SUNNYVALE, CA --April 12, 2000-- AMD today reported record sales of $1,092,029,000 and record net income of $189,349,000
for the quarter ended April 2, 2000. Net income amounted to $1.15 per diluted share. The company reported strong growth in
each of its product groups - the Computation Products Group, the Memory Group, and the Communications Group.
Total revenues grew by 13 percent over the immediate-prior quarter ended December 26, 1999, and by 73 percent over the like
period of 1999. In the immediate-prior quarter, AMD reported sales of $968,710,000 and net income of $65,080,000, or $0.43 per
diluted share. In the first quarter of 1999, AMD reported sales of $631,593,000, and a net loss of $128,367,000, or $0.88 per
share.
"AMD had the best quarter in its history," said W.J. Sanders III, chairman and chief executive officer. "Each of our product groups
reported significant growth in the first quarter. Led by strength in PC processors and Flash memory sales, sales from AMD's three
product groups grew by more than 13 percent sequentially and by more than 83 percent over the comparable period of 1999.
"Unit sales of AMD Athlon? processors increased by 50 percent to 1.2 million units," Sanders continued. "Total PC processor
revenues grew 14 percent sequentially and by more than 65 percent over the first quarter of 1999. Total unit sales, including AMD
Athlon and AMD-K6© family processors, reached a new record at nearly 6.5 million units. Reflecting a richer PC processor portfolio
with the industry's broadest range of high-performance solutions, revenues from AMD Athlon processors exceeded revenues from
AMD-K6 family processors."
During the quarter, AMD introduced the industry's first 1-gigahertz (GHz) PC processor and 850-, 900-, and 950-megahertz (MHz)
versions of the AMD Athlon processor. AMD also began sampling two new versions of the AMD Athlon processor family, that
incorporate on-chip L2 cache. The first, code-named "Thunderbird," is targeted at the performance segment of the PC market.
The second, code-named "Spitfire," is targeted at the value segment. Both products are planned for shipment later this quarter.
The company also commenced shipments of a 550-MHz AMD-K6-2 processor targeted at the value segment of the desktop PC
market and a 500-MHz AMD-K6-2 processor for mobile systems.
The company reported that continuing strong demand for Flash memory devices coupled with extraordinary operational execution
resulted in record sales of $327 million for the Memory Group, an increase of 19 percent from the immediate-prior quarter and
more than 150 percent from the comparable period of 1999. During the quarter, AMD concluded multi-year agreements with
Alcatel and Cisco Systems to supply Flash memory products. AMD said it expects that demand for Flash memory devices will
continue to exceed supply for the remainder of the year and into 2001.
Communications Group sales increased by 7 percent over the immediate-prior quarter and by 59 percent over the first quarter of
1999 driven by strength in telecommunications line-card circuits and devices for physical-layer Ethernet solutions.
"Demand continues to be strong across each of our product groups. With a stronger product portfolio than at any time in our
history, we look forward to continuing growth," 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 currently projects sales in the second quarter to be modestly higher than the record level of the first quarter. The
company's current overall outlook is based on the following projections for its major product lines:
The company expects that unit shipments of PC processors could approach the record level of the first quarter. Unit shipments of
AMD Athlon processors are expected to increase to 1.8 million units, resulting in a richer mix and a higher blended average
selling price and higher revenues for PC processors.
Communications Group sales are projected to grow by more than 10 percent over first-quarter levels.
AMD projects that Memory Group sales will grow in the high single-digit range over the first quarter and resume double-digit
growth in the third and fourth quarters of 2000. The company believes that demand for Flash memory products will continue to
exceed supply.
With the Semiconductor Industry Association forecasting worldwide growth in the range of 20 to 25 percent in 2000, the company
believes it will continue to grow faster than the industry, with total sales growth of more than 50 percent for the year as a whole.
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 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 14739320. |
