AMD Reports Second Quarter Results
SUNNYVALE, CA -- (MARKET WIRE) -- 07/21/11 -- AMD (NYSE: AMD)
- AMD revenue $1.57 billion, 2 percent sequential decrease and 5 percent decrease year-over-year
- Net income $61 million, earnings per share $0.08, operating income $105 million
- Non-GAAP(1) net income $70 million, earnings per share $0.09, operating income $114 million
- Gross margin 46 percent
- Accelerating Fusion Accelerated Processor Unit (APU) shipments drive record microprocessor unit shipments and record mobile microprocessor unit shipments
AMD (NYSE: AMD) today announced revenue for the second quarter of 2011 of $1.57 billion, net income of $61 million, or $0.08 per share, and operating income of $105 million. The company reported non-GAAP net income of $70 million, or $0.09 per share, and non-GAAP operating income of $114 million.
"In the first half of 2011, AMD brought to market the most competitive client offerings in our history, reinforcing our position as a design and innovation powerhouse," said Thomas Seifert, CFO and Interim CEO. "Today's computing experience is increasingly being defined by the ability to deliver brilliant multimedia and video content with all day battery life. Fusion APUs are ideal to meet this need, positioning AMD to gain unit market share in the mobile computing space."
GAAP Financial Results(2)
----------------------------------------------------------------------------
Q2-11 Q1-11 Q2-10
----------------------------------------------------------------------------
Revenue $1.57B $1.61B $1.65B
----------------------------------------------------------------------------
Operating income $105M $54M $125M
----------------------------------------------------------------------------
Net income (loss) / Earnings (loss)
per share $61M/$0.08 $510M/$0.68 $(43)M/$(0.06)
----------------------------------------------------------------------------
Non-GAAP Financial Results(1)
----------------------------------------------------------------------------
Q2-11 Q1-11 Q2-10
----------------------------------------------------------------------------
Revenue $1.57B $1.61B $1.65B
----------------------------------------------------------------------------
Operating income $114M $92M $138M
----------------------------------------------------------------------------
Net income / Earnings per share $70M/$0.09 $56M/$0.08 $83M/$0.11
----------------------------------------------------------------------------
Quarterly Summary
- Gross margin was 46 percent.
- Cash, cash equivalents and marketable securities balance at the end of the quarter was $1.86 billion.
- AMD's second quarter had 13 weeks of business compared to 14 weeks for the first quarter.
- Computing Solutions segment revenue was flat sequentially and year-over-year. Sequentially, higher mobile microprocessor revenues were offset by lower desktop and server revenue. The year-over-year decrease was primarily driven by lower server revenue.
- Operating income was $142 million, compared with $100 million in Q1 11 and $128 million in Q2 10.
- Microprocessor ASP decreased sequentially and year-over-year.
- AMD launched the highly-anticipated AMD A-Series APU for client PCs combining a brilliant HD experience, supercomputer-like performance and all-day battery life for notebooks.
- AMD Fusion APUs received the 2011 Best Choice of Computex Taipei Award and the A-Series APU-based products have won 20 reviewer awards to-date.
- The AMD A-Series APU has secured more than 150 notebook and desktop design wins across leading PC manufacturers including Acer, Asus, Dell, HP, Lenovo, Samsung and Toshiba.
- Acer and MSI introduced new tablets based on AMD's 2011 HD Tablet Platform and AMD Z-Series APU that enables outstanding video, graphics experience and content creation capabilities for Windows-based tablets.
- The new AMD Embedded G-Series APU was named Best in Show for hardware at the Embedded Systems Conference by industry analyst firm VDC Research.
- The number of AMD-powered offerings on the most recent TOP500 supercomputers list increased 15 percent, with more than half of the AMD systems featuring the AMD Opteron™ 8- or 12-core processors.
- Dell, Cray and NexServe announced new AMD Opteron processor-based systems aimed at high-performance, compute-intensive workloads. Leading enterprises, universities and research facilities worldwide announced new high-performance computing installations featuring the AMD Opteron™ processor.
- Graphics segment revenue decreased 11 percent sequentially and 17 percent year-over-year. The sequential decrease was driven primarily by lower discrete mobile unit shipments and seasonality in the desktop discrete graphics add-in board market. The annual decrease was primarily driven by lower unit shipments.
- Operating loss was $7 million, compared with operating income of $19 million in Q1 11 and $33 million in Q2 10.
- GPU ASP was flat sequentially and year-over-year.
- AMD expanded its offerings for the professional graphics market with the introduction of the AMD FirePro™ V5900 and FirePro™ V7900 graphics cards which provide enhanced visual capabilities designed to improve workflow and increase productivity for engineers and designers.
- Dell announced a new, ultra-high performance blade server powered by the AMD FirePro™ V7800P professional graphics.
- The award-winning AMD Radeon™ HD 6000 family of graphics expanded with the introduction of two sub-$100 cards offering support for DirectX 11, AMD App acceleration and AMD Eyefinity multi-display technologies.
- AMD extended its position as the graphics provider of choice for the game console market, where more than 140 million current-generation games consoles are powered by AMD graphics technology. Nintendo announced it selected AMD to provide the graphics technology for its next-generation Wii U™ System that will be available next year.
Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.
AMD expects revenue to increase 10 percent, plus or minus 2 percent, sequentially for the third quarter of 2011.
For additional detail regarding AMD's results and outlook please see the CFO commentary posted at quarterlyearnings.amd.com.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its second quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its Web site at AMD. The webcast will be available for 10 days after the conference call.
Reconciliation of GAAP to Non-GAAP Net Income (1)
---------------------------------------------
(Millions except per share
amounts) Q2-11 Q1-11 Q2-10
----------------------------------------------------------------------------
GAAP net income (loss) /
Earnings (loss) per share $ 61 $ 0.08 $ 510 $ 0.68 $ (43) $ (0.06)
----------------------------------------------------------------------------
Equity income (loss) and
dilution gain in investee,
net - - 492 0.66 (120) (0.16)
----------------------------------------------------------------------------
Payment to GLOBALFOUNDRIES - - (24) (0.03) - -
----------------------------------------------------------------------------
Non-GAAP net income excluding
GLOBALFOUNDRIES related items 61 0.08 42 0.06 77 0.11
----------------------------------------------------------------------------
Amortization of acquired
intangible assets (9) (0.01) (9) (0.01) (17) (0.02)
----------------------------------------------------------------------------
Restructuring reversals - - - - 4 0.01
----------------------------------------------------------------------------
Legal settlements - - (5) (0.01) - -
----------------------------------------------------------------------------
Gain on investment sale - - - - 7 0.01
----------------------------------------------------------------------------
Non-GAAP net income / Earnings
per share $ 70 $ 0.09 $ 56 $ 0.08 $ 83 $ 0.11
----------------------------------------------------------------------------
Reconciliation of GAAP to Non-GAAP Operating Income (1)
------------------------
(Millions) Q2-11 Q1-11 Q2-10
----------------------------------------------------------------------------
GAAP operating income $ 105 $ 54 $ 125
----------------------------------------------------------------------------
Payment to GLOBALFOUNDRIES - (24) -
----------------------------------------------------------------------------
Amortization of acquired intangible assets (9) (9) (17)
----------------------------------------------------------------------------
Restructuring reversals - - 4
----------------------------------------------------------------------------
Legal settlements - (5) -
----------------------------------------------------------------------------
Non-GAAP operating income $ 114 $ 92 $ 138
----------------------------------------------------------------------------
Reconciliation of GAAP to Non-GAAP Gross Margin (1)
------------------------
(Millions except percentages) Q2-11 Q1-11 Q4-10
----------------------------------------------------------------------------
GAAP Gross Margin $ 720 $ 691 $ 738
----------------------------------------------------------------------------
GAAP Gross Margin % 46% 43% 45%
----------------------------------------------------------------------------
Payment to GLOBALFOUNDRIES - (24) -
----------------------------------------------------------------------------
Legal settlements - (5) -
----------------------------------------------------------------------------
Non-GAAP Gross Margin $ 720 $ 720 $ 738
----------------------------------------------------------------------------
Non-GAAP Gross Margin % 46% 45% 45%
----------------------------------------------------------------------------
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, its third quarter 2011 revenue, and future market share, 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 recent earthquake and tsunami in Japan may have significant impacts on the company's supply chain or its customers; 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 April 2, 2011.
AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations thereof, and are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.
(1) In this press release, in addition to GAAP financial results, the Company has provided non-GAAP financial measures, including for non-GAAP net income excluding GLOBALFOUNDRIES related items, non-GAAP net income, non-GAAP operating income, non-GAAP earnings per share and non-GAAP gross margin. These non-GAAP financial measures reflect certain adjustments as presented in the tables in this press release. The Company also provided Adjusted EBITDA and non-GAAP Adjusted free cash flow as supplemental measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this press release. The Company is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because the Company believes it assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. Refer to corresponding tables at the end of this press release for additional AMD data.
(2) For the year 2010, the Company accounted for its investment in GLOBALFOUNDRIES under the equity method of accounting. Starting in the first quarter of 2011, the Company started accounting for its investment in GLOBALFOUNDRIES under the cost method of accounting.
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and
percentages)
Quarter Ended Six Months Ended
------------------------------------------------------ ---------------------
Jul. 2, Apr. 2, Jun. 26, Jul. 2, Jun. 26,
2011 2011 2010 2011 2010
------------------------------------------------------ ---------------------
Net revenue $ 1,574 $ 1,613 $ 1,653 $ 3,187 $ 3,227
Cost of sales 854 922 915 1,776 1,748
------------------------------------------------------ ---------------------
Gross margin 720 691 738 1,411 1,479
Gross margin % 46% 43% 45% 44% 46%
Research and
development 367 367 371 734 694
Marketing, general
and administrative 239 261 229 500 448
Amortization of
acquired intangible
assets 9 9 17 18 34
Restructuring
reversal - - (4) - (4)
------------------------------------------------------ ---------------------
Operating income 105 54 125 159 307
Interest income 2 3 3 5 6
Interest expense (47) (48) (55) (95) (104)
Other income
(expense), net 4 11 (1) 15 303
------------------------------------------------------ ---------------------
Income before equity
income (loss) and
dilution gain in
investee and income
taxes 64 20 72 84 512
Provision (benefit)
for income taxes 3 2 (5) 5 (5)
Equity income (loss)
and dilution gain in
investee, net - 492 (120) 492 (303)
------------------------------------------------------ ---------------------
Net income (loss) $ 61 $ 510 $ (43) $ 571 $ 214
------------------------------------------------------ ---------------------
Net income (loss) per
share
Basic $ 0.08 $ 0.71 $ (0.06) $ 0.79 $ 0.30
Diluted $ 0.08 $ 0.68 $ (0.06) $ 0.76 $ 0.29
------------------------------------------------------ ---------------------
Shares used in per
calculation
Basic 724 720 709 722 708
Diluted 743 764 709 766 732
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Millions)
------------------------------------------------- ----------- -----------
Jul. 2, Apr. 2, Dec. 25,
2011 2011 2010
------------------------------------------------- ----------- -----------
Assets
Current assets:
Cash, cash equivalents and
marketable securities $ 1,861 $ 1,745 $ 1,789
Accounts receivable, net 759 797 968
Inventories, net 642 648 632
Prepaid expenses and other current
assets 176 221 205
------------------------------------------------- ----------- -----------
Total current assets 3,438 3,411 3,594
Property, plant and equipment, net 686 676 700
Investment in GLOBALFOUNDRIES 486 486 -
Acquisition related intangible
assets, net 19 28 37
Goodwill 323 323 323
Other assets 272 285 310
------------------------------------------------- ----------- -----------
Total Assets $ 5,224 $ 5,209 $ 4,964
================================================= =========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 455 $ 411 $ 376
Accounts payable to GLOBALFOUNDRIES 117 127 205
Accrued liabilities 575 605 698
Deferred income on shipments to
distributors 132 165 143
Other short-term obligations - 34 229
Current portion of long-term debt
and capital lease obligations 4 4 4
Other current liabilities 29 29 19
------------------------------------------------- ----------- -----------
Total current liabilities 1,312 1,375 1,674
Long-term debt and capital lease
obligations, less current portion 2,195 2,192 2,188
Other long-term liabilities 76 84 82
Accumulated loss in excess of
investment in GLOBALFOUNDRIES - - 7
Stockholders' equity:
Capital stock:
Common stock, par value 7 7 7
Additional paid-in capital 6,637 6,611 6,575
Treasury stock, at cost (106) (104) (102)
Accumulated deficit (4,897) (4,958) (5,468)
Accumulated other comprehensive
income - 2 1
------------------------------------------------- ----------- -----------
Total stockholders' equity 1,641 1,558 1,013
------------------------------------------------- ----------- -----------
Total Liabilities and Stockholders'
Equity $ 5,224 $ 5,209 $ 4,964
================================================= =========== ===========
ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions)
Six Months
Quarter Ended Ended
----------------------------------------------------------- --------------
Jul. 2, Jul. 2,
2011 2011
----------------------------------------------------------- --------------
Cash flows from operating activities:
Net income $ 61 $ 571
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity income and dilution gain in
investee - (492)
Depreciation and amortization 80 168
Compensation recognized under employee
stock plans 20 47
Non-cash interest expense 6 11
Other (1) 9
Changes in operating assets and
liabilities:
Accounts receivable 2 (187)
Inventories 6 (10)
Prepaid expenses and other current
assets 47 36
Other assets (9) 1
Accounts payable to GLOBALFOUNDRIES (10) (88)
Accounts payable, accrued liabilities
and other (28) (60)
----------------------------------------------------------- --------------
Net cash provided by operating activities $ 174 $ 6
----------------------------------------------------------- --------------
Cash flows from investing activities:
Purchases of property, plant and equipment (67) (105)
Purchases of available-for-sale securities (559) (952)
Proceeds from sale and maturity of
available-for-sale securities 396 830
Other - (17)
----------------------------------------------------------- --------------
Net cash used in investing activities $ (230) $ (244)
----------------------------------------------------------- --------------
Cash flows from financing activities:
Proceeds from borrowings, net of issuance
cost 5 170
Net proceeds from foreign grants 3 10
Proceeds from issuance of AMD common stock 6 15
Repayments of debt and capital lease
obligations (4) (5)
Other (2) (4)
----------------------------------------------------------- --------------
Net cash provided by financing activities $ 8 $ 186
----------------------------------------------------------- --------------
Net decrease in cash and cash equivalents (48) (52)
----------------------------------------------------------- --------------
Cash and cash equivalents at beginning of
period $ 602 $ 606
----------------------------------------------------------- --------------
Cash and cash equivalents at end of period $ 554 $ 554
----------------------------------------------------------- --------------
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions except headcount)
Quarter Ended Six Months Ended
---------------------------------------------------- -----------------------
Segment and
Category Jul. 2, Apr. 2, Jun. 26, Jul. 2, Jun. 26,
Information 2011 2011 2010 2011 2010
---------------------------------------------------- -----------------------
Computing
Solutions (1)
Net revenue $ 1,207 $ 1,200 $ 1,212 $ 2,407 $ 2,372
Operating
income $ 142 $ 100 $ 128 $ 242 $ 274
Graphics (2)
Net revenue 367 413 440 780 849
Operating
income (loss) (7) 19 33 12 80
All Other (3)
Net revenue - - 1 - 6
Operating loss (30) (65) (36) (95) (47)
Total
Net revenue $ 1,574 $ 1,613 $ 1,653 $ 3,187 $ 3,227
Operating
income $ 105 $ 54 $ 125 $ 159 $ 307
---------------------------------------------------- -----------------------
Other Data
Depreciation
and
amortization
(excluding
amortization
of acquired
intangible
assets) $ 71 $ 79 $ 83 $ 150 $ 166
Capital
additions $ 67 $ 38 $ 31 $ 105 $ 79
Adjusted EBITDA
(4) $ 205 $ 198 $ 244 $ 403 $ 546
Cash, cash
equivalents
and marketable
securities $ 1,861 $ 1,745 $ 1,896 $ 1,861 $ 1,896
Adjusted free
cash flow (5) $ 143 $ 154 $ 76 $ 297 $ 253
Total assets $ 5,224 $ 5,209 $ 4,955 $ 5,224 $ 4,955
Long-term debt
and capital
lease
obligations $ 2,199 $ 2,196 $ 2,421 $ 2,199 $ 2,421
Headcount 11,599 11,256 10,649 11,599 10,649
---------------------------------------------------- -----------------------
(1) Computing Solutions segment includes microprocessors, chipsets and
embedded processors.
(2) Graphics segment includes graphics, video and multimedia products
developed for use in desktop and notebook computers, including home
media PCs, professional workstations, servers and also includes
royalties received in connection with the sale of game console systems
that incorporate the Company's graphics technology.
(3) All Other category includes certain operating expenses and credits that
are not allocated to the operating segments. Also included in this
category are amortization of acquired intangible assets and
restructuring charges. It also includes the results of the Handheld
business unit because the operating results of this business unit were
not material.
(4) AMD reconciliation of GAAP operating income to Adjusted EBITDA*
Quarter Ended Six Months Ended
--------------------------------- ----------------------
Jul. 2, Apr. 2, Jun. 26, Jul. 2, Jun. 26,
2011 2011 2010 2011 2010
--------------------------------- ----------------------
GAAP operating
income $ 105 $ 54 $ 125 $ 159 $ 307
Payments to
GLOBALFOUNDRIES - 24 - 24 -
Legal settlement - 5 - 5 -
Depreciation and
amortization 71 79 83 150 166
Employee stock-
based
compensation
expense 20 27 23 47 43
Amortization of
acquired
intangible
assets 9 9 17 18 34
Restructuring
reversal - - (4) - (4)
----------------------------------------------------- ----------------------
Adjusted EBITDA $ 205 $ 198 $ 244 $ 403 $ 546
================================= ======================
(5) Non-GAAP adjusted free cash flow reconciliation**
Quarter Ended Six Months Ended
-------------------------------- ---------------------
Jul. 2, Apr. 2, Jun. 26, Jul. 2, Jun. 26,
2011 2011 2010 2011 2010
-------------------------------- ---------------------
GAAP net cash
provided by (used
in) operating
activities $ 174 $ (168) $ (98) $ 6 $ (75)
Non-GAAP
adjustment 36 360 205 396 407
-------------------------------- ---------------------
Non-GAAP net cash
provided by
operating activities 210 192 107 402 332
Purchases of
property, plant
and equipment (67) (38) (31) (105) (79)
-------------------------------- ---------------------
Non-GAAP adjusted
free cash flow $ 143 $ 154 $ 76 $ 297 $ 253
================================ =====================
* Starting in the fourth quarter of 2009, the Company presented "Adjusted EBITDA" as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting operating income (loss) for depreciation and amortization, employee stock-based compensation expense and amortization of acquired intangible assets. In addition, for the first quarter of 2011 and the six months ended July 2, 2011, the Company included adjustments related to a payment to GLOBALFOUNDRIES and a legal settlement with a third party. For the second quarter of 2010 and the six months ended June 26, 2010, the Company included an adjustment for certain restructuring reversals. The Company calculates and communicates Adjusted EBITDA in the financial schedules because the Company's management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of operating income (loss) or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. ** Starting in the first quarter of 2010, the Company presents non-GAAP adjusted free cash flow as a supplemental measure of its performance. In 2008 and 2009 the Company and certain of its subsidiaries (collectively, the "AMD Parties") entered into supplier agreements with IBM Credit LLC and certain of its subsidiaries (collectively, the "IBM Parties"). Pursuant to these supplier agreements, the AMD Parties sold to the IBM Parties invoices of selected distributor customers. Because the Company does not recognize revenue until its distributors sell its products to their customers, under U.S. GAAP, the Company classifies funds received from the IBM Parties as debt on the balance sheet. Moreover, for cash flow purposes, these funds are classified as cash flows from financing activities. When a distributor pays the applicable IBM Party, the Company reduces the distributor's accounts receivable and the corresponding debt resulting in a noncash accounting entry. Because the Company does not receive the cash from the distributor to reduce the accounts receivable, the distributor's payment is never reflected in the Company's cash flows from operating activities. Non-GAAP adjusted free cash flow for the Company was determined by adjusting GAAP net cash provided by (used in) operating activities by adding the distributors' payments to the IBM Parties to GAAP net cash provided by (used in) operating activities. This amount is then further adjusted by subtracting capital expenditures. Generally, under U.S. GAAP, the reduction in accounts receivable is assumed to be a source of operating cash flows. Therefore, the Company believes that treating the payments from its distributor customers to the IBM Parties as if the Company actually received the cash from the distributor and then used that cash to pay down the debt is more reflective of the economic substance of the transaction. On February 11, 2011, the Company terminated its supplier agreements with the IBM Parties. The Company calculates and communicates non-GAAP adjusted free cash flow in the financial schedules because the Company's management believes it is of importance to investors to understand the nature of these cash flows. The Company's calculation of non-GAAP adjusted free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view non-GAAP adjusted free cash flow as an alternative to GAAP liquidity measures of cash flows from operating or financing activities.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Media Contact Drew Prairie 512-602-4425 Email Contact Investor Contact Ruth Cotter 408-749-3887 Email Contact
Source: Advanced Micro Devices
Released July 21, 2011