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AMD reports third quarter 2019 financial results



<p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " – Revenue grew 9 percent year -over-year and 18 percent quarter-over-quarter;
Gross margin expanded to 43 percent, up 3 percentage points on the previous year – "data-reactid =" 11 "> – Revenue increased by 9 percent year year over year and 18 percent quarter over quarter.
Gross margin expanded to 43 percent, up 3 percentage points a year earlier ̵
1;

<p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 cm) – sm "type =" text "content =" SANTA CLARA, California, October 29, 2019 (GLOBE NEWSWIRE) – [19659005] AMD ( AMD ) today announced Q3 2019 revenue of 1 $ 80 billion, $ 186 million operating income, $ 120 million net income and diluted earnings per share of $ 0.11. -Gaap (*) basis, operating income was $ 240 million, net income was $ 219 million and diluted earnings per share which is $ 0.18. "data-reactid =" 12 "> SANTA CLARA, California, October 29, 2019 (GLOBE NEWSWIRE) – AMD (AMD) today announced earnings for the third quarter of 2019 at $ 1.80 billion, operating income of $ 186 million, net income of $ 120 million and diluted earnings per share of $ 0.11. On a non-GAAP (*) basis, operating income was $ 240 million, net income was $ 219 million and diluted earnings per share were $ 0.18.

<p class = "canvas atomic canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " GAAP quarterly financial results "data-reactid =" 13 "> GAAP Quarterly Financial Results

Q3 2019 Q3 2018 Y / Y Q2 2019 Q / Q
Revenue ($ B) $ 1.80 $ 1.65 Up 9% $ 1.53 Up 18%
Gross Margin 43% 40% Up 3 p. 41% Up 2 p. [19659025] Operating costs ($ M) $ 591 $ 511 Up $ 80 $ 562 Up $ 29 [19659028] Revenue ($ M) $ 186 $ 150 Up $ 36 $ 59 Up $ 127
Net Income ($ M) $ 120 [19659012] $ 102 Opp $ 18 $ 35 Opp $ 85
Earnings per share $ 0.11 [19659014] $ 0.09 Up $ 0.02 $ 0.03 Up $ 0.08

<p class = "canvas-atom canvas text Mb (1.0 cm) Mb (0) – sm Mt (0.8 cm) – sm" type = "text" content = " Non-GAAP (*) quarterly financial results " data-reactid = "16"> Non-GAAP (*) quarterly financial results

[19659008] Q3 2019 Q3 2018 Y / Y Q2 2019 Q / Q
Revenue ($ B) $ 1.80 $ 1.65 Up 9% [19659014] $ 1.53 Up 18%
Gross Margin 43% 40% Up 3 p. 41% Up 2 p.
Operating Expenses ($ M ) [19659014] $ 539 $ 476 Up $ 63 $ 512 Up $ 27
Revenue ($ M) $ 240 $ 186 Up $ 54 $ 111 Up $ 129
Net Income ($ M) $ 219 $ 150 Up $ 69 $ 92 Up $ 127 [19659028] Earnings per share $ 0.18 [19659012] $ 0.13 Up $ 0.05 $ 0.08 Up $ 0.10 [19659049]

"Our first full quarter at 7nm Ryzen, Radeon and EPYC processor sales drove our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and a significant increase in net income year over year, "said Dr. Lisa Su, AMD President and CEO. "I am extremely pleased with our progress as we have the strongest product portfolio in our history, significant customer momentum and a leading product map plan for 2020 and beyond."

<p class = "canvas-atom canvas-text Mb (1.0 em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Q3 2019 Results [19659086] "data-reactid =" 20 "> Q3 2019 Results

  • Revenues were $ 1.80 billion, up 9 percent year-over-year and 18 percent quarter over quarter due to higher revenue in the segment Computing and Graphics, partially offset by lower revenues in Enterprise, Embedded and Semi-Custom.
  • Gross margin was 43 percent, up 3 percentage points year over year and 2 percentage points quarter over quarter, primarily driven by increased Ryzen TM and EPYC TM processor sales.
  • Operating revenues were $ 186 million compared to $ 150 million a year ago and $ 59 million in the previous quarter. Non-GAAP revenue was $ 240 million, compared with $ 186 million a year ago and $ 111 million in the previous quarter. The year and the increase in order were mainly due to higher revenues in the Computing and Graphics segment.
  • Net revenues were $ 120 million compared to $ 102 million a year ago and $ 35 million in the previous quarter. Net GAAP net income was $ 219 million compared to $ 150 million a year ago and $ 92 million in the previous quarter.
  • Diluted earnings per share were $ 0.11 compared to $ 0.09 a year ago and $ 0.03 in the previous quarter. Diluted earnings per share without GAAP were $ 0.18 compared to $ 0.13 a year ago and $ 0.08 in the previous quarter.
  • Cash, cash equivalents and marketable securities were $ 1.2 billion at the end of the quarter.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Quarterly Financial Segment Summary
"data-reactid =" 28 "> Quarterly Financial Segment Summary

  • Data processing and graphics revenue was $ 1.28 billion, up 36 percent the year before and sequentially. Higher revenue was primarily driven by increased sales of Ryzen client processors.
    • Average Client Processor Sales Price (ASP) increased year over year mainly driven by Ryzen desktop processor sales and increased quarter over quarter driven by both Ryzen desktop and mobile processor sales.
    • GPU ASP increased year-over-year driven by higher channel sales and decreased quarter by quarter due to a higher proportion of mobile sales.
    • Operating revenues were $ 179 million compared to $ 100 million a year ago and $ 22 million in the previous quarter. The increase from year to year and quarter to quarter was mainly due to higher revenues.
  • The segment revenue for the Enterprise, Embedded and Semi-Custom segment was $ 525 million, down 27 percent the year before and 11 percent in succession. The decline in the previous year and quarter over quarter was mainly due to lower semi-adjusted product revenues, partly offset by higher sales of EPYC processors.
    • Operating revenues were $ 61 million, compared to $ 86 million a year ago and $ 89 million in the previous quarter. The decrease in the previous year and the quarter over the quarter was due to lower revenues and higher operating expenses.
  • All other operating deficits were $ 54 million compared to $ 36 million a year ago and $ 52 million in the previous quarter. [19659100] <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Q3 2019 PR Highlights "data-reactid =" 33 "> Q3 2019 PR Highlights

    • AMD launched the 2 nd Gen AMD EPYC ™ processors with record-setting performance across multiple companies , cloud and high performance computing, along with an expansive, global ecosystem of data center partners and customers.
      • Google announced distribution of 2 nd Gen AMD EPYC processors in its internal infrastructure and it will offer new general machines powered by the Google Cloud Compute Engine processors. [19659104] Twitter announced that 2 nd Gen AMD EPYC processor distributions over its data center infrastructure will reduce the total cost of ownership by 25 percent while reducing the environmental impact of the data centers.
      • Cray announced that UK Research and Innovation will utilize Cray & # 39; s Shasta supercomputer powered by 2nd Gen AMD EPYC processors for the new ARCHER2 system. Considered to be Britain's most powerful supercomputer, it will strengthen research across a range of disciplines, including oil and gas, sustainability and health. Cray also announced that the Air Force Weather Agency will use a Cray Shasta system with two nd Gen AMD EPYC processors to provide comprehensive land and space information for the US Air Force and Army.
      • Dell Technologies HPE Lenovo and others announced support for over a dozen new 2 nd Gen AMD EPYC processor-driven platforms for enterprise, HPC and network customers.
      • IBM Cloud and Nokia detailed performance benefits of 2 nd Gen AMD EPYC processors for their cloud and 5G customers, including cloud security enhancements, better data bandwidth for big data, and analytics , kernel scaling and significantly better package execution.
    • Microsoft announced that the new 15-inch Microsoft Surface Laptop 3 will be powered by an AMD Ryzen ™ mobile processor. The result of a multi-year co-engineering effort. The system combines the custom AMD Ryzen ™ Microsoft Surface Edition processor with an optimized Windows operating system software stack to create an ultra-powerful, ultra-thin, full-day battery life.
    • Leading PC companies expanded their AMD Ryzen processor offerings with new commercial and consumer offerings, including:
      • HP and Lenovo announced they will offer new desktop business PCs with the recently launched AMD Ryzen ™ PRO 3000 series and AMD Ryzen ™ PRO processors with Radeon ™ Vega Graphics.
      • AMD also launched AMD Athlon ™ PRO processors with Radeon Vega Graphics. The new processors deliver powerful, energy-efficient performance and commercial quality.
      • HP unveiled its first AMD-powered laptop, the Pavilion Gaming 15 Laptop, with the second and Gen AMD Ryzen ™ 7 mobile processors. HP also announced Pavilion Gaming Desktop, offering 2 No. and 3 rd Gen AMD Ryzen ™ 7 desktop processors.
      • Lenovo announced that the new consumer-focused IdeaCentre A540 and IdeaPad S540 will offer advanced Ryzen CPU options.
    • AMD Radeon ™ graphics products based on the groundbreaking new RDNA gaming architecture provide powerful performance and advanced features:
      • AMD announced AMD Radeon ™ RX 5500 series graphics products, and br The RDNA architecture for desktops with Radeon ™ RX 5500 graphics cards and for laptops with Radeon ™ RX 5500M GPU. Systems will be available from top OEMs including Acer, HP, Lenovo and MSI starting November.
      • AIB partners including Sapphire MSI Asus PowerColor Gigabyte and XFX released new Radeon ™ RX 5700 series graphics cards design for multiple form factors.
    • Microsoft began the public preview of its project xCloud cloud-based game streaming service, powered by the same bespoke SoC used in Xbox One S consoles to deliver a high-level mobile gaming streaming experience to players worldwide.
    • AMD was named one of Fast Company's best places to work for innovators for 2019, and highlights its commitment to cultivating a workplace where employees can do their best work and push the boundaries of high-performance computing.

    <p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " Current Outlook
    "data-reactid =" 41 "> Current Outlook

    <p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm " type = "text" content = "AMD's prospectus is based on current expectations. The following statements are forward-looking, and actual results may differ materially depending on market conditions and the factors set forth in the" Precautionary Statement "below.
    " data-reactid = "42 "> AMD's outlook statements are based on current expectations The following statements are forward-looking, and actual results may differ materially depending on market conditions and the factors listed under the" Precautionary Statement "below.

    For the fourth quarter of 2019, AMD expects revenue to be approximately $ 2.1 billion, plus or minus $ 50 million, an increase of approximately 48 percent year over year and approximately 17 percent sequentially. Year over year and sequential increases are expected to be driven by an increase in Ryzen, EPYC and Radeon product sales. expects non-GAAP gross margin to be about 44 percent in Q4 2019.

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – -sm "type =" text "cont ent =" AMD Teleconference
    "data-reactid =" 44 "> AMD Teleconference

    <p class =" canvas-atom canvas-text Mb ( 1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" AMD holds a conference call for the financial community at 2:30 pm PT (5:30 pm ET) today to discuss the financial results for the third quarter of 2019. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page on its website at www.amd.com . The webcast will be available for 12 months after conference call. "Data-reactid =" 45 "> AMD will hold a conference call for the financial environment at 2:30 pm PT (5:30 pm ET) today to discuss its third quarterly results for 2019. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page on its website at www.amd.com . The webcast will be available for 12 months after the conference call.

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Millions, excluding per share data) Three Years Ended
    September 28,
    2019 [19659139] 29. June
    2019
    29. September
    2018
    GAAP gross margin $ 777 [19659152] $ 621 $ 661
    GAAP gross margin% [1 9659139] 43 % [19659151] 41 % 40 %
    Stock-based compensation ] 2 2 1
    Non-GAAP gross margin $ [19659161] 779 $ 623 $ 662
    Non-GAAP gross margin% 43 % 41 % 40 %
    GAAP operating expenses $ 591 $ 562 [19659178] $ 511
    Share-based compensation 52 43 35
    Loss contingency on legal issues ] 7
    Non-GAAP operating expenses $ 539 $ 512 $ 476
    GAAP operating income ] $ 186 $ 59 [19659176] $ [19659214] 150
    Equity-based compensation 54 45 36
    Litigation on litigation 7
    Non-GAAP Revenue $ 240 $ $ 19659184] 111 $ 186
    [19659259]
    Three months ended
    [19659259] September 28
    2019
    29. June
    2019
    29. September
    2018
    GAAP Net Earnings / Earnings Per Share $ 120 $ 0.11 ] $ 35 $ 0.03 $ 102 $ 0.09 [19659152]
    Debt Redemption / Conversion Loss 40 0.03 – [19659332] 6
    Non-cash interest expense related to convertible debt 6 6 – [19659246] – [19659174] 6 0.01
    Stock-based compensation 54 0.04 19659139] 45 0 , 04 36 0.03
    Equity Income in Invested Companies 19659173] (1 ) [19659139]
    Tap contingenc y on legal issues 7 0.01 – [19659184] Provision (benefit) for income tax (1 ) – [19659159] Non-GAAP Net Income / Earnings Per Share (1) $ 219 $ [19659282] 0.18 $ 92 [19659470] $ 0.08 $ 150 $ 0.13
    [19659594] [1 9659206]
    A shares used and net income adjustment in
    earnings per share calculation
    [19659206] [19659594]
    Shares used in calculation per share (GAAP) 1,117 1,109 [19659519] 1.076
    Addition of GAAP Net Income Interest Expenses $ $ [19659529] $
    Shares used in calculation per share (Non-GAAP) 1,212 1,210 1 177
    Supplement for interest expense on non-GAAP net income [19659259] $ 4 $ 5 [19659139] $ [19659553] 5
    (1) For the three months which ended as of September 28, 2019, non-GAAP diluted EPS calculation includes the 95 million shares
    related to the company's convertible notes in 2026 and the associated $ 4 million interest expense to net income
    under the "if converted" method.

    In the three months ended June 29, 2019 and September 29, 2018, non-GAAP diluted EPS calculation
    includes 100.6 million shares related to the Company's 2026 Convertible Notes and related $ 5 million interest expense
    addition to net income under the "if converted" method.

    <p class = "canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " About AMD
    "data-reactid =" 52 "> About AMD

    <p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" For 50 years, AMD has driven innovation in high-performance computing, graphics and visualization technologies – the building blocks for gaming, immersive platforms and data centers. Hundreds of millions of consumers, leading Fortune 500 companies and cutting-edge scientific research facilities around the world, rely on AMD technology on a daily basis to improve the way they live, play, and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. how AMD enables today and inspires tomorrow, visit AMD ( AMD ) website blog F acebook and [19659586] Twitter pages. "Data-reactid =" 53 "> For 50 years, AMD has driven high-performance innovation in computing, graphics and visualization – building blocks for games, immersive platforms and the data center. Hundreds of millions of consumers, leading Fortune 500 companies and cutting-edge scientific research facilities around the world, rely on AMD technology daily to improve how they live, work and play. AMD employees around the world are focused on building great products that push the boundaries of For more information on how AMD enables today and inspire tomorrow, visit the AMD (AMD) website blog Facebook and Twitter pages.

    <p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Precautionary Statement & nbsp; & Nbsp; & Nbsp; & Nbsp; & Nbsp; & Nbsp; & Nbsp; & nbsp; "data-reactid =" 54 "> Disclaimer

    This document contains forward-looking statements regarding Advanced Micro Devices, Inc. (AMD) as AMD's expectations for the long-term product roadmap for 2020 and beyond; features, functionality, performance, availability, timing and expected benefits of AMD products, and AMD's expected fourth quarter 2019 and fiscal 2019 prospects, including revenues, as well as expected drivers for such revenues, and the non-GAAP gross margin entered into in accordance with the Safe Harbor provisions of the Private Securities Law Act of 1995. Forward-looking statements are often identified by words such as "would," "can," "expect," "" plan, "" intend, "" project, "and other designations of similar importance Investors are warned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involves risks and uncertainties that may cause actual results to differ materially from today's 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, which may cause actual results and other future events to differ materially from those expressed in, or implied or projected by, forward-looking information and statements. Material factors that may cause actual results to differ materially from today's expectations include, without limitation, the following: Intel Corporation's dominance of the microprocessor market and its aggressive business practices; GLOBALFOUNDRIES Inc.'s ability to meet AMD's manufacturing requirements; the ability of third-party manufacturers to produce AMD's products in a timely manner in sufficient quantities and using competing technologies; expected production yields for AMD's products; AMD's ability to introduce products at the right time with features and performance levels that add value to their customers while supporting and coinciding with significant industry transitions; AMD's ability to generate sufficient revenue and operate cash flow or provide external funding for research and development or other strategic investments; the loss of a significant customer; AMD's ability to generate revenue from its semi-custom SoC products; global economic uncertainty; political, legal and economic risks and natural disasters; potential security issues; potential IT power outages, data loss, data breaches and network attacks; quarterly and seasonal sales patterns; AMD's ability to generate sufficient cash to service its debt obligations or meet working capital requirements; AMD's debt. the restrictions imposed by agreements regulating AMD's notes and the secured credit facility; the competing markets where AMD's products are sold; the potential dilution effect if 2,125% of convertible senior notes due 2026 are converted; uncertainty related to ordering and shipping of AMD's products; market conditions for the industries in which AMD products are sold; AMD's reliance on third party intellectual property to design and introduce new products in a timely manner; AMD relies on third-party companies for the design, manufacture and supply of motherboards, software and other computer platform components; AMD relies on Microsoft Corporation and other software vendors' support to design and develop software to run AMD's products; AMD relies on third-party distributors and additional partners; future impairment on the acquisition of goodwill and technology licenses; AMD's ability to attract and retain qualified personnel; AMD's ability to repurchase its outstanding debt in the event of a change of control; the cyclic nature of the semiconductor industry; the effect of acquisitions, sales, joint ventures and / or investments on AMD's operations; the effect of modifying or interrupting AMD's internal business processes and information systems; the availability of essential equipment, materials or production processes; the compatibility of AMD's products with some or all of the industry-standard software and hardware; costs related to defective products; the efficiency of AMD's supply chain; AMD's ability to rely on third-party supply chain logistics capabilities; AMD stock price volatility; worldwide political conditions; adverse exchange rate changes; AMD's ability to effectively control sales of its products in the gray market; AMD's ability to adequately protect its technology or other intellectual property; current and future claims and litigation; potential tax liabilities; and environmental laws, conflict minerals-related regulations, and other laws or regulations. Investors are encouraged to review in detail the risks and uncertainties of AMD's Securities and Exchange Commission filings, including, but not limited to, AMD's quarterly report on Form 10-Q for the quarter ended June 29, 2019.

In this income press release, AMD, in addition to GAAP financial results, has provided non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share. These non-GAAP financial measures reflect certain adjustments presented in the tables in this earnings press release. AMD has also provided adjusted EBITDA and free cash flow as additional non-GAAP performance measures. These items are defined in the footnotes of the selected company data tables provided at the end of this earnings press release. AMD provides these financial measures because they believe this non-GAAP presentation makes it easier for investors to compare operating performance for current and historical periods, and also because AMD believes it helps investors compare AMD's performance across reporting periods on a consistent basis. basis by excluding items that it does not believe indicate the kernel's operating performance and for the other reasons described in the footnotes to the selected data tables. See the data tables at the end of this earnings press release.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "
AMD, AMD Arrow logo , EPYC, Radeon, Ryzen, Athlon and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and are used to identify companies and products and may be trademarks of their respective owners.
"data -reactid = "62">
AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Athlon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and are used to identify companies and products and may be trademarks of their respective owners.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " AVANCED MICRO DEVICES, INC.
CONSENSED CONSOLIDATED OPERATIONS
(Millions except per share amounts and percentages) "data-reactid =" 64 "> ADVANCED MICRO DEVICES, INC. [19659340] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)

Three Months Ended Nine Months Ended
September 28, 2019 June 29,
2019
September 29, 2018 September 28, 2019 September 29, 2018
Net Revenue $ 1801 $ 1.531 $ 1653 $ 4,604     $ 5,056  
Cost of sales   1,024     910     992     2,685     3, 146  
Gross margin   777     621     661     1,919     1,910  
Gross margin %   43 %   41 %   40 %   42 %   38 %
Research and development   406     373     363     1,152     1,063  
Marketing, general and administrative   185  [19659259]  189     148     544     424  
Licensing gain               (60 )    
Operating income   186     59     150     283     423  
Interest expense   (24 )   (25 )   (30 )   (76 )   (92 )
Other income (expense), net   (36 )   3     (6 )   (40 )   (4 )
Income bef ore income taxes and equity loss   126     37     114     167     327  
Provision (benefit) for income taxes   7     2     12     (4 )   26  
Equity income (loss) in investee   1                 (2 )
Net Income   $ 120     $ 35     $ 102     $ 171     $ 299  
Earnings per share        [1 9659259]           
Basic   $ 0.11     $ 0.03     $ 0.10     $[19659626]0.16     $ 0.31  
Diluted   $ 0.11     $ 0.03     $ 0.09     $ 0.15     $ 0.28  
Shares used in per share calculation                    
Basic   1,097     1,084     987     1,075     976  
Diluted  [19659397]1,117     1,109     1,076     1,107     1,058  

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="te xt" content="ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)" data-reactid="67">ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)

    September 28, 
2019 (1)
  December 29,
2018 (2)
Assets        
Current assets:        
Cash and cash equivalents   $ 1,156     $ 1,078  
M arketable securities   53     78  
Accounts receivable, net   1,393     1,235  
Inventories, net   1,040  [19659139]  845  
Prepayment and receivables – related parties   17     34  
Prepaid expenses and other current assets   253     270  
Total current assets   3,912     3,540  
Property and equipment, net   453     348  
Operating lease right-of use assets   205      
Goodwill   289     289  
Inv estment: equity method   59     58  
Other assets   335     321  
Total Assets   $ 5,253  [1 9659139]  $ 4,556  
         
Liabilities and Stockholders&#39; Equity        
Current liabilities:        
Short-term debt, net   $     $ 136  
Accounts payable   763     834  
Payables to related parties   215     207  
Accrued liabilities   837     783  
Other current liabilities   49     24  
Total current liabilities   1,864     1,984  
Long-term debt, net 872     1,114  
Long-term operating lease liabilities   201      
Other long-term liabilities   140     192  
         
Stockholders&#39; equity:        
Capital stock:        
Common stock, par value   11     10  
Additional paid-in capital   9,490     8,750  
Treasury stock, at cost   (53 )   (50 )
Accumulated deficit   (7,265 )   (7,436 )
Accumulated other comprehensive loss  [19659236](7 )   (8 )
Total Stockholders&#39; equity   $ 2,176     $ 1,266  
Total Liabilities and Stockholders&#39; Equity   $ 5,253     $ 4,556  
         
(1) During the first quarter of 2019, the Company adopted the new lease accounting standard, ASC 842, Leases, which resulted
  in an increase to assets and liabilities for leases primarily related to office buildings. The adoption of this standard had no 
  impact to the Company&#39;s results of operations or statement of cash flows.
(2) During the second quarter of 2019, GLOBALFOUNDRIES Inc. (GF) ceased being a related party of the Company. All
  prior period GF related party balances have been reclassified to conform to the current period presentation.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions)" data-reactid="70">ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions)

    Three Months Ended   Nine Months Ended
    September 28, 2019   September 28, 2019
Net cash provided by (used in)        
Operating activities   $ 234     $ 51  
Investing activities   $ 57     $ (123 )
Financing activities   $ (98 )   $ 150  

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="SELECTED CORPORATE DATA
(Millions)" data-reactid="73">SELECTED CORPORATE DATA
(Millions)

    Three Months Ended   Nine Months Ended
    September 28, 2019   June 29,
 2019
  September 29, 2018   September 28, 2019   September 29, 2018
Segment and Category Information                    
Computing and Graphics (1)              [19659206]     
Net revenue   $ 1,276     $ 940     $ 938     $ 3,047     $ 3,139  
Operating income   $ 179     $ 22     $ 100     $ 217     $ 355  
Enterprise, Embedded and Semi-Custom (2)                    
Net revenue   $ 525     $ 591     $ 715     $ 1,557    [19659259]$ 1 ,917  
Operating income   $ 61     $ 89     $ 86     $ 218     $ 169  
All Other (3)                    
Net revenue   $     $     $     $     $  
Operating loss   $ (54 )   $ (52 )   $ (36 )   $ (152 )   $ (101 )
Total[19659139]                   
Net revenue   $ 1,801     $ 1,531     $ 1,653     $ 4,604     $ 5,056  
Operating income   $ 186     $ 59     $ 150     $ 283     $ 423  
                     
                     
Other Dat a                  
Capital expenditures   $ 55     $ 58     $ 33     $ 175     $ 122  
Adjusted EBITDA (4)   $ 300     $ 163     $ 227     $ 593     $ 651  
Cash, cash equivalents and marketable securities   $ 1,209     $ 1,128     $ 1,056     $ 1,209     $ 1,056  [19659427]Free cash flow [1 9459012](5)   $ 179     $ (28 )   $ 44     $ (124 )   $ (208 )
Total assets   $ 5,253     $ 5,102     $ 4,347     $ 5,253     $ 4,347  
Total debt   $ 872     $ 1,031     $ 1,303     $ 872     $ 1,303  
(1) The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discre te and integrated graph ics
  processing units (GPUs), data center and professional GPUs, and development services. The Company also licenses portions of its intellectual 
  property portfolio.
 
(2) The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom System-on-Chip
  (SoC) products, development services and technology for game consoles. The Company also licenses portions of its intellectual property
  portfolio.
 
(3) All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in
  this category is stock-based compensation expense.
                   
(4)Reconciliation of GAAP Net Income to Adjusted EBITDA*  
    Three Months Ended   Nine Months Ended
    September 28, 2019   June 29,
 2019
  September 29, 2018   September 28, 2019   September 29, 2018
GAAP net income   $ 120     $ 35     $ 102     $ 171     $ 299  
Interest expense   24     25     30     76   92  
Other (income) expense, net   36     (3 )   6     40     4  
Provision (benefit) for income taxes   7     2     12     (4 )   26  
Equity (income) loss in investee   (1 )               2  
Stock-based compensation   54     45     36     140     101  
Depreciation and amortization   60     52     41     158     127  
Loss contingency on legal matter       7         12      
Adjusted EBITDA   $ 300     $ 163     $ 227     $ 593     $ 651  
(5)Free Cash Flow Reconciliation**
    Three Months Ended   Nine Months Ended
    September 28, 2019   June 29,
 2019
  September 29 , 2018   September 28, 2019   September 29, 2018
GAAP net cash provided by (used in) operating activities   $ 234     $ 30     $ 77     $ 51     $ (86 )
Purchases of property and equipment   (55 )   (58 )   (33 )   (175 )   (122 )
Free cash flow   $ 179     $ (28 )   $ 44     $ (124 )   $ (208 )
* The Company presents “Adjusted EBITDA” as a supplemental m easure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other income (expense), net, provision (benefit) for income taxes, equity income (loss) on investee, stock-based compensation, and depreciation and amortization expense. In addition, the Company also included a loss contingency on legal matter in the three months ended June 29, 2019 and the nine months ended September 28, 2019. 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.
 
** 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 (used in) operating activities for capital expenditures. 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. All periods presented conform to the current period presentation.
 
  The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial measures.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Media Contact:

" data-reactid="91">
Media Contact:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;" data-reactid="92">Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com               

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Investor Contact:
Laura Graves
AMD Investor Relations
408-749-5467
laura.graves@amd.com" data-reactid="93">Investor Contact:
Laura Graves
AMD Investor Relations
408-749-5467
laura.graves@amd.com


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