AMD REPORTS FOURTH QUARTER RESULTS
Financial Statements
AMD Selected Corporate Data
SUNNYVALE, CA --JANUARY 13, 1999--AMD today reported record revenues of $788,820,000 during its fourth quarter, ended December 27, 1998. Net
income amounted to $22,321,000, or $0.15 per diluted share. All of the revenue growth resulted from increased sales of AMD K6®-2 Processors with
3DNow!(TM) technology.
Revenues increased by 15 percent from the immediate-prior quarter, and by 29 percent from the like period of 1997. In the immediate-prior quarter, AMD
reported net income of $1,006,000 on revenues of $685,927,000, which resulted in net income of $0.01 per diluted share. In the like period of 1997, AMD
reported revenues of $613,171,000, which resulted in a net loss of $12,334,000, or $0.09 per share.
At $2,542,141,000, revenues for 1998 were also a record. For 1998, AMD reported a net loss of $103,960,000, or $0.72 per share. In 1997 AMD reported
revenues of $2,356,375,000, which resulted in a net loss of $21,090,000, or $0.15 per share. AMD revenues for 1998 grew by 8 percent in a year in which the
worldwide semiconductor industry experienced a double-digit revenue decline.
"Growing customer acceptance of the AMD-K6-2 processor with 3DNow! technology enabled AMD to continue to gain share in the market for Microsoft®
Windows® computing," said W.J. Sanders III, chairman and chief executive officer. "Unit shipments of AMD-K6 family processors grew by 1.7 million, or 45
percent, to 5.5 million units from the immediate-prior quarter. AMD-K6 family processor revenues grew by more than $100 million over the immediate-prior quarter
to $488 million.
"In 1998 AMD shipped more than 13.5 million AMD-K6 family processors, generating revenues in excess of $1.25 billion," Sanders continued. "The majority of
these units - more than 8.5 million - were AMD-K6-2 processors with 3DNow! technology. We believe the substantial and growing installed base of PC systems
with 3DNow! technology will provide a strong platform for software developers, which in turn should enhance opportunities for broader acceptance of AMD
processors going forward. All AMD processors for the personal computer market now incorporate 3DNow! technology supported by Microsoft Windows DirectX
6.0.
"A key objective in the just-completed quarter was progressing on our speed roadmap and satisfying strategic customer requirements for processors with speeds up
to 400 megahertz (MHz)," Sanders continued. "We accomplished this objective. We introduced and shipped in volume 366MHz, 380MHz, and 400MHz versions
of the AMD-K6-2 processor with 3DNow! technology. We shipped hundreds of thousands of 400 MHz processors, but were unable to satisfy strong overall
market demand. We expect to substantially increase shipments of 400 MHz processors in the current quarter. "We continued to gain unit market share during the
just-completed quarter. We estimate that AMD-K6 family processors accounted for 16 percent of all processor units for Microsoft Windows computing in the
fourth quarter of 1998 - a doubling of market share from the comparable quarter of 1997. "At 38 percent share of market, AMD-K6 family processors were
number one in the burgeoning segment for sub-$1,000 desktop PC systems in the bellwether North American retail channel, according to the most recent
information from PC Data. Our market share in the $1,000-to-$1,500 desktop segment was 37 percent. AMD-K6 family processors captured 21 percent of the
North American retail market for portable systems. With today's announcement by Toshiba and the recent announcement by Compaq Computer of portable
systems featuring AMD-K6-2 processors with 3DNow! technology, the world's number one and number two producers of portable systems are now AMD
customers.
"Aggregate revenues from our other product groups - our Communications Group, our Memory Group, and Vantis, our programmable logic subsidiary - were
essentially flat with the immediate-prior quarter. Total AMD bookings for the second consecutive quarter reached record levels, driven by continuing strong demand
for AMD-K6-2 processors with 3DNow! technology," 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).
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