Q2 2017 Earnings

Reported June 29, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2017	Q1 2017	Q2 2016	QoQ Change	YoY Change
Revenue	$1.8B	$1.5B	—	18.6%	—
Op. Income	-$910M	-$818M	—	-11.2%	—
Gross Margin	22.3%	18.8%	—	3.6pp	—
Net Margin	-57.9%	-60.6%	—	2.7pp	—
EPS (Diluted)	$-0.62	$-0.55	—	-12.7%	—

Income Statement

Item	Amount
REVENUE	$1.8B
Cost of Revenue	$1.4B
GROSS PROFIT	$405M
R&D Expenses	$304M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$1.0B
Other Expenses	$0
Operating Expenses	$1.3B
Cost & Expenses	$2.7B
OPERATING INCOME	-$910M
Interest Income	$0
Interest Expense	$115M
Other Income/Expenses	-$103M
INCOME BEFORE TAX	-$1.0B
Income Tax Expense	$37M
Net Income from Continuing Ops	-$1.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	-$1.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	-$1.1B
D&A	$129M
EBIT	-$898M
EBITDA	-$769M
EPS	-$1
EPS Diluted	-$1