AMD Reports 2014 First Quarter Results

AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

(1) In this release, in addition to GAAP financial results, AMD has provided
    non-GAAP financial measures, including non-GAAP operating income (loss),
    non-GAAP net income (loss) and non-GAAP earnings (loss) per share. These
    non-GAAP financial measures reflect certain adjustments as presented in 
    the data tables in this press release. AMD also provided Adjusted EBITDA
    and non-GAAP free cash flow as supplemental measures of its performance.
    These items are defined in the footnotes to the selected data tables    
    provided at the end of this release. AMD is providing these financial   
    measures because it believes this non-GAAP presentation makes it easier 
    for investors to compare its operating results for current and          
    historical periods and also because AMD believes it assists investors in
    comparing AMD's performance across reporting periods on a consistent    
    basis by excluding items that it does not believe are indicative of its 
    core operating performance and for the other reasons described in the   
    footnotes to the selected data tables. Refer to the data tables at the  
    end of this release for additional AMD data.                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                                                 Quarter Ended              
                                    --------------------------------------- 
                                     March 29,      Dec 28,       Mar. 30,  
                                        2014          2013          2013    
                                                                            
                                    -----------   -----------   ----------- 
                                                                            
Net revenue                         $     1,397   $     1,589   $     1,088 
                                                                            
Cost of sales                               910         1,036           643 
                                                                            
                                    -----------   -----------   ----------- 
                                                                            
Gross margin                                487           553           445 
                                                                                      
Gross  margin  %                                                              35%                      35%                      41%
                                                                                                                                                        
Research  and  development                                        279                      293                      312  
                                                                                                                                                        
Marketing,  general  and                                                                                                            
  administrative                                                          156                      169                      179  
                                                                                                                                                        
Amortization  of  acquired                                                                                                        
  intangible  assets                                                        3                          4                          5  
                                                                                                                                                        
Restructuring  and  other  special                                                                                          
  charges,  net                                                                  -                          -                        47  
                                                                                                                                                        
Legal  settlements,  net                                                -                      (48)                        -  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Operating  income  (loss)                                            49                      135                      (98)
                                                                                                                                                        
Interest  income                                                              1                          1                          1  
Interest  expense                                                        (47)                    (44)                    (44)
Other  expense,  net                                                    (21)                      (2)                      (3)
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Income  (loss)  before  income  taxes                      (18)                      90                    (144)
                                                                                                                                                        
Provision  for  income  taxes                                        2                          1                          2  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Net  income  (loss)                                      $              (20)    $                89      $            (146)
                                                                                                                                                        
                                                                                                                                                        
Net  income  (loss)  per  share                                                                                                  
                                                                                                                                                        
    Basic                                                          $          (0.03)    $            0.12      $          (0.19)
                                                                                                                                                        
    Diluted                                                      $          (0.03)    $            0.12      $          (0.19)
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Shares  used  in  per  share                                                                                                        
  calculation                                                                                                                                
                                                                                                                                                        
    Basic                                                                          761                      759                      749  
                                                                                                                                                        
    Diluted                                                                      761                      766                      749  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENTS  OF  COMPREHENSIVE  INCOME  (LOSS)                        
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                                                                  Quarter  Ended                            
                                                                        ---------------------------------------  
                                                                          March  29,            Dec  28,              Mar.  30,    
                                                                                2014                    2013                    2013        
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Total  comprehensive  income  (loss)      $              (21)    $                89      $            (147)
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  BALANCE  SHEETS                                                                              
(Millions)                                                                                                                                    
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                          March  29,            Dec  28,              Mar.  30,    
                                                                                2014                    2013                    2013        
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Assets                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                  $              554      $              869      $              441  
    Marketable  securities                                          348                      228                      562  
    Accounts  receivable,  net                                    840                      832                      645  
    Inventories,  net                                                    869                      884                      613  
    Prepaid  expenses  and  other                                                                                                
      current  assets                                                        79                        71                        77  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
            Total  current  assets                                2,690                  2,884                  2,338  
                                                                                                                                                        
Long-term  marketable  securities                            80                        90                      180  
Property,  plant  and  equipment,  net                    337                      346                      411  
Acquisition  related  intangible                                                                                            
  assets,  net                                                                  75                        78                        92  
Goodwill                                                                        553                      553                      553  
Other  assets                                                                373                      386                      223  
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Total  Assets                                                $          4,108      $          4,337      $          3,797  
                                                                        ===========      ===========      ===========  
                                                                                                                                                        
Liabilities  and  Stockholders'                                                                                              
  Equity                                                                                                                                          
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Short-term  debt                                      $                60      $                60      $                  5  
    Accounts  payable                                                    483                      519                      301  
    Payable  to  GLOBALFOUNDRIES                                213                      364                      379  
    Accrued  and  other  current                                                                                                  
      liabilities                                                            482                      530                      504  
    Deferred  income  on  shipments  to                                                                                      
      distributors                                                          146                      145                      132  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
            Total  current  liabilities                      1,384                  1,618                  1,321  
                                                                                                                                                        
Long-term  debt                                                        2,078                  1,998                  2,039  
Other  long-term  liabilities                                  135                      177                        22  
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    Capital  stock:                                                                                                                        
        Common  stock,  par  value                                      8                          7                          7  
        Additional  paid-in  capital                        6,883                  6,894                  6,827  
        Treasury  stock,  at  cost                                (114)                  (112)                  (109)
    Accumulated  deficit                                        (6,263)              (6,243)              (6,306)
    Accumulated  other  comprehensive                                                                                      
      loss                                                                            (3)                      (2)                      (4)
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
            Total  stockholders'  equity                        511                      544                      415  
                                                                                                                                                        
                                                                        -----------      -----------      -----------  
                                                                                                                                                        
Total  Liabilities  and                                                                                                              
  Stockholders'  Equity                              $          4,108      $          4,337      $          3,797  
                                                                        ===========      ===========      ===========  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
CONDENSED  CONSOLIDATED  STATEMENT  OF  CASH  FLOWS                                                            
(Millions)                                                                                                                                    
                                                                                                                            Quarter  Ended  
                                                                                                                          --------------  
                                                                                                                                March  29,      
                                                                                                                                    2014            
                                                                                                                                                        
                                                                                                                          --------------  
                                                                                                                                                        
Cash  flows  from  operating  activities:                                                                              
    Net  loss                                                                                                      $                    (20)
    Adjustments  to  reconcile  net  loss  to  net  cash  used  in                                          
      operating  activities:                                                                                                        
        Depreciation  and  amortization                                                                                53  
        Employee  stock-based  compensation  expense                                                        23  
        Non-cash  interest  expense                                                                                          6  
        Loss  on  debt  redemption                                                                                            15  
        Other                                                                                                                                (4)
    Changes  in  operating  assets  and  liabilities:                                                            
        Accounts  receivable                                                                                                    (8)
        Inventories                                                                                                                    14  
        Prepaid  expenses  and  other  assets                                                                        (8)
        Payable  to  GLOBALFOUNDRIES                                                                                  (151)
        Accounts  payable,  accrued  liabilities  and  other                                        (124)
                                                                                                                          --------------  
Net  cash  used  in  operating  activities                                                $                  (204)
                                                                                                                          --------------  
                                                                                                                                                        
Cash  flows  from  investing  activities:                                                                              
    Purchases  of  property,  plant  and  equipment                                                        (21)
    Purchases  of  available-for-sale  securities                                                      (310)
    Proceeds  from  sale  and  maturity  of  available-for-sale                                          
      securities                                                                                                                      200  
                                                                                                                          --------------  
Net  cash  used  in  investing  activities                                                $                  (131)
                                                                                                                          --------------  
                                                                                                                                                        
Cash  flows  from  financing  activities:                                                                              
    Proceeds  from  issuance  of  common  stock                                                                    1  
    Proceeds  from  borrowings,  net                                                                                  589  
    Repayments  of  long-term  debt  and  capital  lease  obligations                      (569)
    Other                                                                                                                                    (1)
                                                                                                                          --------------  
Net  cash  provided  by  financing  activities                                        $                      20  
                                                                                                                          --------------  
Net  decrease  in  cash  and  cash  equivalents                                                            (315)
                                                                                                                          --------------  
Cash  and  cash  equivalents  at  beginning  of  period                          $                    869  
                                                                                                                          --------------  
Cash  and  cash  equivalents  at  end  of  period                                      $                    554  
                                                                                                                          --------------  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
ADVANCED  MICRO  DEVICES,  INC.                                                                                                
SELECTED  CORPORATE  DATA                                                                                                          
(Millions  except  headcount)                                                                                                  
                                                                                                                                                        
                                                                                                    Quarter  Ended                          
----------------------------------------------------------------------------
                                                                            March  29,            Dec  28,            Mar.  30,    
Segment  and  Category  Information                2014                    2013                    2013        
                                                                                                                                                        
----------------------------------------------------------------------------
                                                                                                                                                        
    Computing  Solutions  (1)                                                                                                      
        Net  revenue                                          $              663      $              722      $              751  
        Operating  loss                                    $                (3)    $                (7)    $              (39)
                                                                                                                                                        
    Graphics  and  Visual  Solutions                                                                                          
      (2)                                                                                                                                            
        Net  revenue                                                          734                      865                      337  
        Operating  income                                                  91                      121                        16  
                                                                                                                                                        
    All  Other  (3)                                                                                                                          
        Net  revenue                                                              -                          2                          -  
        Operating  income  (loss)                                  (39)                      21                      (75)
                                                                                                                                                        
    Total                                                                                                                                          
        Net  revenue                                          $          1,397      $          1,589      $          1,088  
        Operating  income  (loss)                  $                49      $              135      $              (98)
                                                                                                                                                        
----------------------------------------------------------------------------
                                                                                                                                                        
Other  Data                                                                                                                                    
                                                                                                                                                        
    Depreciation  and  amortization,                                                                                        
      excluding  amortization  of                                                                                                
      acquired  intangible  assets              $                50      $                50      $                62  
    Capital  additions                                  $                21      $                21      $                20  
    Adjusted  EBITDA  (4)                              $              139      $              165      $                40  
    Cash,  cash  equivalents  and                                                                                                
      marketable  securities,                                                                                                      
      including  long-term  marketable                                                                                      
      securities                                              $              982      $          1,187      $          1,183  
    Non-GAAP  free  cash  flow  (5)              $            (225)    $                  0      $            (175)
    Total  assets                                            $          4,108      $          4,337      $          3,797  
    Total  debt                                                $          2,138      $          2,058      $          2,044  
    Headcount                                                            10,397                10,671                  9,844  
                                                                                                                                                        
----------------------------------------------------------------------------
                                                                                                                                                        
    (1)    Computing  Solutions  segment  primarily  includes  x86  microprocessors,    
              as  standalone  devices  or  as  incorporated  as  an  accelerated  processing
              unit  (APU),  chipsets,  embedded  processors  and  dense  servers.                  
                                                                                                                                                        
    (2)    Graphics  and  Visual  Solutions  segment  primarily  includes  graphics        
              processing  units  (GPU),  including  professional  graphics,  semi-custom  
              System-on-Chip  (SOC)  products,  development  services  and  technology      
              for  game  consoles.                                                                                                      
                                                                                                                                                        
    (3)    All  Other  category  primarily  includes  certain  expenses  and  credits      
              that  are  not  allocated  to  any  of  the  operating  segments.  Also                
              included  in  this  category  are  amortization  of  acquired  intangible        
              assets  and  employee  stock-based  compensation  expense.  In  addition,      
              the  Company  also  included  the  following  adjustments  for  the  indicated
              periods:  for  the  first  quarter  of  2014,  the  Company  included                  
              workforce  rebalancing  severance  charges;  for  the  fourth  quarter  of      
              2013,  the  Company  included  net  legal  settlements;  and  for  the  first    
              quarter  of  2013,  the  Company  included  net  restructuring  and  other        
              special  charges.  The  Company  also  reports  the  results  of  former            
              businesses  in  the  All  Other  category  because  the  operating  results      
              were  not  material.                                                                                                      
                                                                                                                                                        
    (4)    Reconciliation  of  GAAP  operating  income  (loss)  to  Adjusted  EBITDA*      
                                                                                                                                                        
                                                                                                  Quarter  Ended                            
                                                                        ---------------------------------------  
                                                                          March  29,            Dec  28,              Mar.  30,    
                                                                                2014                    2013                    2013        
                                                                        -----------      -----------      -----------  
              GAAP  operating  income                                                                                                
                (loss)                                            $                49      $              135      $              (98)
                  Workforce  rebalancing                                                                                            
                    severance  charges                                    14                          -                          -  
                  Legal  settlements,  net                              -                      (48)                        -  
                  Depreciation  and                                                                                                      
                    amortization                                              50                        50                        62  
                  Employee  stock-based                                                                                              
                    compensation  expense                              23                        24                        24  
                  Amortization  of  acquired                                                                                      
                    intangible  assets                                      3                          4                          5  
                  Restructuring  and  other                                                                                        
                    special  charges,  net                                -                          -                        47  
                                                                        -----------      -----------      -----------  
              Adjusted  EBITDA                            $              139      $              165      $                40  
                                                                        ===========      ===========      ===========  
                                                                                                                                                        
                                                                                                                                                        
    (5)    Non-GAAP  free  cash  flow  reconciliation**                                                          
                                                                                                  Quarter  Ended                            
                                                                        ---------------------------------------  
                                                                          March  29,            Dec  28,              Mar.  30,    
                                                                                2014                    2013                    2013        
                                                                        -----------      -----------      -----------  
              GAAP  net  cash  provided  by                                                                                        
                (used  in)  operating                                                                                                  
                activities                                    $            (204)    $                21      $            (155)
                  Purchases  of  property,                                                                                          
                    plant  and  equipment                              (21)                    (21)                    (20)
                                                                        -----------      -----------      -----------  
              Non-GAAP  free  cash  flow            $            (225)    $                  0      $            (175)
                                                                        ===========      ===========      ===========  
                                                                                                                                                        
                                                                                                                                                        
              *  The  Company  presents  Adjusted  EBITDA  as  a  supplemental  measure  of    
                its  performance.  Adjusted  EBITDA  for  the  Company  is  determined  by      
                adjusting  operating  income  (loss)  for  depreciation  and  amortization,
                employee  stock-based  compensation  expense  and  amortization  of              
                acquired  intangible  assets.  In  addition,  the  Company  also  included    
                the  following  adjustments  for  the  indicated  periods:  for  the  first    
                quarter  of  2014,  the  Company  included  an  adjustment  for  workforce      
                rebalancing  severance  charges;  for  the  fourth  quarter  of  2013,  the    
                Company  included  an  adjustment  for  net  legal  settlements;  and  for      
                the  first  quarter  of  2013,  the  Company  included  net  restructuring      
                and  other  special  charges.  The  Company  calculates  and  communicates    
                Adjusted  EBITDA  in  the  financial  earnings  press  release  because  the  
                Company's  management  believes  it  is  of  importance  to  investors  and    
                lenders  in  relation  to  its  overall  capital  structure  and  its  ability
                to  borrow  additional  funds.  In  addition,  the  Company  presents              
                Adjusted  EBITDA  because  it  believes  this  measure  assists  investors    
                in  comparing  its  performance  across  reporting  periods  on  a                    
                consistent  basis  by  excluding  items  that  the  Company  does  not              
                believe  are  indicative  of  its  core  operating  performance.  The              
                Company's  calculation  of  Adjusted  EBITDA  may  or  may  not  be                    
                consistent  with  the  calculation  of  this  measure  by  other  companies    
                in  the  same  industry.  Investors  should  not  view  Adjusted  EBITDA  as    
                an  alternative  to  the  GAAP  operating  measure  of  operating  income        
                (loss)  or  GAAP  liquidity  measures  of  cash  flows  from  operating,          
                investing  and  financing  activities.  In  addition,  Adjusted  EBITDA        
                does  not  take  into  account  changes  in  certain  assets  and  liabilities
                as  well  as  interest  and  income  taxes  that  can  affect  cash  flows.        
                                                                                                                                                        
              **  The  Company  also  presents  non-GAAP  free  cash  flow  in  the  earnings  
                press  release  as  a  supplemental  measure  of  its  performance.  Non-GAAP
                free  cash  flow  is  determined  by  adjusting  GAAP  net  cash  provided  by  
                (used  in)  operating  activities  for  capital  expenditures.  The  Company
                calculates  and  communicates  non-GAAP  free  cash  flow  in  the  earnings  
                press  release  because  the  Company's  management  believes  it  is  of        
                importance  to  investors  to  understand  the  nature  of  these  cash            
                flows.  The  Company's  calculation  of  non-GAAP  free  cash  flow  may  or    
                may  not  be  consistent  with  the  calculation  of  this  measure  by  other  
                companies  in  the  same  industry.  Investors  should  not  view  non-GAAP    
                free  cash  flow  as  an  alternative  to  GAAP  liquidity  measures  of  cash  
                flows  from  operating  activities.  The  Company  has  provided                      
                reconciliations  within  the  press  earnings  release  and  financial          
                tables  of  these  non-GAAP  financial  measures  to  the  most  directly        
                comparable  GAAP  financial  measures.                                                                  
                                                                                                                                                        
 

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