AMD Reports Third Quarter 2021 Financial Results

October 26, 2021

SANTA CLARA, Calif., Oct. 26, 2021 — AMD (NASDAQ: AMD) today announced revenue for the third quarter of 2021 of $4.3 billion, operating income of $948 million, net income of $923 million and diluted earnings per share of $0.75. On a non-GAAP* basis, operating income was $1.1 billion, net income was $893 million and diluted earnings per share were $0.73.

Highlights

— Revenue increased 54 percent year-over-year
— Gross Margin grew more than 4 percentage points year-over-year to 48 percent

GAAP Quarterly Financial Results

Q3 2021 Q3 2020 Y/Y Q2 2021 Q/Q
Revenue ($M) $4,313 $2,801 Up 54% $3,850 Up 12%
Gross profit ($M) $2,086 $1,230 Up 70% $1,830 Up 14%
Gross margin % 48% 44% Up 450 bps 48% Up 80 bps
Operating expenses ($M) $1,141 $781 Up 46% $1,000 Up 14%
Operating income ($M) $948 $449 Up 111% $831 Up 14%
Operating margin % 22% 16% Up 6pp 22% Flat
Net income ($M) $923 $390 Up 137% $710 Up 30%
Earnings per share $0.75 $0.32 Up 134% $0.58 Up 29%

Non-GAAP* Quarterly Financial Results

Q3 2021 Q3 2020 Y/Y Q2 2021 Q/Q
Revenue ($M) $4,313 $2,801 Up 54% $3,850 Up 12%
Gross profit ($M) $2,087 $1,231 Up 70% $1,832 Up 14%
Gross margin % 48% 44% Up 440 bps 48% Up 80 bps
Operating expenses ($M) $1,035 $706 Up 47% $909 Up 14%
Operating income ($M) $1,055 $525 Up 101% $924 Up 14%
Operating margin % 24% 19% Up 5pp 24% Flat
Net income ($M) $893 $501 Up 78% $778 Up 15%
Earnings per share $0.73 $0.41 Up 78% $0.63 Up 16%

“AMD had another record quarter as revenue grew 54% and operating income doubled year-over-year,” said AMD president and CEO Dr. Lisa Su. “3rd Gen EPYC processor shipments ramped significantly in the quarter as our data center sales more than doubled year-over-year. Our business significantly accelerated in 2021, growing faster than the market based on our leadership products and consistent execution.”

Q3 2021 Results

  • Revenue was $4.3 billion, up 54 percent year-over-year and 12 percent quarter-over-quarter driven by higher revenue in both the Computing and Graphics segment and Enterprise, Embedded and Semi-Custom segment.
  • Gross margin was 48 percent, up over 400 basis points year-over-year and up 80 basis points quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily driven by a richer mix of EPYC, Ryzen and Radeon processor sales.
  • Operating income was $948 million compared to operating income of $449 million a year ago and $831 million in the prior quarter. Non-GAAP operating income was $1.1 billion compared to $525 million a year ago and $924 million in the prior quarter. Operating income improvements were primarily driven by higher revenue.
  • Net income was $923 million compared to $390 million a year ago and $710 million in the prior quarter. Non-GAAP net income was $893 million compared to $501 million a year ago and $778 million in the prior quarter.
  • Diluted earnings per share was $0.75 compared to $0.32 a year ago and $0.58 in the prior quarter. Non-GAAP diluted earnings per share was $0.73 compared to $0.41 a year ago and $0.63 in the prior quarter.
  • Cash, cash equivalents and short-term investments were $3.6 billion at the end of the quarter. The Company repurchased more than 7 million shares of common stock for $750 million during the quarter.
  • Cash from operations was $849 million compared to $339 million a year ago and $952 million in the prior quarter. Free cash flow was $764 million compared to $265 million a year ago and $888 million in the prior quarter. Third quarter 2021 cash from operations and free cash flow included strategic investments in long-term supply chain capacity to support future revenue growth.

Quarterly Financial Segment Summary

  • Computing and Graphics segment revenue was $2.4 billion, up 44 percent year-over-year and 7 percent quarter-over-quarter. The year-over-year and quarter-over-quarter increases were driven by higher Ryzen, Radeon and AMD Instinct processor sales.
    • Client processor average selling price (ASP) grew year-over-year and quarter-over-quarter driven by a richer mix of Ryzen processor sales.
    • GPU ASP grew year-over-year and quarter-over-quarter driven by high-end Radeon graphics product sales and AMD Instinct data center GPU sales.
    • Operating income was $513 million compared to $384 million a year ago and $526 million in the prior quarter. The year-over-year increase was primarily driven by higher revenue, partially offset by higher operating expenses. The quarter-over-quarter decrease was primarily due to higher operating expenses.
  • Enterprise, Embedded and Semi-Custom segment revenue was $1.9 billion, up 69 percent year-over-year and 20 percent quarter-over-quarter. The increases were driven by higher EPYC processor and semi-custom product sales.
    • Operating income was $542 million compared to $141 million a year ago and $398 million in the prior quarter. The increases were primarily driven by higher revenue and richer product mix, partially offset by higher operating expenses.
  • All Other operating loss was $107 million compared to $76 million a year ago and $93 million in the prior quarter.

Recent PR Highlights

  • AMD saw increased adoption of AMD EPYC processors in the third quarter.
    • Argonne National Labs selected AMD EPYC processors to power a new supercomputer, known as Polaris, to allow scientists and developers to test and optimize software codes and applications for AI, engineering, and scientific projects.
    • Google Cloud announced the public preview of N2D Virtual Machines powered by AMD EPYC 7003 Series processors.
    • AMD announced that 2nd Gen AMD EPYC CPUs and AMD Radeon Pro V520 GPUs will power new sizes for Amazon EC2 G4ad instances, giving customers the flexibility to provision resources on demand, as needs dictate, rather than being limited to their inventory of physical, on-premise hardware.
    • Cloudflare chose 3rd Gen AMD EPYC processors for its 11th Gen servers, which power the company’s DNS network.
  • AMD partnered with Microsoft to bring powerful, reliable computing to users with Windows 11, powered by Ryzen processors and Radeon graphics. Through this collaboration, more than 175 AMD CPUs are now compatible with Windows 11 operating systems to drive ultimate PC and gaming experiences.
  • Customer adoption of Ryzen processors expanded, with Lenovo starting shipments of the Ryzen-based Thinkbook and Thinkpad E series business laptops featuring Windows 11 , Lenovo announcing the Ryzen-powered Yoga Slim 7 Carbon and Yoga Slim 7 Pro, HP releasing two AiO devices with Ryzen processors and ASUS unveiling the Ryzen 5000 Series-based Zenbook, Zenbook PRO, ProArt StudioBook and VivoBook.
  • AMD launched Ryzen 5000 G-Series Desktop Processors with Radeon Graphics, bringing high-performance integrated graphics and powerful features to satisfy the most demanding gamers, creators and enthusiasts.
  • AMD launched the Radeon RX 6600 XT graphics card, designed to deliver high-framerate, high-fidelity 1080p gaming experiences. Built on breakthrough AMD RDNA 2 gaming architecture, the graphics card offers on average 11 percent higher gaming performance with Smart Access Memory enabled across a range of popular titles compared to the competition.
  • AMD announced availability of the Radeon PRO W6000X series GPUs for Mac Pro, harnessing the high-performance AMD RDNA 2 architecture, AMD Infinity Cache and other advanced technologies to power demanding professional design and content creation workloads.
  • AMD was named by Forbes as one of the World’s Best Employers of 2021.
  • AMD announced its 26th annual Corporate Responsibility Report highlighting AMD’s accomplishments from the previous year and unveiling new goals through 2025 and 2030, including a new goal to increase energy efficiency of processors running AI training and high performance computing applications 30x by 2025.

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.

For the fourth quarter 2021, AMD expects revenue to be approximately $4.5 billion, plus or minus $100 million, an increase of approximately 39 percent year-over-year and approximately 4 percent quarter-over-quarter. The year-over-year increase is expected to be driven by growth across all businesses. The quarter-over-quarter increase is expected to be driven by higher server and semi-custom revenue. AMD expects non-GAAP gross margin to be approximately 49.5 percent in the fourth quarter 2021.

For the full year 2021, AMD now expects revenue to grow approximately 65 percent driven by growth across all businesses, up from prior guidance of 60 percent growth. AMD expects non-GAAP gross margin to be approximately 48 percent for the full year 2021.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data) (Unaudited)
Three Months Ended
September 25,
2021
June 26,
2021
September 26,
2020
GAAP gross profit $ 2,086 $ 1,830 $ 1,230
GAAP gross margin % 48 % 48 % 44 %
Stock-based compensation 1 2 1
Non-GAAP gross profit $ 2,087 $ 1,832 $ 1,231
Non-GAAP gross margin % 48 % 48 % 44 %
GAAP operating expenses $ 1,141 $ 1,000 $ 781
GAAP operating expenses/revenue % 26 % 26 % 28 %
Stock-based compensation 98 81 75
Acquisition-related costs 8 10
Non-GAAP operating expenses $ 1,035 $ 909 $ 706
Non-GAAP operating expenses/revenue% 24 % 24 % 25 %
GAAP operating income $ 948 $ 831 $ 449
GAAP operating margin % 22 % 22 % 16 %
Stock-based compensation 99 83 76
Acquisition-related costs 8 10
Non-GAAP operating income $ 1,055 $ 924 $ 525
Non-GAAP operating margin % 24 % 24 % 19 %

 

Three Months Ended
September 25,
2021
June 26,
2021
September 26,
2020
GAAP net income / earnings per share $ 923 $ 0.75 $ 710 $ 0.58 $ 390 $ 0.32
Loss on debt redemption/conversion 1 38 0.03
(Gains) losses on equity investments, net (60 ) (0.05 )
Non-cash interest expense related to convertible debt 2
Stock-based compensation 99 0.08 83 0.06 76 0.06
Equity income in investee (2 ) (2 ) (1 )
Acquisition-related costs 8 0.01 10 0.01
Income tax provision (75 ) (0.06 ) (24 ) (0.02 ) (4 )
Non-GAAP net income / earnings per share $ 893 $ 0.73 $ 778 $ 0.63 $ 501 $ 0.41
Shares used and net income adjustment in
earnings per share calculation (1)
Shares used in per share calculation (GAAP) 1,230 1,232 1,215
Interest expense add-back to GAAP net income $ $ $ 1
Shares used in per share calculation (Non-GAAP) 1,230 1,232 1,230
Interest expense add-back to Non-GAAP net income $ $ $ 1

 

(1 ) For the three months ended September 26, 2020, GAAP diluted EPS calculations include 11 million related to the Company’s 2026 Convertible Notes and the associated $1 million interest expense add-back to net income under the “if converted” method. For the three months ended September 26, 2020, 15 million shares related to the Company’s 2026 Convertible Notes were not included in the GAAP diluted EPS calculations as their inclusion would have been anti-dilutive.

For the three months ended September 26, 2020, Non-GAAP diluted EPS calculations include 26 million shares related to the Company’s 2026 Convertible Notes and the associated $1 million interest expense add-back to net income under the “if converted” method.

More information at: https://ir.amd.com/news-events/press-releases/detail/1027/amd-reports-third-quarter-2021-financial-results

About AMD

For more than 50 years, AMD has driven innovation in high-performance computing, graphics and visualization technologies – the building blocks for gaming, immersive platforms and the data center. Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) websiteblogFacebook and Twitter pages.


Source: AMD

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

SC21 Was Unlike Any Other — Was That a Good Thing?

December 3, 2021

For a long time, the promised in-person SC21 seemed like an impossible fever dream, the assurances of a prominent physical component persisting across years of canceled conferences, including two virtual ISCs and the virtual SC20. With the advent of the Delta variant, Covid surges in St. Louis and contention over vaccine requirements... Read more…

The Green500’s Crystal Anniversary Sees MN-3 Crystallize Its Winning Streak

December 2, 2021

“This is the 30th Green500,” said Wu Feng, custodian of the Green500 list, at the list’s SC21 birds-of-a-feather session. “You could say 15 years of Green500, which makes it, I guess, the crystal anniversary.” Indeed, HPCwire marked the 15th anniversary of the Green500 – which ranks supercomputers by flops-per-watt, rather than just by flops – earlier this year with... Read more…

AWS Arm-based Graviton3 Instances Now in Preview

December 1, 2021

Three years after unveiling the first generation of its AWS Graviton chip-powered instances in 2018, Amazon Web Services announced that the third generation of the processors – the AWS Graviton3 – will power all-new Amazon Elastic Compute 2 (EC2) C7g instances that are now available in preview. Debuting at the AWS re:Invent 2021... Read more…

Nvidia Dominates Latest MLPerf Results but Competitors Start Speaking Up

December 1, 2021

MLCommons today released its fifth round of MLPerf training benchmark results with Nvidia GPUs again dominating. That said, a few other AI accelerator companies participated and, one of them, Graphcore, even held a separ Read more…

HPC Career Notes: December 2021 Edition

December 1, 2021

In this monthly feature, we’ll keep you up-to-date on the latest career developments for individuals in the high-performance computing community. Whether it’s a promotion, new company hire, or even an accolade, we’ Read more…

AWS Solution Channel

Running a 3.2M vCPU HPC Workload on AWS with YellowDog

Historically, advances in fields such as meteorology, healthcare, and engineering, were achieved through large investments in on-premises computing infrastructure. Upfront capital investment and operational complexity have been the accepted norm of large-scale HPC research. Read more…

At SC21, Experts Ask: Can Fast HPC Be Green?

November 30, 2021

HPC is entering a new era: exascale is (somewhat) officially here, but Moore’s law is ending. Power consumption and other sustainability concerns loom over the enormous systems and chips of this new epoch, for both cost and compliance reasons. Reconciling the need to continue the supercomputer scale-up while reducing HPC’s environmental impacts... Read more…

SC21 Was Unlike Any Other — Was That a Good Thing?

December 3, 2021

For a long time, the promised in-person SC21 seemed like an impossible fever dream, the assurances of a prominent physical component persisting across years of canceled conferences, including two virtual ISCs and the virtual SC20. With the advent of the Delta variant, Covid surges in St. Louis and contention over vaccine requirements... Read more…

The Green500’s Crystal Anniversary Sees MN-3 Crystallize Its Winning Streak

December 2, 2021

“This is the 30th Green500,” said Wu Feng, custodian of the Green500 list, at the list’s SC21 birds-of-a-feather session. “You could say 15 years of Green500, which makes it, I guess, the crystal anniversary.” Indeed, HPCwire marked the 15th anniversary of the Green500 – which ranks supercomputers by flops-per-watt, rather than just by flops – earlier this year with... Read more…

Nvidia Dominates Latest MLPerf Results but Competitors Start Speaking Up

December 1, 2021

MLCommons today released its fifth round of MLPerf training benchmark results with Nvidia GPUs again dominating. That said, a few other AI accelerator companies Read more…

At SC21, Experts Ask: Can Fast HPC Be Green?

November 30, 2021

HPC is entering a new era: exascale is (somewhat) officially here, but Moore’s law is ending. Power consumption and other sustainability concerns loom over the enormous systems and chips of this new epoch, for both cost and compliance reasons. Reconciling the need to continue the supercomputer scale-up while reducing HPC’s environmental impacts... Read more…

Raja Koduri and Satoshi Matsuoka Discuss the Future of HPC at SC21

November 29, 2021

HPCwire's Managing Editor sits down with Intel's Raja Koduri and Riken's Satoshi Matsuoka in St. Louis for an off-the-cuff conversation about their SC21 experience, what comes after exascale and why they are collaborating. Koduri, senior vice president and general manager of Intel's accelerated computing systems and graphics (AXG) group, leads the team... Read more…

Jack Dongarra on SC21, the Top500 and His Retirement Plans

November 29, 2021

HPCwire's Managing Editor sits down with Jack Dongarra, Top500 co-founder and Distinguished Professor at the University of Tennessee, during SC21 in St. Louis to discuss the 2021 Top500 list, the outlook for global exascale computing, and what exactly is going on in that Viking helmet photo. Read more…

SC21: Larry Smarr on The Rise of Supernetwork Data Intensive Computing

November 26, 2021

Larry Smarr, founding director of Calit2 (now Distinguished Professor Emeritus at the University of California San Diego) and the first director of NCSA, is one of the seminal figures in the U.S. supercomputing community. What began as a personal drive, shared by others, to spur the creation of supercomputers in the U.S. for scientific use, later expanded into a... Read more…

Three Chinese Exascale Systems Detailed at SC21: Two Operational and One Delayed

November 24, 2021

Details about two previously rumored Chinese exascale systems came to light during last week’s SC21 proceedings. Asked about these systems during the Top500 media briefing on Monday, Nov. 15, list author and co-founder Jack Dongarra indicated he was aware of some very impressive results, but withheld comment when asked directly if he had... Read more…

IonQ Is First Quantum Startup to Go Public; Will It be First to Deliver Profits?

November 3, 2021

On October 1 of this year, IonQ became the first pure-play quantum computing start-up to go public. At this writing, the stock (NYSE: IONQ) was around $15 and its market capitalization was roughly $2.89 billion. Co-founder and chief scientist Chris Monroe says it was fun to have a few of the company’s roughly 100 employees travel to New York to ring the opening bell of the New York Stock... Read more…

Enter Dojo: Tesla Reveals Design for Modular Supercomputer & D1 Chip

August 20, 2021

Two months ago, Tesla revealed a massive GPU cluster that it said was “roughly the number five supercomputer in the world,” and which was just a precursor to Tesla’s real supercomputing moonshot: the long-rumored, little-detailed Dojo system. Read more…

Esperanto, Silicon in Hand, Champions the Efficiency of Its 1,092-Core RISC-V Chip

August 27, 2021

Esperanto Technologies made waves last December when it announced ET-SoC-1, a new RISC-V-based chip aimed at machine learning that packed nearly 1,100 cores onto a package small enough to fit six times over on a single PCIe card. Now, Esperanto is back, silicon in-hand and taking aim... Read more…

US Closes in on Exascale: Frontier Installation Is Underway

September 29, 2021

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, held by Zoom this week (Sept. 29-30), it was revealed that the Frontier supercomputer is currently being installed at Oak Ridge National Laboratory in Oak Ridge, Tenn. The staff at the Oak Ridge Leadership... Read more…

AMD Launches Milan-X CPU with 3D V-Cache and Multichip Instinct MI200 GPU

November 8, 2021

At a virtual event this morning, AMD CEO Lisa Su unveiled the company’s latest and much-anticipated server products: the new Milan-X CPU, which leverages AMD’s new 3D V-Cache technology; and its new Instinct MI200 GPU, which provides up to 220 compute units across two Infinity Fabric-connected dies, delivering an astounding 47.9 peak double-precision teraflops. “We're in a high-performance computing megacycle, driven by the growing need to deploy additional compute performance... Read more…

Intel Reorgs HPC Group, Creates Two ‘Super Compute’ Groups

October 15, 2021

Following on changes made in June that moved Intel’s HPC unit out of the Data Platform Group and into the newly created Accelerated Computing Systems and Graphics (AXG) business unit, led by Raja Koduri, Intel is making further updates to the HPC group and announcing... Read more…

Intel Completes LLVM Adoption; Will End Updates to Classic C/C++ Compilers in Future

August 10, 2021

Intel reported in a blog this week that its adoption of the open source LLVM architecture for Intel’s C/C++ compiler is complete. The transition is part of In Read more…

Killer Instinct: AMD’s Multi-Chip MI200 GPU Readies for a Major Global Debut

October 21, 2021

AMD’s next-generation supercomputer GPU is on its way – and by all appearances, it’s about to make a name for itself. The AMD Radeon Instinct MI200 GPU (a successor to the MI100) will, over the next year, begin to power three massive systems on three continents: the United States’ exascale Frontier system; the European Union’s pre-exascale LUMI system; and Australia’s petascale Setonix system. Read more…

Leading Solution Providers

Contributors

Hot Chips: Here Come the DPUs and IPUs from Arm, Nvidia and Intel

August 25, 2021

The emergence of data processing units (DPU) and infrastructure processing units (IPU) as potentially important pieces in cloud and datacenter architectures was Read more…

D-Wave Embraces Gate-Based Quantum Computing; Charts Path Forward

October 21, 2021

Earlier this month D-Wave Systems, the quantum computing pioneer that has long championed quantum annealing-based quantum computing (and sometimes taken heat fo Read more…

HPE Wins $2B GreenLake HPC-as-a-Service Deal with NSA

September 1, 2021

In the heated, oft-contentious, government IT space, HPE has won a massive $2 billion contract to provide HPC and AI services to the United States’ National Security Agency (NSA). Following on the heels of the now-canceled $10 billion JEDI contract (reissued as JWCC) and a $10 billion... Read more…

The Latest MLPerf Inference Results: Nvidia GPUs Hold Sway but Here Come CPUs and Intel

September 22, 2021

The latest round of MLPerf inference benchmark (v 1.1) results was released today and Nvidia again dominated, sweeping the top spots in the closed (apples-to-ap Read more…

Ahead of ‘Dojo,’ Tesla Reveals Its Massive Precursor Supercomputer

June 22, 2021

In spring 2019, Tesla made cryptic reference to a project called Dojo, a “super-powerful training computer” for video data processing. Then, in summer 2020, Tesla CEO Elon Musk tweeted: “Tesla is developing a [neural network] training computer... Read more…

Three Chinese Exascale Systems Detailed at SC21: Two Operational and One Delayed

November 24, 2021

Details about two previously rumored Chinese exascale systems came to light during last week’s SC21 proceedings. Asked about these systems during the Top500 media briefing on Monday, Nov. 15, list author and co-founder Jack Dongarra indicated he was aware of some very impressive results, but withheld comment when asked directly if he had... Read more…

2021 Gordon Bell Prize Goes to Exascale-Powered Quantum Supremacy Challenge

November 18, 2021

Today at the hybrid virtual/in-person SC21 conference, the organizers announced the winners of the 2021 ACM Gordon Bell Prize: a team of Chinese researchers leveraging the new exascale Sunway system to simulate quantum circuits. The Gordon Bell Prize, which comes with an award of $10,000 courtesy of HPC pioneer Gordon Bell, is awarded annually... Read more…

Quantum Computer Market Headed to $830M in 2024

September 13, 2021

What is one to make of the quantum computing market? Energized (lots of funding) but still chaotic and advancing in unpredictable ways (e.g. competing qubit tec Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire