2 In this press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures for net loss, operating income (loss) and gross margin. These non-GAAP financial measures exclude certain adjustments as reflected in the tables in this press release. Management believes this non-GAAP presentation makes it easier for investors to compare current and historical period operating results.
3 Refer to corresponding table at the end of this press release for annual data.
|
ADVANCED MICRO DEVICES, INC. |
||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Millions except per share amounts and percentages) | ||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||
| Dec. 27, | Sept. 27, | Dec. 29, | Dec. 27, | Dec. 29, | ||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007* | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) |
|
(Unaudited) | ||||||||||||
| Net revenue | $ | 1,162 | $ | 1,797 | $ | 1,737 | $ | 5,808 | $ | 5,858 | ||||||
| Cost of sales | 890 | 881 | 968 | 3,488 | 3,669 | |||||||||||
| Gross margin | 272 | 916 | 769 | 2,320 | 2,189 | |||||||||||
| Gross margin % | 23 | % | 51 | % | 44 | % | 40 | % | 37 | % | ||||||
| Research and development | 465 | 438 | 455 | 1,848 | 1,771 | |||||||||||
| Marketing, general and administrative | 317 | 315 | 319 | 1,304 | 1,360 | |||||||||||
| Amortization of acquired intangible assets and integration charges | 30 | 30 | 50 | 137 | 236 | |||||||||||
| Impairment of goodwill and acquired intangible assets | 684 | 2 | 1,132 | 1,089 | 1,132 | |||||||||||
| Restructuring charges | 50 | 9 | - | 90 | - | |||||||||||
| Gain on sale of 200 millimeter equipment | - | - | - | (193 | ) | - | ||||||||||
| Operating income (loss) | (1,274 | ) | 122 | (1,187 | ) | (1,955 | ) | (2,310 | ) | |||||||
| Interest income | 7 | 7 | 19 | 39 | 73 | |||||||||||
| Interest expense | (89 | ) | (87 | ) | (95 | ) | (366 | ) | (367 | ) | ||||||
| Other income (expense), net | 37 | (4 | ) | 1 | 22 | (7 | ) | |||||||||
| Income (loss) from continuing operations before minority interest, equity in net loss of Spansion Inc. and other and income taxes | ||||||||||||||||
| (1,319 | ) | 38 | (1,262 | ) | (2,260 | ) | (2,611 | ) | ||||||||
| Minority interest in consolidated subsidiaries | (6 | ) | (7 | ) | (9 | ) | (33 | ) | (35 | ) | ||||||
| Equity in net loss of Spansion Inc. and other | (20 | ) | (9 | ) | (69 | ) | (53 | ) | (155 | ) | ||||||
| Income (loss) from continuing operations before income taxes | (1,345 | ) | 22 | (1,340 | ) | (2,346 | ) | (2,801 | ) | |||||||
| Provision (benefit) for income taxes | 69 | (1 | ) | (42 | ) | 68 | 27 | |||||||||
| Income (loss) from continuing operations | $ | (1,414 | ) | $ | 23 | $ | (1,298 | ) | $ | (2,414 | ) | $ | (2,828 | ) | ||
| Income (loss) from discontinued operations, net of tax | (10 | ) | (150 | ) | (474 | ) | (684 | ) | (551 | ) | ||||||
| Net income (loss) | $ | (1,424 | ) | $ | (127 | ) | $ | (1,772 | ) | $ | (3,098 | ) | $ | (3,379 | ) | |
| Net income (loss) per common share | ||||||||||||||||
| Basic and diluted | ||||||||||||||||
| Continuing operations | $ | (2.32 | ) | $ | 0.04 | $ | (2.24 | ) | $ | (3.98 | ) | $ | (5.07 | ) | ||
| Discontinued operations | $ | (0.02 | ) | $ | (0.25 | ) | $ | (0.82 | ) | $ | (1.12 | ) | $ | (0.99 | ) | |
| Basic and diluted net income (loss) per common share | $ | (2.34 | ) | $ | (0.21 | ) | $ | (3.06 | ) | $ | (5.10 | ) | $ | (6.06 | ) | |
| Shares used in per share calculation | ||||||||||||||||
| Basic and diluted | 609 | 608 | 579 | 607 | 558 | |||||||||||
|
* Amounts for the year ended December 29, 2007 were derived from the December 29, 2007 audited financial statements, adjusted for discontinued operations. |
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| ADVANCED MICRO DEVICES, INC. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Millions) | |||||||||||
| Dec. 27, | Dec. 29, | ||||||||||
| 2008 | 2007* | ||||||||||
| (Unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash, cash equivalents and marketable securities | $ | 1,096 | $ | 1,889 | |||||||
| Accounts receivable, net | 320 | 640 | |||||||||
| Inventories | 656 | 810 | |||||||||
| Prepaid expenses and other current assets | 279 | 401 | |||||||||
| Deferred income taxes | 28 | 64 | |||||||||
| Assets of discontinued operations | - | 759 | |||||||||
| Total current assets | 2,379 |
|
4,563 | ||||||||
| Property, plant and equipment, net | 4,296 | 4,716 | |||||||||
| Goodwill | 323 | 1,286 | |||||||||
| Acquisition related intangible assets, net | 168 | 465 | |||||||||
| Other assets | 509 | 520 | |||||||||
| Total Assets | $ | 7,675 |
|
$ | 11,550 | ||||||
| Liabilities and Stockholders' Equity (Deficit) | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 631 | $ | 1,009 | |||||||
| Accrued compensation and benefits | 162 | 186 | |||||||||
| Accrued liabilities | 785 | 821 | |||||||||
| Deferred income on shipments to distributors | 50 | 101 | |||||||||
| Current portion of long-term debt and capital lease obligations | 286 | 238 | |||||||||
| Other short-term obligations | 86 | - | |||||||||
| Other current liabilities | 226 | 270 | |||||||||
| Total current liabilities | 2,226 |
|
2,625 | ||||||||
| Deferred income taxes | 91 | 6 | |||||||||
| Long-term debt and capital lease obligations, less current portion | 4,702 | 5,031 | |||||||||
| Other long-term liabilities | 569 | 633 | |||||||||
| Minority interest in consolidated subsidiaries | 169 | 265 | |||||||||
| Stockholders' equity (deficit): | |||||||||||
| Capital stock: | |||||||||||
| Common stock, par value | 6 | 6 | |||||||||
| Capital in excess of par value | 6,002 | 5,921 | |||||||||
| Retained earnings (deficit) | (6,198 | ) | (3,100 | ) | |||||||
| Accumulated other comprehensive income | 108 | 163 | |||||||||
| Total stockholders' equity (deficit) | (82 | ) |
|
2,990 | |||||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 7,675 |
|
$ | 11,550 | ||||||
|
* Amounts for the year ended December 29, 2007 were derived from the December 29, 2007 audited financial statements, adjusted for discontinued operations. |
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| ADVANCED MICRO DEVICES, INC. | ||||||||||||||||||||||||||||
| SELECTED CORPORATE DATA (1) | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| (Millions except headcount and percentages) | ||||||||||||||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||||||||||||||
| Dec. 27, | Sept. 27, | Dec. 29, | Dec. 27, | Dec. 29, | ||||||||||||||||||||||||
|
Segment Information from Continuing Operations |
2008 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||
| Computing Solutions (2) | ||||||||||||||||||||||||||||
| Net revenue | $ | 873 | $ | 1,391 | $ | 1,402 | $ | 4,559 | $ | 4,702 | ||||||||||||||||||
| Operating income (loss) | $ | (431 | ) | $ | 143 | $ | 10 | $ | (461 | ) | $ | (712 | ) | |||||||||||||||
| Graphics (3) | ||||||||||||||||||||||||||||
| Net revenue | 270 | 385 | 295 | 1,165 | 992 | |||||||||||||||||||||||
| Operating income (loss) | (10 | ) | 47 | 15 | 12 | (39 | ) | |||||||||||||||||||||
| All Other (4) | ||||||||||||||||||||||||||||
| Net revenue | 19 | 21 | 40 | 84 | 164 | |||||||||||||||||||||||
| Operating income (loss) | (833 | ) | (68 | ) | (1,212 | ) | (1,506 | ) | (1,559 | ) | ||||||||||||||||||
| Total from Continuing Operations | ||||||||||||||||||||||||||||
| Net revenue | $ | 1,162 | $ | 1,797 | $ | 1,737 | $ | 5,808 | $ | 5,858 | ||||||||||||||||||
| Operating income (loss) | $ | (1,274 | ) | $ | 122 | $ | (1,187 | ) | $ | (1,955 | ) | $ | (2,310 | ) | ||||||||||||||
|
Revenue Reconciliation |
||||||||||||||||||||||||||||
| Revenue from continuing operations | $ | 1,162 | $ | 1,797 | $ | 1,737 | $ | 5,808 | $ | 5,858 | ||||||||||||||||||
| Revenue from discontinued operations | 8 | 23 | 33 | 73 | 155 | |||||||||||||||||||||||
| Total revenue | $ | 1,170 | $ | 1,820 | $ | 1,770 | $ | 5,881 | $ | 6,013 | ||||||||||||||||||
|
Components of Discontinued Operations |
||||||||||||||||||||||||||||
| Operating income (loss) | $ | (10 | ) | $ | (15 | ) | $ | 2 | $ | (74 | ) | $ | (75 | ) | ||||||||||||||
| Impairment of goodwill and acquired intangible assets | - | (135 | ) | (476 | ) | (609 | ) | (476 | ) | |||||||||||||||||||
| Restructuring charges | - | - | - | (1 | ) | - | ||||||||||||||||||||||
| Total loss from discontinued operations | $ | (10 | ) | $ | (150 | ) | $ | (474 | ) | $ | (684 | ) | $ | (551 | ) | |||||||||||||
|
Other Data |
||||||||||||||||||||||||||||
| Depreciation & amortization | ||||||||||||||||||||||||||||
| (excluding amortization of acquired intangible assets) | $ | 271 | $ | 266 | $ | 272 | $ | 1,068 | $ | 1,030 | ||||||||||||||||||
| Capital additions | $ | 112 | $ | 83 | $ | 264 | $ | 621 | $ | 1,683 | ||||||||||||||||||
| Adjusted EBITDA (5) | $ | (271 | ) | $ | 406 | $ | 206 | $ | 313 | $ | (64 | ) | ||||||||||||||||
|
Headcount |
14,652 | 15,460 | 16,420 | 14,652 | 16,420 | |||||||||||||||||||||||
| (1) | Comparative amounts adjusted for discontinued operations except for headcount data. | |||||||||||||||||||||||||||
| (2) | Computing Solutions segment includes microprocessors, chipsets and embedded processors. For the year ended December 27, 2008 , the operating loss includes a $193M gain on the sale of 200 mm equipment. For the quarter ended Sept. 27, 2008 and year ended December 27, 2008, net revenue includes $191M in technology license revenue. | |||||||||||||||||||||||||||
| (3) | Graphics segment includes graphics, video and multimedia products developed for use in desktop and notebook computers, including home media PCs, professional workstations and servers. Starting in the quarter ended June 28, 2008 this segment also includes royalties received in connection with the sale of game console systems that incorporate the Company’s graphics technology. Prior periods have been recast to conform to current period presentation. | |||||||||||||||||||||||||||
| (4) | All Other category includes employee stock-based compensation expense and certain operating expenses and credits that are not allocated to the operating segments. Also included in this category are charges for the impairment of goodwill and acquired intangible assets, amortization of acquired intangible assets and integration, restructuring, severance; The Foundry Company formation costs; and the cost of fair value adjustment of acquired inventory. Details of these significant items are shown below. Starting in the quarter ended December 27, 2008, the All Other category includes the results of our Handheld business. Prior periods have been recast to conform to current period presentation. | |||||||||||||||||||||||||||
| Significant items in All Other | Employee stock-based compensation expense: | |||||||||||||||||||||||||||||||||||
|
|
Quarter Ended | Year Ended | Quarter Ended | Year Ended | ||||||||||||||||||||||||||||||||
| Q408 | Q308 | Q407 | FY08 | FY07 | Q408 | Q308 | Q407 | FY08 | FY07 | |||||||||||||||||||||||||||
| Impairment of goodwill and acquired intangible assets | $ | 684 | $ | 2 | $ | 1,132 | $ | 1,089 | $ | 1,132 | Cost of sales | $ | 2 | $ | 2 | $ | 5 | $ | 10 | $ | 11 | |||||||||||||||
|
Amortization of acquired intangible assets and integration charges |
30 | 30 | 50 | 137 | 236 | Research and development | 10 | 10 | 11 | 44 | 50 | |||||||||||||||||||||||||
| Restructuring charges | 50 | 9 | - | 90 | - | Marketing, general and administrative | 8 | 7 | 10 | 23 | 48 | |||||||||||||||||||||||||
| The Foundry Company formation costs | 23 | - | - | 23 | - | $ | 20 | $ | 19 | $ | 26 | $ | 77 | $ | 109 | |||||||||||||||||||||
| Cost of fair value adjustment of acquired inventory | - | - | - | - | 25 | |||||||||||||||||||||||||||||||
| Severance charges | - | - | - | - | 18 | |||||||||||||||||||||||||||||||
| $ | 787 | $ | 41 | $ | 1,182 | $ | 1,339 | $ | 1,411 | |||||||||||||||||||||||||||
| (5) | Reconciliation of income (loss) from continuing operations to Adjusted EBITDA* | |||||||||||||||||||||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||||||||||||||||||||||
| Q408 | Q308 | Q407 | FY08 | FY07 | ||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (1,414 | ) | $ | 23 | $ | (1,298 | ) | $ | (2,414 | ) | $ | (2,828 | ) | ||||||||||||||||||||||
| Impairment of goodwill and acquired intangible assets | 684 | 2 | 1,132 | 1,089 | 1,132 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 271 | 266 | 272 | 1,068 | 1,030 | |||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 30 | 29 | 47 | 136 | 208 | |||||||||||||||||||||||||||||||
| Interest expense | 89 | 87 | 95 | 366 | 367 | |||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 69 | (1 | ) | (42 | ) | 68 | 27 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (271 | ) | $ | 406 | $ | 206 | $ | 313 | $ | (64 | ) | ||||||||||||||||||||||||
| * | The Company defines Adjusted EBITDA as income (loss) from continuing operations adjusted for impairment of goodwill and acquired intangible assets, depreciation and amortization, amortization of acquired intangible assets, interest expense and taxes. The Company calculates and communicates Adjusted EBITDA because management believes it is of interest to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. 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 U.S. GAAP operating measure of net income (loss) or U.S. 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. | |||||||||||||||||||||||||||||||||||
