Exhibit 99.1 [AMD LETTERHEAD] CONTACT: Scott Allen Public Relations (408) 749-3311 John Greenagel Corporate Communications (408) 749-3310 Toni Beckham Investor Relations (408) 749-3127 AMD REPORTS THIRD QUARTER RESULTS SUNNYVALE, CA--OCTOBER 6, 1999--AMD today reported sales of $662,192,000 and a net loss of $105,545,000, or $0.72 per share, for the third quarter, ended September 26, 1999. Led by increased sales of AMD Athlon (TM) processors and flash memory products, sales increased by 11 percent from the immediate-prior quarter, while declining by 3 percent from the third quarter of 1998. Results from the immediate-prior quarter and the third quarter of 1998 include sales of Vantis Corporation, the AMD programmable logic subsidiary that was sold during the second quarter of 1999. Sales for AMD continuing product groups - the Computation Products Group, Communications Group, and Memory Group - were up 16 percent from the immediate-prior quarter, while up 1 percent from the third quarter of 1998. -more- 2 In the immediate-prior quarter, AMD reported sales of $595,109,000 and net income of $79,896,000, or $0.53 per diluted share. The company's second-quarter results reflected an operating loss of $172,542,000, a one-time after-tax gain of $259,236,000 from the sale of the Vantis, and restructuring and other special charges of $17,514,000. Excluding the one-time gain and the restructuring and other special charges, results would have been a net loss of $161,826,000, or $1.10 per share for the quarter ended June 27, 1999. In the third quarter of 1998, AMD reported sales of $685,927,000, which resulted in net income of $1,006,000, or $0.01 per diluted share. For the first nine months of 1999, AMD reported total sales of $1,888,894,000, which resulted in a net loss of $154,016,000, or $1.05 per share. In the first nine months of 1998, AMD reported total sales of $1,753,321,000, and a net loss of $126,281,000, or $0.88 per share. "Sharply higher sales of flash memories and sales of AMD Athlon processors at higher margins than those experienced on AMD-K6(R) family processors combined to boost revenues smartly and cut our operating loss by more than $70 million compared to the immediate-prior quarter," said W.J. Sanders III, chairman and chief executive officer. "Flash memory sales grew by 28 percent over the immediate-prior quarter. Flash memory demand is very strong and continues to outstrip our ability to supply, even as we increase production capacity. "Unit sales of Microsoft Windows compatible processors grew by more than 20 percent over the immediate-prior quarter to more than 4.5 million units," Sanders continued. "Limited AMD Athlon motherboard availability during the third quarter was exacerbated by the Taiwan earthquake on September 21, which shut off motherboard shipments in the final week of our quarter. In spite of this, unit sales of AMD Athlon processors attained the hundreds of thousands level. -more- 3 "Demand for AMD Athlon processors from both our OEM customers and end-users has been very strong. Technical reviews have been outstanding, reflecting the clear superiority of the AMD Athlon processor over the Intel Pentium III processor on all important and relevant benchmarks. With this week's introduction of the 700-MHz AMD Athlon processor, AMD continues to set the performance standard for Microsoft Windows PCs. "Our operational performance last quarter was excellent. Accordingly, we are highly confident that we can produce more than one million AMD Athlon processors in the current quarter. In the face of strong demand, unit sales are expected to be gated by infrastructure support limitations resulting from the continuing effects of the Taiwan earthquake. The most critical items are the motherboards themselves and the components that populate them. Based on all of the currently available information, we believe we still have a good chance of achieving our pre-earthquake goal of cumulative sales of one million AMD Athlon processors by year-end," Sanders concluded. 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. Forward-looking statements are generally preceded by words such as "plans," "expects," "believes," "anticipates" or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release involve the risk that third parties may not provide infrastructure solutions to support the AMD Athlon processor in a timely manner to allow the company to meet its unit sales goals, that infrastructure support limitations resulting from the continuing effects of the Taiwan earthquake will worsen, that the company will not be able to produce the AMD Athlon processor in the volume necessary to meet its goals, that the AMD Athlon will not achieve customer and market acceptance; and, that demand for flash memory products will not continue at current or greater levels. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings. -more- 4 About AMD AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces microprocessors, flash memories, and integrated circuits for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.5 billion in 1998. (NYSE:AMD). --30-- Visit AMD on the Web: Additional press releases and information about AMD and its products are available at www.amd.com. AMD, the AMD logo, 3DNow!, AMD Athlon and combinations thereof are trademarks, and the AMD-K6 is a registered trademark of Advanced Micro Devices, Inc. Microsoft and Windows are registered trademarks of Microsoft Corporation. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies. Advanced Micro Devices, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands except per share amounts)
Quarter Ended Nine Months Ended (Unaudited) (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------ Sept. 26, June 27, Sept. 27, Sept. 26, Sept. 27, 1999 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ Net sales $ 662,192 $ 595,109 $ 685,927 $1,888,894 $ 1,753,321 Cost of sales 474,119 458,339 422,985 1,382,889 1,236,716 Research and development 157,626 167,278 143,665 484,850 410,943 Marketing, general and administrative 129,437 124,520 109,768 381,267 299,180 Restructuring and other special charges - 17,514 - 32,530 - - ------------------------------------------------------------------------------------------------------------------------------ 761,182 767,651 676,418 2,281,536 1,946,839 - ------------------------------------------------------------------------------------------------------------------------------ Operating income (loss) (98,990) (172,542) 9,509 (392,642) (193,518) Gain on sale of Vantis - 432,059 - 432,059 - Litigation settlement - - - - (11,500) Interest income and other, net 6,757 7,252 10,071 24,777 24,170 Interest expense (18,033) (18,087) (21,182) (56,883) (51,317) - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) before income taxes and equity in joint venture (110,266) 248,682 (1,602) 7,311 (232,165) Provision (benefit) for income taxes - 172,823 (635) 167,350 (91,742) - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) before equity in joint venture (110,266) 75,859 (967) (160,039) (140,423) Equity in net income of joint venture 4,721 4,037 1,973 6,023 14,142 - ------------------------------------------------------------------------------------------------------------------------------ Net income (loss) $ (105,545) $ 79,896 $ 1,006 $ (154,016) $ (126,281) - ------------------------------------------------------------------------------------------------------------------------------ Net income (loss) per common share - - Basic $ (0.72) $ 0.54 $ 0.01 $ (1.05) $ (0.88) - - Diluted $ (0.72) $ 0.53 $ 0.01 $ (1.05) $ (0.88) - ------------------------------------------------------------------------------------------------------------------------------ Shares used in per share calculation - - Basic 147,388 146,947 143,915 146,748 143,249 - - Diluted 147,388 149,540 146,642 146,748 143,249 - ------------------------------------------------------------------------------------------------------------------------------
Advanced Micro Devices, Inc. INFORMATION ONLY - -------------------------------------------------------------------------------- NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS* (Includes Pre-Tax FASL Investment Equity Loss (Income) in Operating Income (Loss)) - -------------------------------------------------------------------------------- (Thousands except per share amounts)
Quarter Ended Nine Months Ended (Unaudited) (Unaudited) - ---------------------------------------------------------------------------------------------------------------------------- Sept. 26, June 27, Sept. 27, Sept. 26, Sept. 27, 1999 1999 1998 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------- Net sales $ 662,192 $ 595,109 $ 685,927 $ 1,888,894 $ 1,753,321 Cost of sales 474,119 458,339 422,985 1,382,889 1,236,716 Income from equity investment in FASL (8,098) (6,869) (4,487) (10,332) (27,891) Research and development 157,626 167,278 143,665 484,850 410,943 Marketing, general and administrative 129,437 124,520 109,768 381,267 299,180 Restructuring and other special charges - 17,514 - 32,530 - - ----------------------------------------------------------------------------------------------------------------------------- 753,084 760,782 671,931 2,271,204 1,918,948 - ----------------------------------------------------------------------------------------------------------------------------- Operating income (loss) (90,892) (165,673) 13,996 (382,310) (165,627) Gain on sale of Vantis - 432,059 - 432,059 - Litigation settlement - - - - (11,500) Interest income and other, net 6,757 7,252 10,071 24,777 24,170 Interest expense (18,033) (18,087) (21,182) (56,883) (51,317) - ----------------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes (102,168) 255,551 2,885 17,643 (204,274) Provision (benefit) for income taxes - 172,823 (635) 167,350 (91,742) Provision for taxes on equity income in FASL 3,377 2,832 2,514 4,309 13,749 - ----------------------------------------------------------------------------------------------------------------------------- Net income (loss) $ (105,545) $ 79,896 $ 1,006 $ (154,016) $ (126,281) - ----------------------------------------------------------------------------------------------------------------------------- Net income (loss) per common share - - Basic $ (0.72) $ 0.54 $ 0.01 $ (1.05) $ (0.88) - - Diluted $ (0.72) $ 0.53 $ 0.01 $ (1.05) $ (0.88) - ----------------------------------------------------------------------------------------------------------------------------- Shares used in per share calculation - - Basic 147,388 146,947 143,915 146,748 143,249 - - Diluted 147,388 149,540 146,642 146,748 143,249 - -----------------------------------------------------------------------------------------------------------------------------
* 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. Advanced Micro Devices, Inc. CONSOLIDATED BALANCE SHEETS* (Thousands)
Sept. 26, Dec. 27, 1999 1998 - ------------------------------------------------------------------------------------------------------------------ Assets Current assets: Cash, cash equivalents and short-term investments $ 377,035 $ 697,025 Accounts receivable, net 382,478 415,557 Inventories 234,110 175,075 Deferred income taxes 49,827 205,959 Prepaid expenses and other current assets 117,331 68,411 - ------------------------------------------------------------------------------------------------------------------ Total current assets 1,160,781 1,562,027 Property, plant and equipment, net 2,569,115 2,268,468 Investment in joint venture 271,896 236,820 Other assets 177,015 185,653 - ------------------------------------------------------------------------------------------------------------------ $ 4,178,807 $ 4,252,968 ================================================================================================================== Liabilities and Stockholders' Equity Current liabilities: Notes payable to banks $ 4,778 $ 6,017 Accounts payable 318,126 333,975 Accrued compensation and benefits 90,386 80,334 Accrued liabilities 208,248 168,280 Income tax payable 9,526 22,026 Deferred income on shipments to distributors 77,698 84,523 Current portion of long-term debt, capital lease obligations and other 44,691 145,564 - ------------------------------------------------------------------------------------------------------------------ Total current liabilities 753,453 840,719 Deferred income taxes 58,037 34,784 Long-term debt, capital lease obligations and other, less current portion 1,448,552 1,372,416 Stockholders' equity: Capital stock: Common stock, par value 1,490 1,465 Capital in excess of par value 1,109,072 1,071,591 Retained earnings 808,155 962,171 Accumulated other comprehensive income (loss) 48 (30,178) - ------------------------------------------------------------------------------------------------------------------ Total stockholders' equity 1,918,765 2,005,049 - ------------------------------------------------------------------------------------------------------------------ $ 4,178,807 $ 4,252,968 ==================================================================================================================
* Amounts as of September 26, 1999 are unaudited. Amounts as of December 27, 1998 are derived from the December 27, 1998 audited financial statements. AMD Selected Corporate Data (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------- Segment Breakdown Q3 '99 Q2 '99 Q3 '98 - ----------------- % of Sales Revenue % of Sales Revenue % of Sales Revenue ---------- ------- ---------- ------- ---------- ------- - ----------------------------------------------------------------------------------------------------------------------- AMD segment: Computation Products Group 55 $ 368M 53 $ 317M 64 $ 437M Memory Group 31 206M 28 166M 19 129M Communications Group 11 70M 12 70M 10 70M Other 3 18M 0 2M 0 0M Vantis segment: Vantis 0 0 7 40M 7 50M - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- Other Data Q3 '99 Q2 '99 Q3 '98 - ---------- ------ ------ ------ - ----------------------------------------------------------------------------------------------------------------------- Depreciation and Amortization $130M $128M $117M Capital Additions 146M 148M 321M Headcount 13,244 13,467 13,384 - ----------------------------------------------------------------------------------------------------------------------- International Sales 63% 58% 52%