Advanced Micro Devices, Inc. reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net revenue of $1,480 million compared to $1,106 million a year ago. Operating income was $82 million compared to operating loss of $3 million a year ago. The year-over-year increase was primarily due to higher revenue from the Computing and Graphics segment, while the sequential decrease was primarily due to seasonally lower Enterprise, Embedded and Semi-Custom segment revenue. Income before equity loss and income taxes was $53 million compared to loss of $44 million a year ago. Net income was $61 million compared to net loss of $51 million a year ago. Basic and diluted net earnings per share was $0.06 compared to LPS of $0.06 a year ago. Net cash provided by operating activities was $383 million compared to $68 million a year ago. Purchases of property, plant and equipment was $44 million compared to $113 million a year ago. Adjusted EBITDA was $142 million compared to $60 million a year ago. Non-GAAP operating income was $103 million compared to $26 million a year ago. The year-over-year improvement was primarily due to higher revenue from the Computing and Graphics segment, while the sequential decrease was primarily due to seasonally lower Enterprise, Embedded and Semi-Custom segment revenue. Non-GAAP net income was $88 million or $0.08 per share compared to non-GAAP net loss of $8 million or $0.01 per share a year ago.

For the full year, the company reported net revenue of $5,329 million compared to $4,272 million a year ago. Operating income was $204 million compared to operating loss of $372 million a year ago. The operating income improvement was primarily due to higher revenue and gross margin expansion in 2017, and the absence of the WSA charge recorded in 2016, partially offset by higher operating expenses. Income before equity loss and income taxes was $69 million compared to loss of $448 million a year ago. Net income was $43 million compared to net loss of $497 million a year ago. Basic and diluted net earnings per share was $0.04 compared to LPS of $0.60 a year ago. Net cash provided by operating activities was $68 million compared to $90 million a year ago. Purchases of property, plant and equipment was $113 million compared to $77 million a year ago. Adjusted EBITDA was $445 million compared to $117 million a year ago. Non-GAAP operating income was $301 million compared to $44 million a year ago. Operating income improvement was primarily related to higher revenue and gross margin expansion, partially offset by higher operating expenses. Non-GAAP net income was $179 million or $0.17 per share compared to non-GAAP net loss of $117 million or $0.14 per share a year ago.

For the first quarter of 2018, the company expects revenue to be approximately $1.55 billion, plus or minus $50 million, an increase of 32% year-over-year, primarily driven by the strength of the ramp of new Ryzen, GPU and EPYC products. The company expects non-GAAP gross margin to be approximately 36%; non-GAAP operating expenses to be approximately $435 million or approximately 28% of revenue; non-GAAP interest expense, taxes and other to be approximately $30 million; and inventory to be up sequentially in support of higher revenue.

For the fiscal 2018, the company expects the impact of the new standard on revenue to be immaterial. The company expects double-digit percentage growth in annual revenue, greater than 36% non-GAAP gross margin, non-GAAP operating expenses to be approximately 28% of revenue. In addition, the company expects a tax rate of approximately 10% of pretax income for 2018.