AMD Q1 earnings (0.39)
AMD Reports First Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 7, 1998--AMD today
reported a net loss of $55,827,000 on sales of $540,856,000 for its first
quarter, ended March 29, 1998. The loss amounted to $0.39 per share.
Revenues declined by 12 percent from the quarter ended December 28, 1997,
and by 2 percent from the quarter ended March 30, 1997.
Sales for the first quarter of 1997 were $551,999,000, which resulted in net
income of $12,951,000, or $0.09 per share, diluted. In the fourth quarter of
1997, AMD reported sales of $613,171,000, which resulted in a net loss of
$12,334,000, or $0.09 per share.
"The first quarter of 1998 was an unusually difficult one for AMD," said W.J.
Sanders III, chairman and chief executive officer. "We faced three major
challenges: 1) remedying yield problems that limited production of
AMD-K6(R) processors on our initial 0.35-micron technology; 2) achieving a
successful transition to leading-edge 0.25-micron technology which is essential
to producing higher-performance AMD-K6 processors; and 3) coping with
the effects of a semiconductor industry slowdown.
"During the quarter, market conditions in the worldwide semiconductor
industry were unsettled, characterized by excess capacity in memories with
attendant severe price pressure, aggressive inventory reduction programs by
customers, and weak demand in certain Asian economies -- notably Korea
and Japan. These conditions contributed to a 9 percent aggregate decline in
revenues from our three non-microprocessor businesses -- the
Communications Group, the Memory Group, and our programmable logic
company, Vantis(TM). These conditions continue.
"The outlook is brighter for our Computation Products Group," Sanders
continued. "We have resolved the yield problems on the 0.35-micron process.
More importantly, we have made excellent progress toward our top-priority
goal of achieving a successful transition to 0.25-micron technology for
AMD-K6 processors in Fab 25 in Austin, Texas. During the just-completed
transition quarter, AMD-K6 unit production increased nominally over the 1.5
million units shipped in the immediate-prior quarter. More than 10 percent of
unit shipments were 0.25-micron devices, including our first volume shipments
of 300-megahertz AMD-K6 processors.
"Conversion of production wafer starts to 0.25-micron technology is
progressing well, and more than half of our Fab 25 wafer starts are now on
0.25-micron technology. We remain on target to convert all of our production
to this technology by the end of the current quarter. Current production rates
and yields have encouraged us to communicate to our present customers that
we expect to produce substantially more AMD-K6 processors in a
higher-performance mix this quarter. Also, we are currently engaged in
expanding our customer base to absorb the significant increases in output we
plan for the second half of the year," Sanders concluded. Cautionary
Statement
Investors are cautioned that all forward-looking statements of management's
expectations involve risks and uncertainties that could cause actual results to
differ materially from current expectations.
Any forward-looking statements about the AMD-K6 processor involve risks
and uncertainties, including whether: the company will successfully convert all
of its production to 0.25-micron process technology as planned; the company
will be able to significantly increase output of AMD-K6 processors, including
higher-performance AMD-K6 processors; the company will maintain or
increase the current production yields; the company will be successful in
expanding its customer base; customer demand for the AMD-K6 processor
will continue at current or greater levels; the company will have the financial
and other resources necessary to continue to invest in the microprocessor
business; and economic conditions will change and affect demand for
microprocessors and other integrated circuits.
Investors are urged to consult the risks and uncertainties detailed in the
company's reports filed with the Securities and Exchange Commission. 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 $2.4 billion in 1997. (NYSE:AMD).
WORLD WIDE WEB: Press announcements and other information about
AMD are available on the Internet via the World Wide Web. Type
http:/www.amd.com at the URL prompt.
Note To Editors: Vantis is a trademark of Advanced Micro Devices, Inc.
AMD-K6, AMD, the AMD logo and combinations thereof are registered
trademarks of Advanced Micro Devices, Inc.
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
March 29, December 28,
1998 1997
(Unaudited) (Audited)
Assets
Current assets:
Cash, cash equivalents and short-term
investments $ 306,804 $ 467,032
Accounts receivable, net 254,346 329,111
Inventories 157,859 168,517
Deferred income taxes 160,583 160,583
Prepaid expenses and other
current assets 36,214 50,024
----------- -----------
Total current assets 915,806 1,175,267
Property, plant and equipment, net 2,054,295 1,990,689
Investment in joint venture 208,616 204,031
Other assets 153,589 145,284
----------- -----------
$ 3,332,306 $ 3,515,271
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to banks $ 5,372 $ 6,601
Accounts payable 279,176 359,536
Accrued compensation and benefits 74,047 63,429
Accrued liabilities 101,686 134,656
Income tax payable 13,500 12,676
Deferred income on shipments to
distributors 78,427 83,508
Current portion of long-term debt
and capital lease obligations 95,048 66,364
----------- -----------
Total current liabilities 647,256 726,770
Deferred income taxes 46,168 96,269
Long-term debt and capital lease
obligations, less current portion 666,271 662,689
Stockholders' equity:
Capital stock:
Common stock, par value 1,435 1,428
Capital in excess of par value 1,026,313 1,018,884
Retained earnings 1,010,304 1,066,131
Unrealized gain on investments 779 2,007
Cumulative translation adjustments (66,220) (58,907)
Total stockholders' equity 1,972,611 2,029,543
----------- -----------
$ 3,332,306 $ 3,515,271
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarters Ended
(Unaudited)
Mar. 29 Dec. 28 Mar. 30
1998 1997 1997
Net sales $ 540,856 $ 613,171 $ 551,999
Cost of sales 423,591 428,856 349,076
Research and development 128,120 127,031 104,908
Marketing, general and
administrative 88,214 102,296 94,519
--------- -------- ---------
639,925 658,183 548,503
--------- -------- ---------
Operating income (loss) (99,069) (45,012) 3,496
Interest income and other, net 5,581 6,525 13,322
Interest expense (12,472) (11,757) (9,410)
--------- --------- ---------
Income (loss) before income taxes
and equity in joint venture (105,960) (50,244) 7,408
Provision (benefit) for income
taxes (42,397) (29,861) 2,148
--------- --------- ---------
Income (loss) before equity
in joint venture (63,563) (20,383) 5,260
Equity in net income of
joint venture 7,736 8,049 7,691
--------- --------- ---------
Net income (loss) applicable $ (55,827) $ (12,334) $ 12,951
to common stockholders
Net income (loss) per common
share
- Basic $ (0.39) $ (0.09) $ 0.09
- Diluted $ (0.39) $ (0.09) $ 0.09
Shares used in per share
calculation
- Basic 142,503 141,889 138,616
- Diluted 142,503 141,889 146,758
Advanced Micro Devices, Inc. INFORMATION ONLY
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(a)
(Includes Pre-Tax FASL Investment Equity
Income in Operating Income (Loss))
(Thousands except per share amounts)
Quarters Ended
(Unaudited)
Mar. 29 Dec. 28 Mar. 30
1998 1997 1997
Net sales $ 540,856 $ 613,171 $ 551,999
Cost of sales 423,591 428,856 349,076
Income from equity
investment in FASL (15,988) (16,770) (12,482)
Research and development 128,120 127,031 104,908
Marketing, general and
administrative 88,214 102,296 94,519
--------- --------- ---------
623,937 641,413 536,021
--------- --------- ---------
Operating income (loss) (83,081) (28,242) 15,978
Interest income and other, net 5,581 6,525 13,322
Interest expense (12,472) (11,757) (9,410)
--------- --------- ---------
Income (loss) before income
taxes (89,972) (33,474) 19,890
Provision (benefit) for income
taxes (42,397) (29,861) 2,148
Provision for taxes on equity
income in FASL 8,252 8,721 4,791
--------- --------- ---------
Net income (loss) applicable
to common stockholders $ (55,827) $ (12,334) $ 12,951
--------- --------- ---------
Net income (loss) per common
share
- Basic $ (0.39) $ (0.09) $ 0.09
- Diluted $ (0.39) $ (0.09) $ 0.09
Shares used in per share
calculation
- Basic 142,503 141,889 138,616
- Diluted 142,503 141,889 146,758
(a) 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 (loss). Net income (loss) and
related net income (loss) per common share amounts are the same as
those reported under GAAP.
AMD
Selected Corporate Data
(Unaudited)
Product Line Breakdown Q1 98 Q4 97 Q1 97
% of % of % of
Sales Revenue Sales Revenue Sales Revenue
Communications Group
(CPD, LPD, NPD) 28 $ 149M 28 $ 174M 31 $ 171M
Vantis (PLD) 10 56M 9 55M 13 69M
Memory Group (MG) 31 167M 30 181M 33 184M
Computation Products
Group (CMD, PPD, TMD) 31 169M 33 203M 23 128M
Other Data Q1 98 Q4 97 Q1 97
Depreciation
and Amortization $ 117M $ 108M $ 89M
Capital Additions 193M 250M(b) 151M
Headcount 12,936 12,759 12,025
International Sales 55% 56% 56%
(b) Restated from Q4 97.
CONTACT: AMD, Sunnyvale
Scott Allen, 408/749-3881 (Public Relations)
John Greenagel, 408/749-3310 (Investor Relations)
Copyright 1998, Business Wire. All of the releases provided by Business Wire are protected by copyright and other
applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's
members, who are solely responsible for their content, accuracy and originality. All reproduction, other than for an
individual user's reference, is prohibited without prior written permission.
c Copyright 1998, The Nasdaq Stock Market, Inc. All Rights Reserved.
Please read our Disclaimer. |
