05:27pm EDT 18-Apr-01 Corporate Release (Toni Beckham 408/749-3127) AMD
AMD Reports First Quarter Results/PART ONE OF THREE
SUNNYVALE, Calif.--April 18, 2001--AMD today reported sales of
$1,188,747,000 and net income of $124,837,000 for the quarter ended
April 1, 2001. Net income amounted to $0.37 per diluted share. The
company reported record sales and record unit shipments of PC
processors, led by strong sales of its seventh-generation AMD
Athlon(TM) and AMD Duron(TM) processors.
Total sales grew by 9 percent over the like period of 2000 while
increasing by 1 percent from the immediate-prior quarter. In the first
quarter of 2000, AMD reported sales of $1,092,029,000 and net income
of $189,349,000, or $0.55 per diluted share. The company noted the tax
rate for the just-completed quarter was 32 percent versus zero in the
comparable period of 2000. In the fourth quarter of 2000, AMD reported
sales of $1,175,172,000, and net income of $177,968,000, or $0.53 per
diluted share, with a 15 percent tax rate.
AMD sold more than 7.3 million PC processors, including 6.5
million seventh-generation AMD Athlon and Duron processors. Average
selling prices (ASPs) increased from the immediate-prior quarter on
the richer product mix. Total PC processor sales, at $661 million,
increased 17 percent from both the comparable quarter of 2000 and the
immediate-prior quarter.
"AMD had an excellent quarter in a challenging economic
environment," said W.J. Sanders III, chairman and chief executive
officer. "The superiority of our seventh-generation PC processors
enabled AMD to achieve record PC processor sales in both dollars and
units even as the industry worked through inventory issues in a
softening economy. Our success in the PC processor arena reflects
continuing excellent execution as well as our ability to supply
products with more delivered performance that enhance the
competitiveness of our customers.
"New product introductions during the quarter strengthened and
broadened our PC processor portfolio," Sanders continued. "We
commenced volume shipments of our newest, power-managed AMD Athlon
processors, code-named `Palomino,' for the mobile PC market segment.
Palomino processors feature an enhanced core and our proprietary
PowerNow! technology, which dynamically adjusts the frequency and
voltage of the processor based on the performance demands of the
software, enabling a significant reduction in power consumption in
mobile applications. PowerNow! technology is just one example of the
better ideas from AMD that have elevated us to contention with IBM for
the number two global ranking in U.S. patent issuances relating to
large-scale integration processes and devices in 2000.
"AMD also introduced 1.3-gigahertz (GHz) and 1.33-GHz desktop
versions of the AMD Athlon processor in the first quarter. Earlier
this month, AMD introduced a 900-megahertz version of the AMD Duron
processor, the industry's highest-performance processor for the value
segment of the desktop market.
"With these additions to our PC processor offerings, we have a
compelling solution for the performance mobile PC market where we have
heretofore lacked a competitive offering while extending our
performance leadership for desktop PC applications," Sanders
continued.
"Sales of flash memory products, reflecting a sharp decline in
demand from the communications sector of the economy, declined by
approximately 10 percent sequentially to $411 million," Sanders
continued. "Our broad product offering, excellent relationships with
major customers, and long-term purchase agreements helped to mitigate
the effects of this challenging environment and achieve 26 percent
growth in flash memory product sales over the like period of 2000.
"We gained market share last quarter in both PC processors and
flash memory, the focal points of our growth strategy," Sanders said.
"Sales of our seventh-generation processors (AMD Athlon and AMD
Duron processors) grew 27 percent sequentially and 126 percent
year-on-year. Demand for our highest-performance AMD Athlon processors
remained strong and we shipped more than 2 million 1-GHz and faster
devices. Going forward, we plan to continue our aggressive production
ramp in Fab 30 in Dresden, which will be the source of our
highest-performance AMD Athlon processors, including the new
power-managed versions," Sanders 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. The company's current outlook is
based on the following projections.
The company currently expects that, in the seasonally slow second
quarter for PC sales, the enhanced competitive position of AMD-based
solutions will enable maintenance of PC processor unit sales at
near-record levels comprised totally of seventh-generation products.
The company currently expects PC industry unit growth in the high
single-digit range for 2001 as a whole.
Uncertainties regarding the level of demand for flash memory
products in a continuing soft communications sector makes forecasting
memory product sales extremely difficult. The company currently
projects that second quarter sales of flash memory products will
decline sequentially.
AMD's other IC products and foundry services, which currently
account for less than 10 percent of corporate revenues, will continue
their decline both in absolute terms and as a percentage of total
revenues.
Accordingly, in this uncertain climate, AMD expects that overall
second quarter revenues could decline by as much as 10 percent
sequentially, depending on market conditions.
For the year as a whole, on modest sales growth in a declining
market, the company expects to earn $1.50 per diluted share,
consistent with First Call consensus earnings estimates.
AMD Teleconference
AMD will hold a teleconference for the financial community at 2:30
PM Pacific Standard Time today to discuss first-quarter financial
results. AMD will provide a real-time audio broadcast of the
teleconference on the Investor Relations page of its web site at
amd.com or streetfusion.com. The webcast
will be available for two weeks after the teleconference.
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 currently expected levels, that
the company will grow sales for the year, or that it will meet
earnings per share estimates.
Risks also include the possibility that global business and
economic conditions will worsen; that demand for personal computers
and, in turn, demand for the company's PC processors will be lower
than currently expected; that Intel Corporation pricing, marketing
programs, new product introductions or other activities targeting the
company's processor business will prevent attainment of the company's
current PC processor sales plans; that the company will not continue
to be successful in ramping production of the company's highest
performance processors in Fab 30; that the company will not be able to
produce AMD Athlon and AMD Duron processors in the volume, speed mix
or with the feature set necessary to meet market requirements and the
company's current plans and goals; that third parties may not provide
timely or adequate infrastructure solutions to support the AMD Athlon
and AMD Duron processors; and that changes in customer needs and the
product introductions and capacity expansion of competitors will
effect the demand for the company's flash memory products. 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 31,
2000.
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, a
Fortune 500 and Standard & Poor's 500 company, 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 $4.6 billion in 2000.
(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 EDITORS: Readers may obtain additional information by
calling 1-800-222-9323 or 408-749-3060. Technical Support Email:
hw.support@amd.com.
AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof
are trademarks of Advanced Micro Devices, Inc. in the United States
and other jurisdictions.
END PART ONE OF THREE
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
-> End of Note <-
05:27pm EDT 18-Apr-01 Corporate Release (Toni Beckham 408/749-3127) AMD
AMD Reports First Quarter Results/PART TWO OF THREE
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
Apr. 1, Dec. 31, Apr. 2,
2001 2000 2000
------- -------- -------
Net sales $ 1,188,747 $ 1,175,172 $ 1,092,029
Cost of sales 714,830 657,303 605,757
Research and development 157,760 162,087 161,297
Marketing, general and
administrative 149,138 160,756 144,306
1,021,728 980,146 911,360
Operating income 167,019 195,026 180,669
Interest income and
other, net 18,823 25,449 21,128
Interest expense (21,645) (19,932) (11,479)
Income before income
taxes, equity in joint
venture and extraordinary
item 164,197 200,543 190,318
Provision for income taxes 52,543 30,081 --
Income before equity in
joint venture and
extraordinary item 111,654 170,462 190,318
Equity in net income
(loss) in joint venture 13,183 7,570 (969)
Income before
extraordinary item 124,837 178,032 189,349
Extraordinary item -
debt retirement,
net of tax benefit -- (64) --
Net income $ 124,837 $ 177,968 $ 189,349
Net income per common share
Basic:
Income before
extraordinary item $ 0.40 $ 0.57 $ 0.63
Net income $ 0.40 $ 0.57 $ 0.63
Diluted:
Income before
extraordinary item $ 0.37 $ 0.53 $ 0.55
Net income $ 0.37 $ 0.53 $ 0.55
Shares used in per
share calculation
- Basic 314,347 313,501 302,257
- Diluted 351,785 349,782 344,381
Advanced Micro Devices, Inc. -- INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(b)
(Includes Pre-Tax FASL Investment Equity Income in Operating Income)
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
Apr. 1, Dec. 31, Apr. 2,
2001 2000 2000
------- -------- -------
Net sales $ 1,188,747 $ 1,175,172 $ 1,092,029
Cost of sales 714,830 657,303 605,757
(Income) loss from
equity investment in FASL (22,612) (12,985) 1,659
Research and development 157,760 162,087 161,297
Marketing, general and
administrative 149,138 160,756 144,306
999,116 967,161 913,019
Operating income 189,631 208,011 179,010
Interest income and other, net 18,823 25,449 21,128
Interest expense (21,645) (19,932) (11,479)
Income before income taxes
and extraordinary item 186,809 213,528 188,659
Provision for income taxes 52,543 30,081 --
Provision (benefit) for
taxes on equity income in FASL 9,429 5,415 (690)
Income before
extraordinary item 124,837 178,032 189,349
Extraordinary item - debt
retirement, net of tax
benefit -- (64) --
Net income $ 124,837 $ 177,968 $ 189,349
Net income per common share
Basic:
Income before
extraordinary item $ 0.40 $ 0.57 $ 0.63
Net income $ 0.40 $ 0.57 $ 0.63
Diluted:
Income before
extraordinary item $ 0.37 $ 0.53 $ 0.55
Net income $ 0.37 $ 0.53 $ 0.55
Shares used in per
share calculation
- Basic 314,347 313,501 302,257
- Diluted 351,785 349,782 344,381
(b) The above statements of operations are not in accordance with
generally accepted accounting principles (GAAP) in that the pre-tax
equity income of FASL has been reclassified and included in the
determination of operating income. Net income and related net income
per common share amounts are the same as those reported under GAAP.
END PART TWO OF THREE
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
-> End of Note <-
05:27pm EDT 18-Apr-01 Corporate Release (Toni Beckham 408/749-3127) AMD
AMD Reports First Quarter Results/PART THREE OF THREE
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
April 1, December 31,
2001 2000(a)
(unaudited)
Assets
Current assets:
Cash, cash equivalents
and short-term investments $ 1,595,556 $ 1,293,165
Accounts receivable, net 602,067 547,200
Inventories 354,630 343,541
Deferred income taxes 189,185 218,527
Prepaid expenses and other current assets 139,661 255,256
Total current assets 2,881,099 2,657,689
Property, plant and equipment, net 2,663,904 2,636,467
Investment in joint venture 249,866 261,728
Other assets 234,536 211,851
$ 6,029,405 $ 5,767,735
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 377,067 $ 477,369
Accrued compensation and benefits 139,477 172,815
Accrued liabilities 278,092 276,721
Income tax payable 84,286 74,806
Deferred income on
shipments to distributors 99,286 92,828
Current portion of long-term debt,
capital lease obligations and other 183,525 129,570
Total current liabilities 1,161,733 1,224,109
Deferred income taxes 198,066 203,986
Long-term debt, capital
lease obligations and other,
less current portion 1,392,970 1,167,973
Stockholders' equity:
Capital stock:
Common stock, par value 3,160 3,141
Capital in excess of par value 1,422,593 1,406,290
Retained earnings 1,981,098 1,856,261
Accumulated other comprehensive loss (130,215) (94,025)
Total stockholders' equity 3,276,636 3,171,667
$ 6,029,405 $ 5,767,735
(a) Derived from the December 31, 2000 audited financial statements of
Advanced Micro Devices, Inc.
AMD
Selected Corporate Data
Q1 '01 Q4 '00 Q1 '00
------- -------- --------
Segment Breakdown % of % of % of
Sales Revenue Sales Revenue Sales Revenue
----- ------- ----- ------- ----- -------
Core Products segment:
PC Processors Products 55 $661M 48 $566M 52 $563M
Memory Products (Flash) 35 411M 39 458M 30 327M
Other IC Products 6 75M 8 98M 11 122M
Voice Communications segment 0 0 0 0 5 60M
Foundry Services segment 4 42M 5 53M 2 20M
----------------------------------------------------------------------
Other Data Q1 '01 Q4 '00 Q1 '00
----------------------------------------------------------------------
Depreciation
and Amortization $153M $150M $128M
Capital Additions $163M $266M $129M
Headcount 14,838 14,435 13,398
----------------------------------------------------------------------
International Sales 63% 62% 59%
Research and Development $158M $162M $161M
EBITDA $320M $345M $309M
END PART THREE OF THREE
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
-> End of Note <- |
