[Letterhead of Advanced Micro Devices, Inc.] CONTACT: Scott Allen Public Relations (408) 749-3311 AMD RETURNS TO PROFITABILITY SUNNYVALE, CA--April 7, 1997--AMD today reported sales of $551,999,000 for its first quarter, ended March 30, 1997. Net income amounted to $12,951,000, or $0.09 per common share, fully diluted. Sales grew by more than 11 percent over the immediate-prior quarter, when AMD reported sales of $496,868,000, which resulted in a net loss of $21,243,000, or $0.15 per common share. Sales rose by 1.4 percent over the first quarter of 1996. In the like period a year ago, AMD reported sales of $544,212,000, which resulted in net income of $25,327,000, or $0.18 per common share, fully diluted. Last year's first quarter results included non-recurring charges of $8.7 million for expenses associated with the company's acquisition of NexGen, Inc., and a non-recurring pre-tax gain of $24.7 million resulting from a sale of securities. "Recovering strength in all sectors of our business produced the sales growth necessary for AMD to return to modest profitability even before volume shipments of AMD-K6(TM) MMX processors," said W.J. Sanders III, chairman and chief executive officer. "Revenue growth was led by flash memories, Microsoft(R) Windows(R) compatible microprocessors, and programmable logic devices from our Vantis division. Our book-to-bill ratio was greater than 1:1 in the quarter. -more- #9734 "We made initial OEM shipments of 10,000 AMD-K6 processors during the March- ending quarter. Shipments of AMD-K5(TM) processors grew to 1.3 million units, with a richer product mix of mainly PR133 and PR166 devices," Sanders continued. "We are ramping production in order to ship hundreds of thousands of AMD-K6 MMX processors during the current quarter, and millions of units in the second half of 1997," Sanders concluded. About AMD - --------- AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2 billion in 1996. (NYSE: AMD). Cautionary Statement - -------------------- Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially, including the market acceptance and successful production ramp of the AMD-K6 MMX processor, the impact of competitive products and pricing, the timely development of wafer fabrication process technologies, the effect of changing economic conditions, and such risks and uncertainties detailed from time-to-time in the company's SEC reports. 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. AMD-K6 and AMD-K5 are trademarks of Advanced Micro Devices, Inc. AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. Microsoft and Windows are registered trademarks of Microsoft Corporation 2 #9734 Advanced Micro Devices, Inc. CONSOLIDATED BALANCE SHEETS (Thousands) March 30, December 29, 1997 1996 (Unaudited) (Audited) - ----------------------------------------------------------------------------- Assets - ----------------------------------------------------------------------------- Current assets: Cash, cash equivalents and short-term investments $628,887 $ 386,198 Accounts receivable, net 282,590 220,028 Inventories 149,218 154,010 Deferred income taxes 140,085 140,850 Prepaid expenses and other current assets 51,976 127,991 - ----------------------------------------------------------------------------- Total current assets 1,252,756 1,029,077 Property, plant and equipment, net 1,849,934 1,787,402 Investment in joint venture 187,566 197,205 Other assets 135,870 131,599 - ----------------------------------------------------------------------------- $3,426,126 $3,145,283 ============================================================================= Liabilities and Stockholders' Equity - ----------------------------------------------------------------------------- Current liabilities: Notes payable to banks $ 12,965 $ 14,692 Accounts payable 233,237 224,139 Accrued compensation and benefits 65,838 66,745 Accrued liabilities 106,796 103,436 Income tax payable 45,547 51,324 Deferred income on shipments to distributors 105,390 95,466 Current portion of long-term debt and capital lease obligations 31,406 27,671 - ---------------------------------------------------------------------------- Total current liabilities 601,179 583,473 Deferred income taxes 98,777 95,102 Long-term debt and capital lease obligations, less current portion 682,413 444,830 Stockholders' equity: Capital stock: Common stock, par value 1,400 1,380 Capital in excess of par value 989,767 957,226 Retained earnings 1,052,590 1,063,272 - ----------------------------------------------------------------------------- Total stockholders' equity 2,043,757 2,021,878 - ----------------------------------------------------------------------------- $3,426,126 $3,145,283 ============================================================================= 3 Advanced Micro Devices, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands except per share amounts) Quarter Ended (Unaudited) - ---------------------------------------------------------------------------- March 30, December 29, March 31, 1997 1996 1996 - ---------------------------------------------------------------------------- Net sales $551,999 $496,868 $544,212 Cost of sales 349,076 354,622 368,735 Research and development 104,908 107,499 94,780 Marketing, general and administrative 94,519 88,292 103,011 - ---------------------------------------------------------------------------- 548,503 550,413 566,526 - ---------------------------------------------------------------------------- Operating income (loss) 3,496 (53,545) (22,314) Interest income and other, net 13,322 4,079 28,059 Interest expense (9,410) (7,601) (1,981) - ---------------------------------------------------------------------------- Income (loss) before income taxes and equity in joint venture 7,408 (57,067) 3,764 Provision (benefit) for income taxes 2,148 (22,826) - - ---------------------------------------------------------------------------- Income (loss) before equity in joint venture 5,260 (34,241) 3,764 Equity in net income of joint venture 7,691 12,998 21,563 - ---------------------------------------------------------------------------- Net income (loss) applicable to common stockholders $12,951 $(21,243) $25,327 - ---------------------------------------------------------------------------- Net income (loss) per common share - - Primary $ 0.09 $ (0.15) $ 0.18 - - Fully diluted $ 0.09 $ (0.15) $ 0.18 - ---------------------------------------------------------------------------- Shares used in per share calculation - - Primary 146,751 137,693 138,399 - - Fully diluted 147,322 137,693 138,399 - ---------------------------------------------------------------------------- 4 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 (Unaudited) - -------------------------------------------------------------------------------- March 30, December 29, March 31, 1997 1996 1996 - -------------------------------------------------------------------------------- Net sales $551,999 $496,868 $544,212 Cost of sales 349,076 354,622 368,735 Income from equity investment in FASL (12,482) (19,996) (33,174) Research and development 104,908 107,499 94,780 Marketing, general and administrative 94,519 88,292 103,011 - -------------------------------------------------------------------------------- 536,021 530,417 533,352 - -------------------------------------------------------------------------------- Operating income (loss) 15,978 (33,549) 10,860 Interest income and other, net 13,322 4,079 28,059 Interest expense (9,410) (7,601) (1,981) - -------------------------------------------------------------------------------- Income (loss) before income taxes 19,890 (37,071) 36,938 Provision (benefit) for income taxes 2,148 (22,826) - Provision for taxes on equity income in FASL 4,791 6,998 11,611 - -------------------------------------------------------------------------------- Net income (loss) applicable to common stockholders $12,951 $(21,243) $25,327 - -------------------------------------------------------------------------------- Net income (loss) per common share - - Primary $ 0.09 $ (0.15) $ 0.18 - - Fully diluted $ 0.09 $ (0.15) $ 0.18 - -------------------------------------------------------------------------------- Shares used in per share calculation - - Primary 146,751 137,693 138,399 - - Fully diluted 147,322 137,693 138,399 - -------------------------------------------------------------------------------- * 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 GAAP. 5
AMD SELECTED CORPORATE DATA (UNAUDITED) ===================================================================================================== PRODUCT LINE BREAKDOWN - ---------------------- Q1 '97 Q4 '96 Q1 '96 % OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE ===================================================================================================== Communications Group (CPD, LPD, NPD) 31 $171M 33 $166M 33 $ 182M Vantis (PLD) 13 69M 12 59M 13 70M Memory Group (NVD) 33 184M 33 162M 39 210M Computation Products Group (CMD, PPD, TMD) 23 128M 22 110M 15 82M ===================================================================================================== OTHER DATA Q1 '97 Q4 '96 Q1 '96 ===================================================================================================== Depreciation and Amortization $ 91M $ 88M $ 80M Capital Additions 174M 144M 96M Headcount 12,025 12,181 12,806 - ----------------------------------------------------------------------------------------------------- International Sales 56% 55% 52%
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