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<p align="center"></p><p><p>This afternoon, AMD announced their second quarter earnings for the 2016 fiscal year. It&rsquo;s been a while, but AMD finds itself in the black for this quarter, with higher revenues, and thanks to $150 million from a joint venture with Nantong Fujitsu Microelectronics, AMD&rsquo;s net income found its way into the positive column. AMD had revenues of $1.027 billion for the quarter, which is up 23% from last quarter, and more importantly up 9% from a year ago. Gross margin for the quarter was 31%, which is still not what AMD wants or needs to maintain profitability, but it is up 6% from their Q2 2015 results which is good news for the company. AMD did record an operating loss for the quarter of $8 million, but that&rsquo;s a big improvement compared to the $68 million loss last quarter and $137 million loss in Q2 2015. Net income for this quarter was $68 million, or $0.08 per share, compared to a net loss of $109 million last quarter and a $181 million loss a year ago.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q2 2016 Financial Results (GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q2'2016</td>
<td align="center" valign="middle" width="85">Q1'2016</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$1027M</td>
<td align="center" valign="middle">$832M</td>
<td align="center" valign="middle">$942M</td>
</tr>
<tr>
<td class="tlgrey">Gross Margin</td>
<td align="center" valign="middle">31%</td>
<td align="center" valign="middle">32%</td>
<td align="center" valign="middle">25%</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">-$8M</td>
<td align="center" valign="middle">-$68M</td>
<td align="center" valign="middle">-$137M</td>
</tr>
<tr>
<td class="tlgrey">Net Income</td>
<td align="center" valign="middle">$69M</td>
<td align="center" valign="middle">-$109M</td>
<td align="center" valign="middle">-$181M</td>
</tr>
<tr>
<td class="tlgrey">Earnings Per Share</td>
<td align="center" valign="middle">$0.08</td>
<td align="center" valign="middle">-$0.14</td>
<td align="center" valign="middle">-$0.23</td>
</tr>
</tbody>
</table>

<p>AMD also released Non-GAAP results which exclude restructuring charges and some other results. On a Non-GAAP basis, AMD had the same $1.027 billion in revenue, but showed a slight operating income of $3 million, compared to a $55 million operating loss last quarter and a $87 million loss last year. Looking at net results, AMD had a net loss of $40 million, or $0.05 per share, compared to a $96 million net loss last quarter and a $131 million net loss a year ago.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q2 2016 Financial Results (Non-GAAP)</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q2'2016</td>
<td align="center" valign="middle" width="85">Q1'2016</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$1027M</td>
<td align="center" valign="middle">$832M</td>
<td align="center" valign="middle">$942M</td>
</tr>
<tr>
<td class="tlgrey">Gross Margin</td>
<td align="center" valign="middle">31%</td>
<td align="center" valign="middle">32%</td>
<td align="center" valign="middle">28%</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">$3M</td>
<td align="center" valign="middle">-$55M</td>
<td align="center" valign="middle">-$87M</td>
</tr>
<tr>
<td class="tlgrey">Net Income</td>
<td align="center" valign="middle">-$40M</td>
<td align="center" valign="middle">-$96M</td>
<td align="center" valign="middle">-$131M</td>
</tr>
<tr>
<td class="tlgrey">Earnings Per Share</td>
<td align="center" valign="middle">-$0.05</td>
<td align="center" valign="middle">-$0.12</td>
<td align="center" valign="middle">-$0.17</td>
</tr>
</tbody>
</table>

<p>AMD attributes their revenue increase primarily to higher sales of its semi-custom SoCs, and with the announcement of the Xbox One Scorpio AMD has secured another design win there. Overall the Enterprise, Embedded, and Semi-Custom segment had revenues of $592 million for the quarter, which is up 5% from a year ago, once again attributed to the increased sales of semi-custom SoCs. The segment had an operating income of $84 million for the quarter, up from $27 million in Q2 2015.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q2 2016 Enterprise, Embedded, and Semi-Custom</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q2'2016</td>
<td align="center" valign="middle" width="85">Q1'2016</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$592M</td>
<td align="center" valign="middle">$372M</td>
<td align="center" valign="middle">$563M</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">$84M</td>
<td align="center" valign="middle">$16M</td>
<td align="center" valign="middle">$27M</td>
</tr>
</tbody>
</table>

<p>AMD&rsquo;s Computing and Graphics segment just had an important quarter with the launch of their first FinFet GPU design in the AMD Radeon RX 480. They&rsquo;ve also been releasing several Carrizo based APUs and CPUs, as well as announcing Bristol Ridge, and all the while working on Zen. The Computing and Graphics segment had revenues of $435 million for the quarter, which is up 15% from Q2 2015. Notebook processor and GPU sales have been tagged as the reason for the revenue increase. The segment had an operating loss of $81 million, which is better than the $147 million operating loss a year ago, but still a bit way from profitability. Lowered expenses have helped them here quite a bit, but they still have some work to do. AMD&rsquo;s average selling price of their notebook APUs decreased compared to Q2 2015, and GPU average selling price also declined.</p>

<table align="center" border="1" cellpadding="0" cellspacing="1" width="635">
<tbody>
<tr class="tgrey">
<td align="center" colspan="6">AMD Q2 2016 Computing and Graphics</td>
</tr>
<tr class="tlblue">
<td width="120">&nbsp;</td>
<td align="center" valign="middle" width="85">Q2'2016</td>
<td align="center" valign="middle" width="85">Q1'2016</td>
<td align="center" valign="middle" width="85">Q2'2015</td>
</tr>
<tr>
<td class="tlgrey">Revenue</td>
<td align="center" valign="middle">$435M</td>
<td align="center" valign="middle">$460M</td>
<td align="center" valign="middle">$379M</td>
</tr>
<tr>
<td class="tlgrey">Operating Income</td>
<td align="center" valign="middle">-$81M</td>
<td align="center" valign="middle">-$70M</td>
<td align="center" valign="middle">-$147M</td>
</tr>
</tbody>
</table>

<p>Looking ahead to next quarter, AMD is expecting revenues to increase 18% from this quarter, plus or minus 3%.</p>

<p>Source: AMD Investor Relations</p>
</p>

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Source: AnandTech
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