Advanced Micro Devices - Moderated (AMD) Message Board

NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(Includes Pre-Tax FASL Equity Investment (Income) loss
in Operating Income (loss))
(Thousands except per share amounts)

Quarter Ended Six Months Ended
(Unaudited) (Unaudited)
June 30, March 31, July 1, June 30, July 1,
2002 2002 2001 2002 2001
-------------------------------------------------------

Net sales $ 600,299 $902,073 $985,264 $1,502,372 $2,174,011

Cost of sales 558,290 586,874 636,199 1,145,164 1,351,029
(Income) loss
from equity
investment
in FASL 4,630 (5,076) (12,521) (446) (35,133)
Research and
development 178,425 171,882 171,114 350,307 328,874
Marketing,
general and
administrative 160,248 156,860 156,291 317,108 305,429
-------------------------------------------------------
901,593 910,540 951,083 1,812,133 1,950,199
-------------------------------------------------------

Operating
income (loss) (301,294) (8,467) 34,181 (309,761) 223,812

Interest and
other income,
net 8,661 9,538 12,308 18,199 31,131
Interest
expense (15,729) (12,158) (20,199) (27,887) (41,844)
-------------------------------------------------------

Income (loss)
before income
taxes (308,362) (11,087) 26,290 (319,449) 213,099

Provision
(benefit) for
income taxes (121,493) (4,041) 3,717 (125,534) 56,260
Provision
(benefit) for
taxes on
equity
income (loss)
in FASL (1,931) 2,117 5,221 186 14,650
-------------------------------------------------------

Net income
(loss) $(184,938) $ (9,163) $ 17,352 $ (194,101) $ 142,189
-------------------------------------------------------
Net income
(loss) per
common share

Basic $ (0.54) $ (0.03) $ 0.05 $ (0.57) $ 0.44

Diluted $ (0.54) $ (0.03) $ 0.05 $ (0.57) $ 0.43
-------------------------------------------------------

Shares used in per share calculation

-- Basic 341,782 340,806 330,120 341,294 322,234
-- Diluted 341,782 340,806 340,533 341,294 332,183
-------------------------------------------------------

Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)

Quarter Ended Six Months Ended
(Unaudited) (Unaudited)
June 30, March 31, July 1, June 30, July 1,
2002 2002 2001 2002 2001
------------------------------------------------------
Net sales $ 600,299 $902,073 $985,264 $1,502,372 $2,174,011

Cost of sales 558,290 586,874 636,199 1,145,164 1,351,029
Research and
development 178,425 171,882 171,114 350,307 328,874
Marketing,
general and
administrative 160,248 156,860 156,291 317,108 305,429
------------------------------------------------------
896,963 915,616 963,604 1,812,579 1,985,332
------------------------------------------------------

Operating income
(loss) (296,664) (13,543) 21,660 (310,207) 188,679

Interest and
other income,
net 8,661 9,538 12,308 18,199 31,131
Interest expense (15,729) (12,158) (20,199) (27,887) (41,844)
------------------------------------------------------

Income (loss)
before income
taxes and equity
in net income
(loss) of joint
venture (303,732) (16,163) 13,769 (319,895) 177,966

Provision
(benefit) for
income taxes (121,493) (4,041) 3,717 (125,534) 56,260
------------------------------------------------------

Income (loss)
before equity
in net income
(loss) of joint
venture (182,239) (12,122) 10,052 (194,361) 121,706

Equity in net
income (loss) of
joint venture (2,699) 2,959 7,300 260 20,483
------------------------------------------------------

Net income
(loss) $(184,938) $ (9,163) $ 17,352 $ (194,101) $ 142,189
------------------------------------------------------

Net income (loss) per common share

Basic:
Net income
(loss) $ (0.54) $ (0.03) $ 0.05 $ (0.57) $ 0.44

Diluted:
Net income
(loss) $ (0.54) $ (0.03) $ 0.05 $ (0.57) $ 0.43
------------------------------------------------------

Shares used in per share calculation

- Basic 341,782 340,806 330,120 341,294 322,234
- Diluted 341,782 340,806 340,533 341,294 332,183
------------------------------------------------------

Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
June 30, March 31, Dec. 30,
2002 2002 2001(a)
------------------------------------
(unaudited) (unaudited)
Assets

Current assets:
Cash, cash equivalents and
short-term investments $1,099,943 $1,276,723 $ 869,997
Accounts receivable, net 534,929 692,165 659,783
Inventories 380,078 376,795 380,474
Deferred income taxes 236,152 162,820 155,898
Prepaid expenses and other
current assets 166,963 151,377 286,957
---------------------------------------------------------------------
Total current assets 2,418,065 2,659,880 2,353,109

Property, plant and equipment,
net 2,934,877 2,769,234 2,739,138
Investment in joint venture 378,164 353,352 363,611
Other assets 171,936 182,476 191,384
---------------------------------------------------------------------

$5,903,042 $5,964,942 $5,647,242
=====================================================================

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $ 258,641 $ 383,495 $ 304,990
Accrued compensation and
benefits 128,641 133,401 129,042
Accrued liabilities 343,289 321,953 443,995
Income taxes payable 37,824 56,113 56,234
Deferred income on shipments to
distributors 38,381 68,016 47,978
Current portion of long-term debt,
capital lease obligations
and other 367,360 264,029 331,698
---------------------------------------------------------------------
Total current liabilities 1,174,136 1,227,007 1,313,937

Deferred income taxes 75,438 104,661 105,305
Long-term debt, capital lease
obligations and other, less
current portion 1,141,060 1,123,671 672,945

Stockholders' equity:
Capital stock:
Common stock, par value 3,423 3,414 3,405
Capital in excess of par value 1,906,952 1,898,349 1,889,217
Retained earnings 1,601,580 1,786,517 1,795,680
Accumulated other comprehensive
income (loss) 453 (178,677) (133,247)
---------------------------------------------------------------------
Total stockholders' equity 3,512,408 3,509,603 3,555,055
---------------------------------------------------------------------

$5,903,042 $5,964,942 $5,647,242
=====================================================================

(a) Derived from the December 30, 2001 audited financial statements of
Advanced Micro Devices, Inc.

AMD
Selected Corporate Data
(Unaudited)

Segment Breakdown Q2 '02 Q1 '02 Q2 '01
% of % of % of
Sales Revenue Sales Revenue Sales Revenue
--------------------------------------------
Core Products segment:

PC Processor Products 63 $380M 76 $684M 60 $588M

Memory Products (Flash) 29 175M 18 160M 32 316M

Other IC Products 7 39M 5 46M 5 51M

Foundry Services segment 1 6M 1 12M 3 30M
----------------------------------------------------------------------

Other Data Q2 '02 Q1 '02 Q2 '01
--------------------------------------------
Depreciation and Amortization $183M $174M $159M

Capital Additions $172M $199M $215M

Headcount 13,730 14,442 15,088
----------------------------------------------------------------------

International Sales 72% 65% 61%

Research and Development $178M $172M $171M

EBITDA -$114M $161M $181M

EBITDA (Non-GAAP) -$118M $166M $194M

Segment Breakdown 2002 2001
% of % of
Sales Revenue Sales Revenue
-----------------------------------
Core Products segment:

PC Processor Products 71 $1,064M 58 $1,249M

Memory Products (Flash) 22 335M 33 727M

Other IC Products 6 85M 6 126M

Foundry Services segment 1 18M 3 72M

Other Data 2002 2001
----------------------------------
Depreciation and Amortization $357M $312M

Capital Additions $371M $378M

Headcount 13,730 15,088

----------------------------------------------------------------------

International Sales 68% 62%

Research and Development $350M $329M

EBITDA $47M $501M

EBITDA (Non-GAAP) $47M $536M