SANTA CLARA, California, January 31, 2023 —AMDtoday announced revenue of $5.6 billion for the fourth quarter of 2022, gross margin of 43%, operating loss of $149 million, net income of $21 million and diluted earnings per share of $0.01 known. On a non-GAAP basis(*)Base gross margin was 51%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share were $0.69.
For the full year 2022, the company reported revenue of $23.6 billion, gross margin of 45%, 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(*)Baseline gross margin was 52%, operating income was $6.3 billion, net income was $5.5 billion and diluted earnings per share was $3.50.
GAAP Quarterly Results
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| fourth quarter of 2022 | fourth quarter of 2021 | and and | |
| Revenue (millions of USD) | $ 5.599 | 4.826 $ | 16% above |
| Gross profit ($ million) | $ 2.403 | $ 2.426 | Department |
| gross margin % | 43% | 50% | 740bps less |
| Selling Expenses ($ million) | 2.557 $ | 1.223 $ | 109% above |
| Operating profit (loss) (million USD) | $(149) | 1.207 $ | minus 112% |
| Operating margin % | (3)% | 25% | minus 28s |
| Net Income (Millions of USD) | $ 21 | $ 974 | minus 98% |
| earnings per share | 0,01 $ | 0,80 $ | below 99% |
non-GAAP(*)Quarterly Financial Results
| fourth quarter of 2022 | fourth quarter of 2021 | and and | |
| Revenue (millions of USD) | $ 5.599 | 4.826 $ | 16% above |
| Gross profit ($ million) | 2.859 $ | $ 2.427 | 18% above |
| gross margin % | 51% | 50% | 70 bp higher |
| Selling Expenses ($ million) | 1.602 $ | 1.103 $ | 45% above |
| Operating Profit (USD million) | 1.262 $ | 1.328 $ | minus 5% |
| Operating margin % | 23% | 27% | 4 pages down |
| Net Income (Millions of USD) | 1.113 $ | 1.122 $ | Department |
| earnings per share | 0,69 $ | 0,92 $ | minus 25% |
Annual Financial Results
| PCGA | non-GAAP(*) | |||||
| 2022 | 2021 | and and | 2022 | 2021 | and and | |
| Revenue (millions of USD) | 23.601 $ | 16.434 $ | 44% above | 23.601 $ | 16.434 $ | 44% above |
| Gross profit ($ million) | 10.603 $ | 7.929 $ | 34% above | 12.273 $ | 7.934 $ | 55% above |
| gross margin % | 45% | 48% | less 330bps | 52% | 48% | 370 bps is coming |
| Selling Expenses ($ million) | 9.441 $ | 4.293 $ | 120% above | $ 6.030 | $ 3,877 | 56% above |
| Operating Profit (USD million) | 1.264 $ | $ 3.648 | 65% reduction | 6.345 $ | 4.069 $ | 56% above |
| Operating margin % | 5% | 22% | 17 pages down | 27% | 25% | up to 2pp |
| Net Income (Millions of USD) | 1.320 $ | $ 3.162 | 58% reduction | 5.504 $ | $ 3,435 | 60% above |
| earnings per share | 0,84 $ | $ 2,57 | 67% reduction | $ 3,50 | 2,79 $ | 25% more |
"2022 was a strong year for AMD as we delivered best-in-class growth and reported second-half revenue despite a weak PC environment," said AMD President and CEO Dr. Lisa Su. “We accelerated the momentum of our data center and completed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. While the demand environment is mixed, we are confident we can gain market share in 2023 and achieve long-term growth based on our differentiated product portfolio.”
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4Q 2022 Results
- Revenue of $5.6 billion increased 16% year-over-year primarily due to growth in the embedded and data center segments, partially offset by lower revenue in the client and gaming segments."
- Gross margin was 43%, a decrease of 7 percentage points year-over-year, mainly due to the amortization of intangible assets related to the Xilinx acquisition. Non-GAAP gross margin was 51%, up 1 percentage point year-over-year, driven primarily by a richer product mix with higher integrated and data center revenues, partially offset by lower customer revenues.
- Operating loss was $149 million, compared to operating profit of $1.2 billion, or 25% of sales in the prior year. The loss was mainly due to the amortization of intangible assets related to the Xilinx acquisition. Non-GAAP operating income was $1.3 billion, or 23% of revenue, compared to $1.3 billion, or 27% a year ago. The decrease in non-GAAP operating margin was primarily due to lower operating income in the customer segment.
- Net income was $21 million compared to net income of $974 million a year ago, primarily due to the amortization of intangible assets related to the Xilinx acquisition, partially offset by a $154 million quarterly tax benefit. Non-GAAP net income was $1.1 billion, same as prior year.
- Diluted earnings per share were $0.01 compared to $0.80 a year ago, primarily due to amortization of intangible assets related to the Xilinx acquisition, partially offset by a $154 million tax benefit in the quarter. Non-GAAP diluted earnings per share were $0.69 compared to $0.92 a year ago, primarily due to lower operating income in the Customer segment.
- Cash, cash equivalents and short-term investments totaled $5.9 billion at the end of the quarter. The company returned $250 million to shareholders through share repurchases during the quarter.
- Cash from operations was $567 million for the quarter, compared to $822 million a year ago. Free cash flow was $443 million for the quarter, compared to $736 million a year ago.
- Goodwill and acquisition-related intangibles related to the Xilinx and Pensamento acquisitions were $48.3 billion at the end of the quarter.
Summary of Quarterly Financial Segments
- Prior period results have been updated for current reporting segments for comparison purposes.
- Data Center segment revenue was $1.7 billion, up 42% year-over-year, driven primarily by strong sales of EPYC™ server processors. Operating profit was $444 million, or 27% of revenue, compared to $369 million, or 32%, a year earlier. The increase in operating profit was mainly due to higher revenue, partially offset by higher R&D investments to sustain growth. The drop in operating margin was mainly due to higher investments in research and development to support growth.
- Customer segment revenue was $903 million, down 51% year-over-year due to lower processor shipments due to a weak PC market and significant inventory correction across the PC supply chain. ASP Client Processor has been stable year over year. Operating loss was $152 million compared to operating profit of $530 million, or 29% of revenue a year ago, primarily due to lower revenue.
- Gaming segment revenue was $1.6 billion, down 7% year-over-year due to lower sales of game graphics, partially offset by higher sales of semi-custom products. Operating profit was $266 million, or 16% of revenue, compared to $407 million, or 23%, a year earlier. Operating income and margin declines were primarily due to lower graphics sales.
- Integrated segment revenue was $1.4 billion, up 1,868% year-over-year, primarily due to the inclusion of integrated Xilinx revenue. Operating profit was $699 million, or 50% of revenue, compared to $18 million, or 25%, a year earlier. Operating profit and margin increases were primarily driven by higher revenues.
- All other operating losses were $1.4 billion, compared to $117 million a year ago, primarily due to amortization of intangible assets, primarily related to the Xilinx acquisition.
2022 annual results
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- Revenue of $23.6 billion increased 44% from 2021, driven by higher revenue in the integrated, data center and gaming segments, partially offset by lower revenue in the client segment. Based on a combined AMD and Xilinx business, pro forma 2022 revenue was $24.1 billion, up 20% from $20.1 billion in 2021.
- Gross margin was 45%, 3 percentage points lower than in 2021, mainly due to the amortization of intangible assets related to the Xilinx acquisition. Non-GAAP gross margin was 52%, up 4 percentage points year-over-year, driven primarily by a richer product mix with higher integrated and data center revenues, partially offset by lower customer revenues.
- Operating profit was $1.3 billion, compared to $3.6 billion a year earlier. The decrease was mainly due to the amortization of intangible assets related to the Xilinx acquisition. Non-GAAP operating income was $6.3 billion, compared to $4.1 billion a year ago, primarily due to higher revenue and gross margin expansion.
- Net income was $1.3 billion, compared to $3.2 billion a year earlier. Non-GAAP net income was $5.5 billion, compared to $3.4 billion a year earlier.
- Diluted earnings per share were $0.84, compared with $2.57 a year ago. Non-GAAP diluted earnings per share were $3.50 compared to $2.79 a year ago.
- Cash, cash equivalents and short-term investments totaled $5.9 billion at the end of the year. The company returned a total of $3.7 billion to shareholders through share buybacks in 2022.
- Cash from operations was $3.6 billion, compared to $3.5 billion a year earlier. Free cash flow was $3.1 billion, compared to $3.2 billion a year earlier.
Highlights of current public relations
- AMD has demonstrated continued growth and momentum in the data center with AMD EPYC processors powering the modern data center and critical workloads in the cloud.
- AMDAnnouncedthe availability of 4heGen AMD EPYC CPUs that deliver leading performance and energy efficiency. The latest AMD EPYC processors, based on the "Zen 4" core, deliver next-generation architecture, technology and features to power the modern data center. Cloud service providers such as Google Cloud, Microsoft and Oracle Cloud Infrastructure have announced planned solutions that will leverage the performance and security features of 4heGeneration AMD EPYC CPU.
- AMDpowers101 supercomputers on the latest Top500 list of the world's most powerful supercomputers and 75% of the top 20 systems on the Green500 list of the world's most energy-efficient supercomputers.
- AMD, along with partners Microsoft, HP, Lenovo, Magic Leap and Intuitive Surgical, delivered the keynote address at CES 2023, showcasing next-generation AMD technologies spanning AI, hybrid working, gaming, healthcare, aerospace and... advanced sustainability Computing. During the keynote, AMD announced:
- Hebroader portfolioof high-performance PC products for desktop and mobile applications, including Ryzen 7000X3D Series desktop processors that give gamers and developers the power of AMD 3D V-Cache technology, and Ryzen 7000 Series mobile processors that deliver unrivaled performance for demanding workloads with up to 16 powerful "Zen 4" cores and new Ryzen AI technology for select mobile devices.
- AMDRadeon RX7000Notebook PC series graphics based on AMD RDNA 3 architecture and designed for exceptional power efficiency and performance to drive 1080p gaming at Ultra settings and advanced content creation applications on premium high-end notebooks.
- AMD Alveo V70 AI accelerator with industry-leading performance and power efficiency for various AI inference workloads.
- A preview of the world's first integrated CPU and GPU for the data center, AMD Instinct MI300. Engineered for leading HPC and AI performance, the MI300 accelerators leverage chiplet design combining AMD CDNA 3 GPU architecture, "Zen 4" CPU cores and HBM.
- AMD Vitis Medical Imaging Libraries to bring high-quality 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 high-quality, low-latency images for healthcare professionals and their patients.
- AMD continued to demonstrate its market leadership in the embedded space.
- AMDAnnouncedcollaborating with the Energy Sciences Network to launch ESnet6, the next generation of the US Department of Energy's high-performance science network.
- AMDAnnouncedIt completed Class B qualification for the company's first Versal space-grade adaptive SoCs.
- AMDDividedthat the AMD Xilinx Automotive (XA) Zynq UltraScale+ MPSoC platform was selected to power the Aisin Automated Parking-Assist (APA) system.
- AMDrevealedthe new Alveo X3 series NICs, AMD's first NICs designed with shielded FPGAs and optimized specifically for low-latency negotiation.
- High Tech AMD and ViettelAnnouncedcooperation in expanding the 5G mobile network.
- AMDAnnouncedthat its adaptive computing technology powers leading mobility provider DENSO Corporation's next-generation LiDAR platform.
- AMD announced thatRadeon RX 7900 series graphics cards, the world's first gaming graphics cards featuring an advanced AMD chiplet design that delivers exceptional performance and power efficiency to enable 4K gaming at high frame rates and higher resolutions in the most demanding titles.
- AMDAnnouncedChanges to its leadership team, including the retirement of Executive Vice President, CFO and Treasurer Devinder Kumar after 39 years with the company. The company has appointed Jean Hu Executive Vice President, Chief Financial Officer and Treasurer of AMD effective January 23, 2023.Announcedthe promotion of Forrest Norrod to executive vice president and general manager of the Data Center Solutions business group.
current outlook
AMD's forward-looking 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 noted under "Caution" below.
For the first quarter of 2023, AMD expects revenue of around $5.3 billion, plus or minus $300 million, down 10% year-over-year. Year-over-year, the Client and Gaming segments are expected to decline, partially offset by growth in the Data Center and Integrated segments. AMD expects non-GAAP gross margin to be around 50% in the first quarter of 2023.
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About AMD
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