AMD announces fourth quarter and annual financial results for 2021

"

Record highs! Quarterly revenue was $4.8 billion, up 49% year-over-year; full-year turnover was $16.4 billion, up 68% year-over-year; gross profit expanded, and operating income more than doubled from last year.

Santa Clara, Calif. – February 1, 2022 – AMD (NASDAQ: AMD) today reported revenue of $4.8 billion, operating income of $1.2 billion, net income of $974 million and diluted earnings per share of $0.80 for the fourth quarter of 2021. Non-GAAP operating income was $1.3 billion, net income was $1.1 billion, and diluted earnings per share were $0.92.

Revenue for the full year 2021 was $16.4 billion, operating income was $3.6 billion, net income was $3.2 billion, and diluted earnings per share were $2.57. Non-GAAP operating income was $4.1 billion, net income was $3.4 billion and diluted earnings per share were $2.79.

Dr. Zifeng Su, President and Ceo of AMD Lisa Su said: "2021 was an outstanding year for AMD, with record revenue and earnings for the full year. We've done a great job in everything we do, with data center revenue doubling year-over-year as cloud computing and enterprise customers increasingly adopt AMD EPYC processors. With the mass production of our existing portfolio and the launch of next-generation PC, gaming and data center products, we expect significant growth to continue in 2022. ”

Fourth Quarter 2021 Results

Revenue for the quarter was $4.8 billion, up 49% year-over-year and 12% sequentially, primarily driven by higher turnover in the Computing & Graphics Division and Enterprise, Embedded and Semi-Custom Divisions.

Gross profit was 50%, up more than 5 percentage points year-over-year and about 2 percentage points sequentially, driven by a rich product portfolio.

Operating income for the quarter was $1.2 billion compared to $570 million in the year-ago quarter and operating income of $948 million in the prior quarter. Operating income for the quarter was $1.3 billion on a non-GAAP basis compared to $663 million in the year-ago quarter and $1.1 billion in the prior quarter. The increase in operating income was mainly due to the increase in turnover and gross profit.

Net income for the quarter was $974 million compared to $1.8 billion in the year-ago quarter and net income of $923 million in the prior quarter. On a non-GAAP basis, net income for the quarter was $1.1 billion compared to $636 million in the year-ago quarter and $893 million in the prior quarter.

Earnings per diluted share for the quarter were $0.80 compared to $1.45 in the year-ago quarter and $0.75 in the prior quarter. Based on non-GAAP standards, diluted earnings per share for the quarter were $0.92 compared to $0.52 in the year-ago quarter and $0.73 in the prior quarter.

Cash, cash equivalents and short-term investments totalled $3.6 billion at the end of the quarter. The Company repurchased $756 million of its common stock during the quarter.

Operating cash flow for the quarter was $822 million compared to $554 million in the year-ago quarter and operating cash flow of $849 million in the prior quarter. In terms of free cash flow, free cash flow for the quarter was $736 million compared to $480 million in the year-ago quarter and $764 million in the prior quarter. Operating cash flow and free cash flow for the fourth quarter of 2021 include strategic investments in long-term supply chain capabilities to support future turnover growth.

Quarterly departmental financial report summary

1. The Computing & Graphics Division's revenue was US$2.6 billion, up 32% year-on-year and 8% sequentially, mainly due to sales of Ryzen™ processors and Radeon graphics cards.

Average Selling Price for Client Processors (ASP) increased year-over-year and sequentially, driven primarily by increased sales of the Ryzen™ processor portfolio.

Driven by Radeon product sales, the average price of GPUs increased year-on-year, while the month-on-month decline was affected by the product portfolio.

2. The Enterprise, Embedded and Semi-Custom Division's revenue was US$2.2 billion, up 75% year-on-year and 17% sequentially, mainly due to the increase in sales of EPYC processors and semi-custom processors.

Operating income for the quarter was $762 million compared to $243 million in the year-ago quarter and $542 million in the prior quarter. The increase was primarily driven by higher turnover and a richer product portfolio, partially offset by increased operating expenses.

2021 Annual Results

Total revenue in 2021 was $16.4 billion, up 68% year-over-year, driven by increased revenue in the Computing & Graphics Division and the Enterprise, Embedded and Semi-Custom Divisions.

Gross profit for this year was 48 percent, up more than 3 percentage points from 2020, driven by the broad portfolio of EPYC, Radeon and Ryzen™ processors.

Operating income for the year was $3.6 billion, compared to $1.4 billion in the year-ago quarter. Based on non-GAAP standards, operating income for the year was $4.1 billion compared to $1.7 billion in the previous year. The increase in operating income was mainly due to the increase in turnover and gross profit.

This year's net income was $3.2 billion, compared to $2.5 billion in 2020. Based on non-GAAP standards, net income for this year was $3.4 billion compared to $1.6 billion last year.

This year's diluted earnings per share were $2.57 compared to $2.06 in the previous year. Based on non-GAAP standards, this year's diluted earnings per share were $2.79 compared to $1.29 in the previous year.

At the end of 2021, cash, cash equivalents and short-term investments totaled $3.6 billion. The Company repurchased $1.8 billion in its common stock in 2021.

This year's operating cash flow was $3.5 billion, compared to $1.1 billion in the previous year. This year's free cash flow is $3.2 billion, compared to $777 million the previous year. Annual Operating Cash Flow and Free Cash Flow for 2021 include strategic investments in long-term supply chain capabilities to support future turnover growth.

Recent highlights of the company's performance

1. AMD announced that its acquisition of Xilinx has been approved by the State Administration for Market Regulation (SAMR) of the People's Republic of China. AMD expects the acquisition to close in the first quarter of 2022.

2. AMD continues to maintain a strong momentum in the data center field, with AMD EPYC processors, AMD Instinct accelerators, and data center solutions increasingly being adopted by new customers and expanded cloud products.

Leading cloud service providers expanded their AMD-based instances, launching more than 130 new public instances during the quarter, including: Amazon Cloud Technologies Corporation (AWS) launching a new Amazon EC2 Hpc6a instance for more high-performance computing for user compute-intensive workloads, and new general-purpose Amazon EC2 M6a instances; Google Cloud launching multiple general-purpose, compute, and memory-intensive instances; and IBM Cloud launching a new bare metal server product. Designed to meet demanding workloads and solution requirements; Microsoft Azure announced the latest generation of Dasv5 and Easv5 Azure Virtual Machines (VMs) as well as new confidential virtual machines DCasv5 and ECasv5.

AMD announces the launch of the new AMD Instinct MI200 family of accelerators, the world's leading high-performance computing (HPC) and artificial intelligence (AI) accelerators. The AMD Instinct MI200 series of accelerators powers Oak Ridge National Laboratory's Frontier supercomputer, the first Exascale-class (exascale subprime) supercomputer in the United States.

AmD has powered 73 supercomputers in the newly released Global Top 500 Supercomputer List, a three-fold increase from the November 2020 list. In addition, AMD drives four of the top 10 most powerful supercomputers in the world, as well as the premier supercomputers in the EMEA (Europe, Middle East and Africa) region.

NVIDIA uses the Ryzen Dragon ThreadripperPRO processor to power the next generation of cloud gaming experiences.

AMD announces the availability of the AMD Radeon PRO V620 GPU, which delivers powerful data center visual performance for 3D workloads, modern office productivity applications, and cloud gaming, including Tencent's upcoming cloud gaming services.

3. At the 2022 product line launch meeting, AMD announced the launch of the Ryzen 6000 series processor, which is based on the efficient 6nm "Zen3+" core architecture, equipped with a built-in graphics card based on the AMD RDNA2 architecture, bringing the fastest Ryzen mobile processor experience, and is scheduled to start supplying in February.

4. AMD announced the latest graphics processor lineup and software combination, including the new AMD Radeon RX 6000M series graphics card and AMD Radeon RX 6000S series graphics for high-end, thin and light game books, three new Radeon RX 6000 series desktop graphics cards for an incredible 1080p gaming experience, and the upcoming new version of AMD Software: Adrenalin Edition application, The new version of the software will support AMD Radeon Super Resolution Technology (RSR), a new space-optimized upgrade based on drivers.

5. AMD also previewed and showcased the next wave of leading data center and desktop computer processor technologies that are leading the industry in innovation.

AMD previewed a 3rd generation AMDEPYC processor with AMD 3D V-Cache technology, a 4th generation EPYC processor codenamed Genoa with a Zen 4 core architecture, and a Zen 4c core processor designed for cloud-native workloads that will power the EPYC processor code-named "Bergamo".

AMD also announced the launch of a new Ryzen mobile processor featuring powerful 3D V-Cache technology that will deliver an incredible gaming experience. AMD also unveiled for the first time the Ryzen™ 7000 Series processor, which will be built on the 5nm "Zen 4" architecture and is expected to be available in the second half of 2022.

6) AMD was named one of The "Most Responsible Companies in America" by Newsweek for its environmental, social, and governance (ESG) performance.