Operational Savings of More Than $200 Million in 2012 Designed to Accelerate Future Growth in Lower Power, Emerging Markets and the Cloud
SUNNYVALE, CA, Nov 03, 2011 (MARKETWIRE via COMTEX) --
AMD (NYSE: AMD) today announced a restructuring plan and
implementation of operational efficiency initiatives designed to
strengthen the company's competitive positioning. AMD expects that
these combined actions will create a more competitive cost structure
and rebalance the company's global workforce skillsets, helping AMD
to continue delivering industry-leading products while improving
productivity, reducing time-to-market and better aligning with key
industry trends that are expected to drive growth.
"Reducing our cost structure and focusing our global workforce on key
growth opportunities will strengthen AMD's competitiveness and allow
us to aggressively pursue a balanced set of strategic activities
designed to accelerate future growth," said Rory Read, AMD president
and CEO. "The actions we are taking are designed to improve our
ability to consistently address the needs of our global customer base
and stake leadership positions in lower power, emerging markets and
the cloud."
AMD expects that the restructuring plan will result in operational
savings, primarily in operating expenses, of approximately $10
million in the fourth quarter of 2011 and $118 million in 2012,
primarily through a reduction of its global workforce by
approximately 10% and the termination of existing contractual
commitments. The workforce reduction will occur across all functions
globally and is expected to be substantially completed by the end of
the first quarter of 2012. Based on anticipated savings from the
restructuring plan, AMD expects fourth quarter 2011 operating
expenses will be approximately $610 million.
As a result of implementing efficiencies across the company's
operations, AMD expects to save approximately $90 million in 2012
operating expenses in addition to the restructuring plan savings,
resulting in more than $200 million of expected combined operational
savings in 2012.
The company expects to reinvest a significant portion of the savings
to fund initiatives designed to accelerate AMD's strategies for lower
power, emerging markets, and the cloud.
The company's actions pursuant to the restructuring plan will take
place primarily during fourth quarter of 2011, with some
restructuring plan activities extending into 2012. The company
currently estimates that it will record restructuring expense in the
fourth quarter of 2011 and in 2012 of approximately $101 million and
$4 million, respectively. Of the total restructuring expense,
approximately $56 million will be future cash expenditures in 2011,
$33 million will be future cash expenditures in 2012 and $15 million
will be future cash expenditures in 2013.
About AMD
AMD (NYSE: AMD) is a semiconductor design innovator
leading the next era of vivid digital experiences with its
groundbreaking AMD Fusion Accelerated Processing Units (APUs) that
power a wide range of computing devices. AMD's server computing
products are focused on driving industry-leading cloud computing and
virtualization environments. AMD's superior graphics technologies are
found in a variety of solutions ranging from game consoles, PCs to
supercomputers. For more information, visit http://www.amd.com.
Cautionary Statement
This release contains forward-looking
statements concerning AMD's restructuring plan and operational
efficiency initiatives; the timing of these actions; anticipated
restructuring charges, cash expenditures and operational savings as
well as improved productivity and time-to-market as a result of the
implementation of these actions; future strategic initiatives and
growth opportunities; and fourth quarter of 2011 operating expenses,
which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
are commonly identified by words such as "would," "may," "expects,"
"believes," "plans," "intends," "projects," and other terms with
similar meaning. Investors are cautioned that the forward-looking
statements in this release are based on current beliefs, assumptions
and expectations, speak only as of the date of this release and
involve risks and uncertainties that could cause actual results to
differ materially from current expectations. Risks include the
possibility that Intel Corporation's pricing, marketing and rebating
programs, product bundling, standard setting, new product
introductions or other activities targeting the company's business
will prevent attainment of the company's current plans; the company
will be unable to develop, launch and ramp new products and
technologies in the volumes and mix required by the market and at
mature yields on a timely basis; GLOBALFOUNDRIES will be unable to
manufacture the company's products on a timely basis in sufficient
quantities and using competitive technologies; the company will be
unable to obtain sufficient manufacturing capacity or components to
meet demand for its products or will under-utilize its commitment
with respect to GLOBALFOUNDRIES' microprocessor manufacturing
facilities; the company will be unable to transition its products to
advanced manufacturing process technologies in a timely and effective
way; global business and economic conditions will not continue to
improve or will worsen resulting in lower than currently expected
demand; demand for computers and consumer electronics products and,
in turn, demand for the company's products will be lower than
currently expected; customers stop buying the company's products or
materially reduce their demand for its products; the company will
require additional funding and may not be able to raise funds on
favorable terms or at all; there will be unexpected variations in
market growth and demand for the company's products and technologies
in light of the product mix that it may have available at any
particular time or a decline in demand; and the company will be
unable to maintain the level of investment in research and
development that is required to remain competitive. Investors are
urged to review in detail the risks and uncertainties in the
company's Securities and Exchange Commission filings, including but
not limited to the Quarterly Report on Form 10-Q for the quarter
ended July 2, 2011.
AMD, the AMD Arrow logo, and combinations thereof, are trademarks of
Advanced Micro Devices, Inc. Other names are for informational
purposes only and may be trademarks of their respective owners.
Contact:
Drew Prairie
AMD Public Relations
(512) 602-4425
Email Contact
Ruth Cotter
AMD Investor Relations
(408) 749-3887
Email Contact
SOURCE: Advanced Micro Devices
http://www2.marketwire.com/mw/emailprcntct?id=A0F6244439CD0DD9
http://www2.marketwire.com/mw/emailprcntct?id=3A4A97B10B9A49D2
