EXHIBIT 99 NEWS RELEASE [LOGO OF AMD] One AMD Place P.O. Box 3453 Sunnyvale, CA 94088-3453 Tel (408) 732-2400 For further information: Tom Stites (408) 749-2918 AMD REPORTS SECOND QUARTER RESULTS SUNNYVALE, CA--JULY 10, 1996--AMD today reported a net loss of $34,672,000 on sales of $455,077,000 for the quarter ended June 30, 1996. The loss amounted to $0.26 per share on a fully diluted basis. The company's second- quarter results include a non-recurring, pre-tax gain of $16.3 million resulting from a sale of securities. Sales for the like period of 1995 amounted to $638,867,000, which resulted in net income of $80,652,000, or $0.59 per share fully diluted. In the immediate-prior quarter, AMD reported sales of $544,212,000, which resulted in net income of $25,327,000, or $0.18 per share fully diluted. The company's first-quarter results included a non-recurring gain of $24.7 million resulting from a sale of securities and non-recurring charges of $8.7 million for expenses associated with AMD's merger with NexGen, Inc., which was completed during the quarter. For the first six months of 1996, the company reported total revenues of $999,289,000, which resulted in a net loss applicable to common stockholders of $9,345,000, or $0.07 per common share fully diluted. For the same period a year ago, AMD reported revenues of $1,266,248,000, which resulted in net income applicable to common stockholders of $164,972,000, or $1.21 per common share fully diluted. (Financial results for 1995 have been restated to include the historical financial information of NexGen, Inc.) (more) 2 "The main cause of our revenue decrease was a significant decline in flash memory revenues from the immediate prior quarter," said W.J. Sanders III, chairman and chief executive officer. "Flash memory sales were impacted by soft demand and sharply lower prices as customers continued to reduce their inventories to levels consistent with current availability. All AMD product lines were adversely affected by weaker demand for semiconductors. "AMD incurred a widening operating loss in its second quarter as aggregate results from our other divisions were insufficient to offset the large losses we are currently experiencing in our Microsoft(R) Windows(R)-compatible microprocessor divisions," Sanders continued. "The keys to returning to profitability in our Windows-compatible microprocessor business are producing and selling our fifth-generation, AMD-K5(TM) and successfully introducing our sixth-generation, AMD-K6 superscalar microprocessors. In the just-completed quarter, we shipped more than 200,000 AMD-K5-PR75 and AMD-K5-PR90 microprocessors as direct plug-in replacements for Pentium(R) 75 and Pentium 90 devices, demonstrating compatibility of AMD's independently developed, fifth-generation processors," Sanders continued. "Consistent with our road map to introduce higher-performance devices, we made initial production shipments of our AMD-K5-PR100 devices during the second quarter," Sanders concluded. AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. A Fortune 500 company, AMD ----------- produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969, AMD is based in Sunnyvale, California, and has sales and manufacturing facilities worldwide. The Company had revenues of $2.5 billion in 1995 (NYSE: AMD). (more) 3 _______________________________________________________________________________ CAUTIONARY STATEMENT The forward-looking statements in the above news release relate to compatibility and profitability of AMD's microprocessors. Such forward-looking statements are based on current expectations and beliefs, and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Factors that would cause the actual results to differ materially are: the risk that the company's microprocessors may not be compatible with all industry-standard software and hardware or competitive with products produced by other manufacturers, primarily Intel Corporation; the risk that the company's sixth-generation microprocessor design acquired in the NexGen merger which is still in development, requires further modification using AMD's design verification and manufacturing technologies and will be manufactured using technologies which have not yet been successfully implemented; and such other risks and uncertainties as are detailed under the "Management's Discussion and Analysis of Results of Operations and Financial Condition" contained in the company's annual report on Form 10-K for the fiscal year ended December 31, 1995, and the company's quarterly report on Form 10-Q for the quarter ended March 31, 1996. _______________________________________________________________________________ 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. Microsoft and Windows are registered trademarks of Microsoft Corporation. Pentium is a registered trademark of Intel Corporation. AMD-K5, AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. AMD news release #96CORP18 9664 Advanced Micro Devices, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands except per share amounts) (Unaudited)
Quarters Ended Six Months Ended - ------------------------------------------------------------------------------------------------------- June 30, March 31, July 2, June 30, July 2, 1996 1996 1995 1996 1995 (Restated)* (Restated)* - ------------------------------------------------------------------------------------------------------- Net sales $455,077 $544,212 $638,867 $999,289 $1,266,248 Cost of sales 379,779 368,735 315,905 748,514 621,590 Research and development 92,768 94,780 105,695 187,548 202,569 Marketing, general, and administrative 83,063 103,011 106,602 186,074 209,336 - ------------------------------------------------------------------------------------------------------- 555,610 566,526 528,202 1,122,136 1,033,495 - ------------------------------------------------------------------------------------------------------- Operating income (loss) (100,533) (22,314) 110,665 (122,847) 232,753 Interest income and other, net 23,039 28,059 6,975 51,098 14,033 Interest expense (1,812) (1,981) (501) (3,793) (1,079) - ------------------------------------------------------------------------------------------------------- Income (loss) before income taxes and equity in joint venture (79,306) 3,764 117,139 (75,542) 245,707 Provision (credit) for income taxes (31,723) - 39,016 (31,723) 81,840 - ------------------------------------------------------------------------------------------------------- Income (loss) before equity in joint venture (47,583) 3,764 78,123 (43,819) 163,867 Equity in net income of joint venture 12,911 21,563 2,529 34,474 1,115 - ------------------------------------------------------------------------------------------------------- Net income (loss) (34,672) 25,327 80,652 (9,345) 164,982 Preferred stock dividends - - - - 10 - ------------------------------------------------------------------------------------------------------- Net income (loss) applicable to common stockholders $(34,672) $25,327 $80,652 $(9,345) $164,972 - ------------------------------------------------------------------------------------------------------- Net income (loss) per common share - - Primary $(0.26) $0.18 $0.59 $(0.07) $1.24 - - Fully diluted $(0.26) $0.18 $0.59 $(0.07) $1.21 - ------------------------------------------------------------------------------------------------------- Shares used in per share calculation - - Primary 135,266 138,399 136,950 134,487 132,722 - - Fully diluted 135,266 138,399 137,647 134,487 136,467 - -------------------------------------------------------------------------------------------------------
* Restated from previously released financial information as a result of the January 1996 merger with NexGen, Inc.
Advanced Micro Devices, Inc. CONSOLIDATED BALANCE SHEETS (Thousands) June 30, December 31, 1996 1995 (Unaudited) (Audited) (Restated)* - ------------------------------------------------------------------------------ Assets - ------------------------------------------------------------------------------ Current assets: Cash, cash equivalents, and short-term investments $281,658 $ 509,665 Accounts receivable, net 209,691 284,238 Inventories 175,837 155,986 Deferred income taxes 141,089 147,489 Prepaid expenses and other current assets 64,236 40,564 - ------------------------------------------------------------------------------ Total current assets 872,511 1,137,942 Property, plant, and equipment, net 1,681,120 1,641,634 Investment in joint venture 187,881 176,821 Other assets 103,513 122,070 - ------------------------------------------------------------------------------ $2,845,025 $3,078,467 ============================================================================== Liabilities and Stockholders' Equity - ------------------------------------------------------------------------------ Current liabilities: Notes payable to banks $ 11,878 $ 26,770 Accounts payable 177,240 241,916 Accrued compensation and benefits 57,178 106,347 Accrued liabilities 96,916 103,404 Income tax payable 3,000 56,297 Deferred income on shipments to distributors 93,990 100,057 Current portion of long-term debt and capital lease obligations 27,739 41,642 - ------------------------------------------------------------------------------ Total current liabilities 467,941 676,433 Deferred income taxes 103,807 84,607 Long-term debt and capital lease obligations, less current portion 201,922 214,965 Stockholders' equity: Capital stock: Common stock, par value 1,404 1,050 Capital in excess of par value 936,475 908,989 Retained earnings 1,133,476 1,192,423 - ------------------------------------------------------------------------------ Total stockholders' equity 2,071,355 2,102,462 - ------------------------------------------------------------------------------ $2,845,025 $3,078,467 ==============================================================================
* Restated from previously released financial information as a result of the January 1996 merger with NexGen, Inc. Advanced Micro Devices, Inc. INFORMATION ONLY - --------------------------------------------------------------------------- NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS* (Includes Pre-Tax FASL Investment Equity Income in Operating Income (Loss)) - --------------------------------------------------------------------------- (Thousands except per share amounts)
Quarter Ended Six Months Ended (Unaudited) (Unaudited) - -------------------------------------------------------------------------------------------------------- June 30, March 31, July 2, June 30, July 2, 1996 1996 1995 ** 1996 1995 ** - -------------------------------------------------------------------------------------------------------- Net sales $455,077 $544,212 $638,867 999,289 $1,266,248 Cost of sales 379,779 368,735 315,905 748,514 621,590 Net income from equity investment in FASL (19,863) (33,174) (3,891) (53,037) (1,715) Research and development 92,768 94,780 105,695 187,548 202,569 Marketing, general, and administrative 83,063 103,011 106,602 186,074 209,336 - -------------------------------------------------------------------------------------------------------- 535,747 533,352 524,311 1,069,099 1,031,780 - -------------------------------------------------------------------------------------------------------- Operating income (loss) (80,670) 10,860 114,556 (69,810) 234,468 Interest income and other, net 23,039 28,059 6,975 51,098 14,033 Interest expense (1,812) (1,981) (501) (3,793) (1,079) - -------------------------------------------------------------------------------------------------------- Income (loss) before income taxes and equity in joint venture (59,443) 36,938 121,030 (22,505) 247,422 Provision (credit) for income taxes (31,723) - 39,016 (31,723) 81,840 Provision for taxes on equity in income of FASL 6,952 11,611 1,362 18,563 600 - -------------------------------------------------------------------------------------------------------- Net income (loss) (34,672) 25,327 80,652 (9,345) 164,982 Preferred stock dividends - - - - 10 - -------------------------------------------------------------------------------------------------------- Net income (loss) applicable to common stockholders $(34,672) $25,327 $80,652 $(9,345) $164,972 - -------------------------------------------------------------------------------------------------------- Net income (loss) per common share - Primary $(0.26) $0.18 $0.59 $(0.07) $1.24 - Fully diluted $(0.26) $0.18 $0.59 $(0.07) $1.21 - -------------------------------------------------------------------------------------------------------- Shares used in per share calculation - Primary 135,266 138,399 136,950 134,487 132,722 - Fully diluted 135,266 138,399 137,647 134,487 136,467 - --------------------------------------------------------------------------------------------------------
* The above statements of operations are not in accordance with generally accepted accounting principles (GAAP) in that the pre-tax equity income of FASL has been reclassified and included in the determination of operating income (loss). Net income (loss) and related net income (loss) per common share amounts are the same as those reported under generally accepted accounting principles. ** Financial results for 1995 have been restated to include the historical financial information of NexGen, Inc. AMD SELECTED CORPORATE DATA (UNAUDITED)
PRODUCT LINE BREAKDOWN* - ----------------------- Q2 '96 Q1 '96 Q2 '95 % OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE ---------- ------- ---------- ------- ---------- ------- - --------------------------------------------------------------------------------------------- Computation Products Group 23 $103M 23 $126M 47 $ 298M Communications and Components Group 64 290M 64 348M 44 280M Programmable Logic Subsidiary 13 62M 13 70M 9 61M (TBN) - --------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------- OTHER DATA Q2 '96 Q1 '96 Q2 '95 - ---------- ------- ------- ------- - --------------------------------------------------------------------------------------------- Depreciation $88M $76M $56M Capital Spending 110M 96M 141M Headcount 12,535 12,806 12,352 - --------------------------------------------------------------------------------------------- International Sales 53% 52% 58%
* Restated to include NEXGEN