FULL REPORT: AMD Reports First Quarter Results; AMD Earns a Record
$189.3 Million, or $1.15Per Share, on Record Quarterly Sales
Wed Apr 12 17:33:00 EDT 2000
SUNNYVALE, Calif., Apr 12, 2000 (BUSINESS WIRE) -- 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(TM) 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(R) 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
of its web site at amd.com 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.
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 all 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 current or greater levels, or that the
company will continue to grow revenues. There are also risks that the company
will not be able to produce the AMD Athlon processor in the volume, speed mix or
with the feature set necessary to meet customer requirements and the company's
plans and goals; 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 processor sales plans; that
third parties may not provide timely or adequate infrastructure solutions to
support the AMD Athlon processor, including new derivative products scheduled to
begin shipment in the second quarter; and that the company will not be able to
grow demand for its PC processors sufficiently to utilize fully its processor
production capacity. 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
26, 1999.
About AMD
AMD is a global supplier of integrated circuits for the personal and networked
computer and communications markets. AMD produces microprocessors, flash
memories, and integrated circuits for communications and networking
applications. Founded in 1969 and based in Sunnyvale, California, AMD had
revenues of $2.9 billion in 1999. (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 EDITOR: 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 and combinations thereof are trademarks of
Advanced Micro Devices, Inc. in the United States and other jurisdictions.
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
----------------------------------------------------------------------
Apr. 2, Dec. 26, Mar. 28,
2000 1999 1999
----------------------------------------------------------------------
Net sales $ 1,092,029 $ 968,710 $ 631,593
Cost of sales 605,757 581,545 450,431
Research and
development 161,297 150,936 159,946
Marketing, general
and administrative 144,306 158,803 127,310
Restructuring and
other special charges - 5,700 15,016
----------------------------------------------------------------------
911,360 896,984 752,703
----------------------------------------------------------------------
Operating income (loss) 180,669 71,726 (121,110)
Interest income
and other, net 21,128 6,958 10,768
Interest expense (11,479) (12,370) (20,763)
----------------------------------------------------------------------
Income (loss) before
income taxes and equity
in joint venture 190,318 66,314 (131,105)
Benefit for income taxes - - (5,473)
----------------------------------------------------------------------
Income (loss) before
equity in joint venture 190,318 66,314 (125,632)
Equity in net loss
of joint venture (969) (1,234) (2,735)
----------------------------------------------------------------------
Net income (loss) $ 189,349 $ 65,080 (128,367)
----------------------------------------------------------------------
Net income (loss)
per common share
- Basic $ 1.25 $ 0.44 $ (0.88)
- Diluted $ 1.15 $ 0.43 $ (0.88)
----------------------------------------------------------------------
Shares used in per
share calculation
- Basic 150,880 148,029 145,909
- Diluted 171,942 152,750 145,909
----------------------------------------------------------------------
Advanced Micro Devices, Inc. INFORMATION ONLY
----------------------------------------------------------------------
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(1)
(Includes Pre-Tax FASL Investment Equity Loss in Operating Income
(Loss))
----------------------------------------------------------------------
(Thousands except per share amounts)
Quarter Ended
(Unaudited)
----------------------------------------------------------------------
Apr. 2, Dec. 26, Mar. 28,
2000 1999 1999
----------------------------------------------------------------------
Net sales $ 1,092,029 $ 968,710 $ 631,593
Cost of sales 605,757 581,545 450,431
Loss from equity
investment in FASL 1,659 2,117 4,636
Research and development 161,297 150,936 159,946
Marketing, general and
administrative 144,306 158,803 127,310
Restructuring and other
special charges - 5,700 15,016
----------------------------------------------------------------------
913,019 899,101 757,339
----------------------------------------------------------------------
Operating income (loss) 179,010 69,609 (125,746)
Interest income and
other, net 21,128 6,958 10,768
Interest expense (11,479) (12,370) (20,763)
----------------------------------------------------------------------
Income (loss) before
income taxes 188,659 64,197 (135,741)
Benefit for income taxes - - (5,473)
Benefit for taxes on
equity loss in FASL (690) (883) (1,901)
----------------------------------------------------------------------
Net income (loss) $ 189,349 $ 65,080 $ (128,367)
----------------------------------------------------------------------
Net income (loss)
per common share
- Basic $ 1.25 $ 0.44 $ (0.88)
- Diluted $ 1.15 $ 0.43 $ (0.88)
----------------------------------------------------------------------
Shares used in per share
calculation
- Basic 150,880 148,029 145,909
- Diluted 171,942 152,750 145,909
----------------------------------------------------------------------
(1) The above statements of operations are not in accordance with
generally accepted accounting principles (GAAP) in that the pre-tax
equity loss 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(2)
(Thousands)
April 2, Dec. 26,
2000 1999
----------------------------------------------------------------------
Assets
Current assets:
Cash, cash equivalents
and short-term investments $ 919,183 $ 596,511
Accounts receivable, net 408,148 429,809
Inventories 204,965 198,213
Deferred income taxes 55,956 55,956
Prepaid expenses
and other current assets 144,621 129,389
----------------------------------------------------------------------
Total current assets 1,732,873 1,409,878
Property, plant
and equipment, net 2,475,889 2,523,236
Investment in joint venture 265,871 273,608
Other assets 163,594 170,976
----------------------------------------------------------------------
$ 4,638,227 $ 4,377,698
======================================================================
Liabilities and
Stockholders' Equity
Current liabilities:
Notes payable to banks $3,769 $ -
Accounts payable 317,302 387,193
Accrued compensation
and benefits 131,414 91,900
Accrued liabilities 266,324 273,689
Income tax payable 14,396 17,327
Deferred income on
shipments to distributors 108,666 92,917
Current portion of
long-term debt, capital
lease obligations and other 68,209 47,626
----------------------------------------------------------------------
Total current liabilities 910,080 910,652
Deferred income taxes 59,976 60,491
Long-term debt, capital lease
obligations and other,
less current portion 1,469,799 1,427,282
Stockholders' equity:
Capital stock:
Common stock, par value 1,543 1,496
Capital in excess of par value 1,174,518 1,121,956
Retained earnings 1,062,584 873,235
Accumulated other
comprehensive loss (40,273) (17,414)
----------------------------------------------------------------------
Total stockholders' equity 2,198,372 1,979,273
----------------------------------------------------------------------
$ 4,638,227 $ 4,377,698
======================================================================
(2) Amounts as of April 2, 2000 are unaudited. Amounts for December
26, 1999 are derived from the December 26, 1999 audited financial
statements.
AMD
Selected Corporate Data
(Unaudited)
----------------------------------------------------------------------
Segment Breakdown Q1 '00 Q4 '99 Q1 '99
% of % of % of
Sales Revenue Sales Revenue Sales Revenue
----- ------- ----- ------- ----- -------
----------------------------------------------------------------------
AMD segment:
Computation
Products Group 59 $644M 60 $577M 63 $395M
Memory Group 30 327M 29 275M 20 126M
Communications Group 9 101M 9 94M 10 64M
Other 2 20M 2 23M 0 0
Vantis segment:
Vantis 0 0 0 0 7 47M
----------------------------------------------------------------------
----------------------------------------------------------------------
Other Data Q1 '00 Q4 '99 Q1 '99
---------- ------ ------ ------
----------------------------------------------------------------------
Depreciation
and Amortization $128M $130M $127M
Capital Additions $129M $126M 200M
Headcount 13,398 13,354 13,803
----------------------------------------------------------------------
International Sales 59% 63% 58%
Research and
Development $161M $151M $160M
EBITDA $309M $202M $6.4M |
