Edited Transcript of Advanced Micro Devices (AMD) Q3 2014 Earnings Conference Call..
Company: Advanced Micro Devices (AMD)
Event Name: Q3 2014 Results Earnings Conference Call
Date: October 16, 2014 05:30 PM ET
Operator: Good day, ladies and gentlemen. Thank you for standing by. And welcome to the AMD third quarter 2014 earnings conference call. (Operator Instructions) I’d now like to turn the conference to our host, [technical difficulty]. Ma’am, you may begin.
Ruth Cotter – Corporate VP, IR
Thank you, and welcome to AMD’s third quarter earnings conference call. By now you should have had the opportunity to review a copy of our earnings release and the CFO commentary and slides. If you have not reviewed these documents, they can be found on AMD’s website at ir.amd.com.
Participants on today’s call are Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President and Chief Financial Officer. This is a live call and will be replayed via webcast on amd.com.
I’d like to take this opportunity before the call begins to highlight several dates for you. Matt Skynner, our Corporate Vice President and General Manager of the Graphics Business Unit will present at the UBS Technology Conference on November 18 in California. Devinder Kumar will present at the Credit Suisse Technology Conference on December 3, in Arizona; and at the Raymond James IT Supply Chain Conference on December 8 in New York.
Mark Papermaster, our Senior Vice President and Chief Technology Officer will present at the Barclays Global Technology, Media and Telecommunication Conference on December 8 in San Francisco. Our fourth quarter quiet time will begin at the close of business on Friday, December 12. And lastly, we expect to announce our fourth quarter earnings results on January 20, 2015.
Please note that we are now reporting two new financial segments beginning the third quarter. Computing and Graphic segment, primarily include desktop and notebook processors and chipsets, discrete GPUs and professional graphic; and the Enterprise, Embedded and Semi-Custom segment, primarily include server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.
Additionally note that non-GAAP financial measures referenced during this call are reconciled to most directly comparable GAAP financial measures in the press release and CFO commentary, which are posted on our websites at quarterlyearnings.amd.com.
Before we begin, let me remind everyone that today’s discussion contains forward looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak only as of the current date, and as such involve risks and uncertainties that could cause actual results to differ materially from our current expectations.
Please refer to the cautionary statements in today’s earnings press release and CFO commentary for more information. You’ll also find detailed discussions about our risk factors in our filings with the SEC, and in particular AMD’s quarterly report on Form 10-Q for the quarter ended June 28, 2014.
Now, with that, I’d like to hand the call over to Lisa. Lisa?
Lisa Su – Chief Executive Officer
Thank you, Ruth, and good afternoon to all those listening in today. I am pleased to be here on my first earnings call as CEO. In addition to covering our quarterly results, I also want to use this opportunity to provide some details on my initial priorities and the steps we are taking to continue transforming and strengthening AMD.
Our third quarter results highlight the progress we have made in diversifying our business, as we delivered our fifth straight quarter of non-GAAP profitability. While our Enterprise, Embedded and Semi-Custom segment had a strong quarter, we did face some challenges in our Computing and Graphics business due to ongoing weakness in the consumer PC market.
We know what we need to do to improve performance going forward and are taking the appropriate actions. So let me give you some more color on each of the segments.
Our Enterprise, Embedded and Semi-Custom segment delivered sequential and year-over-year revenue and operating profit improvement. We had strong embedded processor revenue growth and secured multiple new design wins across our priority markets. For instance, Arista, a leader in software-driven cloud networking, began ramping production of new switches powered by our embedded G-Series SoC.
Our customers also began ramping a number of new retail and educational digital signage wins in the third quarter. We also started sampling our first embedded ARM SoC in the quarter, and at ARM’s TechCon Conference we demoed the industry’s first ever 64-bit ARM-powered Network Function Virtualization Solution. The demo won Best in Show software Product and is a great example of how our leadership, ARM and x86 offerings are generating increased interest from telecom and networking customers.