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 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its Web site at www.amd.com. The webcast will be available for 10 days after the conference call.
About AMD
Advanced Micro Devices (NYSE:AMD) is an innovative technology company dedicated to collaborating with customers and partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http://www.amd.com
Cautionary Statement
This release contains forward-looking statements concerning the expected closing of The Foundry Company joint venture and the increased investment by the Mubadala Development Company, first quarter 2009 revenue, and the company’s breakeven goals, restructuring actions, asset smart strategy and its future products and technologies, 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 such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects,” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release 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. Risks include the possibility that Intel Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities targeting the company’s business will prevent attainment of the company’s current plans; global business and economic conditions will continue in their current state or worsen, resulting in lower than currently expected revenue in the first quarter of 2009 and beyond; the company’s Asset Smart strategy will not reach fruition or will be less beneficial than anticipated; the announced transaction for the formation of The Foundry Company and the associated fourth-party investment will not occur as anticipated; demand for computers and consumer electronics products and, in turn, demand for the company’s products will be lower than currently expected; customers stop buying the company’s products or materially reduce their demand for its products; the company will require additional funding and may not be able to raise funds on favorable terms or at all; the company’s restructuring efforts will not be effective; the company will be unable to develop, launch and ramp new products and technologies in the volumes and mix required by the market and at mature yields on a timely basis; there will be unexpected variations in market growth and demand for the company’s products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; the company will be unable to transition to advanced manufacturing process technologies in a timely and effective way, consistent with planned capital expenditures; the company will be unable to maintain the level of investment in research and development and capacity that is required to remain competitive; and the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will under-utilize its microprocessor manufacturing facilities. Investors are urged to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended September 27, 2008.
AMD, the AMD Arrow logo, AMD Opteron, AMD Phenom, AMD Athlon and combinations thereof, and ATI, the ATI logo, FireGL, CrossFireX and Radeon 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.
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Reconciliation of GAAP to Non-GAAP Net Loss 1, 2 |
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| (Millions except per share amounts) | Q4-08 | Q3-08 | Q4-07 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||
| GAAP net loss / EPS | $ | (1,424 | ) | $ | (2.34 | ) | $ | (127 | ) | $ | (0.21 | ) | $ | (1,772 | ) | $ | (3.06 | ) | $ | (3,098 | ) | $ | (5.10 | ) | $ | (3,379 | ) | $ | (6.06 | ) | ||||||||||
| Loss from discontinued operations | (10 | ) | (0.02 | ) | (150 | ) | (0.25 | ) | (474 | ) | (0.82 | ) | (684 | ) | (1.12 | ) | (551 | ) | (0.99 | ) | ||||||||||||||||||||
| Income (loss) from continuing operations | (1,414 | ) | (2.32 | ) | 23 | 0.04 | (1,298 | ) | (2.24 | ) | (2,414 | ) | (3.98 | ) | (2,828 | ) | (5.07 | ) | ||||||||||||||||||||||
| ATI impairment of goodwill and acquired intangible assets | (684 | ) | (1.12 | ) | (2 | ) | - | (1,132 | ) | (1.96 | ) | (1,089 | ) | (1.79 | ) | (1,132 | ) | (2.03 | ) | |||||||||||||||||||||
| Incremental write-down of inventory | (227 | ) | (0.37 | ) | - | - | - | - | (227 | ) | (0.37 | ) | - | - | ||||||||||||||||||||||||||
| Process technology license revenue | - | - | 191 | 0.31 | - | - | 191 | 0.31 | - | - | ||||||||||||||||||||||||||||||
| Gain on sale of 200 millimeter equipment | - | - | - | - | - | - | 193 | 0.32 | - | - | ||||||||||||||||||||||||||||||
| Marketable securities net impairment charges | (21 | ) | (0.03 | ) | (9 | ) | (0.01 | ) | (69 | ) | (0.12 | ) | (66 | ) | (0.11 | ) | (111 | ) | (0.20 | ) | ||||||||||||||||||||
| Amortization of acquired intangibles, integration and other charges | (30 | ) | (0.05 | ) | (30 | ) | (0.05 | ) | (50 | ) | (0.09 | ) | (137 | ) | (0.23 | ) | (254 | ) | (0.46 | ) | ||||||||||||||||||||
| Restructuring charges | (50 | ) | (0.08 | ) | (9 | ) | (0.01 | ) | - | - | (90 | ) | (0.15 | ) | - | - | ||||||||||||||||||||||||
| Tax benefit from ATI acquisition-related charges | - | - | - | - | 46 | 0.08 | - | - | 46 | 0.08 | ||||||||||||||||||||||||||||||
| The Foundry Company formation costs | (23 | ) | (0.04 | ) | (4 | ) | (0.01 | ) | (3 | ) | (0.01 | ) | (35 | ) | (0.06 | ) | (3 | ) | (0.01 | ) | ||||||||||||||||||||
| Gain on debt buyback | 39 | 0.06 | - | - | - | - | 39 | 0.06 | - | - | ||||||||||||||||||||||||||||||
| Cost of fair value adjustment of acquired inventory | - | - | - | - | - | - | - | - | (25 | ) | (0.04 | ) | ||||||||||||||||||||||||||||
| Debt issuance charges | - | - | - | - | - | - | - | - | (5 | ) | (0.01 | ) | ||||||||||||||||||||||||||||
| Non-GAAP net loss | $ | (418 | ) | $ | (114 | ) | $ | (90 | ) | $ | (1,193 | ) | $ | (1,344 | ) | |||||||||||||||||||||||||
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Reconciliation of GAAP to Non-GAAP Operating Income (Loss) 1, 2 |
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| (Millions) | Q4-08 | Q3-08 | Q4-07 | 2008 | 2007 | |||||
| GAAP operating income (loss) | $ (1,274) | $ 122 | $ (1,187) | $ (1,955) | $ (2,310) | |||||
| ATI impairment of goodwill and acquired intangible assets | (684) | (2) | (1,132) | (1,089) | (1,132) | |||||
| Incremental write-down of inventory | (227) | - | - | (227) | - | |||||
| Process technology license revenue | - | 191 | - | 191 | - | |||||
| Gain on sale of 200 millimeter equipment | - | - | - | 193 | - | |||||
| Amortization of acquired intangibles, integration and other charges | (30) | (30) | (50) | (137) | (254) | |||||
| Restructuring charges | (50) | (9) | - | (90) | - | |||||
| The Foundry Company formation costs | (23) | (4) | (3) | (35) | (3) | |||||
| Cost of fair value adjustment of acquired inventory | - | - | - | - | (25) | |||||
| Non-GAAP operating loss | $ (260) | $ (24) | $ (2) | $ (761) | $ (896) | |||||
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Reconciliation of GAAP to Non-GAAP Gross Margin 2 |
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| (Millions, except percentages) | Q4-08 | Q3-08 | Q4-07 | 2008 | 2007 | |||||
| GAAP Gross Margin | $ 272 | $ 916 | $ 769 | $ 2,320 | $ 2,189 | |||||
| GAAP Gross Margin % | 23% | 51% | 44% | 40% | 37% | |||||
| Incremental write-down of inventory | (227) | - | - | (227) | - | |||||
| Process technology license revenue | - | 191 | - | 191 | - | |||||
| Cost of fair value adjustment of acquired inventory | - | - | - | - | (25) | |||||
| Non-GAAP Gross Margin | $ 499 | $ 725 | $ 769 | $ 2,356 | $ 2,214 | |||||
| Non-GAAP Gross Margin %* | 43% | 45% | 44% | 42% | 38% | |||||
| *For Q3-08 the revenue number used in the gross margin percent calculation excludes $191 million of process technology license revenue | ||||||||||
| Segment Information | ||||||||||
| (Millions) | Q4-08 | vs Q3-08 | vs Q4-07 | 2008 | vs 2007 | |||||
| Computing Solutions (including process technology license revenue in Q3-08) | ||||||||||
| Revenue | $ 873 | -37% | -38% | $ 4,559 | -3% | |||||
| Microprocessor Units | down | down | down | |||||||
| Microprocessor Average Selling Prices (ASP) | down | down | down | |||||||
| Graphics (including game console royalties) | ||||||||||
| Revenue | $ 270 | -30% | -8% | $ 1,165 | 17% | |||||
| Graphic Processor Units | down | down | up | |||||||
| Graphic Processor Average Selling Prices (ASP) | up | up | up | |||||||
