Form: 8-K

Current report filing

April 24, 2001

Documents

PRESS RELEASE DATED APRIL 18, 2001

Published on April 24, 2001



NEW RELEASE

EXHIBIT 99.1

CONTACTS:
John Greenagel
Strategic Communications
(408) 749-3310

Toni Beckham
Investor Relations
(408) 749-3127






AMD REPORTS FIRST QUARTER RESULTS

--AMD Sales Grow on Record PC Processor Sales --

SUNNYVALE, CA -- April 18, 2001 -- AMD today reported sales of
$1,188,747,000 and net income of $124,837,000 for the quarter ended April 1,
2001. Net income amounted to $0.37 per diluted share. The company reported
record sales and record unit shipments of PC processors, led by strong sales of
its seventh-generation AMD Athlon and AMD Duron processors.

Total sales grew by 9 percent over the like period of 2000 while increasing
by 1 percent from the immediate-prior quarter. In the first quarter of 2000, AMD
reported sales of $1,092,029,000 and net income of $189,349,000, or $0.55 per
diluted share. The company noted the tax rate for the just-completed quarter was
32 percent versus zero in the comparable period of 2000. In the fourth quarter
of 2000, AMD reported sales of $1,175,172,000, and net income of $177,968,000,
or $0.53 per diluted share, with a 15 percent tax rate.

-more-

2



AMD sold more than 7.3 million PC processors, including 6.5 million
seventh-generation AMD Athlon and Duron processors. Average selling prices
(ASPs) increased from the immediate-prior quarter on the richer product mix.
Total PC processor sales, at $661 million, increased 17 percent from both the
comparable quarter of 2000 and the immediate-prior quarter.

"AMD had an excellent quarter in a challenging economic environment," said
W.J. Sanders III, chairman and chief executive officer. "The superiority of our
seventh-generation PC processors enabled AMD to achieve record PC processor
sales in both dollars and units even as the industry worked through inventory
issues in a softening economy. Our success in the PC processor arena reflects
continuing excellent execution as well as our ability to supply products with
more delivered performance that enhance the competitiveness of our customers.

"New product introductions during the quarter strengthened and broadened
our PC processor portfolio," Sanders continued. "We commenced volume shipments
of our newest, power-managed AMD Athlon processors, code-named `Palomino,' for
the mobile PC market segment. Palomino processors feature an enhanced core and
our proprietary PowerNow! technology, which dynamically adjusts the frequency
and voltage of the processor based on the performance demands of the software,
enabling a significant reduction in power consumption in mobile applications.
PowerNow! technology is just one example of the better ideas from AMD that have
elevated us to contention with IBM for the number two global ranking in U.S.
patent issuances relating to large-scale integration processes and devices in
2000.

"AMD also introduced 1.3-gigahertz (GHz) and 1.33-GHz desktop versions of
the AMD Athlon processor in the first quarter. Earlier this month, AMD
introduced a 900-megahertz version of the AMD Duron processor, the industry's
highest-performance processor for the value segment of the desktop market.

"With these additions to our PC processor offerings, we have a compelling
solution for the performance mobile PC market where we have heretofore lacked a
competitive offering while extending our performance leadership for desktop PC
applications," Sanders continued.

-more-

3

"Sales of flash memory products, reflecting a sharp decline in demand from
the communications sector of the economy, declined by approximately 10 percent
sequentially to $411 million," Sanders continued. "Our broad product offering,
excellent relationships with major customers, and long-term purchase agreements
helped to mitigate the effects of this challenging environment and achieve 26
percent growth in flash memory product sales over the like period of 2000.

"We gained market share last quarter in both PC processors and flash
memory, the focal points of our growth strategy," Sanders said.

"Sales of our seventh-generation processors (AMD Athlon and AMD Duron
processors) grew 27 percent sequentially and 126 percent year-on-year. Demand
for our highest-performance AMD Athlon processors remained strong and we shipped
more than 2 million 1-GHz and faster devices. Going forward, we plan to continue
our aggressive production ramp in Fab 30 in Dresden, which will be the source of
our highest-performance AMD Athlon processors, including the new power-managed
versions," Sanders concluded.

Current Outlook

The company's outlook statements are based on current expectations. The
following statements are forward-looking, and actual results could differ
materially. The company's current outlook is based on the following projections.

The company currently expects that, in the seasonally slow second quarter
for PC sales, the enhanced competitive position of AMD-based solutions will
enable maintenance of PC processor unit sales at near-record levels comprised
totally of seventh-generation products. The company currently expects PC
industry unit growth in the high single-digit range for 2001 as a whole.

Uncertainties regarding the level of demand for flash memory products in a
continuing soft communications sector makes forecasting memory product sales
extremely difficult. The company currently projects that second quarter sales of
flash memory products will decline sequentially.

AMD's other IC products and foundry services, which currently account for
less than 10 percent of corporate revenues, will continue their decline both in
absolute terms and as a percentage of total revenues.

-more-

4

Accordingly, in this uncertain climate, AMD expects that overall second
quarter revenues could decline by as much as 10 percent sequentially, depending
on market conditions.

For the year as a whole, on modest sales growth in a declining market, the
company expects to earn $1.50 per diluted share, consistent with First Call
consensus earnings estimates.

AMD Teleconference

AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Standard Time today to discuss first-quarter financial results. AMD will
provide a real-time audio broadcast of the teleconference on the Investor
Relations page of its web site at http://www.amd.com or
------------------
http://www.streetfusion.com. The webcast will be available for two weeks after
- ---------------------------
the teleconference.

Cautionary Statement

This release contains forward-looking statements, which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that forward-looking statements in this release
involve risks and uncertainty that could cause actual results to differ
materially from current expectations. There can be no assurance that demand for
the company's products will continue at currently expected levels, that the
company will grow sales for the year, or that it will meet earnings per share
estimates.

Risks also include the possibility that global business and economic
conditions will worsen; that demand for personal computers and, in turn, demand
for the company's PC processors will be lower than currently expected; that
Intel Corporation pricing, marketing programs, new product introductions or
other activities targeting the company's processor business will prevent
attainment of the company's current PC processor sales plans; that the company
will not continue to be successful in ramping production of the company's
highest performance processors in Fab 30; that the company will not be able to
produce AMD Athlon and AMD Duron processors in the volume, speed mix or with the
feature set necessary to meet market requirements and the company's current
plans and goals; that third parties may not provide timely or adequate
infrastructure solutions to support the AMD Athlon and AMD Duron processors;

-more-

5

and that changes in customer needs and the product introductions and capacity
expansion of competitors will effect the demand for the company's flash memory
products. We urge investors to review in detail the risks and uncertainties in
the company's Securities and Exchange Commission filings, including but not
limited to the report on Form 10-K for the year ended December 31, 2000.

About AMD

AMD is a global supplier of integrated circuits for the personal and
networked computer and communications markets with manufacturing facilities in
the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard &
Poor's 500 company, produces microprocessors, flash memory devices, and support
circuitry for communications and networking applications. Founded in 1969 and
based in Sunnyvale, California, AMD had revenues of $4.6 billion in 2000. (NYSE:
AMD).

--30--

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 EDITOR: Readers may obtain additional information by calling 1-800-222-
9323 or 408-749-3060. Technical Support Email: hw.support@amd.com
------------------

AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof are trademarks
of Advanced Micro Devices, Inc. in the United States and other jurisdictions.


Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS
(Thousands)




April 1, December 31,
2001 2000*
---- -----
(unaudited)
Assets

Current assets:

Cash, cash equivalents and short-term investments: $1,595,556 $1,293,165
Accounts receivable, net.................................... 602,067 547,200
Inventories................................................. 354,630 343,541
Deferred income taxes....................................... 189,185 218,527
Prepaid expenses and other current assets................... 139,661 255,256
---------- ----------

Total current assets.......................... 2,881,099 2,657,689

Property, plant and equipment, net.............................. 2,663,904 2,636,467
Investment in joint venture..................................... 249,866 261,728
Other assets.................................................... 234,536 211,851
---------- ----------
$6,029,405 $5,767,735
---------- ----------
Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable............................................ $ 377,067 $ 477,369
Accrued compensation and benefits........................... 139,477 172,815
Accrued liabilities......................................... 278,092 276,721
Income tax payable.......................................... 84,286 74,806
Deferred income on shipments to distributors................ 99,286 92,828
Current portion of long-term debt, capital
lease obligations and other............................... 183,525 129,570
---------- ----------
Total current liabilities..................... 1,161,733 1,224,109

Deferred income taxes........................................... 198,066 203,986
Long-term debt, capital lease obligations and other,
less current portion.......................................... 1,392,970 1,167,973

Stockholders' equity:
Capital stock:
Common stock, par value................................... 3,160 3,141
Capital in excess of par value.............................. 1,422,593 1,406,290
Retained earnings........................................... 1,981,098 1,856,261
Accumulated other comprehensive loss........................ (130,215) (94,025)
---------- ----------
Total stockholders' equity.................... 3,276,636 3,171,667
---------- ----------
$6,029,405 $5,767,735
========== ==========

*Derived from the December 31, 2000 audited financial statements of Advanced Micro Devices, Inc.


14



Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)

Quarter Ended
(Unaudited)
-----------------------------------
Apr. 1, Dec. 31, Apr. 2,
2001 2000 2000
---- ---- ----

Net sales.......................................... $1,188,747 $1,175,172 $1,092,029

Cost of sales...................................... 714,830 657,303 605,757
Research and development........................... 157,760 162,087 161,297
Marketing, general and
administrative................................. 149,138 160,756 144,306
----------- ---------- -----------
1,021,728 980,146 911,360
----------- ---------- -----------

Operating income................................... 167,019 195,026 180,669

Interest income and other, net..................... 18,823 25,449 21,128
Interest expense................................... (21,645) (19,932) (11,479)
----------- ---------- -----------

Income before income taxes,
equity in joint venture and
extraordinary item............................. 164,197 200,543 190,318

Provision for income taxes......................... 52,543 30,081 -
----------- ---------- -----------

Income before equity in joint
venture and extraordinary item................. 111,654 170,462 190,318

Equity in net income (loss) in
joint venture.................................. 13,183 7,570 (969)
----------- ---------- -----------

Income before extraordinary item................... 124,837 178,032 189,349

Extraordinary item - debt retirement,
net of tax benefit............................. - (64) -

----------- ---------- -----------
Net income......................................... $ 124,837 $ 177,968 $189,349
----------- ---------- -----------

Net income per common share

Basic:
Income before extraordinary item................... $ 0.40 $ 0.57 $ 0.63
Net income......................................... $ 0.40 $ 0.57 $ 0.63

Diluted:
Income before extraordinary item................... $ 0.37 $ 0.53 $ 0.55
Net income......................................... $ 0.37 $ 0.53 $ 0.55
----------- ---------- -----------

Shares used in per share calculation

- - Basic.......................................... 314,347 313,501 302,257
- - Diluted........................................ 351,785 349,782 344,381
----------- ---------- -----------