AMD Q1 2019 Earnings

Call Details

• Call Title: Advanced Micro Devices Q1 2019 Earnings Call
• Date: April 30, 2019 9:00 PM UTC
• Management Team:
  • Lisa Su (President and Chief Executive Officer)
  • Devinder Kumar (Senior Vice President, Chief Financial Officer, and Treasurer)
  • Laura Graves (Vice President, Investor Relations)

Call Summary

Financial Performance

• Revenue was $1.27B, down 23% year-over-year.
• Non-GAAP gross margin was 41%, which was up 470 basis points year-over-year.
• GAAP operating income was $84M, down from $152M a year ago.
• Net income was $62M and diluted earnings per share was $0.06, compared to $121M and $0.11 a year ago respectively.
• Adjusted EBITDA was $130M compared to $196M a year ago, and on a trailing 12-month basis Adjusted EBITDA was $737M.
• Inventory was $955M, up $110M sequentially, and cash, cash equivalents, and marketable securities totaled $1.2B at quarter end.

Guidance

• Q2 2019 revenue is expected to be approximately $1.52B, plus or minus $50M, representing an increase of approximately 19% sequentially and a decrease of approximately 13% year-over-year.
• Q2 2019 non-GAAP gross margin is expected to be approximately 41%.
• Q2 2019 non-GAAP operating expenses are expected to be approximately $510M.
• Q2 2019 non-GAAP interest, taxes, and other are expected to be approximately $25M.
• Full-year 2019 revenue growth is expected to be in the high single-digit percentages and full-year non-GAAP gross margin is expected to be greater than 41%.
• The company expects to be free cash flow positive for the full year despite pre-cash flow of negative $275M in Q1.