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AMD collects half a billion in Q1 profit, Fusion APUs now account for half of its laptop shipments

Vlad Savov
Updated ·6 min read

AMD's net income for the past quarter was $510 million, generated from $1.61 billion in total revenues. That should make happy reading for a company that's been raising similar gross revenues previously but finding itself losing cash -- though the more intriguing figures are a little deeper in its latest disclosure. CFO and interim CEO Thomas Seifert has noted that AMD "tripled" its Fusion APU shipments relative to last quarter -- meaning that at least 3.9 million units have made their way out to OEM partners in Q1 -- which now account for "roughly half" of the company's notebook shipments. In less upbeat news, average selling prices in both the microprocessor and graphics divisions were down sequentially, with AMD having to react to pressure from its traditional foes Intel and NVIDIA. You might surmise that with the mainstream Llano APU out and shipping to computer makers, AMD might have a happier second quarter, but the company's guidance is for revenues to be flat or slightly down. A final note of pride is reserved for the Radeon HD 6490M and HD 6750M GPUs, which figured prominently in Apple's latest MacBook Pro refresh and mark a bit of a coup for AMD, who's now responsible for all of Apple's discrete graphics across the MacBook Pro and iMac computing lines. Click the links below for even more intel on Advanced Micro Devices.


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AMD Reports First Quarter Results

SUNNYVALE, CA, Apr 21, 2011 (MARKETWIRE via COMTEX) --

AMD (NYSE: AMD)

-- AMD revenue $1.61 billion, 2 percent sequential decrease and 2 percent increase year-over-year
-- Net income $510 million, earnings per share $0.68, operating income $54 million
-- Non-GAAP(1),(2) net income $56 million, earnings per share $0.08, operating income $92 million
-- Gross margin 43 percent, non-GAAP gross margin 45 percent

AMD (NYSE: AMD) today announced revenue for the first quarter of 2011 of $1.61 billion, net income of $510 million, or $0.68 per share, and operating income of $54 million. The company reported non-GAAP net income of $56 million, or $0.08 per share, and non-GAAP operating income of $92 million.

"First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs)," said Thomas Seifert, CFO and interim CEO. "APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our 'Llano' APU."

GAAP Financial Results

Q1-11 Q4-10 Q1-10
----------- ----------- -----------
Revenue $1.61B $1.65B $1.57B
Operating income $54M $413M $182M
Net income / Earnings per share $510M/$0.68 $375M/$0.50 $257M/$0.35


Non-GAAP Financial Results(1)

Q1-11 Q4-10 Q1-10
----------- ----------- -----------
Revenue $1.61B $1.65B $1.57B
Operating income $92M $141M $130M
Net income / Earnings per share $56M/$0.08 $106M/$0.14 $63M/$0.09

Quarterly Summary

-- Gross margin was 43 percent.
-- Non-GAAP gross margin was 45 percent, flat sequentially.
-- Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.75 billion.
-- Computing Solutions segment revenue decreased 2 percent sequentially and increased 3 percent year-over-year. The sequential decrease was driven primarily by lower average selling price (ASP) partially offset by higher desktop microprocessor sales. The year-over-year increase was primarily driven by strong microprocessor unit sales in the
channel.
-- Operating income was $100 million, compared with $91 million in Q410 and $146 million in Q110.
-- Microprocessor ASP decreased sequentially and year-over-year.
-- AMD commenced revenue shipments of AMD's first Fusion APU for mainstream notebooks (codenamed "Llano") that combines discrete-class graphics capabilities, personal supercomputing performance and AMD AllDay(TM) power.
-- Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Sony and Toshiba shipped sleek new thin-and-light notebooks based on AMD's low-power APUs capable of delivering high definition visual experiences and extended battery life.
-- More than 50 applications from software companies including Adobe, ArcSoft, Corel, CyberLink and Microsoft take advantage of the incredible compute power found in AMD's APUs and GPUs to dramatically improve application performance and power efficiency.
-- AMD launched the world's first APU specifically designed for embedded systems with a record number of embedded partners for the company. Fujitsu, Kontron, Quixant and Congatec announced APU-based solutions for graphics-intensive markets like digital signage, Internet-ready set top boxes, casino gaming machines and point-of-sale kiosks. Acer, Cray, Dell, HP, SGI and other server manufacturers launched new or updated systems based on five newly introduced AMD Opteron(TM) 6100 series processors.
-- In the high performance computing market (HPC), AMD Opteron-based solutions continue to gain traction based on their greater scalability. New customer wins include Lockheed Martin's cluster for the US Department of Defense, and the University of Sao Paulo's cluster to enable advanced scientific astronomical research.
-- AMD expanded its enthusiast desktop offerings with the introduction of its fastest four-core processor, the AMD Phenom(TM) II X4 975 Black Edition.
-- Graphics segment revenue decreased 3 percent sequentially and was flat year-over-year. The sequential decrease was driven primarily by a seasonal decline in royalties received in connection with the sale of game console systems.
-- Operating income was $19 million, compared with $68 million in Q410 and $47 million in Q110.
-- GPU ASP decreased sequentially and year-over-year.
-- AMD maintained its graphics performance leadership position with the launch of the world's fastest graphics card, the AMD Radeon(TM) HD 6990.
-- Apple refreshed its Macbook Pro line-up with the new AMD Radeon HD 6490M and HD 6750M graphics chips. AMD now provides discrete graphics solutions across Apple's iMac and Macbook Pro product lines.
-- Strong industry adoption of AMD's mobile graphics continued, as HP and Dell launched new designs powered by the new AMD Radeon(TM) HD6000M family of graphics processors.

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.

AMD expects revenue to be flat to slightly down sequentially for the second quarter of 2011.

For additional detail regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

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 first quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its Web site at AMD. The webcast will be available for 10 days after the conference call.