AMD Q1 2021 Earnings

Call Details

• Call Title: Advanced Micro Devices Q1 2021 Earnings Call
• Date: April 27, 2021 at 9:00 PM UTC
• Management Team:
  • Lisa Su (Chief Executive Officer)
  • Devinder Kumar (Executive Vice President, Chief Financial Officer, and Treasurer)
  • Ruth (Senior Vice President, Worldwide Marketing, Human Resources, and Investor Relations)

Call Summary

Financial Performance

• First quarter revenue increased 93% year-over-year to $3.45B.
• Gross margin was 46%, flat year-over-year despite significantly higher semi-custom product revenue.
• Operating income was $762M, up $526M year-over-year, and operating margin expanded to 22% from 13% a year ago.
• Net income was $642M, up $420M year-over-year excluding $15M of Xilinx acquisition-related costs.
• Diluted earnings per share was $0.52 per share compared to $0.18 per share a year ago.
• Free cash flow was $832M in Q1 compared to negative $120M in Q1 2020.
• Cash, cash equivalents and short-term investments were $3.1B and inventory was $1.7B at quarter end.
• Computing and Graphics revenue was $2.1B, up 46% year-over-year, and Enterprise, Embedded & Semi-Custom revenue was $1.35B, up 286% year-over-year.

Guidance

• Q2 2021 revenue is expected to be approximately $3.6B +/- $0.1B, representing approximately 86% year-over-year growth and approximately 4% sequential growth.
• Q2 non-GAAP gross margin is expected to be approximately 47%.
• Q2 non-GAAP operating expenses are expected to be approximately $900M.
• Q2 non-GAAP interest expense, taxes and other are expected to be approximately $130M and diluted share count is expected to be approximately 1.23B shares.
• Full-year 2021 revenue growth is now expected to be approximately 50% over 2020, revised up from prior guidance of approximately 37%.
• Full-year non-GAAP gross margin is expected at approximately 47% and non-GAAP effective tax rate is expected at 15% with a company cash tax rate of approximately 3%.
• Guidance assumptions explicitly reflect the current global supply environment and customer demand signals.