Glad to hear you don't own AMD. Looks like this company is in serious need of something, probably new management.
Mark
AMD Reports First Quarter Results
Business Wire - April 14, 1999 17:31
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 14, 1999--Advanced Micro Devices today reported a net loss of $128,367,000 on revenues of $631,593,000 for its first quarter, ended March 28, 1999. The loss amounted to $0.88 per share. The results for the first quarter include a charge of $15,016,000 for restructuring and other special charges. Without the restructuring and other special charges, the net loss would have been $0.81 per share.
Revenues declined by 20 percent from the $788,820,000 achieved in the quarter ended December 27, 1998, which resulted in net income of $22,321,000, or $0.15 per share. Revenues increased by 17 percent from the $540,856,000 reported for the quarter ended March 29, 1998, which resulted in a net loss of $62,727,000, or $0.44 per share.
"The best thing that can be said about the first quarter is that it's over," said W.J. Sanders III, chairman and chief executive officer. "The significant decline in revenues reported by AMD in the first quarter was almost entirely due to previously reported AMD-K6(R)-2 microprocessor yield issues. The large revenue decline in the face of high fixed costs and record spending on research and development of $160 million in the quarter precipitated the unprecedented loss. Improvements in production yields in March and in the current quarter to date presage a sharp increase in unit production in the current quarter. The last seven weeks' production results increase our confidence in achieving our previously stated goal of shipping five million units in the current quarter.
"We are seeing improving order patterns in our non-processor product lines in the aggregate, with flash memories leading the way," Sanders concluded.
About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.5 billion in 1998. (NYSE: AMD)
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. Forward-looking statements are generally preceded by words such as "expects," "plans," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release involve the risk that the company will not be able to maintain or increase processor yields; that design or production problems will prevent the company from meeting its unit production and shipment goals; and, that customer demand for processors and other products will not continue at current or greater levels. We urge investors to review in detail the risks and uncertainties detailed in the company's Securities and Exchange Commission filings, including the most recently filed Form-10K.
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: AMD, the AMD logo, and combinations thereof are trademarks and AMD-K6 is a registered trademark of Advanced Micro Devices, Inc.
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
----------------------------------------------------------------------
Mar. 28, Dec. 27, Mar. 29,
1999 1998 1998
----------------------------------------------------------------------
Net sales $ 631,593 $ 788,820 $ 540,856
Cost of sales 450,431 481,987 423,591
Research and development 159,946 156,459 128,120
Marketing, general and
administrative 127,310 120,498 88,214
Restructuring and other
special charges 15,016 -- --
----------------------------------------------------------------------
752,703 758,944 639,925
----------------------------------------------------------------------
Operating income (loss) (121,110) 29,876 (99,069)
Litigation settlement -- -- (11,500)
Interest income and other,
net 10,768 10,037 5,581
Interest expense (20,763) (15,177) (12,472)
----------------------------------------------------------------------
Income (loss) before income
taxes and equity
in joint venture (131,105) 24,736 (117,460)
Benefit for income taxes (5,473) (136) (46,997)
----------------------------------------------------------------------
Income (loss) before equity
in joint venture (125,632) 24,872 (70,463)
Equity in net income (loss) of
joint venture (2,735) (2,551) 7,736
----------------------------------------------------------------------
Net income (loss) $(128,367) $ 22,321 $ (62,727)
----------------------------------------------------------------------
Net income (loss) per common
share
- Basic $ (0.88) $ 0.15 $ (0.44)
- Diluted $ (0.88) $ 0.15 $ (0.44)
----------------------------------------------------------------------
Shares used in per share
calculation
- Basic 145,909 144,926 142,503
- Diluted 145,909 149,949 142,503
Advanced Micro Devices, Inc. INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Includes Pre-Tax FASL Investment Equity Loss (Income) in Operating
Income (Loss))
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
----------------------------------------------------------------------
Mar. 28, Dec. 27, Mar. 29,
1999 1998 1998
----------------------------------------------------------------------
Net sales $ 631,593 $ 788,820 $ 540,856
Cost of sales 450,431 481,987 423,591
Loss (income) from equity
investment in FASL 4,636 4,814 (15,988)
Research and development 159,946 156,459 128,120
Marketing, general and
administrative 127,310 120,498 88,214
Restructuring and other
special charges 15,016 -- --
----------------------------------------------------------------------
757,339 763,758 623,937
----------------------------------------------------------------------
Operating income (loss) (125,746) 25,062 (83,081)
Litigation settlement -- -- (11,500)
Interest income
and other, net 10,768 10,037 5,581
Interest expense (20,763) (15,177) (12,472)
----------------------------------------------------------------------
Income (loss)
before income taxes (135,741) 19,922 (101,472)
Benefit for income taxes (5,473) (136) (46,997)
Provision (benefit)
for taxes on equity loss
(income) in FASL (1,901) (2,263) 8,252
----------------------------------------------------------------------
Net income (loss) $(128,367) $ 22,321 $ (62,727)
----------------------------------------------------------------------
Net income (loss) per common
share
- Basic $ (0.88) $ 0.15 $ (0.44)
- Diluted $ (0.88) $ 0.15 $ (0.44)
----------------------------------------------------------------------
Shares used in per share
calculation
- Basic 145,909 144,926 142,503
- Diluted 145,909 149,949 142,503
----------------------------------------------------------------------
(1) The above statements of operations are not in accordance with
generally accepted accounting principles (GAAP) in that the
pre-tax equity loss (income) 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
(Thousands)
Mar. 28, Dec. 27,
1999 1998
(Unaudited) (Audited)
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Current assets:
Cash, cash equivalents and
short-term investments $ 489,145 $ 697,025
Accounts receivable, net 376,360 415,557
Inventories 182,670 175,075
Deferred income taxes 206,745 205,959
Prepaid expenses and
other current assets 73,701 68,411
----------------------------------------------------------------------
Total current assets 1,328,621 1,562,027
Property, plant and equipment, net 2,573,491 2,268,468
Investment in joint venture 232,313 236,820
Other assets 171,068 185,653
----------------------------------------------------------------------
$ 4,305,493 $ 4,252,968
======================================================================
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current liabilities:
Notes payable to banks $ 5,941 $ 6,017
Accounts payable 343,980 333,975
Accrued compensation and benefits 81,451 80,334
Accrued liabilities 133,468 168,280
Income tax payable 21,610 22,026
Deferred income on
shipments to distributors 102,503 84,523
Current portion of
long-term debt, capital
lease obligations and other 174,663 145,564
----------------------------------------------------------------------
Total current liabilities 863,616 840,719
Deferred income taxes 28,226 34,784
Long-term debt, capital lease
obligations and other, less
current portion 1,539,957 1,372,416
Stockholders' equity:
Capital stock:
Common stock, par value 1,478 1,465
Capital in excess of par value 1,080,729 1,071,591
Retained earnings 833,804 962,171
Accumulated other
comprehensive loss (42,317) (30,178)
----------------------------------------------------------------------
Total stockholders' equity 1,873,694 2,005,049
----------------------------------------------------------------------
$ 4,305,493 $ 4,252,968
======================================================================
AMD
Selected Corporate Data
(Unaudited)
Segment Q1 '99 Q4 '98 Q1 '98
Breakdown %of % of % of
Sales Revenue Sales Revenue Sales Revenue
AMD segment:
Computation Products
Group 63 $395M 69 $546M 43 $230M
Memory Group 20 126M 17 132M 31 167M
Communications Group 10 64M 8 64M 16 88M
Vantis segment:
Vantis 7 47M 6 47M 10 56M
----------------------------------------------------------------------
----------------------------------------------------------------------
Other Data Q1 '99 Q4 '98 Q1 '98
----------------------------------------------------------------------
Depreciation
and Amortization $127M $ 125M $ 117M
Capital Additions 200M 180M 193M
Headcount 13,803 13,597 12,936
----------------------------------------------------------------------
International Sales 58% 60% 55%
CONTACT: AMD
Scott Allen, 408/749-3311 (Public Relations)
John Greenagel, 408/749-3310 (Corporate Communications)
Toni Beckham, 408/749-3127 (Investor Relations)
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