amd-20230701

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 1, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-07882

ADVANCED MICRO DEVICES, INC.

(Exact name of registrant as specified in its charter)


Delaware									94-1692300
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

2485 Augustine Drive

Santa Clara, California 95054

(Address of principal executive offices)

(408) 749-4000

Registrant’s telephone number, including area code

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	AMD	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the Exchange Act) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of the registrant’s common stock, $0.01 par value, as of July 28, 2023: 1,615,671,380

Table of Contents

INDEX


		Page No.
Part I Financial Information
Item 1	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Statements of Stockholders’ Equity	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3	Quantitative and Qualitative Disclosures about Market Risk	29
Item 4	Controls and Procedures	29
Part II Other Information

Item 1	Legal Proceedings	30
Item 1A	Risk Factors	30
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 6	Exhibits	53
Signature		54

Table of Contents

PART I. FINANCIAL INFORMATION


ITEM 1.			CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended				Six Months Ended
	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
	(In millions, except per share amounts)
Net revenue	$	5,359	$	6,550	$	10,712	$	12,437
Cost of sales	2,704		3,115		5,393		5,998
Amortization of acquisition-related intangibles	212		407		517		593
Total cost of sales	2,916		3,522		5,910		6,591
Gross profit	2,443		3,028		4,802		5,846

Research and development	1,443		1,300		2,854		2,360
Marketing, general and administrative	547		592		1,132		1,189
Amortization of acquisition-related intangibles	481		616		999		909
Licensing gain	(8)		(6)		(18)		(89)
Operating income (loss)	(20)		526		(165)		1,477

Interest expense	(28)		(25)		(53)		(38)
Other income (expense), net	46		(4)		89		(46)
Income (loss) before income taxes and equity income	(2)		497		(129)		1,393

Income tax provision (benefit)	(23)		54		(10)		167
Equity income in investee	6		4		7		7
Net income (loss)	$	27	$	447	$	(112)	$	1,233

Earnings (loss) per share
Basic	$	0.02	$	0.28	$	(0.07)	$	0.82
Diluted	$	0.02	$	0.27	$	(0.07)	$	0.81
Shares used in per share calculation
Basic	1,612		1,618		1,612		1,506
Diluted	1,627		1,632		1,612		1,521

See accompanying notes.

Table of Contents

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


	Three Months Ended				Six Months Ended
	July 1, 2023		June 25, 2022		July 1, 2023		June 25, 2022
	(In millions)
Net income (loss)	$	27	$	447	$	(112)	$	1,233
Other comprehensive income (loss), net of tax:
Net change in unrealized gains on cash flow hedges	(11)		(31)		9		(30)
Total comprehensive income (loss)	$	16	$	416	$	(103)	$	1,203

See accompanying notes.

Table of Contents

Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	July 1, 2023		December 31, 2022
	(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	3,841	$	4,835
Short-term investments	2,444		1,020
Accounts receivable, net	4,312		4,126
Inventories	4,567		3,771
Receivables from related parties	2		2
Prepaid expenses and other current assets	1,339		1,265
Total current assets	16,505		15,019
Property and equipment, net	1,541		1,513
Operating lease right-of-use assets	461		460
Goodwill	24,177		24,177
Acquisition-related intangibles, net	22,598		24,118
Investment: equity method	90		83
Deferred tax assets	68		58
Other non-current assets	2,527		2,152
Total assets	$	67,967	$	67,580
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,779	$	2,493
Payables to related parties	313		463
Accrued liabilities	2,971		3,077
Current portion of long-term debt, net	753		—
Other current liabilities	756		336

SEC Form 10-Q filed by Advanced Micro Devices Inc.