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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tim Higginbotham who wrote (31241)	4/7/1998 5:20:00 PM
From: Xpiderman	Respond to of 1572088

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.

To: Tim Higginbotham who wrote (31241)	4/7/1998 5:21:00 PM
From: Xpiderman	Respond to of 1572088

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. *T CONTACT: AMD, Sunnyvale Scott Allen, 408/749-3881 (Public Relations) John Greenagel, 408/749-3310 (Investor Relations)