AMD 2000 Annual Report is up on the website. amd.com
Some possibly new info:
Financial data - the SEC filings and the annual report break inventories down into their 3 components.
Raw Materials inventories as of 12/31 are up, get this, 236% year over year - they more than tripled in the last quarter, but the amount is small 34M vs. 10M at the end of Q3. AMD must have bought all the raw materials for Q1 at the end of Q4.
Work in Process inventories grew 59% year over year
Finished Goods inventories grew 70% year over year ($154M vs. $91M)
From Sander's last letter to shareholders? -
On the Palomino family:
Going forward, we plan to extend the reach and pen-etration of our PC processors. This quarter, we plan to
introduce the first power-managed version of the AMD Athlon processor with architectural enhancements that will enable AMD to penetrate the perform-ance and professional mobile market. Additionally, with the advent of the AMD-760™ MP chipset, which supports two processors, we will have for the first time a compelling solution for workstation and server applications.
Is there a hint here that desktop Palomino will only work with 760 MP? I hope not. Or it may just have sounded sexier to say that Palomino will open new markets with workstations than to say that it is needed to compete with Intel P4's in the consumer space.
On the Hammer family:
The AMD x86-64 technology will deliver unsurpassed 32-bit performance in Windows computing while enabling a seamless transition to 64-bit computing. Our eighth-generation Hammer Family will be manufactured in the next-generation 130-nanometer, HiP-7 technology, again co-developed through our Motorola alliance. All versions of the Hammer Family will employ SOI (silicon-on-insulator) technology for enhanced performance and reduced power consumption. As yet another example of our virtual gorilla strategy, we have entered into an agreement with IBM, the industry leader in SOI technology, relating to the design of SOI devices to enhance the success of the
Hammer Family.
On Flash Memory:
The current economic slowdown in the United States will present us with a more challenging environment going forward. With the underlying growth of the market, our outstanding product portfolio, excellent manufacturing capabilities, and extremely strong customer relations, we believe we will grow our Flash memory product sales significantly even in the more challenging market conditions we expect to face in 2001.
comforting to hear
Here's some new stuff about Dresden, increasing investment in it:
In February 2001, we amended the Dresden Loan Agreements to reflect new capacity and increased capital expenditure plans for Dresden Fab 30. Under the February 2001 amendments, we agreed to increase and extend our guaranty of AMD Saxony’s obligations and to make available to AMD Saxony revolving loans of up to $500 mil-lion. We expanded our obligation to reimburse AMD Saxony for the cost of producing wafers for us and we also agreed to cancel the cost overrun facility made available by the banks. Under the February 2001 amendments, we have been released from financial covenants limiting capital expenditure and requiring AMD Saxony to achieve capacity and production cost targets by the end of 2001.
I think the gist of this is that AMD wanted to expand Dresden production but needed agreement from the banks. The banks agreed to this when AMD cancelled the cost-overrun loans that the banks may have been required to provide. (AMD doesn't need this contingency anymore!)
On advertising:
Advertising expense for 2000, 1999 and 1998 was approximately $148 million, $101 million and $74 million, respectively.
AMD has an equity portfolio:
Long-term investments: Cost Unrealized_Gain Unrealized_Loss Market_Value (all amounts 1000's)
Equity investments $ 10,161 $16,695 $ — $ 26,856
Federal agency notes 2,105 — (2) 2,103
Total long-term investments $ 12,266 $16,695 $ (2) $ 28,959
On page 44, there's an interesting analysis of the cost of employee stock options. If option grants were considered an expense, it would have reduced net income in 2000 from $983,026 to $830,495.
Petz |
