AMD (NASDAQ: AMD) Posts Q3 2022 Quarterly Earnings Report - Misses WallStreet Earnings Forecast

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AMD (NASDAQ: AMD)'s Quarterly Study for the third quarter of 2022 was published a few hours back and the visitor performed lower than Wall Street'due south expectation, posting a loss of $158 Million. The company has besides seen its revenue reject twelvemonth over year, which ways that the revenue has decreased after bookkeeping for seasonality. The loss equates to a loss per share of $0.25 on GAAP basis and $0.17 loss per share on an IFRS basis. The visitor has posted that it expects revenue to turn down sequentially past x% (plus minus 3%) in next yr due to declining semi custom sales but does expect the Computing and Graphics sector to increase its acquirement sequentially.

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Avant-garde Micro Devices' (NASDAQ:AMD) 3rd quarter 2022 financial effect out - posts a loss greater than expectation

Wall Street was expecting AMD (NASDAQ: AMD) to post a net loss of 12 cents per share on acquirement of $996 1000000. While the net loss was college than expectation, the revenue was actually greater (at $1.06 Billion. ), so in all, its non an admittedly terrible turn of events - but obviously, non very proficient either. Since ruby-red had previously issued a profit alarm, nigh of the investors holding AMD (NASDAQ:AMD) were looking at the results very pessimistically - which is also the appropriate context when reading the upshot.

It also looks similar AMD (NASDAQ: AMD) is starting to raise greenbacks because it will exist selling 85 per centum of its ATMP (Associates, Exam, Mark and Pack) operations in Suzhou, People's republic of china and Penang, Malaysia to China's Nantong Fujitsu Microsystem electronics Co Ltd (NFME) for net proceeds of $320 Meg. Since it will be a articulation venture with NFME the visitor does not plan to cutting whatever more than jobs but volition provide NFME with 1700 employees as part of the contract (which constitutes roughly eighteen% of the workforce). It is worth noting hither that AMD (NASDAQ:AMD) had originally cut its total workforce past 5% and had 9700 employees at the time of its annual study published February. This number should now be around 8000. This deal volition likewise aid the company reduce its annual capital expenditures.

The immediate effects on AMD (NASDAQ: AMD)'south stock price appear to be very stable and relatively bullish. The stock price remains on its original trend (minus the bubble ensuing from the financial result's hype) and suggests that about of the investors currently holding the visitor'southward stock are well aware of Cerise'south dismal performance. About informed investors will undoubtedly be waiting for Zen to arrive - which is, (in my stance), the company'south only chance of making a turn effectually. This also pinpoints in a an absolutely clear calorie-free just how much is depending on Zen.

Central Highlights

The calculating and graphics sector increased sequentially by 12% over the 2d quarter. Unfortunately, afterwards bookkeeping for seasonality, nosotros see that the Computing and Graphic sector has decreased by 46% Year over Year. This ways that AMD (NASDAQ:AMD) has lost quite a chunk of market share in the sectors the business units target. Older generation APUS constituted an inventory write downwards (and a newspaper loss) of around $65 Million.

AMD (NASDAQ:AMD)'southward processor's ASP (Average Selling Price) decreased sequentially as well equally year over year and the visitor notes that this is primarily because of lower notebook processor sales. This indicates that the demand for AMD (NASDAQ: AMD) mobility processors is declining.

Fortunately, and probably the just ray of hope in this otherwise dour financial result is the fact that the Average Selling Price of AMD (NASDAQ:AMD) Radeon graphics was flat sequentially and year over year. While we cannot reverse engineer market share from this (since increased share of high terminate sales can start decrease in low end sales even if marketplace share decreases) AMD (NASDAQ:AMD) does note that this highly positive tendency was due to the new Radeon offerings and AIB ASP standards.

Lets talk nearly the Semi-Custom segment now. The revenue increased 13 percent sequentially, primarily driven by seasonal sales of semi-custom SoCs, and decreased only two% year over year.

AMD Q3 2022 GAAP Financial Results

	Q3-xv	Q2-fifteen	Q3-14
Revenue	$1.06B	$942M	$1.43B
Operating income (loss)	$(158)G	$(137)K	$63M
Internet income (loss) / Earnings (Loss) per share	$(197)Thou/$(0.25)	$(181)Chiliad/$(0.23)	$17M/$0.02

AMD Q3 2022 Not-GAAP (IFRS) Financial Results

	Q3-15	Q2-15	Q3-xiv
Revenue	$1.06B	$942M	$1.43B
Operating income (loss)	$(97)1000	$(87)Yard	$87M
Net income (loss) / Earnings (loss) per share	$(136)M/$(0.17)	$(131)1000/$(0.17)	$41M/$0.05

Financial Summary

• Revenue of $1.06 billion, up xiii percent sequentially and downward 26 percent year-over-twelvemonth. The sequential increase was due to solid seasonal semi-custom and strong desktop processor and GPU sales. The year-over-year decline was primarily due to decreased sales in the Computing and Graphics segment.
• Gross margin of 23 percent, down 2 per centum points sequentially, due to an inventory write-down of $65 meg.  Non-GAAP⁽¹⁾ gross margin, including the touch on of the inventory write-downwardly was 23 percent, down five per centum points sequentially.  The inventory write-downward was due to lower predictable future demand for older-generation APUs. The gross margin impact of the inventory write-downwardly was vi per centum points.
• Operating loss of $158 million, compared to an operating loss of $137 million for the prior quarter. Non-GAAP⁽¹⁾ operating loss of $97 1000000, compared to non-GAAP⁽¹⁾ operating loss of $87 million in Q2 2022, primarily due to lower gross margin.
• Net loss of $197 meg, loss per share of $0.25, and not-GAAP⁽¹⁾ internet loss of $136 one thousand thousand, non-GAAP^(ane) loss per share of $0.17, compared to a net loss of $181 1000000, loss per share of $0.23 and not-GAAP^(one) net loss of $131 million, non-GAAP^(one) loss per share of $0.17 in Q2 2022.  The impact of the inventory write-downward to EPS was $0.08.
• Greenbacks and cash equivalents were $755 million at the cease of the quarter, down $74 meg from the finish of the prior quarter, due primarily to a $69 meg debt interest payment.
• Total debt at the end of the quarter was $ii.26 billion, flat from the prior quarter.

Source: https://wccftech.com/amd-nasdaq-quarterly-earnings-report-q3-2015-misses/

Posted by: krebswiterver.blogspot.com

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