[LETTERHEAD OF ADVANCED MICRO DEVICES, INC.] NEWS RELEASE For further information: Chuck Mulloy (408) 749-5481 AMD REPORTS 1995 YEAR-END RESULTS SUNNYVALE, CA ... January 10, 1996 ... Advanced Micro Devices (AMD) today reported 1995 year-end sales of $2,429,724,000, an increase of 14 percent compared to the $2,134,659,000 reported for fiscal 1994. Net income applicable to common stockholders was $300,511,000, compared to $294,916,000 for 1994. Earnings per share were $2.81 on a fully diluted basis, compared to $2.92 per share fully diluted reported for 1994. Sales for the fourth quarter of 1995 were $539,029,000, up nine percent compared to $545,168,000 reported for the fourth quarter of 1994. Third quarter sales were $590,385,000. Net income applicable to common stockholders was $55,572,000 or $0.52 per share, up 46 percent compared to $38,171,000 or $0.39 per share fully diluted earned in the fourth quarter of 1994. The fourth quarter 1994 net income reflected a one-time charge for a litigation settlement. Third quarter 1995 net income was $56,163,000 or $0.52 per share. Net income in the fourth quarter of 1995 benefited from a lower tax rate. The company again reported strong demand for its flash products. "Sales of our flash devices grew over 20 percent on a sequential basis and nearly tripled year-over-year," said W.J. Sanders III, chairman and chief executive officer of AMD. "Late in the quarter we began sampling our new 3 volt-only flash memory products, which we believe will gain wide acceptance for battery powered applications in 1996." More... 2 Overall sales in the fourth quarter were only nominally higher over the third quarter due to lower than expected unit shipments of Am486(R) microprocessors. "With the exception of Microsoft(R) Windows(R)-compatible microprocessors, our product sales increased by eight percent sequentially and more than 36 percent for the year," Sanders said. In December, AMD broadly sampled customers with the first member of its K86(TM) Superscalar Family of Microsoft Windows-compatible microprocessors, code named SSA/5-75. This microprocessor is a plug-in replacement for a Pentium 75. Also during the quarter, AMD commenced shipments of its AM5x86(TM)-P75 microprocessor. This device exceeds the performance of a Pentium 75 while maintaining socket compatibility with 486 motherboards. Both products are manufactured on AMD's 0.35 micron logic process technology. Focusing on personal and networked computing and communications markets, Advanced Micro Devices, Inc., produces microprocessors and related peripherals, flash memories, programmable logic devices, and circuits for telecommunications and networking applications. Founded in 1969, AMD has sales and manufacturing facilities worldwide. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release looking forward in time involve risks and uncertainties, including product demand and market acceptance risks, the effect of changing economic conditions, the impact of competitive products and pricing, risks in technology development, risks in product development and commercialization, the effect of the company's accounting policy, and other risk factors detailed in the company's Securities and Exchange Commission filings. ### Am5x86 and K86 are trademarks of Advanced Micro Devices. Am486 is a registered trademark of Advanced Micro Devices. Microsoft and Windows are registered trademarks of Microsoft Corporation. All other product names used in this press release are for identification purposes only and may be trademarks of their respective companies. 3 Advanced Micro Devices, Inc. CONSOLIDATED STATEMENTS OF INCOME (Thousands except per share amounts)
Quarter Ended Year Ended (Unaudited) (Audited) - ------------------------------------------------------------------------------------------------------------------------------------ Dec. 31, Oct. 1, Dec. 25, Dec. 31, Dec. 25, 1995 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales.................................... $593,029 $590,385 $545,168 $2,429,724 $2,134,659 Cost of sales................................ 362,801 344,344 263,837 1,298,876 982,306 Research and development..................... 104,009 100,014 76,115 397,555 279,984 Marketing, general, and administrative....... 95,181 95,525 87,236 385,016 359,230 - ------------------------------------------------------------------------------------------------------------------------------------ 561,991 539,883 427,188 2,081,447 1,621,520 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income............................. 31,038 50,502 117,980 348,277 513,139 Litigation settlement........................ - - (58,000) - (58,000) Interest income and other, net............... 7,526 9,867 5,317 30,763 16,259 Interest expense............................. (706) - (1) (707) (1,844) - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes and equity in joint venture............................ 37,858 60,369 65,296 378,333 469,554 Provision for income taxes................... 3,786 16,517 21,548 112,738 153,703 - ------------------------------------------------------------------------------------------------------------------------------------ Income before equity in joint venture........ 34,072 43,852 43,748 265,595 315,851 Equity in net income (loss) of joint venture..................................... 21,500 12,311 (2,989) 34,296 (10,585) - ------------------------------------------------------------------------------------------------------------------------------------ Net income................................... 55,572 56,163 40,759 300,521 305,266 Preferred stock dividends.................... - - 2,588 10 10,350 - ------------------------------------------------------------------------------------------------------------------------------------ Net income applicable to common stockholders................................ 55,572 56,163 38,171 300,511 294,916 - ------------------------------------------------------------------------------------------------------------------------------------ Net income per common share - - Primary.................................... $0.52 $0.52 $0.39 $2.85 $3.02 - - Fully diluted.............................. $0.52 $0.52 $0.39 $2.81 $2.92 - ------------------------------------------------------------------------------------------------------------------------------------ Shares used in per share calculation - - Primary.................................... 106,799 107,318 98,636 105,575 97,510 - - Fully diluted.............................. 106,799 107,319 105,490 107,035 104,570
4 Advanced Micro Devices, Inc. CONSOLIDATED BALANCE SHEETS (Thousands)
December 31, December 25, 1995 1994 (Audited) (Audited) - -------------------------------------------------------------------------------- Assets - -------------------------------------------------------------------------------- Current assets: Cash, cash equivalents, and short-term investments..................................... $ 490,647 $ 377,854 Accounts receivable, net......................... 275,733 337,107 Inventories...................................... 154,670 128,690 Deferred income taxes............................ 108,989 98,675 Prepaid expenses and other current assets........ 66,729 44,293 - -------------------------------------------------------------------------------- Total current assets......................... 1,096,768 986,619 Property, plant, and equipment, net.............. 1,636,092 1,264,211 Investment in joint venture...................... 176,821 124,588 Other assets..................................... 121,587 70,284 - -------------------------------------------------------------------------------- $3,031,268 $2,445,702 ================================================================================ Liabilities and Stockholders' Equity - -------------------------------------------------------------------------------- Current liabilities: Notes payable to banks........................... $ 27,070 $ 32,459 Accounts payable................................. 223,708 149,122 Accrued compensation and benefits................ 105,651 104,526 Accrued liabilities.............................. 79,092 82,570 Litigation settlement............................ - 58,000 Income tax payable............................... 56,297 53,795 Deferred income on shipments to distributors..... 100,057 83,800 Current portion of long-term debt and capital lease obligations....................... 29,861 27,895 - -------------------------------------------------------------------------------- Total current liabilities.................... 621,736 592,167 Deferred income taxes.............................. 94,439 42,518 Long-term debt and capital lease obligations, less current portion.............................. 214,965 75,752 Stockholders' equity: Capital stock: Serial preferred stock, par value.............. - 34 Common stock, par value........................ 1,047 956 Capital in excess of par value................... 735,825 698,673 Retained earnings................................ 1,363,256 1,035,602 - -------------------------------------------------------------------------------- Total stockholders' equity................... 2,100,128 1,735,265 - -------------------------------------------------------------------------------- $3,031,268 $2,445,702 ================================================================================