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AMD Reports 2015 Fourth Quarter and Annual Results

SUNNYVALE, CA -- (Marketwired) -- Jan 19, 2016 -- AMD (NASDAQ: AMD) today announced revenue for the fourth quarter of 2015 of $958 million, operating loss of $49 million and net loss of $102 million, or $0.13 per share. Non-GAAP(1) operating loss was $39 million, non-GAAP(1) net loss was $79 million and non-GAAP(1) loss per share was $0.10.

GAAP Financial Results

----------------------------------------------------------------------------
                                  Q4-15    Q3-15    Q4-14    2015     2014  
----------------------------------------------------------------------------
 Revenue                          $958M   $1.06B   $1.24B   $3.99B   $5.51B 
----------------------------------------------------------------------------
 Operating loss                  $(49)M   $(158)M  $(330)M  $(481)M  $(155)M
----------------------------------------------------------------------------
 Net loss / Loss per share      $(102)M/ $(197)M/ $(364)M/ $(660)M/ $(403)M/
                                 $(0.13)  $(0.25)  $(0.47)  $(0.84)  $(0.53)
----------------------------------------------------------------------------
                                                                            

Non-GAAP Financial Results(1)

----------------------------------------------------------------------------
                                      Q4-15    Q3-15   Q4-14   2015    2014 
----------------------------------------------------------------------------
 Revenue                              $958M   $1.06B  $1.24B  $3.99B  $5.51B
----------------------------------------------------------------------------
 Operating income (loss)              $(39)M  $(97)M   $52M   $(253)M  $316M
----------------------------------------------------------------------------
 Net income (loss) / Earnings (loss) $(79)M/ $(136)M/ $18M/  $(419)M/ $132M/
 per share                           $(0.10)  $(0.17) $0.02   $(0.54)  $0.16
----------------------------------------------------------------------------
                                                                            

"AMD closed 2015 with solid execution fueled by the second straight quarter of double-digit percentage revenue growth in our Computing and Graphics segment and record annual semi-custom unit shipments," said Dr. Lisa Su, AMD president and CEO. "While 2015 was challenging from a financial perspective, key R&D investments and a sharpened focus on innovation position us well to deliver great products, improved financial results and share gains in 2016."

Quarterly Financial Segment Summary

Recent Highlights

Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For Q1 2016, based on a 13 week quarter, AMD expects revenue to decrease 14 percent, plus or minus 3 percent, sequentially.

For additional details regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and annual financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com. The webcast will be available for 12 months after the conference call.

Reconciliation of GAAP to Non-GAAP Gross Margin

                                                                            
                               ---------------------------------------------
(Millions except percentages)    Q4-15    Q3-15    Q4-14     2015     2014  
----------------------------------------------------------------------------
GAAP Gross Margin               $   283  $   239  $   360  $ 1,080  $ 1,839 
----------------------------------------------------------------------------
GAAP Gross Margin %                  30%      23%      29%      27%      33%
----------------------------------------------------------------------------
  Technology node transition                                                
   charge                             -        -        -       33        - 
----------------------------------------------------------------------------
  Stock-based compensation*           1        -        -        3        3 
----------------------------------------------------------------------------
  Lower of cost or market                                                   
   inventory adjustment               -        -       58        -       58 
----------------------------------------------------------------------------
Non-GAAP Gross Margin           $   284  $   239  $   418  $ 1,116  $ 1,900 
----------------------------------------------------------------------------
Non-GAAP Gross Margin %              30%      23%      34%      28%      35%
----------------------------------------------------------------------------
                                                                            

Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Loss)

                                                                            
                               ---------------------------------------------
(Millions)                       Q4-15    Q3-15    Q4-14     2015     2014  
----------------------------------------------------------------------------
GAAP operating loss             $   (49) $  (158) $  (330) $  (481) $  (155)
----------------------------------------------------------------------------
  Goodwill impairment                 -        -      233        -      233 
----------------------------------------------------------------------------
  Technology node transition                                                
   charge                             -        -        -       33        - 
----------------------------------------------------------------------------
  Lower of cost or market                                                   
   inventory adjustment               -        -       58        -       58 
----------------------------------------------------------------------------
  Restructuring and other                                                   
   special charges, net              (6)      48       71      129       71 
----------------------------------------------------------------------------
  Workforce rebalancing                                                     
   severance charges                  -        -        -        -       14 
----------------------------------------------------------------------------
  Amortization of acquired                                                  
   intangible assets                  -        -        4        3       14 
----------------------------------------------------------------------------
  Stock-based compensation*          16       13       16       63       81 
----------------------------------------------------------------------------
Non-GAAP operating income                                                   
 (loss)                         $   (39) $   (97) $    52  $  (253) $   316 
----------------------------------------------------------------------------
                                                                            

Reconciliation of GAAP Net Loss/Loss per share to Non-GAAP Net Income (Loss)/Earnings (Loss) per Share

                                                                            
                 -----------------------------------------------------------
(Millions except                                                            
 per share                                                                  
 amounts)               Q4-15               Q3-15               Q4-14       
----------------------------------------------------------------------------
GAAP net loss                                                               
 /loss per share $   (102) $  (0.13) $   (197) $  (0.25) $   (364) $  (0.47)
----------------------------------------------------------------------------
  Goodwill                                                                  
   impairment           -         -         -         -       233      0.30 
----------------------------------------------------------------------------
  Technology node                                                           
   transition                                                               
   charge               -         -         -         -         -         - 
----------------------------------------------------------------------------
  Lower of cost                                                             
   or market                                                                
   inventory                                                                
   adjustment           -         -         -         -        58      0.07 
----------------------------------------------------------------------------
  Restructuring                                                             
   and other                                                                
   special                                                                  
   charges, net        (6)    (0.01)       48      0.06        71      0.09 
----------------------------------------------------------------------------
  Workforce                                                                 
   rebalancing                                                              
   severance                                                                
   charges              -         -         -         -         -         - 
----------------------------------------------------------------------------
  Loss on debt                                                              
   redemption           -         -         -         -         -         - 
----------------------------------------------------------------------------
  Tax settlement                                                            
   in foreign                                                               
   jurisdiction        13      0.02         -         -         -         - 
----------------------------------------------------------------------------
  Amortization of                                                           
   acquired                                                                 
   intangible                                                               
   assets               -         -         -         -         4         - 
----------------------------------------------------------------------------
  Stock-based                                                               
   compensation*       16      0.02        13      0.02        16      0.02 
----------------------------------------------------------------------------
Non-GAAP net                                                                
 income (loss) /                                                            
 earnings (loss)                                                            
 per share       $    (79) $  (0.10) $   (136) $  (0.17) $     18  $   0.02 
----------------------------------------------------------------------------
                                                                            

                                                         
                 ----------------------------------------
(Millions except                                         
 per share                                               
 amounts)                2015                2014        
---------------------------------------------------------
GAAP net loss                                            
 /loss per share  $   (660) $  (0.84) $   (403) $  (0.53)
---------------------------------------------------------
  Goodwill                                               
   impairment            -         -       233      0.30 
---------------------------------------------------------
  Technology node                                        
   transition                                            
   charge               33      0.04         -         - 
---------------------------------------------------------
  Lower of cost                                          
   or market                                             
   inventory                                             
   adjustment            -         -        58      0.07 
---------------------------------------------------------
  Restructuring                                          
   and other                                             
   special                                               
   charges, net        129      0.16        71      0.09 
---------------------------------------------------------
  Workforce                                              
   rebalancing                                           
   severance                                             
   charges               -         -        14      0.02 
---------------------------------------------------------
  Loss on debt                                           
   redemption            -         -        64      0.08 
---------------------------------------------------------
  Tax settlement                                         
   in foreign                                            
   jurisdiction         13      0.02         -         - 
---------------------------------------------------------
  Amortization of                                        
   acquired                                              
   intangible                                            
   assets                3         -        14      0.02 
---------------------------------------------------------
  Stock-based                                            
   compensation*        63      0.08        81      0.11 
---------------------------------------------------------
Non-GAAP net                                             
 income (loss) /                                         
 earnings (loss)                                         
 per share        $   (419) $  (0.54) $    132  $   0.16 
---------------------------------------------------------
                                                         

*Beginning Q1 2015, AMD started excluding the impact of stock-based compensation from non-GAAP results. Prior periods have been adjusted accordingly.

About AMD

For more than 45 years, AMD has driven innovation in high-performance computing, graphics, and visualization technologies -- the building blocks for gaming, immersive platforms, and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses, and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work, and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

Cautionary Statement

This earnings press release and the conference call remarks contain forward-looking statements concerning AMD, including its ability to deliver great products, improved financial results and share gains in 2016, and AMD's expected first quarter of 2016 revenue, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words including "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "pro forma," "estimates," "anticipates," or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. Investors are cautioned that the forward-looking statements in this release and conference call remarks are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation's dominance of the microprocessor market and its aggressive business practices may limit AMD's ability to compete effectively; AMD relies on GLOBALFOUNDRIES Inc. (GF) to manufacture most of its microprocessor and APU products and certain of its GPU and semi-custom products. If GF is not able to satisfy AMD's manufacturing requirements, its business could be adversely impacted; AMD relies on third parties to manufacture its products, and if they are unable to do so on a timely basis in sufficient quantities and using competitive technologies, AMD's business could be materially adversely affected; failure to achieve expected manufacturing yields for AMD's products could negatively impact its financial results; the success of AMD's business is dependent upon its ability to introduce products on a timely basis with features and performance levels that provide value to its customers while supporting and coinciding with significant industry transitions; if AMD cannot generate sufficient revenue and operating cash flow or obtain external financing, it may face a cash shortfall and be unable to make all of its planned investments in research and development or other strategic investments; the loss of a significant customer may have a material adverse effect on AMD; global economic uncertainty may adversely impact AMD's business and operating results; AMD may not be able to generate sufficient cash to service its debt obligations or meet its working capital requirements; AMD has a substantial amount of indebtedness which could adversely affect its financial position and prevent it from implementing its strategy or fulfilling its contractual obligations; the agreements governing AMD's notes and its secured revolving line of credit (Secured Revolving Line of Credit) impose restrictions on AMD that may adversely affect its ability to operate its business; the completion and impact of its restructuring plan announced in October 2015, its transformation initiatives and any future restructuring actions could adversely affect it; the markets in which AMD's products are sold are highly competitive; uncertainties involving the ordering and shipment of AMD's products could materially adversely affect it; AMD's receipt of revenue from its semi-custom SoC products is dependent upon its technology being designed into third-party products and the success of those products; the demand for AMD's products depends in part on the market conditions in the industries into which they are sold. Fluctuations in demand for AMD's products or a market decline in any of these industries could have a material adverse effect on its results of operations; AMD's ability to design and introduce new products in a timely manner is dependent upon third-party intellectual property; AMD depends on third-party companies for the design, manufacture and supply of motherboards and other computer platform components to support its business; if AMD loses Microsoft Corporations support for its products or other software vendors do not design and develop software to run on AMD's products, its ability to sell its products could be materially adversely affected; AMD may incur future impairments of goodwill; AMD's reliance on third-party distributors and AIB partners subjects it to certain risks; AMD's inability to continue to attract and retain qualified personnel may hinder its product development programs; in the event of a change of control, AMD may not be able to repurchase its outstanding debt as required by the applicable indentures and its Secured Revolving Line of Credit, which would result in a default under the indentures and its Secured Revolving Line of Credit; the semiconductor industry is highly cyclical and has experienced severe downturns that have materially adversely affected, and may continue to materially adversely affect, its business in the future; AMD's business is dependent upon the proper functioning of its internal business processes and information systems and modification or interruption of such systems may disrupt its business, processes and internal controls; data breaches and cyber-attacks could compromise AMD's intellectual property or other confidential, sensitive information be costly to remediate and cause significant damage to its business and reputation; AMD's operating results are subject to quarterly and seasonal sales patterns; if essential equipment or materials are not available to manufacture its products, AMD could be materially adversely affected; if AMD's products are not compatible with some or all industry-standard software and hardware, it could be materially adversely affected; costs related to defective products could have a material adverse effect on AMD; if AMD fails to maintain the efficiency of its supply chain as it responds to changes in customer demand for its products, its business could be materially adversely affected; AMD outsources to third parties certain supply-chain logistics functions, including portions of its product distribution, transportation management and information technology support services; acquisitions, divestitures and/or joint ventures could disrupt its business, harm its financial condition and operating results or dilute, or adversely affect the price of its common stock; AMD's worldwide operations are subject to political, legal and economic risks and natural disasters, which could have a material adverse effect on it; worldwide political conditions may adversely affect demand for AMD's products; unfavorable currency exchange rate fluctuations could adversely affect AMD; AMD's inability to effectively control the sales of its products on the gray market could have a material adverse effect on it; if AMD cannot adequately protect its technology or other intellectual property in the United States and abroad, through patents, copyrights, trade secrets, trademarks and other measures, it may lose a competitive advantage and incur significant expenses; AMD is a party to litigation and may become a party to other claims or litigation that could cause it to incur substantial costs or pay substantial damages or prohibit it from selling its products; AMD's business is subject to potential tax liabilities; a variety of environmental laws that AMD is subject to could result in additional costs and liabilities; and higher health care costs and labor costs could adversely affect AMD's business. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's Quarterly Report on Form 10-Q for the quarter ended September 26, 2015.

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 earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross margin, 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 tables in this earnings 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 corporate data tables provided at the end of this earnings press 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 earnings press release.
2. AMD Internal Lab testing as of Oct 22, 2015 with an Intel Core i7 5960X with 2x8GB DDR4-2666 MHz memory, Gigabyte X99-UD4PC, AMD Radeon™ R9 Fury X, Windows 10 64bit. PC manufacturers may vary configurations yielding different results. Fable Legends @ 1080p scored 63.99 fps with AMD Catalyst™ 15.7.1 Driver and 76.88 fps with Radeon Software Crimson Edition. RS-2
3. AMD Internal Lab testing as of Nov 2, 2015 with an Intel Core i7 5960X with 2x8GB DDR4-2666 MHz memory, Gigabyte X99-UD4, AMD Radeon™ R9 380, Windows 10 64bit. PC manufacturers may vary configurations yielding different results. Frame Rate Target Control (FRTC) enables users to set a target maximum frame rate when playing an application in full screen mode, thereby reducing GPU power consumption, heat generation and fan speeds/noise. FRTC caps performance not only in 3D rendered in-game scenes, but also in splash screens, loading screens and menus. See http://www.amd.com/en-us/innovations/software-technologies/technologies-gaming/frtc for full details on FRTC. Rocketleague at 1080p Max quality consumed 180W using AMD Catalyst 15.7.1 Driver, 175W with Radeon Software Crimson Edition, and 61W when using FRTC=55fps in Radeon Software Crimson Edition. RS-7

                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                             
(Millions except per share amounts and percentages)                         
                                                                            
                            Three Months Ended              Year Ended      
                     --------------------------------  -------------------- 
                      December   September   December   December   December 
                        26,        26,         27,        26,        27,    
                        2015       2015        2014       2015       2014   
                     ---------  ----------  ---------  ---------  --------- 
Net revenue          $     958  $    1,061  $   1,239  $   3,991  $   5,506 
Cost of sales              675         822        879      2,911      3,667 
                     ---------  ----------  ---------  ---------  --------- 
Gross margin               283         239        360      1,080      1,839 
Gross margin %              30%         23%        29%        27%        33%
Research and                                                                
 development               229         241        238        947      1,072 
Marketing, general                                                          
 and administrative        109         108        144        482        604 
Amortization of                                                             
 acquired intangible                                                        
 assets                      -           -          4          3         14 
Restructuring and                                                           
 other special                                                              
 charges, net               (6)         48         71        129         71 
Goodwill impairment                                                         
 charge                      -           -        233          -        233 
                     ---------  ----------  ---------  ---------  --------- 
Operating loss             (49)       (158)      (330)      (481)      (155)
Interest expense           (41)        (39)       (41)      (160)      (177)
Other income                                                                
 (expense), net             (2)          -          4         (5)       (66)
                     ---------  ----------  ---------  ---------  --------- 
Loss before income                                                          
 taxes                     (92)       (197)      (367)      (646)      (398)
Provision (benefit)                                                         
 for income taxes           10           -         (3)        14          5 
                     ---------  ----------  ---------  ---------  --------- 
Net loss             $    (102) $     (197) $    (364) $    (660) $    (403)
Net loss per share                                                          
  Basic              $   (0.13) $    (0.25) $   (0.47) $   (0.84) $   (0.53)
  Diluted            $   (0.13) $    (0.25) $   (0.47) $   (0.84) $   (0.53)
                     ---------  ----------  ---------  ---------  --------- 
Shares used in per                                                          
 share calculation                                                          
  Basic                    791         785        776        783        768 
  Diluted                  791         785        776        783        768 
                     ---------  ----------  ---------  ---------  --------- 
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                     
(Millions)                                                                  
                                                                            
                            Three Months Ended              Year Ended      
                     --------------------------------  -------------------- 
                      December   September   December   December   December 
                        26,        26,         27,        26,        27,    
                        2015       2015        2014       2015       2014   
                     ---------  ----------  ---------  ---------  --------- 
Total comprehensive                                                         
 loss                $     (95) $     (207) $    (368) $    (663) $    (406)
                     ---------  ----------  ---------  ---------  --------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED BALANCE SHEETS                                       
(Millions)                                                                  
                                                                            
                                -------------  -------------  ------------- 
                                December 26,   September 26,   December 27, 
                                     2015           2015           2014     
                                -------------  -------------  ------------- 
Assets                                                                      
Current assets:                                                             
  Cash and cash equivalents     $         785  $         755  $         805 
  Marketable securities                     -              -            235 
  Accounts receivable, net                533            648            818 
  Inventories, net                        678            761            685 
  Prepayment and other -                                                    
   GLOBALFOUNDRIES                         33             20            113 
  Prepaid expenses                         43             63             32 
  Other current assets                    248            206             48 
                                                                            
                                -------------  -------------  ------------- 
    Total current assets                2,320          2,453          2,736 
Property, plant and equipment,                                              
 net                                      188            194            302 
Acquisition related intangible                                              
 assets, net                                -              -             65 
Goodwill                                  278            283            320 
Other assets                              323            286            344 
                                -------------  -------------  ------------- 
Total Assets                    $       3,109  $       3,216  $       3,767 
                                =============  =============  ============= 
                                                                            
Liabilities and Stockholders'                                               
 Equity (Deficit)                                                           
Current liabilities:                                                        
  Short-term debt               $         230  $         230  $         177 
  Accounts payable                        279            388            415 
  Payable to GLOBALFOUNDRIES              245            226            218 
  Accrued liabilities                     472            395            518 
  Other current liabilities               124            137             40 
  Deferred income on shipments                                              
   to distributors                         53             60             72 
                                                                            
                                -------------  -------------  ------------- 
    Total current liabilities           1,403          1,436          1,440 
Long-term debt                          2,032          2,030          2,035 
Other long-term liabilities                86             86            105 
                                                                            
Stockholders' equity (deficit):                                             
  Capital stock:                                                            
    Common stock, par value                 8              8              8 
    Additional paid-in capital          7,017          6,997          6,949 
    Treasury stock, at cost              (123)          (122)          (119)
  Accumulated deficit                  (7,306)        (7,204)        (6,646)
  Accumulated other                                                         
   comprehensive loss                      (8)           (15)            (5)
                                                                            
                                -------------  -------------  ------------- 
    Total Stockholders' equity                                              
     (deficit)                           (412)          (336)           187 
                                -------------  -------------  ------------- 
Total Liabilities and                                                       
 Stockholders' Equity (Deficit) $       3,109  $       3,216  $       3,767 
                                =============  =============  ============= 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              
(Millions)                                                                  
                                                                            
                                                Three Months                
                                                   Ended        Year Ended  
                                               -------------  ------------- 
                                               December 26,   December 26,  
                                                    2015           2015     
                                               -------------  ------------- 
                                                                            
Cash flows from operating activities:                                       
  Net Loss                                     $        (102) $        (660)
  Adjustments to reconcile net loss to net                                  
   cash used in operating activities:                                       
    Depreciation and amortization                         34            167 
    Stock-based compensation expense                      16             63 
    Non-cash interest expense                              3             11 
    Restructuring and other special charges,                                
     net                                                   -             83 
    Other                                                (10)            (3)
  Changes in operating assets and liabilities:                              
    Accounts receivable                                  116            280 
    Inventories                                           82            (11)
    Prepayment and other - GLOBALFOUNDRIES               (13)            84 
    Prepaid expenses and other assets                     (9)          (122)
    Accounts payable, accrued liabilities and                               
     other                                               (82)          (156)
    Payable to GLOBALFOUNDRIES                            18             27 
                                               -------------  ------------- 
Net cash provided by (used in) operating                                    
 activities                                    $          53  $        (237)
                                               -------------  ------------- 
                                                                            
Cash flows from investing activities:                                       
  Purchases of available-for-sale securities               -           (227)
  Purchases of property, plant and equipment             (32)           (96)
  Proceeds from maturities of available-for-                                
   sale securities                                         -            462 
  Proceeds from sale of property, plant and                                 
   equipment                                               -              8 
                                               -------------  ------------- 
Net cash provided by (used in) investing                                    
 activities                                    $         (32) $         147 
                                               -------------  ------------- 
                                                                            
Cash flows from financing activities:                                       
  Net proceeds from grants                                 6             14 
  Proceeds from issuance of common stock                   3              4 
  Proceeds from borrowings, net                            -            100 
  Repayments of long-term debt and capital                                  
   lease obligations                                       -            (44)
  Other                                                    -             (4)
                                               -------------  ------------- 
Net cash provided by financing activities      $           9  $          70 
                                               -------------  ------------- 
Net increase (decrease) in cash and cash                                    
 equivalents                                              30            (20)
                                               -------------  ------------- 
Cash and cash equivalents at beginning of                                   
 period                                        $         755  $         805 
                                               -------------  ------------- 
Cash and cash equivalents at end of period     $         785  $         785 
                                               -------------  ------------- 
                                                                            
                                                                            
                                                                            
ADVANCED MICRO DEVICES, INC.                                                
SELECTED CORPORATE DATA                                                     
(Millions except headcount)                                                 
                                                                            
                       Three Months Ended                   Year Ended      
--------------------------------------------------- ------------------------
  Segment and   December    September    December     December    December  
    Category      26,         26,          27,          26,         27,     
  Information     2015        2015         2014         2015        2014    
--------------------------------------------------- ------------------------
                                                                            
 Computing and                                                              
  Graphics (1)                                                              
  Net revenue  $     470   $      424   $     662    $   1,805   $   3,132  
  Operating                                                                 
   loss        $     (99)  $     (181)  $     (56)   $    (502)  $     (76) 
                                                                            
 Enterprise,                                                                
  Embedded and                                                              
  Semi-Custom                                                               
  (2)                                                                       
  Net revenue  $     488   $      637   $     577    $   2,186   $   2,374  
  Operating                                                                 
   income      $      59   $       84   $     109    $     215   $     399  
                                                                            
 All Other (3)                                                              
  Net revenue          -            -           -            -           -  
  Operating                                                                 
   loss        $      (9)  $      (61)  $    (383)   $    (194)  $    (478) 
                                                                            
 Total                                                                      
  Net revenue  $     958   $    1,061   $   1,239    $   3,991   $   5,506  
  Operating                                                                 
   loss        $     (49)  $     (158)  $    (330)   $    (481)  $    (155) 
                                                                            
--------------------------------------------------- ------------------------
                                                                            
Other Data                                                                  
                                                                            
 Depreciation                                                               
  and                                                                       
  amortization,                                                             
  excluding                                                                 
  amortization                                                              
  of acquired                                                               
  intangible                                                                
  assets       $      34   $       42   $      44    $     164   $     189  
 Capital                                                                    
  additions    $      32   $       25   $      22    $      96   $      95  
 Adjusted                                                                   
  EBITDA (4)   $      (5)  $      (55)  $      96    $     (89)  $     505  
 Cash, cash                                                                 
  equivalents                                                               
  and                                                                       
  marketable                                                                
  securities   $     785   $      755   $   1,040    $     785   $   1,040  
 Non-GAAP free                                                              
  cash flow                                                                 
  (5)          $      21   $      (84)  $      94    $    (333)  $    (193) 
 Total assets  $   3,109   $    3,216   $   3,767    $   3,109   $   3,767  
 Total debt    $   2,262   $    2,260   $   2,212    $   2,262   $   2,212  
 Headcount         9,139        9,475       9,687        9,139       9,687  
--------------------------------------------------- ------------------------
                                                                            
                                                                            
                                                                            
(1)  Computing and Graphics segment primarily includes desktop and notebook 
     processors, chipsets, discrete graphics processing units (GPUs) and    
     professional graphics.                                                 
(2)  Enterprise, Embedded and Semi-Custom segment primarily includes server 
     and embedded processors, 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    
     stock-based compensation expense. In addition, the Company also        
     included the following adjustments for the indicated periods: for the  
     fourth and third quarters of 2015 and for 2015, the Company included   
     restructuring and other special charges, net; for the fourth quarter   
     of 2014, the Company included a goodwill impairment, net restructuring 
     and other special charges and a lower of cost or market inventory      
     adjustment; and for 2014, the Company included a goodwill impairment,  
     net restructuring and other special charges, a lower of cost or market 
     inventory adjustment and workforce rebalancing severance charges;      
                                                                            
(4)  Reconciliation of GAAP Operating Loss to Adjusted EBITDA*              
                                                                            
                            Three Months Ended              Year Ended      
                     --------------------------------  -------------------- 
                      December   September   December   December   December 
                        26,        26,         27,        26,        27,    
                        2015       2015        2014       2015       2014   
                     ---------  ----------  ---------  ---------  --------- 
     GAAP operating                                                         
      loss           $     (49) $     (158) $    (330) $    (481) $    (155)
     Goodwill                                                               
      impairment             -           -        233          -        233 
     Restructuring                                                          
      and other                                                             
      special                                                               
      charges, net          (6)         48         71        129         71 
     Workforce                                                              
      rebalancing                                                           
      severance                                                             
      charges                -           -          -          -         14 
     Lower of cost                                                          
      or market                                                             
      inventory                                                             
      adjustment             -           -         58          -         58 
     Technology node                                                        
      transition                                                            
      charge                 -           -          -         33          - 
     Stock-based                                                            
      compensation                                                          
      expense               16          13         16         63         81 
     Amortization of                                                        
      acquired                                                              
      intangible                                                            
      assets                 -           -          4          3         14 
     Depreciation                                                           
      and                                                                   
      amortization          34          42         44        164        189 
                     ---------  ----------  ---------  ---------  --------- 
     Adjusted EBITDA $      (5) $      (55) $      96  $     (89) $     505 
                     =========  ==========  =========  =========  ========= 
                                                                            
(5)  Non-GAAP free                                                          
      cash flow                                                             
      reconciliation**                                                      
                            Three Months Ended              Year Ended      
                     --------------------------------  -------------------- 
                      December   September   December   December   December 
                        26,        26,         27,        26,        27,    
                        2015       2015        2014       2015       2014   
                     ---------  ----------  ---------  ---------  --------- 
     GAAP net cash                                                          
      provided by                                                           
      (used in)                                                             
      operating                                                             
      activities     $      53  $      (59) $     116  $    (237) $     (98)
     Purchases of                                                           
      property,                                                             
      plant and                                                             
      equipment            (32)        (25)       (22)       (96)       (95)
                     ---------  ----------  ---------  ---------  --------- 
     Non-GAAP free                                                          
      cash flow      $      21  $      (84) $      94  $    (333) $    (193)
                     =========  ==========  =========  =========  ========= 
                                                                            
                                                                            
*    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,   
     stock-based compensation expense and restructuring and other special   
     charges, net. In addition, the Company also excluded the following     
     adjustments for the indicated periods: for 2015, the Company excluded  
     a technology node transition charge and amortization of acquired       
     intangible assets; for the fourth quarter of 2014 and for 2014, the    
     Company excluded an adjustment for a goodwill impairment charge,       
     restructuring and other special charges and lower of cost or market    
     inventory adjustment and amortization of acquired intangible assets.   
     In addition, for 2014, the Company also excluded workforce rebalancing 
     severance charges. The Company calculates and communicates Adjusted    
     EBITDA 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 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 financial 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 earnings press release 
     of these non-GAAP financial measures to the most directly comparable   
     GAAP financial measures.                                               
                                                                            

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