Exhibit 99.1
NEWS RELEASE
CONTACT:
John Greenagel
Strategic Communications
(408) 749-3310
Toni Beckham
Investor Relations
(408) 749-3127
AMD REPORTS THIRD QUARTER RESULTS
AMD reports record sales, record operating income, and record net income of
$409 million; sales up by 82 percent from third quarter of 1999 -
SUNNYVALE, CA -- October 11, 2000 -- AMD today reported record sales of
$1,206,549,000, record operating income of $262,844,000, and record net income
of $408,567,000 for the quarter ended October 1, 2000. Net income amounted to
$1.18 per diluted share. The company's third-quarter results included a one-time
gain of $336,899,000 resulting from the sale of the company's voice
communications business (Legerity) during the quarter, and charges of
$22,980,000 relating to the retirement of senior secured notes. Net income
excluding one-time gains and charges was $219,301,000, or $0.64 per diluted
share, also a record.
Aggregate sales of the company's flagship products - PC processors and
flash memory devices - more than doubled from the third quarter of 1999, and
grew by more than 10 percent sequentially from the second quarter of 2000. Total
sales grew by 82 percent from the third quarter of 1999. Notwithstanding the
absence of sales from the company's voice communications business, which was
sold during the quarter, total sales grew by slightly more than 3 percent from
the immediate-prior quarter.
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In the immediate-prior quarter, AMD reported sales of $1,170,437,000,
operating income of $250,197,000, and net income of $207,142,000, or $0.60 per
diluted share. In the like period of 1999, AMD reported sales of $662,192,000,
an operating loss of $98,990,000, and net loss of $105,545,000, or a loss of
$0.36 per share.
For the first nine months of 2000, AMD reported sales of $3,469,015,000,
operating income of $693,710,000, and net income of $805,058,000, or $2.36 per
diluted share. For the same period of 1999, AMD reported total sales of
$1,888,894,000, an operating loss of $392,642,000, a net loss of $154,016,000,
or a loss of $0.52 per share. The results for the first nine months of 1999
included a one-time, after-tax gain of $259,236,000 from the sale of Vantis
Corporation, and restructuring and other special charges of $32,530,000.
The earnings per share and number of shares used in the earnings-per-share
data for all periods presented reflect the two-for-one stock split that was
effective August 21, 2000.
"Sales growth was led by continuing extraordinary demand for AMD flash
memory devices, whose sales more than doubled over the same period of 1999 and
grew by 17 percent sequentially on record unit sales," said W.J. Sanders III,
chairman and chief executive officer. "Demand for AMD flash memory products
continues to exceed supply. Demand also continues to be broadly based,
reflecting strength in cellular telephones, set-top boxes, automotive
applications, Internet infrastructure products, and mobile Internet appliances.
"In a tougher market than anticipated, AMD achieved record PC processor
revenues on record unit sales, which were up more than 50 percent year-on-year
and 10 percent sequentially," Sanders said. "We continued our excellent
operational execution and met our aggressive goal of sequentially doubling
combined AMD Athlon(TM) and AMD Duron(TM) processor sales to more than 3.6
million units. Our position as the reliable provider of the world's fastest PC
processors contributed immensely to our success in gaining market share
worldwide, particularly in the performance sector.
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"The newest version of the AMD Athlon processor, featuring performance-
enhancing on-chip L2 cache memory, is an overwhelming success, and demand
remains strong. The recently introduced AMD Duron processor is the performance
leader in the value space, and is on the steepest ramp of unit shipments of any
processor in AMD's history. We continue to work closely with our customers and
infrastructure partners to meet the challenge of providing the best performing
personal computers at all price points," Sanders concluded.
The company's total bookings in the third quarter were a record, with a
book-to-bill ratio greater than 1:1.
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
for its flagship products.
In the fourth quarter, the company again expects to sell out its production
of AMD Athlon processors. The company expects that sales of AMD Athlon
processors, AMD Duron processors, and PC processors in the aggregate will set
new records, individually and collectively, in both units and dollars. For the
year, the company expects that total sales of PC processors will easily exceed
earlier projections of 25 million units, with the final tally projected to be
approximately 28 million units, compared to last year's 18.8 million units. The
company projects that sales of AMD PC processors will be between 8 and 9 million
units in the fourth quarter based on a total market projected to be between 43
and 45 million units.
The company's production capacity ramp will be the limiting factor in
growth in sales of AMD flash memory products in the fourth quarter. The company
projects that demand for AMD flash memory products will continue to exceed
supply for the foreseeable future.
The company projects that total sales will grow in the high-single-digit
range sequentially, resulting in annual sales of approximately $4.8 billion,
compared to approximately $2.9 billion in 1999.
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AMD Teleconference
AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Daylight Time today to discuss third-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
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http://www.streetfusion.com. The webcast will be available for two weeks after
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the teleconference.
AMD will also provide a telephone recording of the teleconference, which
will be available at approximately 4:30 PM PDT today. Interested persons may
listen to the playback of the teleconference by calling the following toll-free
number: 1-800-633-8284 and entering the code number 16399094.
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 current or greater levels, or that the
company will continue to grow revenues, operating profit, or earnings. There are
also risks that the company will not be able to produce the AMD Athlon and AMD
Duron processors in the volume, speed mix or with the feature set necessary to
meet customer requirements and the company's plans and goals; that Intel
Corporation pricing, marketing programs, new product introductions or other
activities targeting the company's processors business will prevent attainment
of the company's current processor sales plans; that third parties may not
provide timely or adequate infrastructure solutions to support the AMD Athlon
and AMD Duron processors; that the company will not be able to grow demand for
its PC processors sufficiently to utilize fully its processor production
capacity; and that uncertain global economic conditions or Middle East tensions
will cause lower than expected demand for the company's 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 26, 1999.
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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 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 $2.9 billion in 1999. (NYSE: AMD).
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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
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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, and combinations thereof are trademarks of Advanced Micro
Devices, Inc. in the United States and other jurisdictions.
Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)
Quarter Ended Nine Months Ended
(Unaudited) (Unaudited)
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Oct. 1, Jul. 2, Sept. 26, Oct. 1, Sept. 26,
2000 2000 1999 2000 1999
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Net sales $ 1,206,549 $ 1,170,437 $ 662,192 $ 3,469,015 $ 1,888,894
Cost of sales 639,010 612,567 474,119 1,857,334 1,382,889
Research and development 162,764 155,651 157,626 479,712 484,850
Marketing, general and
administrative 141,931 152,022 129,437 438,259 381,267
Restructuring and other
special charges - - - - 32,530
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943,705 920,240 761,182 2,775,305 2,281,536
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Operating income (loss) 262,844 250,197 (98,990) 693,710 (392,642)
Gain on sale of Legerity 336,899 - - 336,899 -
Gain on sale of Vantis - - - - 432,059
Interest income and other, net 19,789 19,935 6,757 60,852 24,777
Interest expense (17,382) (11,244) (18,033) (40,105) (56,883)
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Income (loss) before income taxes,
equity in joint venture and
extraordinary item 602,150 258,888 (110,266) 1,051,356 7,311
Provision for income taxes 175,009 51,778 - 226,787 167,350
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Income (loss) before equity in joint
venture and extraordinary item 427,141 207,110 (110,266) 824,569 (160,039)
Equity in joint venture 4,406 32 4,721 3,469 6,023
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Income (loss) before extraordinary item 431,547 207,142 (105,545) 828,038 (154,016)
Extraordinary item - debt retirement
net of tax benefit 22,980 - - 22,980 -
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Net income (loss) $ 408,567 $ 207,142 $ (105,545) $ 805,058 $ (154,016)
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Net income (loss) per common share
Basic
Income (loss) before extraordinary item $ 1.38 $ 0.67 $ (0.36) $ 2.69 $ (0.52)
Net income (loss) $ 1.31 $ 0.67 $ (0.36) $ 2.61 $ (0.52)
Diluted
Income (loss) before extraordinary item $ 1.24 $ 0.60 $ (0.36) $ 2.42 $ (0.52)
Net income (loss) $ 1.18 $ 0.60 $ (0.36) $ 2.36 $ (0.52)
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Shares used in per share calculation
- Basic 311,943 309,625 295,223 307,942 293,934
- Diluted 352,893 352,973 295,223 350,082 293,934
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Advanced Micro Devices, Inc.
CONSOLIDATED BALANCE SHEETS*
(Thousands)
October 1, December 26,
2000 1999
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Assets
Current assets:
Cash, cash equivalents and short-term investments $ 1,233,497 $ 596,511
Accounts receivable, net 687,692 429,809
Inventories 290,426 198,213
Deferred income taxes 73,981 55,956
Prepaid expenses and other current assets 167,253 129,389
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Total current assets 2,452,849 1,409,878
Property, plant and equipment, net 2,505,801 2,523,236
Investment in joint venture 266,232 273,608
Other assets 147,110 170,976
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$ 5,371,992 $ 4,377,698
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 387,022 387,193
Accrued compensation and benefits 175,458 91,900
Accrued liabilities 289,372 273,689
Income tax payable 25,696 17,327
Deferred income on shipments to distributors 113,755 92,917
Current portion of long-term debt, capital
lease obligations and other 73,026 47,626
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Total current liabilities 1,064,329 910,652
Deferred income taxes 182,977 60,491
Long-term debt, capital lease obligations and other,
less current portion 1,223,475 1,427,282
Stockholders' equity:
Capital stock:
Common stock, par value 3,226 2,992
Capital in excess of par value 1,311,042 1,120,460
Retained earnings 1,678,290 873,235
Accumulated other comprehensive loss (91,347) (17,414)
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Total stockholders' equity 2,901,211 1,979,273
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$ 5,371,992 $ 4,377,698
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* Amounts as of October 1, 2000 are unaudited. Amounts for December 26, 1999 are
derived from the December 26, 1999 audited financial statements.