<sorry that was already posted>
05:21pm EDT 19-Jul-00 Corporate Release (Toni Beckham,408/749-3127) AMD
AMD REPORTS SECOND QUARTER RESULTS (PART 1 OF 3)
SUNNYVALE, Calif.--July 19, 2000--
AMD earns a record $207 million, or $1.21 per diluted share after
taxes, on record quarterly sales up by 97 percent from second
quarter of 1999
AMD today reported record sales of $1,170,437,000, record
operating income of $250,197,000, and record net income of
$207,142,000 for the quarter ended July 2, 2000. Operating income rose
by 38 percent from the immediate-prior quarter. Net income amounted to
$1.21 per diluted share after a 20 percent tax rate. (On an untaxed
basis, second-quarter earnings per diluted share would have been
$1.51, up by 31 percent from the first quarter when the tax rate was
zero.)
Sales grew by 7 percent from the immediate-prior quarter, for
which AMD reported sales of $1,092,029,000, operating income of
$180,669,000, and net income of $189,349,000, or $1.15 per diluted
share.
Sales nearly doubled from the second quarter of 1999, for which
AMD reported sales of $595,109,000 and net income of $79,896,000, or
$0.53 per diluted share. Revenues from PC processors and flash memory
products each more than doubled from the comparable quarter of 1999.
The results for the second quarter of 1999 included a one-time,
after-tax gain of $259 million from the sale of Vantis Corporation,
the company's former programmable logic subsidiary. The results from
the second quarter of 1999 also included 11 weeks of operating results
from Vantis prior to the effective date of the sale. In the second
quarter of 1999, AMD incurred an operating loss of $172,542,000.
For the first six months of 2000, AMD reported total sales of
$2,262,466,000 and net income of $396,491,000, or $2.36 per diluted
share. For the same period of 1999, AMD reported total sales of
$1,226,702,000 and a net loss of $48,471,000, or a loss of $0.33 per
share, including the gain on the sale of Vantis and restructuring and
other special charges.
"AMD had another great quarter," said Hector de J. Ruiz, president
and chief operating officer of AMD. "Strong revenue growth in both of
our principal product lines - PC processors and flash memory devices -
again resulted in record sales and earnings."
In what is traditionally the weakest quarter for PC processors,
the company reported that combined unit shipments of AMD Athlon, AMD
Duron, and AMD K6-2(TM) processors remained near record levels at well
in excess of 6 million units.
"During the quarter, AMD introduced two enhanced
seventh-generation PC processors," said Ruiz. "The new AMD Athlon(TM)
processor, formerly code-named `Thunderbird,' features 256K of on-die
L2 cache memory and is targeted at the performance sector of the PC
market. AMD also commenced shipments of the AMD Duron(TM) processor,
formerly code-named `Spitfire,' featuring 64K of on-board L2 cache
memory. The AMD Duron processor is targeted at the value segment of
the PC market.
"Demand for AMD processors remains strong. Combined unit sales of
AMD seventh-generation processors - the AMD Athlon and AMD Duron
processors - increased by 52 percent over the immediate-prior quarter
to more than 1.8 million units, meeting our previously stated goal. We
are especially pleased at the strong support we have received from our
infrastructure partners during the transition to the newest version of
the AMD Athlon processor family. With the additional production
capacity of our new Dresden facility, we believe we are on target to
double unit shipments of AMD seventh-generation processors in each of
the next two quarters to 3.6 million units in the third quarter and to
7.2 million units in the fourth quarter," said Ruiz.
Ruiz noted that AMD successfully met a number of important
challenges in the just-completed quarter. "We achieved our goal of
increasing AMD seventh-generation processor unit shipments by 52
percent sequentially while making a successful transition to our
newest AMD Athlon and AMD Duron products. During the quarter, we
converted all AMD Athlon processor production to the new version,
featuring on-chip L2 cache memory. Fab 30 in Dresden transitioned to
production status, completing an excellent start-up phase employing
our most advanced process technology - 0.18-micron technology using
copper interconnects. We are rapidly ramping production in Fab 30, and
to date we have met or exceeded every milestone along the way," said
Ruiz.
"Our progress in flash memory was equally successful. Memory Group
sales grew by more than 10 percent over the immediate-prior quarter,"
Ruiz continued.
"During the quarter, AMD introduced two advanced flash memory
products for high-end cellular telephones. Working closely with Nokia,
AMD developed 32- and 64-megabit devices with simultaneous read-write
architecture and 1.8-volt operation for extended battery life. These
features are critical in adding new capabilities to cellular
telephones, such as Internet connectivity, video streaming, and the
functionality of handheld information appliances.
"Demand for AMD flash memory products continues to exceed our
production capacity," said Ruiz. "We are adding capacity as rapidly as
possible to support our customers. During the quarter Fujitsu AMD
Semiconductor Limited (FASL) made initial shipments from a production
facility in Iwate, Japan, and qualified production in additional
facilities in Aizu-Wakamatsu and Gresham, Oregon. As announced earlier
today, FASL broke ground for construction of a third megafab for flash
memory production at Aizu-Wakamatsu, Japan. Initial production at this
new facility, designated JV3, is planned to commence in the second
half of 2001.
"Today we are reaping the rewards of AMD's sustained commitment to
investing in process technology, product development, and production
capacity for both PC processors and flash memory products. AMD has the
strongest product portfolio in its 31-year history, with
industry-leading products for our target markets. We have excellent
relationships with leading customers around the world, and we continue
to operate in a favorable market environment. During my first six
months at AMD, I have been very favorably impressed with the
dedication of the AMD workforce and the total commitment to success
that permeates the company," Ruiz concluded.
Current Outlook
The company's outlook statements are based on current
expectations. The following statements are forward-looking, and actual
results could differ materially.
Despite the loss of revenues as a result of the sale of the
Communication Products Division, AMD projects that sales will be
higher in the third quarter than in the immediate-prior quarter. The
company's current overall outlook is based on the following
projections for its major product lines:
The company projects that combined unit shipments of AMD Athlon
and Duron family processors will increase to 3.6 million units in the
third quarter and to 7.2 million units in the fourth quarter,
resulting in a richer mix and a higher blended average selling price
and higher revenues for PC processors.
AMD projects that Memory Group sales will grow in the 10 percent
range in the third quarter and will achieve a similar growth rate in
the fourth quarter. The company projects that demand for flash memory
products will continue to exceed supply.
AMD Teleconference
AMD will hold a teleconference for the financial community at 2:30
PM Pacific Daylight Time today to discuss second-quarter financial
results. AMD will provide a real-time audio broadcast of the
teleconference on the Investor Relations page of its web sit at
amd.com or streetfusion.com. The webcast will be
available for two weeks after the teleconference.
AMD will also provide a telephone recording of the teleconference,
which will be available at approximately 4:30 PM PT today. Interested
persons may listen to the playback of the teleconference by calling
the following toll-free number: 1-800-633-8284 and entering the code
number 15676264.
Cautionary Statement
This release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements in this release involve risks and
uncertainty that could cause actual results to differ materially from
current expectations. There can be no assurance that demand for the
company's products will continue at current or greater levels, or that
the company will continue to grow revenues, operating profits, or
earnings.
There are also risks that the company will not be able to produce
the AMD Athlon and AMD Duron processors in the volume, speed mix or
with the feature set necessary to meet customer requirements and the
company's plans and goals; that Intel Corporation pricing, marketing
programs, new product introductions or other activities targeting the
company's processors business will prevent attainment of the company's
current processor sales plans; that third parties may not provide
timely or adequate infrastructure solutions to support the AMD Athlon
and AMD Duron processors; and that the company will not be able to
grow demand for its PC processors sufficiently to utilize fully its
processor production capacity. We urge investors to review in detail
the risks and uncertainties in the company's Securities and Exchange
Commission filings, including but not limited to the report on Form
10-K for the year ended December 26, 1999.
About AMD
AMD is a global supplier of integrated circuits for the personal
and networked computer and communications markets with manufacturing
facilities in the United States, Europe, Japan, and Asia. AMD produces
microprocessors, flash memory devices, and support circuitry for
communications and networking applications. Founded in 1969 and based
in Sunnyvale, California, AMD had revenues of $2.9 billion in 1999.
(NYSE: AMD).
WORLD WIDE WEB: Press announcements and other information about
AMD are available on the Internet via the World Wide Web. Type
amd.com at the URL prompt.
NOTE TO EDITOR: Readers may obtain additional information by
calling 1-800-222-9323 or 408-749-3060. Technical Support Email:
hw.support@amd.com
05:25pm EDT 19-Jul-00 Corporate Release (Toni Beckham,408/749-3127) AMD
AMD REPORST SECOND QUARTER RESULTS (PART 2 OF 3)
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
Jul. 2, Apr. 2, Jun. 27,
2000 2000 1999
Net sales $1,170,437 $1,092,029 $595,109
Cost of sales 612,567 605,757 458,339
Research and development 155,651 161,297 167,278
Marketing, general and
administrative 152,022 144,306 124,520
Restructuring and other
special charges -- -- 17,514
920,240 911,360 767,651
Operating income (loss) 250,197 180,669 (172,542)
Gain on sale of Vantis -- -- 432,059
Interest income and
other, net 19,935 21,128 7,252
Interest expense (11,244) (11,479) (18,087)
Income before income
taxes and equity in
joint venture 258,888 190,318 248,682
Provision for income
taxes 51,778 -- 172,823
Income (loss) before
equity in joint venture 207,110 190,318 75,859
Equity in net income
(loss) of joint venture 32 (969) 4,037
Net income (loss) $207,142 $189,349 $79,896
Net income (loss) per
common share
- Basic $1.34 $1.25 $0.54
- Diluted $1.21 $1.15 $0.53
Shares used in per share
calculation
- Basic 154,558 150,880 146,947
- Diluted 176,218 171,942 149,540
Six Months Ended
(Unaudited)
Jul. 2, Jun. 27,
2000 1999
Net sales $2,262,466 $1,226,702
Cost of sales 1,218,324 908,770
Research and development 316,948 327,224
Marketing, general and
administrative 296,328 251,830
Restructuring and other
special charges -- 32,530
1,831,600 1,520,354
Operating income (loss) 430,866 (293,652)
Gain on sale of Vantis -- 432,059
Interest income and
other, net 41,063 18,020
Interest expense (22,723) (38,850)
Income before income
taxes and equity in
joint venture 449,206 117,577
Provision for income
taxes 51,778 167,350
Income (loss) before
equity in joint venture 397,428 (49,773)
Equity in net income
(loss) of joint venture (937) 1,302
Net income (loss) $396,491 $(48,471)
Net income (loss) per
common share
- Basic $2.60 $(0.33)
- Diluted $2.36 $(0.33)
Shares used in per share
calculation
- Basic 152,719 146,428
- Diluted 174,080 146,428
Advanced Micro Devices, Inc. INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(a)
(Includes Pre-Tax FASL Investment Equity (Income) loss in Operating
Income (Loss))
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
Jul. 2, Apr. 2, Jun. 27,
2000 2000 1999
Net sales $1,170,437 $1,092,029 $595,109
Cost of sales 612,567 605,757 458,339
(Income)loss
from equity
investment in
FASL (54) 1,659 (6,869)
Research and
development 155,651 161,297 167,278
Marketing,
general and
administrative 152,022 144,306 124,520
Restructuring
and other
special charges -- -- 17,514
920,186 913,019 760,782
Operating income
(loss) 250,251 179,010 (165,673)
Gain on sale of
Vantis -- -- 432,059
Interest income
and other, net 19,935 21,128 7,252
Interest expense (11,244) (11,479) (18,087)
Income before
income taxes 258,942 188,659 255,551
Provision for
income taxes 51,778 -- 172,823
Provision
(benefit) for
taxes on equity
(income) loss
in FASL 22 (690) 2,832
Net income (loss) $207,142 $189,349 $79,896
Net income (loss)
per common share
- Basic $1.34 $1.25 $0.54
- Diluted $1.21 $1.15 $0.53
Shares used in
per share
calculation
- Basic 154,558 150,880 146,947
- Diluted 176,218 171,942 149,540
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
05:27pm EDT 19-Jul-00 Corporate Release (Toni Beckham,408/749-3127) AMD
AMD REPORST SECOND QUARTER RESULTS (PART 3 OF 3)
Six Months Ended
(Unaudited)
Jul. 2, Jun. 27,
2000 1999
Net sales $2,262,466 $1,226,702
Cost of sales 1,218,324 908,770
(Income)loss
from equity
investment in
FASL 1,605 (2,233)
Research and
development 316,948 327,224
Marketing,
general and
administrative 296,328 251,830
Restructuring
and other
special charges -- 32,530
1,833,205 1,518,121
Operating income
(loss) 429,261 (291,419)
Gain on sale of
Vantis -- 432,059
Interest income
and other, net 41,063 18,020
Interest expense (22,723) (38,850)
Income before
income taxes 447,601 119,810
Provision for
income taxes 51,778 167,350
Provision
(benefit) for
taxes on equity
(income) loss
in FASL (668) 931
Net income (loss) $396,491 $(48,471)
Net income (loss)
per common share
- Basic $2.60 $(0.33)
- Diluted $2.36 $(0.33)
Shares used in
per share
calculation
- Basic 152,719 146,428
- Diluted 174,080 146,428
(a) The above statements of operations are not in accordance with
generally accepted accounting principles (GAAP) in that the pre-tax
equity (income) loss of FASL has been reclassified and included in the
determination of operating income (loss). Net income (loss) and
related net income (loss) per common share amounts are the same as
those reported under GAAP.
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS(b)
(Thousands)
July 2, Dec. 26,
2000 1999
Assets
Current assets:
Cash, cash equivalents and short-term
investments $ 1,079,893 $ 596,511
Accounts receivable, net 533,007 429,809
Inventories 255,579 198,213
Deferred income taxes 63,440 55,956
Prepaid expenses and other current assets 127,472 129,389
Total current assets 2,059,391 1,409,878
Property, plant and equipment, net 2,475,667 2,523,236
Investment in joint venture 267,448 273,608
Other assets 160,988 170,976
$ 4,963,494 $ 4,377,698
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 353,398 387,193
Accrued compensation and benefits 155,779 91,900
Accrued liabilities 233,256 273,689
Income tax payable 18,763 17,327
Deferred income on shipments to
distributors 99,590 92,917
Current portion of long-term debt,
capital lease obligations and other 75,951 47,626
Total current liabilities 936,737 910,652
Deferred income taxes 101,861 60,491
Long-term debt, capital lease obligations
and other, less current portion 1,481,725 1,427,282
Stockholders' equity:
Capital stock:
Common stock, par value 1,649 1,496
Capital in excess of par value 1,219,409 1,121,956
Retained earnings 1,269,726 873,235
Accumulated other comprehensive loss (47,613) (17,414)
Total stockholders' equity 2,443,171 1,979,273
$ 4,963,494 $ 4,377,698
(b) Amounts as of July 2, 2000 are unaudited. Amounts for December
26, 1999 are derived from the December 26, 1999 audited financial
statements.
AMD
Selected Corporate Data
(Unaudited)
Segment Breakdown Q2 '00 Q1 '00 Q2 '99
% Revenue % Revenue % Revenue
of of of
Sales Sales Sales
Core Products Segment:
Computation Products Group 57 $667M 59 $644M 59 $317M
Memory Group 31 362M 30 327M 28 166M
Communications Group Segment 10 117M 9 101M 12 70M
Other Segments 2 24M 2 20M 7 42M
Other Data Q2 '00 Q1 '00 Q2 '99
---------- ------ ------ ------
Depreciation
and Amortization $148M $128M $128M
Capital Additions $161M $129M 148M
Headcount 13,784 13,398 13,467
International Sales 61% 59% 58%
Research and Development $156M $161M $167M
EBITDA $398M $309M ($45M)
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
-> End of Note <- |
