the AMD release...
AMD Reports Second Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 8, 1998--AMD today
reported a net loss of $64,560,000 on sales of $526,538,000 for its
second quarter, ended June 28, 1998. The loss amounted to $0.45 per
share.
Sales declined by 3 percent from the immediate-prior quarter, and
by 11 percent from the second quarter of 1997. Sales for the first
quarter of 1998 amounted to $540,856,000, which resulted in a net loss
of $62,727,000, or $0.44 per share. In the second quarter of 1997, AMD
reported sales of $594,561,000, and net income of $9,968,000, or $0.07
per share, diluted.
For the first six months of 1998, AMD reported total revenues of
$1,067,394,000, a decline of 7 percent from the first six months of
1997, and a net loss of $0.89 per share. For the same period a year
ago, the company reported revenues of $1,146,560,000, and net income
of $22,919,000, or $0.16 per share, diluted.
"The substantial growth in sales of AMD-K6(R) processors in the
just-completed quarter couldn't offset the decline in sales from our
Communications Group, our Memory Group, and Vantis(tm), our
programmable logic company," said W.J. Sanders III, chairman and chief
executive officer. "Weakening demand in the worldwide semiconductor
industry, coupled with continued price pressures on flash memory
products, produced a substantial decline in revenues from our
non-microprocessor business units.
"Our Computation Products Group had an excellent quarter,"
Sanders continued. "Unit shipments of AMD-K6 family processors
increased by more than one million units over the immediate-prior
quarter to nearly 2.7 million units. We achieved a successful
transition to 0.25-micron technology early in the quarter.
Approximately 40 percent of unit shipments during the just-completed
quarter were products manufactured on 0.25-micron technology. All of
our shipments of AMD-K6 processors in the current quarter will be on
0.25-micron technology.
"On May 28 we successfully introduced our next-generation
AMD-K6-2(R) processor family with 3DNow!(tm) technology. The AMD-K6-2
processor is our first differentiated processor for Microsoft(R)
Windows(R) computing, and features additional new instructions
developed by AMD and supported by Microsoft to enhance 3-D imaging and
sound. We shipped more than 500,000 AMD-K6-2 processors in the
quarter, marking the steepest first-quarter sales ramp of a new
processor in AMD history. In response to demand from customers, we are
rapidly shifting production to AMD-K6-2 processors. Among others, IBM,
Hewlett-Packard and Fujitsu have announced desktop systems based on
the AMD-K6-2 processor, and we expect additional top-tier
manufacturers to follow.
"Today, the world's top three - and five of the top 10 -
manufacturers of desktop PCs are now offering systems powered by AMD
processors. We are continuing efforts to expand our customer base to
absorb the significant increases in output we plan to achieve during
the remainder 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 be able
to significantly increase output of AMD-K6 processors, including
higher-performance AMD-K6-2 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
processors will continue at current or greater levels; and worldwide
economic conditions, including the economic conditions in Asia, 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.
3DNow! and Vantis are trademarks of Advanced Micro Devices, Inc.
AMD-K6, AMD-K6-2, AMD, the AMD logo and combinations thereof are
registered trademarks of Advanced Micro Devices, Inc. Microsoft and
Windows are a registered trademarks of Microsoft Corporation
Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)
June 28, December 28,
1998 1997
(Unaudited) (Audited)
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Current assets:
Cash, cash
equivalents and
short-term investments $ 692,443 $ 467,032
Accounts receivable, net 239,602 329,111
Inventories 171,633 168,517
Deferred income taxes 168,841 160,583
Prepaid expenses and
other current assets 55,135 50,024
---------------------------------------------------------------------
Total current assets 1,327,654 1,175,267
Property, plant and
...snipped... |
