31,
2022		   December 25,
2021		   December 31,
2022		   December 25,
2021
Net cash provided by (used in)                
Operating activities   $ 567     $ 822     $ 3,565     $ 3,521  
Investing activities   $ 1,067     $ —     $ 1,999     $ (686 )
Financing activities   $ (197 )   $ (727 )   $ (3,264 )   $ (1,895 )
                                 
 
SELECTED CORPORATE DATA
(Millions) (Unaudited)
         
    Three Months Ended   Year Ended
    December 31,
2022		   December 25,
2021		   December 31,
2022		   December 25,
2021
Segment and Category Information(1)                
Data Center                
Net revenue   $ 1,655     $ 1,163     $ 6,043     $ 3,694  
Operating income   $ 444     $ 369     $ 1,848     $ 991  
Client                
Net revenue   $ 903     $ 1,829     $ 6,201     $ 6,887  
Operating income (loss)   $ (152 )   $ 530     $ 1,190     $ 2,088  
Gaming                
Net revenue   $ 1,644     $ 1,763     $ 6,805     $ 5,607  
Operating income   $ 266     $ 407     $ 953     $ 934  
Embedded                
Net revenue   $ 1,397     $ 71     $ 4,552     $ 246  
Operating income   $ 699     $ 18     $ 2,252     $ 44  
All Other                
Net revenue   $ —     $ —     $ —     $ —  
Operating loss   $ (1,406 )   $ (117 )   $ (4,979 )   $ (409 )
Total                
Net revenue   $ 5,599     $ 4,826     $ 23,601     $ 16,434  
Operating income (loss)   $ (149 )   $ 1,207     $ 1,264     $ 3,648  
                 
Other Data                
Capital expenditures   $ 124     $ 86     $ 450     $ 301  
Adjusted EBITDA(2)   $ 1,438     $ 1,446     $ 6,971     $ 4,476  
Cash, cash equivalents and short-term investments   $ 5,855     $ 3,608     $ 5,855     $ 3,608  
Free cash flow(3)   $ 443     $ 736     $ 3,115     $ 3,220  
Total assets   $ 67,580     $ 12,419     $ 67,580     $ 12,419  
Total debt   $ 2,467     $ 313     $ 2,467     $ 313  
(1)   The Data Center segment primarily includes server microprocessors (CPUs) and graphics processing units (GPUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs) and Adaptive System-on-Chip (SoC) products for data centers.
     
    The Client segment primarily includes CPUs, accelerated processing units that integrate microprocessors and GPUs (APUs), and chipsets for desktop and notebook personal computers.
     
    The Gaming segment primarily includes discrete GPUs, semi-custom SoC products and development services.
     
    The Embedded segment primarily includes embedded CPUs and GPUs, FPGAs, and Adaptive SoC products.
     
    From time to time, the Company may also sell or license portions of its IP portfolio.
     
    All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as acquisition-related intangible asset amortization expense, employee stock-based compensation expense, acquisition-related costs and licensing gain.
(2)   Reconciliation of GAAP Net Income to Adjusted EBITDA
    Three Months Ended   Year Ended
    December 31,
2022		   December 25,
2021		   December 31,
2022		   December 25,
2021
GAAP net income   $ 21     $ 974     $ 1,320     $ 3,162  
Interest expense     19       8       88       34  
Other (income) expense, net     (32 )     (4 )     (8 )     (55 )
Income tax provision (benefit)     (154 )     229       (122 )     513  
Equity income in investee     (3 )     —       (14 )     (6 )
Stock-based compensation     310       112       1,012       379  
Depreciation and amortization     176       118       626       407  
Amortization of acquired intangible assets     1,044       —       3,548       —  
Acquisition-related costs     57       9       521       42  
Adjusted EBITDA   $ 1,438     $ 1,446     $ 6,971     $ 4,476  

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other income (expense), net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense and acquisition-related costs. The Company also included amortization of acquired intangible assets for the three months and year ended December 31, 2022. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.

(3)   Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
    Three Months Ended   Year Ended
    December 31,
2022		   December 25,
2021		   December 31,
2022		   December 25,
2021
GAAP net cash provided by operating activities   $ 567     $ 822     $ 3,565     $ 3,521  
Operating cash flow margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     10 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     17 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     15 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     21 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Purchases of property and equipment   $ (124 )   $ (86 )   $ (450 )   $ (301 )
Free cash flow   $ 443     $ 736     $ 3,115     $ 3,220  
Free cash flow margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     15 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     13 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}     20 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} is free cash flow expressed as a percentage of the Company’s net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.

Media Contact:
Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com

Investor Contact:
Suresh Bhaskaran
AMD Investor Relations
408-749-2845
suresh.bhaskaran@amd.com


Primary Logo

Source: Advanced Micro Devices, Inc.

Released January 31, 2023

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Mustang Mach-E: Ford drops the price of its Tesla competitor

Mustang Mach-E: Ford drops the price of its Tesla competitor



CNN
 — 

Ford is boosting production of its well known Mustang Mach-E electric SUV and dropping its sticker price tag months following Tesla dropped costs of its motor vehicles. The go represents a substantial roll-back of cost hikes Ford declared very last summer on the 2023 designs – but consumers might continue to be paying out to some degree a lot more than just before the will increase.

The Mustang Mach-E, a midsize electric powered loved ones SUV, was the initial major electrical effort for the Dearborn, Michigan-primarily based automaker. Priced and aimed squarely at the Tesla Product Y, which has its possess starting off price of $53,490, the Mach-E is Ford’s guess to get new vehicle consumers to dip their toes into the battery-driven upcoming. it has considering the fact that been joined in the electric Ford lineup by the workhorse Ford F-150 Lightning. But the firm even now considers the Mach-E a vital move for the company’s electric powered-powered progress.

Late very last yr, Darren Palmer, Ford’s vice president of electric automobile plans, told CNN Business enterprise that the Mach-E was totally marketed out and the automaker was holding off on launching it in far more world wide markets in purchase to catch up with US desire.

“We could provide it out at least two or 3 occasions more than,” he said a the time.

The value cuts Ford introduced Monday have been biggest on the most expensive variations of the SUV, just as the will increase had been greatest on those people designs. The base sticker of the Mustang Mach-E GT Extended Vary, a large-effectiveness version of the SUV, dropped to about $64,000 from $69,900 before, a decrease of $5,900. But that product experienced been about $62,000 ahead of selling price will increase final August.

When it announced individuals price tag bumps, Ford also mentioned it was putting more common options into the vehicles, such as highly developed driver guidance characteristics.

The value of the least high priced Mach-E, the rear-wheel-drive common range product, was slash $900, going from about $46,900 down to $46,000. The selling price of the extended selection battery pack selection, by by itself, dropped from $8,600 down $7,000.

Tesla introduced selling price cuts of as considerably as 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on its electrical cars earlier this month, immediately after elevating costs in 2022.

When Ford declared the price tag boosts final summer time, citing source chain difficulties, the automakers indicated it would keep on monitoring market place problems during the future design year.

Ford announced last summer season that it was escalating manufacturing of the Mach-E as it additional capability for far more battery manufacturing. The automaker also declared in late August that it was reopening buy banking companies for the Mach-E which had been shut as the business worked to fulfill present orders.

Prospects who comprehensive the transaction for their Mach-E just after today’s announcement will shell out the new decrease selling price, Ford reported. Ford will reach out right to Mach-E consumers with a sale day just after January 1, 2023 who now have their cars, the automaker mentioned.

At the very least some variations of each models are currently suitable for federal electric powered auto tax credits, in accordance to the Interior Profits Provider, but both of those are handled as vehicles, not SUVs, underneath the tax principles, unless of course outfitted with a third row of seats.

That implies that tax credits are accessible for the two-row only Mach-E and two-row Product Y only if the sticker value is down below $55,000. For variations of the Design Y with a third row of seats, a $4,000 solution, buyers may possibly get tax credits with a sticker rate up to $80,000. For the Mustang Mach-E, a 3rd row of seats is not made available.

The remaining amount of the tax credit might count on when the auto is in fact sent to the purchaser and, also, whether or not the clients themselves meet annual revenue requirements.

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Union members poised to reject Disney World contract offer

Union members poised to reject Disney World contract offer


New York
CNN
 — 

Jonathan Pulliam has been performing at Disney Globe given that 2018, dressing up as every thing from beloved Disney cartoon characters to Star Wars villains. And though he enjoys his position, he suggests he just can’t manage it any for a longer time.

“Me loving it, that is not sufficient to fork out the bills,” he reported about his $15.85-an-hour income that usually earns him about $550 a week. With rent for a usual apartment in the Orlando region costing about $1,800 for each thirty day period in accordance to Real estate agent.com, he claims he could not get by if he wasn’t dwelling with his sister.

“I’d in all probability be residing in my car. I know various who are dwelling in automobiles mainly because they cannot afford to pay lease,” explained the Kansas native, who remembers yearly childhood excursions to Disney World with his loved ones. “It’s a vacationer spot. Everything’s costly.”

On Thursday and Friday, about 32,000 Disney employees will be voting on a deal offer you from administration. These personnel do every little thing from executing as people to doing the job in eating places and stores, driving buses, trams and monorails as effectively as functioning at entrance desks and carrying out housekeeping duties at motels.

All those functioning under this agreement, all of them full-time workforce, signify additional than 40{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of all personnel at Disney Globe. At the moment, the park has 75,000 forged users, as the enterprise refers to its workforce, together with entire-time and section-time, hourly and salaried team. It is similar to Disney World’s pre-pandemic work degrees.

The company’s 5-year offer you would raise salaries for forged members by a minimum amount of $1 an hour for each year, getting most employees to at least $20 an hour by 2026. That would be $5 an hour extra than the Florida minimum amount wage, which is in the process of staying elevated from the present-day $11 an hour to $15 an hour by 2026. The firm reported 46{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of cast members will get more than a $1-an-hour elevate in the contract’s first yr.

This is a “very robust offer” with assured raises each and every year of the 5-yr settlement, reported Andrea Finger, a Disney spokesperson. She stated the vast majority of staff will see raises totaling 33{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 46{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the duration of the existence of the contract.

The company’s provide would spend housekeepers and bus drivers at least $20 an hour promptly and culinary employees would start off at $20 to $25 for each hour, based on their purpose.

There will also be retroactive pay back increases dating again to October 1, when the prior contract expired, providing lump-sum pre-tax payments of about $700 to whole-time workers.

But union leadership is urging customers to vote no. The unions say Disney introduced this as its best offer and that is why it is likely to membership for a vote – not because there is a tentative agreement, which is the place at which an present commonly goes to rank-and-file union associates for a vote.

And this time all-around, all indications are that the company’s offer will be turned down.

The 6 union locals functioning beneath the current deal want an instant $3 an hour increase, or a 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} elevate, for what it suggests is 75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the members currently creating $15 an hour, furthermore an added $1 an hour increase every yr just after that.

“The unions have been crystal clear from our incredibly to start with bargaining session that a dollar in the initially year is not enough,” claimed Matt Hollis, president of the Support Trades Council Union, the assortment of 6 union locals that are negotiating with Disney administration. “A greenback does not find the money for Disney personnel with the ability to continue to keep up with the skyrocketing lease will increase. And a dollar does not afford Disney staff with the skill to continue on to acquire basic necessities, this kind of as food, gasoline and utilities.”

Pulliam, the character performer who states he cannot afford to pay for a dollar-an-hour increase, life about an hour’s travel from the theme park, and says he’ll be voting no due to the fact he can’t get by with the wages becoming made available.

“I’m filling my motor vehicle a few situations a 7 days,” he stated. “I would like to request these execs if they could get by on $1 an hour extra. It is disheartening. They never have to determine [whether]...to take in or get gas.”

Pulliam explained he’s angered by recent information reports about fired previous Disney executives who left the enterprise with big spend offers, this kind of as ex-Disney CEO Bob Chapek, who obtained a $20 million severance bundle when he was fired by the board in November, or Geoff Morrell, who acquired $10.3 million for his 3 months overseeing company and community affairs, or a lot more than $100,000 a day.

Negotiations on a new union contract have been ongoing given that August. Regardless of popular anticipations that unions’ rank-and-file will reject this give, no strike deadline or strike authorization vote has been scheduled.

Union leadership claimed they hope that Disney will return to the table with a much better provide at the time union associates reject this a single. Disney does not rule out further negotiations, stating that just after no votes on contracts there usually are added rounds of talks.

“While Disney insists at the bargaining table that this is the very best give, we know Disney can do far better, and Disney is aware they must do better,” stated Hollis. He mentioned the staff who would get far more than a $1 an hour pay back enhance are in work wherever Disney is having issues filling openings and retaining personnel.

Unions have represented staff at Disney Environment considering the fact that soon soon after the park’s 1971 opening, but employees have never ever long gone on strike. Disney documented that its parks, encounters and merchandise device, which incorporates Disney Environment and other park spots around the globe, experienced profits of $7.4 billion and operating income of $1.5 billion in fiscal yr 2022, which ran by way of Oct 1. (The 1st 6 months of that fiscal year ended up affected by surging Covid cases.)

Revenue was up 36{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and profits extra than doubled from the prior fiscal yr. And the two earnings and running gains are over what the enterprise posted in fiscal year 2019, prior to the pandemic, with a 12{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in profits and a 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} attain in earnings.

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Why gas prices are surging this month

Why gas prices are surging this month


New York
CNN
 — 

Normally, price ranges at the fuel pump drift reduced in the course of the dead of winter as awful weather retains Individuals off the roadways. But anything uncommon is taking place this 12 months: Fuel rates are rocketing greater.

The nationwide ordinary for standard fuel jumped to $3.51 a gallon on Friday, according to AAA. Although which is a much cry from the report of $5.02 a gallon previous June, gas costs have amplified by 12 cents in the past 7 days and 41 cents in the previous month.

All explained to, the countrywide normal has climbed by much more than 9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} due to the fact the close of last yr – the most important boost to start a 12 months considering the fact that 2009, according to Bespoke Financial investment Team.

AAA says some states have seasoned a great deal bigger gains about the previous month, such as Colorado (98 cents), Georgia (70 cents), Delaware (62 cents), Ohio (60 cents) and Florida (59 cents).

The uncommon wintertime soar in gas price tag is drawing eye rolls from American motorists now grappling with superior costs at the supermarket. It also threatens to undermine improvements in the inflation crisis that gripped the financial system a great deal of final year.

So, why are gas costs leaping?

It is not due to the fact of desire, which remains weak, even for this time of the yr.

Rather, the issue is provide.

The severe weather conditions in considerably of the United States around the end of previous yr brought about a collection of outages at the refineries that generate the gasoline, jet gas and diesel that hold the financial state humming.

For case in point, Colorado’s sole refinery, the Suncor refinery outside the house of Denver, was disrupted by freezing temperatures. When the refinery experimented with to restart, it endured a hearth and gear got harmed.

Suncor has indicated that refinery – which Lipow Oil Associates says represents 17{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the Rocky Mountain region’s refinery capability – could be offline for at minimum months.

That helps reveal why gas charges in Colorado have surged by approximately $1 a gallon more than the previous thirty day period.

Refineries elsewhere have been sidelined by intense weather conditions as nicely. US refineries are running at just 86{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of ability, down from the mid-90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} range at the start out of December, according to Bespoke.

Beyond the refinery difficulties, oil rates have crept bigger, helping to travel costs at the pump northward.

Considering that tumbling to $71.02 a barrel on December 9, US oil price ranges have jumped about 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to all around $82.30 on Friday. That enhance has been pushed in aspect by anticipations of higher throughout the world demand from customers as China relaxes its Covid-19 insurance policies.

At the same time, the oil marketplaces are no more time getting substantial injections of crisis oil from the Strategic Petroleum Reserve. The Biden administration has shifted from releasing unprecedented amounts of oil from that stockpile to starting the system of refilling it.

The superior information is that some of the refinery troubles could demonstrate to be non permanent, this means offer should catch up with demand.

The terrible news is some experts are warning gasoline price ranges may maintain going greater in any case.

Andy Lipow, president of Lipow Oil Associates, expects the national ordinary will hit $3.65 a gallon heading into the spring.

Patrick De Haan, head of petroleum investigation at GasBuddy, worries the normal springtime bounce in rates will be pulled ahead.

“Instead of $4 a gallon happening in May, it could happen as early as March,” De Haan told CNN. “There is a lot more upside risk than downside chance.”

A return of $4 gas would be painful to motorists and could dent shopper self-assurance. Moreover, suffering at the pump would complicate the inflation photo as the Federal Reserve debates whether to slow its desire rate climbing marketing campaign.

The Cleveland Fed’s Inflation Nowcasting model is now pointing to a .6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} thirty day period-in excess of-thirty day period increase for the Buyer Price Index for January. If that retains genuine, it would signify a significant acceleration compared with the .1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} drop in rates in between November and December.