EXHIBIT 99 [AMD LETTERHEAD] CONTACT: Scott Allen Public Relations (408) 749-3311 AMD REPORTS FOURTH QUARTER RESULTS SUNNYVALE, CA - January 13, 1998 - AMD today reported a net loss of $12,334,000 on sales of $613,171,000 for its fourth quarter, ended December 28, 1997. The loss amounted to $0.09 per share. Revenues increased by 3 percent over the immediate-prior quarter, and by 23 percent over the like period of 1996. Sales for the like period of 1996 were $496,868,000, which resulted in a net loss of $21,243,000, or $0.15 per share. In the immediate-prior quarter, AMD reported sales of $596,644,000, which resulted in a loss of $0.22 per share. Revenues for 1997 were $2,356,375,000, which resulted in a net loss of $21,090,000, or $0.15 per share. In 1996 AMD reported revenues of $1,953,019,000, which resulted in a net loss of $68,950,000, or $0.51 per share. Revenues grew by 21 percent year-to-year. "Our three non-microprocessor businesses - our Communications Group, our Memory Group, and our programmable logic company, Vantis(TM) - were profitable in the aggregate in the fourth quarter on revenues down slightly from the immediate-prior quarter," said W.J. Sanders III, chairman and chief executive officer. "We were especially pleased that flash memory sales increased nominally during a period of intense competition. "Sales of AMD-K6(R) processors for Microsoft(R) Windows(R) computing increased by 26 percent over the immediate-prior quarter to $190 million," Sanders continued. "Unit shipments of AMD-K6 processors increased by 50 percent to 1.5 million units. Although we increased unit production substantially, yields continued to be disappointing. We achieved significant progress in shipping higher-speed devices as nearly half of the units shipped were 233- megahertz (MHz) devices. "Demand for AMD-K6 processors remained strong. The AMD-K6 processor has achieved significant acceptance in the market for desktop personal computers priced below $2,000, and especially in the fast-growing market for sub-$1,000 personal computers. Our base of top-tier customers expanded with the addition of Compaq, the world's largest personal computer manufacturer, during the quarter. As previously reported, we made initial shipments of AMD-K6 processors manufactured with 0.25-micron technology produced in the company's Submicron Development Center in Sunnyvale, California, including both 266-MHz desktop and 233-MHz mobile versions. The 266-MHz AMD-K6 is being used in IBM Corp.'s new Aptiva model E46 personal computer, and the 233-MHz AMD-K6 is being used in the Compaq Presario model 1621 notebook computer. "Our current challenge is to execute a successful transition to 0.25-micron technology in our megafab, Fab 25, in Austin, Texas. Meeting our customers' demand for higher-performance AMD-K6 processors in the volumes they need is our first priority," Sanders concluded. CAUTIONARY STATEMENT Investors are cautioned that all forward-looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations. Any forward-looking statements about the AMD-K6 processor involve risks and uncertainties, including whether: the company will execute a successful transition to 0.25-micron technology in Fab 25 in Austin, will significantly improve production yields, and overall will achieve the production ramp necessary to meet customer demand for higher-performance AMD-K6 processors in the volumes they need; the company will increase AMD-K6 revenues sufficient to achieve profitability in the microprocessor business; the company will have the financial and other resources necessary to continue to invest in the microprocessor business, including leading-edge wafer fabrication equipment and process technologies; customer demand for the AMD-K6 processor will continue at current or greater levels; and whether economic conditions will change and affect demand for microprocessors and other integrated circuits. Investors are urged to consult the risks and uncertainties detailed in the company's reports filed with the Securities and Exchange Commission. 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 $2.4 billion in 1997. (NYSE: AMD). WORLD WIDE WEB: Press announcements and other information about AMD are available on the Internet via the World Wide Web. Type://www.amd.com at the URL prompt. VANTIS IS A TRADEMARKS OF ADVANCED MICRO DEVICES, INC. AMD-K6, AMD, THE AMD LOGO AND COMBINATIONS THEREOF ARE REGISTERED TRADEMARKS OF ADVANCED MICRO DEVICES, INC. MICROSOFT AND WINDOWS ARE REGISTERED TRADEMARKS OF MICROSOFT CORPORATION. ADVANCED MICRO DEVICES, INC. CONSOLIDATED BALANCE SHEETS (THOUSANDS)
December 28, December 29, 1997 1996 (Audited) (Audited) - ---------------------------------------------------------------------------------------------------------------------------- ASSETS - ---------------------------------------------------------------------------------------------------------------------------- Current assets: Cash, cash equivalents and short-term investments $ 467,032 $ 386,198 Accounts receivable, net 329,111 220,028 Inventories 168,517 154,010 Deferred income taxes 160,583 140,850 Prepaid expenses and other current assets 50,024 127,991 - ---------------------------------------------------------------------------------------------------------------------------- Total current assets 1,175,267 1,029,077 Property, plant and equipment, net 1,990,689 1,787,402 Investment in joint venture 204,031 197,205 Other assets 145,284 131,599 - ---------------------------------------------------------------------------------------------------------------------------- $3,515,271 $3,145,283 ============================================================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY - ---------------------------------------------------------------------------------------------------------------------------- Current liabilities: Notes payable to banks $ 6,601 $ 14,692 Accounts payable 359,536 224,139 Accrued compensation and benefits 63,429 66,745 Accrued liabilities 134,656 103,436 Income tax payable 12,676 51,324 Deferred income on shipments to distributors 83,508 95,466 Current portion of long-term debt and capital lease obligations 66,364 27,671 - ---------------------------------------------------------------------------------------------------------------------------- Total current liabilities 726,770 583,473 Deferred income taxes 96,269 95,102 Long-term debt and capital lease obligations, less current portion 662,689 444,830 Stockholders' equity: Capital stock: Common stock, par value 1,428 1,380 Capital in excess of par value 1,018,884 957,226 Retained earnings 1,009,231 1,063,272 - ---------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 2,029,543 2,021,878 - ---------------------------------------------------------------------------------------------------------------------------- $3,515,271 $3,145,283 ============================================================================================================================
ADVANCED MICRO DEVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (THOUSANDS EXCEPT PER SHARE AMOUNTS)
Quarters Ended Year Ended (Unaudited) (Audited) - --------------------------------------------------------------------------------------------------------------- Dec. 28, Sept. 28, Dec. 29, Dec. 28, Dec. 29, 1997 1997 1996 1997 1996 - --------------------------------------------------------------------------------------------------------------- Net sales $613,171 $596,644 $496,868 $2,356,375 $1,953,019 Cost of sales 428,856 428,240 354,622 1,578,438 1,440,828 Research and development 127,031 125,917 107,499 467,877 400,703 Marketing, general and administrative 102,296 100,915 88,292 400,713 364,798 - --------------------------------------------------------------------------------------------------------------- 658,183 655,072 550,413 2,447,028 2,206,329 - --------------------------------------------------------------------------------------------------------------- Operating loss (45,012) (58,428) (53,545) (90,653) (253,310) Interest income and other, net 6,525 5,532 4,079 35,097 59,391 Interest expense (11,757) (14,151) (7,601) (45,276) (14,837) - --------------------------------------------------------------------------------------------------------------- Loss before income taxes and equity in joint venture (50,244) (67,047) (57,067) (100,832) (208,756) Benefit for income taxes (29,861) (30,072) (22,826) (55,155) (85,008) - --------------------------------------------------------------------------------------------------------------- Loss before equity in joint venture (20,383) (36,975) (34,241) (45,677) (123,748) Equity in net income of joint venture 8,049 5,300 12,998 24,587 54,798 - --------------------------------------------------------------------------------------------------------------- NET LOSS APPLICABLE TO COMMON STOCKHOLDERS $(12,334) $(31,675) $(21,243) $ (21,090) $ (68,950) - --------------------------------------------------------------------------------------------------------------- NET LOSS PER COMMON SHARE - Basic $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51) - Diluted $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51) - --------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - Basic 141,889 141,055 137,102 140,453 135,126 - Diluted 141,889 141,055 137,102 140,453 135,126 - ---------------------------------------------------------------------------------------------------------------
ADVANCED MICRO DEVICES, INC. INFORMATION ONLY - -------------------------------------------------------------------------------- NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS* (INCLUDES PRE-TAX FASL INVESTMENT EQUITY INCOME IN OPERATING LOSS) - -------------------------------------------------------------------------------- (THOUSANDS EXCEPT PER SHARE AMOUNTS)
Quarters Ended Year Ended (Unaudited) (Audited) - --------------------------------------------------------------------------------------------------------------- Dec. 28, Sept. 28, Dec. 29, Dec. 28, Dec. 29, 1997 1997 1996 1997 1996 - --------------------------------------------------------------------------------------------------------------- NET SALES $613,171 $596,644 $496,868 $2,356,375 $1,953,019 Cost of sales 428,856 428,240 354,622 1,578,438 1,440,828 Income from equity investment in FASL (16,770) (11,041) (19,996) (47,549) (84,305) Research and development 127,031 125,917 107,499 467,877 400,703 Marketing, general and administrative 102,296 100,915 88,292 400,713 364,798 - --------------------------------------------------------------------------------------------------------------- 641,413 644,031 530,417 2,399,479 2,122,024 - --------------------------------------------------------------------------------------------------------------- Operating loss (28,242) (47,387) (33,549) (43,104) (169,005) Interest income and other, net 6,525 5,532 4,079 35,097 59,391 Interest expense (11,757) (14,151) (7,601) (45,276) (14,837) - --------------------------------------------------------------------------------------------------------------- Loss before income taxes (33,474) (56,006) (37,071) (53,283) (124,451) Benefit for income taxes (29,861) (30,072) (22,826) (55,155) (85,008) Provision for taxes on equity income in FASL 8,721 5,741 6,998 22,962 29,507 - --------------------------------------------------------------------------------------------------------------- NET LOSS APPLICABLE TO COMMON STOCKHOLDERS $(12,334) $(31,675) $(21,243) $ (21,090) $ (68,950) - --------------------------------------------------------------------------------------------------------------- NET LOSS PER COMMON SHARE - Basic $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51) - Diluted $ (0.09) $ (0.22) $ (0.15) $ (0.15) $ (0.51) - --------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - Basic 141,889 141,055 137,102 140,453 135,126 - Diluted 141,889 141,055 137,102 140,453 135,126 - ---------------------------------------------------------------------------------------------------------------
* 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 loss. Net loss and related net loss per common share amounts are the same as those reported under GAAP. AMD SELECTED CORPORATE DATA (UNAUDITED)
- -------------------------------------------------------------------------------------------------- PRODUCT LINE BREAKDOWN Q4 '97 Q3 '97 Q4 '96 - ---------------------- % OF SALES REVENUE % OF SALES REVENUE % OF SALES REVENUE ---------- ------- ---------- ------- ---------- ------- - ----------------------------------------------------------------------------------------------------- Communications Group (CPD, LPD, NPD) 28 $174M 30 $179M 33 $166M Vantis (PLD) 9 55M 10 62M 12 59M Memory Group (MG) 30 181M 30 178M 33 162M Computation Products Group (CMD, PPD, TMD) 33 203M 30 178M 22 110M - -------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------- OTHER DATA Q4 '97 Q3 '97 Q4 '96 - ---------- ------ ------ ------ - --------------------------------------------------------------------------------------------------- Depreciation and Amortization $108M $104M $ 88M Capital Additions 155M 157M 144M Headcount 12,759 12,617 12,181 - ----------------------------------------------------------------------------------------------------- International Sales 56% 60% 55%